Lakewood doubles

[Stephen Eisel]

I saw an article some time back (in the PD or the Sun Post) about an initiative to convert some of the doubles in Lakewood into single family homes... Is this still going on? Was the city behind this initiative?

[Kevin Butler]

[Stan Austin]

Stephen--

Yes , the City is just starting a program to do double to single conversions.

One thing that Tom George realized even before he was elected Mayor was that there was a surplus of housing units in Lakewood which was due primarily to a large number of doubles. This became very apparent to him from his background as a real estate agent and the first hand knowledge that brought.

So, as Mayor starting on that conversion process, which was also recommended by the Grow Lakewood Committee and explored at a Lakewood Alive meeting, became an important goal of his.

At this time there is a house on Bunts that is being converted. This will test some design theories, the economics involved and the eventual marketability of such a house.

The City is working along with First Federal Savings and Loan and Prudential Lucien Realty on this project.

Stan Austin

[ryan costa]

So far it seems prohibitively expensive.

If the goal is to increase home ownership, would people find a home more affordable if they rented out a floor of it? That could cover nearly the entire mortgage. It would also generally produce a greater population in Lakewood. Residential landlords would also promote better behaving tenants or quality of tenants.

[Stan Austin]

Ryan--- The basic problem is that there are no longer enough people to rent out the floor to.
Stan

[ryan costa]

What distinguishes a Single From a Double? What is required for someone to buy a duplex and then get it recognized as a Single?

[Stephen Eisel]

Thanks for the replies... Does the city of Lakewood offer a tax abatement to the individuals who change a double into a single?

[Stephen Eisel]

So far it seems prohibitively expensive.

If the goal is to increase home ownership, would people find a home more affordable if they rented out a floor of it? That could cover nearly the entire mortgage. It would also generally produce a greater population in Lakewood. Residential landlords would also promote better behaving tenants or quality of tenants.

I think that it would actually decrease the population of Lakewood. It would take two family home and turn it into a single family home (in concept). From the stats that I have seen, the city of Lakewood is losing population. Flipping a double into single would also (probably in most cases) increase the value of the house and (most likely) create more tax revenue for the city. A tax abatement may be the answer to making this more doable... There are several areas in Cleveland where new constructiuon + a tax abatement has equaled success.

[ryan costa]

I don't know. The Brady Bunch managed to fit Six Kids into 2 bedrooms.

If the two primary entrances to a duplex are near each other, it is easier to build a dummy-room encompassing both entrances. It doesn't need to have electricity or water. It is easier than massive structural renovation.

[Jim O'Bryan]

[Flipping a double into single would also (probably in most cases) increase the value of the house and (most likely) create more tax revenue for the city. A tax abatement may be the answer to making this more doable... There are several areas in Cleveland where new constructiuon + a tax abatement has equaled success.

Stephen

That is the one part that I cannot figure out. Doubles are usually more valuable than the single next to them.

One reason tax abatements work so well in Cleveland is the thousands of acres of empty property. The problem in Lakewood is the build out, and the thought of losing money to make money.

The Mayor and Planning Department have done a really good job with responsible development without giving the farm away.

It is an interesting problem.

I believe I saw a plan a couple years ago, maybe at a LakewoodAlive meeting that talked of BUYING up blocks of residential homes. Tear them down and rebuild larger homes 1 on 2 properties, ranch homes, items missing. It seemed to have some potential.

While the city of Cleveland has completely let down the rest of the county for being a focal point, or job producer, I would not be so fast to dump doubles. Interest rates climbing, jobs getting tougher, rentals have a huge upside in the next 5 - 20 years looking at cycles.

Instead of tearing or changing how about teaching landlords that taking care and improving their property, could get them higher rents. I have found that there are two types of rental units that rent quickly. Really cheap, really nice. The choice should be obvious.

FWIW


.

