Independence, Missouri proposes mandatory rental inspections

Aaron Mazzrillo

Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes

10y

My buddy is suing the city of Highland, California right now for this same lame bs. I just got my $100 "inspection" bill from the city of San Bernardino. $100 for the lazy *** code enforcement officer to park in front of the house, roll down the window and write a few notes about what he/she thinks needs to be taken care of. My list;

Trash cans visible from street. RV parked in driveway. Facia needs painting.

I thought about writing "F.U. (but spelled out) Code Enforcement" on my facia board.

Landlords also have to have a business license which is $60 and renewed annually. That's $160 for the right to operate a rental house in the city of San Bernardino.

Extortionist pigs.

Chris MasonPro Member

Moderator

Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes

10y

Haha, you can just have your preferred real estate agent or contractor do the "inspection." There will/should be some REI friendly agents who do the little things that it takes to be a "rental ready inspector" so they can go hang out with past clients every two years.

Anywho, the 11 things they are requiring are pretty basic. This isn't going to be an inspection like your due diligence inspection when buying a house. 11 boxes to check that I feel most decent landlords do anyways.

1. No exposed electrical wires;
2. All outlet and switch covers are to be secured in place and in proper working;
3. No excessive use of extension cords as specified in Chapter 4.01.022.C of the City Code;
4. All smoke detectors are to be in proper working order;
5. No debris around hot water heater or furnace;
6. Free egress around doors and windows as required in Chapter 4.01.025.A. of the City Code;
7. All handrails shall be secure and function;
8. Property address street number shall be visible as required in Chapter 4.01.012.B of the City Code;
9. Property shall be free of insect and/or rodent infestation;
10. No evidence of animal or human waste on the walls or floor;
11. All units shall have working sanitary drainage system as required in Chapter 4.01.018.A and B. of the City Code.

So, yeah, it's stupid, but just have your agent come out and sign something saying there isn't poop on the walls.

San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes

10y

I'd be asking the city how they are going to fund the employee(s) who will be reading all the inspection reports and making decisions and sending out letters and following up on needed fixes based on the inspection reports - we're talking some serious staff hours to do this.

And I'd be asking them about turnaround time. If they only hire one new staffer (who the city has to pay for - how?), how fast is the person going to be able to issue you the go-ahead to rent from the time you turn in your inspection?

Think about the numbers. How many rentals are there in that town? Just imagine the paperwork and someone having to answer the phone calls and deal with inspectors and landlords and maybe tenants.

It just sounds like an expensive, logistical nightmare.

And this would be where you might win at getting it shut down, in my opinion. Make it about money and staffing problems. Because a new staff member or three or four, don't just cost hourly wages. They also need health care and pensions, etc.

So, what's next? A new property tax to pay for this new department?

I'd make it about that, more so than how you don't like it as a landlord. Because just because you would be paying for the inspection, this won't pay for the city's new department to enforce this new law.

Max Householder

Rental Property Investor · Saint Louis, MO · Member since 2014 · 313 posts · 326 votes

10y

It's such a joke that these cities come up with this BS and then wonder why people don't want to do business in their jurisdiction. These laws extort the good landlords and push the marginal operators into the red so they get eaten up by bigger fish which lowers competition and raises prices for renters. In 5 years they'll be going, How the hell did rents get so out of control in our city?! We need to DO SOMETHING about this! Sigh.... smh

Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes

10y

We have also been told that a lot of other Kansas City Metro cities are going to implement too.

I too, though, pick your own inspector and slip them an extra $100.

However no one needs to read or review - because you I think you have to fix every thing and then probably have it reinspected to prove you made the repairs.

Not sure if this proposed regulation would violate our the tenants right to interior searches with out their consent or a search warrant.

Laura Williams

Kansas City MO · Member since 2014 · 357 posts · 349 votes

10y

@Kim Tucker

Is there a petition or anything we can do to rally against this passing?? I don't live there but own properties in KC. This sounds like a major pain & costly if it passes.

Gabe Monroy

Wholesaler · Independence, MO · Member since 2015 · 53 posts · 24 votes

10y

Thanks for the heads up.

Bill Gulley

Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

10y

The only reason I'm a bit pro tenant is because there are so many really bad landlords out there, but yes, I don't see this as a solution to anything really and it does seem to play well for the bigger operators. So, it get's my thumbs down........not that it matters!

I don't see any need for city staff to administer the inspections, it could well be an "on file" issue just like your business license.

