xd ED wrote:Is this a common arrangement for a owner/ landlord to operate?
Seems like the blurring of traditional landlord/ tenant relationship would be the source of all sorts of similar issues and pitfalls.
It depends a lot on the situation. For large communities run by management companies, you won't see this. But for small operations where turnover can be a huge hit to your profits, ensuring compatibility can help solve a lot of problem before they can even come up. As long as the landlord doesn't discriminate for the prohibited reasons (race, religion, sex, age, and so forth), it can be above board.
It's like checking referrals, but rather from people who know the person, it's from people who live there. Now if someone comes along that is in the protected group, and the tenants say no to which the landlord then denies an otherwise qualified applicant, queue up the lawsuits. In any event, the key is to have a good paper trail. As always. But I get the impression that the landlord in this story isn't exactly the most savvy of businessmen.
The only weirdness about this is the shared living space with separate leases. I don't think I'd want to run things that way. I'd want them all under one lease with a Roommate Agreement between them.