Tampa Bay leasing agents apply auto industry idea to renters who lose jobs

CLEARWATER — With vacancies the highest they've been in a decade, Tampa Bay area apartments are taking a cue from the auto industry and covering lease payments of out-of-work tenants who are trying to get back on their feet.

From Clearwater and St. Petersburg to Brandon and Tampa, apartments are offering a range of concessions to ensure renters stay put.

Though a new survey released Saturday indicates market conditions in the bay area are improving, unemployment has hurt rental communities.

As recently as June, Real Data Apartment Market Research reported that apartment vacancies in the bay area rose to 10 percent, the highest the Charlotte, N.C., research firm had recorded in more than a decade. In north Pinellas and east and central Hillsborough, vacancies exceeded 13 percent.

In response, the Breyley Apartments in Clearwater has, on a case-by-case basis, started granting extensions to people to allow them extra time to come up with rent. Camden Property Trust, which has 12 communities in Pinellas and Hillsborough, and GCI Residential, which has two in Hillsborough, have taken things a step further: layoff proof leases.

"Concessions are a common strategy to boost demand during economic downturns," said Jeff Rogo, government affairs director for the Bay Area Apartment Association.

If residents lose work and give 30 days' notice, Camden will let them out of their lease without penalty or try to get them into one of its less expensive communities for a relatively low cost.

Camden has 5,688 apartment units in Pinellas and Hillsborough at different pricing levels. "If they need to downsize," Camden district manager Ed Malone said, "we try to make it as easy as possible."

GCI Residential will forgive up to two months' rent to tenants who lose their jobs.

"It takes approximately three weeks to begin receiving unemployment benefits," said Marcia Woznicki, the vice president of GCI Residential, which owns and manages the Cypress Grand and the WestWood Reserve apartment communities in the northwest Hillsborough suburb of Citrus Park. "We are taking that one step further by offering our clients up to eight weeks to re-establish employment."

If they have not found work after 60 days, GCI Residential will also terminate the lease without penalty.

To qualify for the program, there are conditions. New tenants who have signed at least a one-year lease and a layoff proof lease addendum are eligible. So are current residents whose leases are up for renewal. They can't be in default of their lease agreement and must have made at least three monthly payments.

Officials at GCI Residential and Camden don't know how many tenants have taken advantage of the programs. Of the 516 households in Citrus Park, Woznicki said "several" residents have received rent abatement.

Other industries have offered similar accommodations in the wake of the recession.

U.S. customers who buy a new Hyundai, then lose their jobs within a year of purchase, can return the vehicle. The program allows consumers who can't make payments because of job loss to return their cars and protect their credit.

AutoNation, the nation's largest automotive retailer, rolled out its own version of a layoff protection program at 33 Florida dealerships in March.

Under that program, the company will cover up to six months of a customer's car payments. To be eligible, customers must own the vehicle for at least 60 days before losing their job and be unemployed for at least 30 days. The offer is only good during the first year of ownership.

"It's a concept that's out there in a lot of different industries right now," Malone said. "It's peace of mind for those who may never need it but know it exists."

Rodney Thrash can be reached at rthrash@sptimes.com or (727) 445-4167.