BY VINCENT CALLAGY, nyarm,
RAM
GENERAL MANAGER, KNICKERBOCKER
VILLAGE
Among the many duties for which property managers are responsible, monitoring the occupancy of their buildings is an ongoing challenge. Whether representing an owner who may be entitled to a vacancy rent increase, or a cooperative or condominium that is concerned with compliance in its policies and rules, the manager is often thrust into the role of detective. Unauthorized sublets or sham succession claims can result in significant losses for a property, but they also can be successfully opposed. The key that most often determines the outcome of a case in housing court is preparation.
First and foremost, involve the building's staff by letting them know that changes in occupancy should be immediately brought to your attention. Enlist them as your eyes and ears. In addition, your management team should apprise you whenever changes occur in payments or other irregularities appear. Before opening mail from tenants, ask your staff to separate envelopes that originate from addresses that are not the building's.
Once information regarding a questionable tenancy is received, it is best to start a preliminary investigation as soon as possible. If the initial report is from an employee, then the two of you should establish the last date and time the tenant was seen in the building. Review the tenant files and begin trying to re-confirm information known about the tenants, e.g., whether their phone numbers are still in service and utility bills continue to be posted in their names.
At Knickerbocker Village, we use Social Search by Experian, which provides us with a printout of all known addresses for the tenant whose name and social security number we have entered. Although this particular database uses credit records to locate individuals, it lists only the addresses, so its use is proper and lawful. When a different address is produced, we call directory assistance to determine whether phone service has been established at that address in the tenant's name.
Another strategy is to observe daily mail delivery. You can usually see if other names are taped into the mailbox. Then if you feel certain that the tenant in question has already moved, send a letter with the envelope prominently marked, "Do not forward." If the envelope is returned to you, it will most likely have the new address where the mail is being forwarded. Inquiries to neighbors often yield helpful information, as well. The purpose of a preliminary investigation is to give you a sense of whether or not to proceed. After all, a holdover case involves a significant financial commitment starting at $800 to $1,000.
Once the initial work has been completed on your end and you believe there are grounds for action, the next best investment is often the services of a private investigator that specializes in non-primary residence cases. This may be another key to your success because investigators have access to DMV records, voting records, utility accounts and other key records. After receiving such a report, you will know which records will support your case and which, if any, will be a problem.
For those of us dealing with apartments that rent below market rates, it is not unusual to find tenants who are skilled in maintaining the illusion of a continuing tenancy. In the event of those cases without sufficiently clear-cut documentary evidence, we also use CCTV for corroboration. Although much talk has been heard about the efficiency of hidden cameras, our experiences were not positive. Over the past few years, we have used conspicuously placed cameras to monitor apartments where we believed a change in occupancy has occurred. These cameras are wired to time-lapse video recorders, which can record over a 24- 48-72- or 96-hour period. The cost of video equipment has fallen considerably in recent years and is approximately half of what it was ten years ago.
But the most important thing is that the evidence produced from video surveillance is irrefutable. Our buildings contain video cameras in several locations and the entrances are marked with signage indicating that anyone entering the premises is subject to video surveillance. Of course, you will want to consult with your attorney to review the procedures required for preserving videotape evidence and preparing it for presentation during testimony.
Once a case has been documented and is ready to proceed, it is imperative that you forward all the information to the building's attorney. After all the work you've done, don't shortchange this step. To prepare the various notices, the attorney needs all the evidence you have compiled. Furthermore, notices must contain such specific allegations as to where you believe the tenant now resides, who is currently living in the apartment, and any other details that support your claim. Since it generally takes two to three months before a case comes before a judge, I recommend writing a detailed synopsis at the same time you forward the case information to the attorney. It will help "refresh" your memory when preparing for court several months later.
At Knickerbocker Village, which comprises 1,591 units, we have had an extremely high success rate with non-primary sublet and assignment type cases. In fact, we have prevailed in more than 90 percent of these cases through the years and the key has always been - and continues to be -- careful preparation.