[David Anderson]

I concur, Jim. The doubles or triples next to singles are of higher value in basically every Lakewood neighborhood. So, turning most doubles into a single could actually decrease the home's value possibly costing the city property tax revenue (once an adjustment is made with the county). However, Stephen, the idea of Lakewood working to define the optimum number of single- and multi-family homes/housing units is most worthy. Understand, though, that:

- Turning an often vacant double into a nice single would likely increase population. (Lakewood has a lot of crappy rentals that can’t attract regular tenants or bring in the revenue needed for upkeep/upgrades. A double to single transfer in this case could possibly increase the property’s value.)

- Turning a nice hardly ever vacant double into a nice single would likely decrease population. (These are the multi-family homes that would depreciate in value if converted into singles.)

I think most Observers know my opinions regarding the importance of enhancing Lakewood's primary asset - housing stock - and accepting the fact that Lakewood has and will always have a sizable rental community. The fact that renters (and others) choose to come to Lakewood is something of which to be proud. I believe the goal should be to for Lakewood to fully embrace this characteristic and work to develop highest regarded/valued single and rental housing stock in Cuyahoga County. There are a number of policies that can be enacted to reach this goal. The concept of a city sponsored landlord education program has much merit in my opinion. Landlords who, for a nominal fee, successfully complete a short series of courses (business planning, landlord/tenant rights, housing codes and ordinances, maintenance, etc.) receive a credential/certification which can be used to attract potential tenants and differentiate landlords.

[Stephen Eisel]

Does the higher value of the double vs a single have more to do with the total square footage of the double vs the single (then being a double) ???

[David Anderson]

Good question, Stephen. I see where you're coming from but don't think I can offer a definitive answer. I hope someone else can.

However, the triple I own and rent out fully has about 800 square feet of living space on each of the first two floors. The third floor has about 450. So, not including the basement this triple has just over 2000 square feet of living space.

The question is does a double or triple with 2000 sq. ft. generally have more value on the same street than a 2000 sq. ft. single. My answer is "yes" for a number of reasons but I could be wrong.

Again, I like your question because is causes me to analyze my opinion and also gets the collective us to consider the basics of what makes one property more valuable than the one next door.

[Stephen Eisel]

Good question, Stephen. I see where you're coming from but don't think I can offer a definitive answer. I hope someone else can.

However, the triple I own and rent out fully has about 800 square feet of living space on each of the first two floors. The third floor has about 450. So, not including the basement this triple has just over 2000 square feet of living space.

The question is does a double or triple with 2000 sq. ft. generally have more value on the same street than a 2000 sq. ft. single. My answer is "yes" for a number of reasons but I could be wrong.

Again, I like your question because is causes me to analyze my opinion and also gets the collective us to consider the basics of what makes one property more valuable than the one next door.

The light bulb has fianlly gone on for me!!! Because the double generates revenue, it probably does have a higher value per square foot than a single.. The other side of the coin is the income of the occupants of a double vs income of the occupants of a double converted to a single(tax revenue for the city).. Maybe converting doubles into singles is not a slam dunk for the city. Thanks for helping me through this thought process...

[David Anderson]

You're helping me think as well, Stephen.

I believe Lakewood’s conversion program is a sensible strategy for certain situations where doubles cannot attract tenants or generate revenue for anyone/thing.

Today, Lakewood has 3,231 doubles (53% are owner occupied) or 6,462 dwelling units. Assuming conservatively that 90% are occupied by one to two people (1.5 people in 5,815 units) equals 8,723 tax paying and local utility infrastructure (sewer and water) supporting residents. Folks might have a contention with the 90% occupancy rate but I think it's accurate.

Providing incentives to transition habitually vacant doubles into singles does make some sense. Any plan to reduce occupied doubles by, say, 50% would reduce population by more than 4,000. Imagine the increase of sewer/water rates on remaining Lakewood residents if 7% of the population vanished in concert with the normal reduction in population trend not to mention the potential decrease in property tax revenue due to possible devaluation of the house as it's converted to a single. Less people paying to support the same infrastructure equals higher rates for everything. (Landlords do factor the water/sewer bill in the price of rent.)

If elected officials want to reduce the number of dwelling units offered here in Lakewood my question is to what level. What do they feel Lakewood's housing portfolio should look like as they forecast down the road?