City Code Inspectors
Hello my fellow Canton investors!
I have owned some rentals in Canton for about a year now and am slowly getting tired of the Canton code inspectors. By no means am I trying to slumlord my rentals in anyway. I just got done with a 2 month, $55,000 rehab on a SH property then the Code inspector went in and pointed out the most pointless stuff that I have ever seen. 3 pages worth of repairs is what I received in the mail. CRAZY! This is not the only time that I have dealt with this but what really opened my eyes is I just asked my insurance rep for a quote for an off market 6plex that was brought to me and she pretty much warned me that a lot of her clients are steering away from investing in the Canton City jurisdiction strictly because of the code inspectors.
Have any of you ran in to this problem? In a way it feels like the City is making it more difficult for landlords to hang around because yearly inspections with a laundry list of repairs makes it real difficult to cash flow when my cash flow is just being held for the future, inevitable inspection.
My opinion/thoughts. Would love some insight from others!
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Hi Nathan, yes, I'm hearing things are stepping up in Canton as well, but I haven't had any inspections this year. Can your GC address the list - as a punch list? Especially if any of the findings were in scope. Three pages sounds too heavy for a rehab of that size... I mean, that's about half the value of a better Canton house!
There's no annual inspections, just once after a sale to a non-owner occupant. So it's a one and done, at least right now. But they just voted in August to adapt the 2021 IBC to go into effect in March; haven't reviewed for differences yet.
Agree with your insurance agent, many investors have been backing out of Canton for the last number of years because of antics like this. Are you having your GC or RE Agent represent you at an inspection? Always have an advocate representing you that can discuss & diffuse things with the inspector. The ones I dealt with usually just tell me to call when I was done as they didn't want to write up all the issues that I was going to address anyways.
We have a new Mayoral election coming up this fall (incumbent is finally retiring - yippee!) and one of the candidates just called me about speaking at our next SCREIA meeting. If you'd be willing to share, I'd love to get a copy of your inspection - this is exactly the kind of thing we could talk with him about.
Wow that's a little surprising to hear.
I did a bedroom addition myself in my own home and the inspectors really didn't check much of anything at all. Had structural and electrical inspections done.
Did you give the list to your contractor? What did they say? Realistically, if you paid someone to do a rehab it should all be up to code unless they're pointing out things that weren't touched.
@Nathan Harden, maybe give some examples from this laundry list they sent.
I don't know that town, but in my area some towns are very insular and they crack down on "outsiders". So, if that might be the reason why you're having an issue perhaps hire the most local yokel contractors/tradesman you can find.
Also, who is walking through with the inspector and what kind of inspection? Is this a rough work inspection? or a final occupancy inspection?
You may want to get a face in front of these people, your own or possibly someone local who they will see as "one of their own".
Another thing to think about is whether the inspector is correct or not! Lots of things done 100 years ago are "up to code" because 100 years ago when they were built that was the building standard and that is the standard they need to meet UNLESS you touch it.
For example if you have 2 prong outlet in a wall and you gut that wall they can require that outlet be brought up to current code AND they could require additional outlets in that wall as well. However if you don't open that wall that old 2 prong outlet is acceptable.
You need to understand what's actually required to have these kinds of conversations with an inspector who may be over-stepping.
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Hi Nathan, yes, I'm hearing things are stepping up in Canton as well, but I haven't had any inspections this year. Can your GC address the list - as a punch list? Especially if any of the findings were in scope. Three pages sounds too heavy for a rehab of that size... I mean, that's about half the value of a better Canton house!
There's no annual inspections, just once after a sale to a non-owner occupant. So it's a one and done, at least right now. But they just voted in August to adapt the 2021 IBC to go into effect in March; haven't reviewed for differences yet.
Agree with your insurance agent, many investors have been backing out of Canton for the last number of years because of antics like this. Are you having your GC or RE Agent represent you at an inspection? Always have an advocate representing you that can discuss & diffuse things with the inspector. The ones I dealt with usually just tell me to call when I was done as they didn't want to write up all the issues that I was going to address anyways.
We have a new Mayoral election coming up this fall (incumbent is finally retiring - yippee!) and one of the candidates just called me about speaking at our next SCREIA meeting. If you'd be willing to share, I'd love to get a copy of your inspection - this is exactly the kind of thing we could talk with him about.
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Is this a Building Inspector or a Code Enforcement Inspector? They are usually 2 different things...
My PM, Kristy Trentman with Daisy Lane Property Management was there. I would be more than happy to discuss this issue. Blows my mind that the City is cracking down this hard when there are so many people that need housing within Stark County.
And yes, you are absolutely correct. So I bought this particular property back in November from a very well known slumlord in the area. The house and I quote from my PM at the time I bought this property was Icon Property Mangement. "The worst house I have seen"
The house was abandoned, no front door, just all in all bad. So I took on the project, I put over $55,000 into the house just for rehab. You would think the City would give me some slack since I just fixed an absolute eye sore out of my own pocket but they went through last month and picked the entire place a part. Pointed out downspouts not being long enough, flaking paint (minimal), windows that are older, provide furnace reports from HVAC tech, "remove sliding latch from bedroom door" to name a few.
I get it, they are trying to make sure these properties are safe for human occupancy but as you and I both know, there are way bigger fish to fry in Canton and properties in A LOT worse condition.
Just baffles me that someone like me, comes into town, tries to help clean up some properties and I get hounded for things that are not a big deal in my opinion. House is currently being rented for close to top dollar at $1,100 a month and there are zero complaints from the tenant on the condition of the house.
My apologies, building department.
Doesn't make sense to me when there are so many people that are in need of housing but cannot afford to buy. Eventually all the landlords will leave and these properties will then sit vacant for the local homeless population to set up shop in these neighborhoods.
These markets need investors, without them, the cities and towns will be left out to dry and the local tweaker is looking for easy break ins for their copper wire.
Let me know when you are ready to unload the Canton properties.
What you are seeing is pretty normal. We see it daily. Best approach is to maintain a strong relationship with the inspectors. If they know you are making an effort they are always more that reasonable to accommodate and work with you
Just found this post! Currently have a vacant SFH in Canton that I'm looking to rent out and I can't tell if my PM is just dropping the ball or if the City is making things harder to just get basic things done.
The house was rehabbed and ready to go 3 weeks ago but the PM says they're still waiting on the "rental inspection" and can't officially list the property for rent until this is done. How long does it take to schedule a basic rental inspection?
Unless I'm actively asking my PM on the status of things I feel like nothing is getting done or they're just waiting around for other people (instead of chasing things themselves). If I was local (which I'm not) I feel like I could get a lot of the little things (that are taking my PM weeks to do) done in days. Or I could be wrong. This is why I like to ask the locals. Right now I'm only hearing my PMs side, but not any other local feedback.
Who is your PM?
I rather not speak poorly about a company in the public forum, I'll DM you and maybe you can let me know if you've heard of them or had any bad experiences.
DM me as well pls
Wow that is surprising in a place like Canton. I have had several investors leave North Canton because of the new restrictions but I have not heard any bad stories about Canton. Come to Akron! :)
My PM sent a check to the city of canton for $240 for rental registration. Does that seem correct? Again, I'm not local so I'm just taking every cost and push-back on progress at face value.
Where are you all getting your properties refinanced after you rehab them? I could only get 1 DSCR lender to do 1 of my SF properties due to the low ARV, the fees and interest rate are absolutely not worth it.
Are you bundling properties together when refinancing?
How are you estimating your ARV? Haven't pulled the trigger on a refi just yet because, as stated, it makes no sense right now.