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Mini-Dorms are becoming a Bigger Problem in San Diego - Are Distress Sales to Blame?

By
Real Estate Agent with eXp Realty of California, Inc. CA DRE #01490977

There have been many issues that have arisen as the result of the increasing short sales, foreclosures, and REOs in communities throughout the country.

  • Property values have dropped
  • Appraisals come in low resulting in deal falling apart or needing renegotiation
  • "Stephen King" pools are common leading to health concerns such as West Nile Virus
  • Neighborhoods once attractive and well-kept take on a rather disheveled appearance with multiple vacant homes on the block
  • Vandalism of vacant homes has increased
  • Folks break into vacant homes to have parties
  • Squatters sometimes take over vacant properties

You get the idea.

San Elijo Hills in San MarcosThe other issue that is increasingly causing concern to homeowners about the distressed are the mini-dorms which are cropping up in neighborhoods in San Diego, including San Elijo Hills in San Marcos, in areas near college campuses.

Vacant homes (perhaps investments, but some are homes in foreclosure) are being rented out to groups of students, or other individuals, and becoming rooming houses with 4, 5 or more boarders. While common in some neighborhoods in town near the various campuses, mini-dorms appear are becoming more commonplace in some of the more upscale neighborhoods in the San Diego suburbs; San Marcos has several college campuses including Cal State San Marcos which is close to San Elijo Hills.

Here is just one article addressing this issue of mini dorms in San Diego becoming a problem.

Parties, noise, excessive trash, more traffic and other issues are creating concerns among area residents. Of course these issues can be a problem where a homeowner chooses to rent a home to larger groups and is not necessarily just a by-product of the increase in distressed homes. But it seems that more of these homes are becoming used in this way in some areas.

Some communities, such as San Marcos and San Diego, now have rooming house ordinances that require a permit (about $7200) and have certain restrictions. There are both opponents and proponents of these types of ordinances.

Finding affordable housing is tough, for students and other folks, and these living situations can work out well. And owners might argue they have a right, within reason, to rent to whoever they wish. On the negative side are the issues mentioned above, lack of monitoring and care of the rental by owners, and perceived impact on the neighborhood.

I have been in some of these types of foreclosure properties in a number of areas as I suspect others have.

What trends are you seeing with regard to short sale, foreclosure and REO properties in communities you service?

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All content copyright © 2008 Jeff Dowler Carlsbad Homes and Real Estate Tidbits

Posted by

Jeff Dowler, CRS
Certified Residential Specialist / Realtor®


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Comments (10)

Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Jeff,

Interesting set of issues with the mini-dorms. Guess it could be expected in college areas. It's not an issue in my back yard, although CSFU is not that far away.

As for squatters, I haven't seen (or heard) of any of that either, at least not that I'm aware of. Dead lawns is about all I can see. Depending on the areas, like in the i.e. you can just drive up and down the streets and spot them.

Oct 27, 2008 11:05 AM
Elizabeth Cooper-Golden
Huntsville Alabama Real Estate, (@ Homes Realty Group) - Huntsville, AL
Huntsville AL MLS

Jeff, Lucky for me we don't have a high foreclusre rate at all down in here little ole Huntsville Alabama.  We do have more than is typical, but not at "reasons to panic" level.  I read the article about 10 to 15 kids in each home?  I would FLIP my lid if that were in my neighborhood.  Don't they have occupancy restrictions there?  Yikes!  That is cause for concern.

Oct 27, 2008 12:25 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jeff, I have not seen any of these pop up around here yet, and hope that they do not become a trend here also.

Oct 27, 2008 01:25 PM
William Johnson
Retired - La Jolla, CA
Retired

Hi Jeff, This is a real Pandora's box. On the one hand we have private property rights issues and on the other we have communities with ordinances that conflict with the free use of the property. Most of this comes about because so many people living in California have the mistaken idea that people can do whatever the heck they want without regard to neighbors, neighborhoods or others in the community.

For years REALTORS have fought housing restrictions as it interferes with the bundle of rights of ownership. But a caveat should also be a part of this to reflect that the homeowner should be respectful of others  within sight or sound of the property. That includes their assigned occupancy rights to others.

These issues would never be so rampant if people actually respected their neighbors and neighborhood. Then the community starts imposing restrictions that affect not only those that abused the rights but others as well.

It is a very fine line we walk.

Oct 27, 2008 02:49 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Lynda - well no squatters that I know of but have talked to people who have had to deal with them.

Elizabeth - well, some areas do have restrcitions. But it comes down to enforcements, adn also the issue of who is at the property and how they are occupying it. The concern, I think, for foreclosed homes is that the owners at that point are way past caring. Getting some money out of it until they lose the home is likely the only concern.

Jeff

Oct 27, 2008 03:06 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

George - I hope so too. So far no issues in the immediate area but I know of some communities nearby that are having some issues. We had a house down the road (worth about $1.5M) that clearly was a rooming house for at least a year since there were always 8 or 9 cars out front (folks rarely park on the neighborhood streets where I live) and lots of people coming and going. But never any noise or other issues that I know of. Owner was absentee per the record.

Jeff

Oct 27, 2008 03:09 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

William - no doubt these are complex issues.

Jeff

Oct 27, 2008 03:11 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

Don't you have county ordinances regarding how many people can occupy a house, based on the number of bedrooms and bathrooms? Also, if a house is called a "Single Family Residence", it's supposed to only be a single family.

Oct 27, 2008 04:31 PM
Mary Pope-Handy
Christie's International Real Estate Sereno - Los Gatos, CA
CRS, CIPS, ABR, SRES, Silicon Valley

I never heard the term "mini dorm" before but I get the idea right away. I halfway suspect we have one in my neighborhood - maybe grad school level. Then again, maybe it's just the age with no school - loud partiers going til 2am. Awful....

Oct 27, 2008 04:54 PM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Jeff it really is amazing all the ramifications that foreclosures can create!

Oct 28, 2008 07:24 AM