It's when you have a tenant complaint, a fire, or code violation and your inspections are not up to date, then it comes out that you're not in compliance and they hit you with a bigger bat.

They may tweak the inspector requirement to a licensed inspector, you can look for that lobby to bounce in. If it has to be a third party inspector, not a city official, the city can't control the inspector's fee!

Inspections today, lease approvals tomorrow, oh, we'd like to see that house painted off white, there are just too many white houses in town! :)

Isiah C.

Investor · Blue Springs, MO · Member since 2016 · 55 posts · 17 votes

10y

My 2 cents on this ordinance is that there have been too many lazy landlords out there, and a group of people got feed up and did something about it. I like @Chris Mason's thinking behind this, but I also believe there needs to be a higher level of integrity taken towards our investments and tenants.

Just to be clear, I'm not for this ordinance!

Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes

10y

Yes - the slumlords cause all these problems for the other 95% of the landlords out there who offer good quality properties for their tenants. However I would think there are other things that can be done other than these inspections and they are probably already on the books:

1. Here in Kansas City - take the FREE Class from Mid-America Crime Free - and learn how to screen tenants and meet fair housing.

2. Don't cities already have a housing department that deals with problem properties - owner occupied and rentals - all properties, not just rentals. Go through their channels.

3. Tenants should do a little checking on the landlord and if other properties are a mess, then don't rent from them.
4. And it's not like a tenant does not walk through a property before they decide to rent. If it is crappy before you move in, what makes you think it will be nice later?

Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes

10y

The Landlords of Eastern Jackson County are trying to do something about this ordinance as Indpendence is their main city they deal with - I would recommend reaching out to them. Google them and you will find their website.

Stephen Chittenden

Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes

10y

I imagine the private inspector approach is designed to avoid the need for the city to hire inspectors. I don't see any fourth amendment problem with city employees doing the inspection.

Max Householder

Rental Property Investor · Saint Louis, MO · Member since 2014 · 313 posts · 326 votes

10y

Bureaucrats think that if they write things on paper and give it their blessing then it will magically fix real-world problems, but vaguely enforceable laws like this won't cure bad landlords. The good landlords will pay up and maintain compliance because the risk of being found out of compliance after a fire or during a lawsuit is far greater to them than trying to save the additional costs. This is how extortion works. Note that the mafia doesn't bother trying to extort other criminals, they focus on offering "protection" to the law-abiding small business owner. Government operates the same way.

The maliciously bad landlords (criminals, for all intents and purposes) will ignore the law, figure out how to fudge the paperwork, or avoid detection so it won't do anything to prevent a fire or accident or injury in their properties because the city doesn't have the manpower to go out and enforce it without a complaint.

But hey, in the meantime it'll make nanny state bureaucrats feel like they're doing good deeds and fill the city's coffers off the backs of the good landlords at little or no cost to the city, so of course they'll figure out how to push this thing through.

Matt R.

OP

Blue Springs, MO · Member since 2015 · 481 posts · 313 votes

10y

@Account Closed That's a good point, about what it will cost the city. Since I posted, I watched the City Council study session about the proposal, and they claim that it will be funded by new business licenses for landlords that don't currently have one. (The business license requirement has been in place for a few years.) They didn't talk about it in the study session, but I expect they will also charge people to become approved inspectors.

In the study session, the speaker mentions that having the city do the inspections was considered too expensive, so it was put on the landlords. That video also mentions that there are about 17,000 rental units in the city, and that the city is proposing capping the price of an inspection at $50. That fee would go to the inspector, not the city.

The way I understand it, if you fail the initial inspection, the reinspection also costs $50. So, the inspector's incentive is to find as many things wrong as they can, one at a time.

@Chris Mason The video of the city meeting also mentions that the inspectors would have to be "approved" by the city, and the city manager at one point says that only "5 to 7" companies would be approved initially. (So maybe I just found out who is pushing this.)

I wrote three City Council members a week ago. So far, I've only heard back from one of them, which is sort of interesting.

San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes

10y

Originally posted by @Matt R.:

@Account Closed That's a good point, about what it will cost the city. Since I posted, I watched the City Council study session about the proposal, and they claim that it will be funded by new business licenses for landlords that don't currently have one. (The business license requirement has been in place for a few years.) They didn't talk about it in the study session, but I expect they will also charge people to become approved inspectors.

In the study session, the speaker mentions that having the city do the inspections was considered too expensive, so it was put on the landlords. That video also mentions that there are about 17,000 rental units in the city, and that the city is proposing capping the price of an inspection at $50. That fee would go to the inspector, not the city.

