What about a regulatory agency to provide protections for property owners and investors?

High interest rates have undoubtedly put a strain on Oklahoma households. A product of high interest rates and inflation is the continued problem of limited affordable, quality and safe housing options.

Interest rates for a 30-year mortgage are currently about 7.5%. When applied to reality, this equates to a house payment of about $1,400 for a $200,000 home mortgage, not including property taxes and insurance. When these requirements are included in the total payment, Oklahoma consumers are faced with a $1,700+ payment per month. This is simply not a possibility for many households.

As expected with most business ventures, the ownership and management of rental properties is not without risk or burden. Property owners or managers must navigate the concepts of risk, cash flow, protection and continued viability. Some real estate investors are unfairly categorized as slumlords or greedy individuals taking advantage of a financially disadvantaged consumer group. While I do not question the fact that this scenario exists, not all owners or managers operate under this category. Many, such as myself, are simply interested in bolstering retirement revenues through real-life work and investments.

Unfortunately, under our current system, a few tenants can derail this plan. It has been my experience that the formal eviction and removal process can take in excess of two months. Why is this the case? Why are the legal protections associated with the landlord and tenant relationships structured only to protect the tenant? After all, many bills associated with property ownership continue regardless of the tenancy status. Could or should there also be protections for the landlord?

This unfair concept is forcing investors to reconsider their goals. Individual or small-tier investors subject themselves to an added burden due to this lengthy process. An owner of only a few properties can have all profits diminished due to only a few delayed eviction and removal proceedings. Unfortunately, if nothing is done to remedy this situation, affordable housing options for Oklahomans will continue to decrease.

The Housing and Urban Development agency is tasked with managing many aspects of housing. Whether it be through the regulation of lending practices, the enforcement of anti-discriminatory practices, the regulation of safety or providing subsidized housing; this agency is largely structured to protect the consumer.

What if there were an agency or entity that also “reasonably” protected the property owner? By “reasonably,” I am referring to protections that allow the landlord to continue operations without substantially raising the costs for other tenants.

I am in no way advocating for a scenario that removes delinquent tenants on an unreasonably short notice, but rather realizing the fact that our current system is costing other well-intentioned tenants. Ultimately, business practices are guided by math. There must be a competitive profit or many will choose to invest in other endeavors.

I believe that it is possible for a regulatory agency to also provide protections for property owners and investors. This could come as a sub-branch within HUD, or an entirely separate entity. While I am generally opposed to government over-regulation, this is a needed service for the maintenance and promotion of an affordable housing market.

I am fearful that without some type of regulation, the availability of affordable and safe housing will become increasingly limited. The reward of property ownership and management has to be worth the risk.

J. Chad Clanton is a public educator and rental property owner/manager in McClain County.