City Certified Rental - Michigan

7 Replies

Hi everyone - 

I'm new to investing and I recently completed my real estate salesperson course, and passed the test. 

I'm running the numbers on several properties, and wondering if anyone knows the answer to this question:

Does a rental have to be city certified before I can start renting it out? Some of the areas I am looking in have backlogs months long that I would need to wait for an inspector to come over to certify the property. 

Has anyone experienced this?

Thank you! 

@Margeaux Appold

A rental has to pass city inspections before you can rent it out. Depending on the city they have different types of inspections that they will come and do on your property. As an example in Warren if you are tagged you are looking to do 3-5 inspections which run typically up to $1200 .

@Margeaux Appold

The property is known to be vacant by the city, identified by the bright yellow sticker on the window or the door.

These properties can’t be occupied until all inspections are passed.

There are quite a ton of properties that are not tagged and won’t need that many inspections. In that case they’ll only do one inspection which is typically a quick walk-through to make sure everything is good.

Also I should mention I’m speaking on the SE Michigan market I’m not well educated on the other regions.

@Margeaux Appold

Even before purchase; it is important to call the city to get a violation list.  Some cities; already have them if the property was vacant for some time.

For the safety of the tenant and avoid any risks between landlord-tenant; it is critical to get a Certificate of Occupancy and Landlord certificate; before the rental agreement is signed.  Also, some cities need landlord certification every year and some do every other year.