The way I understand it, if you fail the initial inspection, the reinspection also costs $50. So, the inspector's incentive is to find as many things wrong as they can, one at a time.

@Chris Mason The video of the city meeting also mentions that the inspectors would have to be "approved" by the city, and the city manager at one point says that only "5 to 7" companies would be approved initially. (So maybe I just found out who is pushing this.)

I wrote three City Council members a week ago. So far, I've only heard back from one of them, which is sort of interesting.

I'm too lazy to tag everyone on the subject, so I'm not just talking to you. I find hitting the "quote" button is the easy/lazy way to tag at least one person on the thread. But, some folk wonder why I just tagged them, so don't think I"m just directing all of the following at you lol:

The bureaucrats or business folk who have never worked at a clerk level, or supervised clerks, have no idea how much is involved in managing even the paperwork for something like this.

If there are 17,000 rentals - you're talking about 17,000 files. With 17,000 labels. And maybe 17,000 copies of things, etc. And how many of those landlords and inspectors and maybe tenants will need to call and talk to someone? Who takes those calls? Who mans the desk where they come in person to talk to someone. To ask when their inspection is due, or if they've received the paperwork yet, etc.

And someone will have to look at the paperwork to see if it complies. And then there will be a process to let the landlord know if they are in compliance or not. And create letters and forms and mail them out....on and on.

And there will be meetings on how to manage all of the above, and who will be supervising the person(s) who handle the calls and the paperwork and the people who come in person....

Honestly, having a city inspector would be easier to manage, than having who knows how many independent inspectors who will also probably have to be credentialed in some way, which would have to be monitored and filed.

And how do they handle disputes?

I mean, yeesh, just the man hours for someone to write the manual on the new procedures for all of this will take up countless hours and meeting after meeting.

What a nightmare.

And the really stupid thing, is that there are already laws in place to deal with slum landlords. All they really need to do is enforce the laws they already have in place.

Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes

10y

While Landlords of EJC are the lead on this, they don't have the technology to get the information out - I have another post in the events and happenings section for the City Council Meeting on September 6th in Independence:

https://www.biggerpockets.com/forums/521/topics/350414-independence-mo-kansas-city-area-city-council-meeting-inspect

We also have quite a few updates about this topic on the MAREI websites and social media pages.

Podcast Guest on Show #121

Andrew SyriosPro Member

Moderator

Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes

10y

Does anyone know of any studies on these programs and their effectiveness? I suspect they aren't effective at all, but a study would help a lot more than my suspicions.

Eric P.

New York City, NY · Member since 2016 · 470 posts · 348 votes

10y

According to studies, laws like this are effective in creating government jobs ;)

Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes

10y

Update this did pass - however we have 8 days to collect 100 signatures of registered Independence Voters, that would then give us 30 days to get a lot more registered voter signatures. If you are a registered voter in independence or know someone who is who would sign this petition, the person collecting signatures is Fred McGary - not sure if I can post his email address here, might be a no no- but you can PM me and I can put you in touch.

There is also a new group formed regarding this issue on Meetup - its called Missouri Landlords, to stay informed, please visit this group so we don't have to go to 10 different places to post information.

San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes

10y

Good luck. Wish I could sign your petition. What a pain.

http://liberalarts.utexas.edu/_files/kirkds/An_Ana...

San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes

10y

@Kim Tucker I did find one study done by UT law school in Austin, TX that spells out different cities that have implemented these types of programs. They seem to kind of skim over the cost, but there is some info in there about cost and how many inspectors are required, etc.

Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes

10y

As you may be aware the City Council of Independence Missouri voted and passed a new Rental Ready Ordinance #18637 (Article 15 – Chapter 4 of the city code – read here) that will require landlords to have a Business License for every rental unit and as a condition to obtaining and keeping that Business License will be required to hire a qualified inspector to inspect the rental unit, occupied or not), every two years. Multi Family of 4 or more units shall have 10% of units inspected very two years. . Inspectors to inspect for some basic safety issues and for many tenant issues such as not using too many extension cords, debris around furnace and hot water heaters our around egress windows and doors, insect and rodent infestation, animal or human waste on walls or floors.

This ordinance would require an inspector to enter the private homes of renters, continually, every other year, without permission, without due cause, and without a warrant. If the renter refuses the inspector entry to their home, then a judge can issue a warrant and then force entry. We as a group of Concerned Missouri Property Owners feel that this is a violation of the home renter’s 4th Amendment Constitutional Right.

Our Group has collected 100 signatures of registered Independence Voters and won the right to collect signatures from other registered Independence Voters so that they can petition to have this Ordinance put to the vote. We now have until October 7th to collect enough signatures and we need your help.

We have assembled a petition package to provide every other concerned citizen of Independence to be used to collect as many signatures as possible and turn them in by October 7thth.

Click Here for Instructions

The Package Includes”

Page 1 – Petition for Referendum
Pages 2-7 – The Ordinance
Pages 8-10 – Signature Pages (you can add extra signature pages if needed as long as they are numbered and signed with your name printed at the bottom>
Page 11 – Flyer to Provide Potential Signers
Page 12-14 – Petition Package Instructions (separate document)

Instruction:

To collect signatures, you MUST BE A REGISTERED VOTER OF INDEPENDENCE. If you are willing to help collect signatures and are not a registered voter, please find a friend or family member who is a registered voter to assist you in this matter.

Step 1: Print the Petition Package and the Petition Package Instructions and staple pages to keep them in order. You may want to print a few extra copies of page 11 and add a reminder for them to go vote next year. Remember, Pages 1-10 cannot be altered in anyway and NEED to stay in exact order.

Print several packages for you to sign and notarize.

Step 2: Collector of Signatures to Sign Notarize Signature by filling out the bottom of the Petition for Referendum (Page 1) in the Circulators Affidavit, checking that they Do Not expect to be paid for circulating this petition, and then sign in front of a Notary and have them Notarize the form. Get several copies of Page 1 signed and notarized so you can completely fill several sets of Petition Packages.

Step 3: Learn the Script as follows:

Excuse me Sir, Mam, are you a registered voter in Independence?

Great, can you answer: Should the City of Independence be allowed to require a city licensed inspector into private homes of renters, continually, every other year, without their permission, without due cause, and without a warrant?

If the home renter refuses to allow the city licensed inspector entry, should the judge be allowed to issue a warrant to force entry?

No, could you please sign here and let the people decide this issue when they vote next year.

Thank you.

After they sign ask – Would you like to help collect signatures from your family, friends and organizations you belong too?

All you need to do to collect signatures if you are a registered voter of Independence is to check the box you are not being paid and have your signature notarized, on page one of the Petition, keep all 10 pages together, and stick to truthful comments, and you too can collect signatures.

Thank You for Assistance, Remember, if we do not collect enough signatures and then enough votes, this Rental Ready Ordinance shall go into effect on June 1st, 2017.

If they are willing to collect signatures provide them with a copy of the Petition Package.

Step 4: Go Collect Signatures

As you collect signatures remember to keep the package in order and do not alter.

Stick to the script and remain truthful in all comments.

Some signers may want to read the ordinance, please allow them the time to do so.

Verify that the person signing is a Registered Voter, if they are not respectfully decline the signature. If they are not sure if they are registered you can still collect their signature, but remember, if it is found that they are not registered, it will be thrown out. So we need to collect as many signatures as possible.

Step 5: Turn in Petition Package

Turn in Petition Package that are signed and stapled in order, before October 7th, 2016 in the mail slot of the front door at Steve Summer’s Office “Glennco Inc” located at 129 W 23rd St, Independence, MO 64055. This is located 2 blocks west of Noland Road on the South side of 23rd Street.

Step 6: Convert Signers to Collectors of Signatures

Ask all signer’s if they might would be able to collect signatures. If they are willing, you can provide them an extra blank Petition Package, but also get their name, phone and email so you can also email them a petition package so they have complete instructions and the ability to print more.

Who – Where to Collect Signatures: Friends, Family, Neighbors, Your Tenants, Apartment Complexes, Public Functions, Public Venues.

Thank you for your assistance

Concerned Missouri Property Owners

Fred J McGary, The Canmore Group, LLC Representative from the Landlord Legal Defense Fund.

Kim Tucker, Mid-America Association of Real Estate Investors founder representing over 3000 Landlords, Investors and Property Owners in the Kansas City Metro Area.

Cailyn AunePro Member

Tacoma, WA · Member since 2015 · 176 posts · 88 votes

9y

@Kim Tucker - Curious as to an update about this- if you know of one? We own two properties very close to Independence, Missouri and are considering purchasing more in the KC, MO area. Thank you so much for being active in this way- we need more people like you taking initiative on these sorts of things.

Real Estate Broker · Kansas City, MO · Member since 2014 · 20 posts · 5 votes

9y

The City Council approved it. http://www.examiner.net/news/20160906/independence-city-council-oks-rental-inspections