Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
Does anyone else have these rental registration programs where the City forces you to pay a yearly fee to register your rental property?
Where they force you to allow a city inspector in every time a tenant moves in. Even if the tenant objects to the invasion of privacy.
Where if the inspection fails (due to not just legitimate health and safety issue but frivolous things like flaking exterior paint) you have to pay for a re-inspection each time until the property passes?
Where if you don't comply you can be fined thousands of dollars per day by the City?
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
We have inspections in most cities. Some are every two years and others are every three years. It is just a big revenue grab for the city.
Another thing is that they go on a fishing expedition looking for work that was done without a permit. How many times have you purchased a house with a newer furnace that was there when you purchased? Get ready to start paying for permits for work that you didn't do.
Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
13y
John Jackson they are more than just walk through. They look in the attic. They look behind the furniture and the bed (checking for outlets without covers).
I heard from another landlord a couple years back that the City of Garland made him spend thousands tearing up and replacing a concrete patio because there was a crack and it was a trip hazard.
Investor · North Richland Hills, TX · Member since 2011 · 789 posts · 403 votes
13y
Robert Steele That certainly goes beyond anything I've encountered or heard of.
Maybe Plano has a thing against guys with cowboy hats and sunglasses at beach locations.....
Seriously though...I've never encountered such strict BS.
The last one we had was essentially "Well...you have walls....and a roof...looks good!" Then he stated that he thought the whole thing was a waste of his time.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
My most recent was in a suburb of Phila. They call it U&O (Use & Occupancy). When you put in the U&O application, you have to identify the use of the house - rental, owner occupied, etc. Fee is $100; U&O only needs to be done when property is sold or new tenant is going in. Various odds and ends get flagged, usually inexpensive enough that you don't argue. For example, this time I had to install cable clamps in various places where electric wires ran along a wall; for the service cable drop up near the roof; for some conduit that ran electric for the dryer in the basement. And had to more securely attach some surface mounted electric boxes so that the box wouldn't be pulled off the wall when a cord was removed (yeah, they were that loose and walls were masonry / concrete block). Each little town outside Phila has their own procedure, but almost all charge for this privilege :)
SFR Investor · Member since 2011 · 198 posts · 61 votes
13y
If a city started charging me for my rentals I would sell them and buy in a city with no fees. All they are doing is finding new ways to scam landlords out of money. Most cities in California do not have this, only places like Sacramento, LA, San Francisco and Berkeley do, in Sanfrancisco they also have rent control so you can't make any money there unless the property is paid off.
Quito, Ecuador · Member since 2018 · 15 posts · 3 votes
6y
Anybody have any updates they would like to add to this, especially from the North Texas area? I'm not looking forward to a Garland inspection. I bought the house a couple years ago for primary residence, now I'm about to rent it out. I think there was some un-permitted work well before I purchases the house (new AC system/water heater in last 5 years) and I believe an addition of a bedroom/bathroom from the 1970's (which isn't showing up in the room count with the county). I don't want these to turn into major issues. I don't even want to get on the city's radar if it's going to be an issue because I'm sure they'll go after me until it's all updated whether I rent the house or not. Maybe I will keep the utilities in my name and charge them back to the tenants as a work around for not registering it. The house is in great condition but I don't want to open a can of worms. Thanks in advance for any input.
New to Real Estate · Dallas, TX · Member since 2018 · 4 posts · 1 vote
6y
@Robert Johnson II Hi Robert, I purchased a rental property in Garland in January. Then I found out about Garland's inspections. I, personally, didn't have to deal with any inspections because I attended Garland's Landlord training program. It's 3 hours or so course offered twice a year and covers all the do's and don'ts. Most importantly, they give you a certificate of completion, which means they don't inspect your properties because you "know the rules now". You still need to register your rental properties with the City and pay $75 I believe. The certificate is good for 3 years.
Also - the class was a good chance to network with other local investors. I'm a newbie so I definitely liked that part. Here's the link to their class. Next time it's offered is in September. https://www.garlandtx.gov/307/Single-Family-Rental-Training
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
6y
We have them in Cleveland and the suburbs. They can be annoying for sure. It is always best to work with someone local who knows the local laws. This is all part of the risks of being your own Landlord.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y
Portland, OR just enacted it. A suburb, Gresham, has had a business license "fee" for each unit which is a tax.
They use the funds for low-income and inspections, which basically means to pay the other bills (like employee pensions) they don't want to tell you about :)
Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
6y
Richardson, TX did away with the mandatory interior inspection because of push back from the community on the grounds it infringed on the 4th amendment. Now they just do a drive-by or so they say. They still charge $75/year for... what exactly?
The tenant can request an interior inspection though.
Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
6y
As @Tom Ott mentioned, Cleveland (and surrounding municipalities) is no stranger to rental registrations. They can be a bit annoying and definitely trip up out of state investors, but generally they are looking to curb out of state/area investors who buy in Cleveland and don't maintain their investment properties. We have had a huge issue with investors who think, no big deal, I'll drop a little cash on this house in Cleveland, it's practically free! But the house is 100 years old and the roof leaks and they didn't have reserves or a manager to help them fix it... the city simply doesn't want to allow you to rent that out. If there are housing code violations, the city needs to know how to reach the owner and their agent/PM.
Overall, I see this program as a good thing in Cleveland. Fees vary wildly by municipality, though, and some building departments are definitely harder to deal with than others. I 100% agree about working with an experienced agent/PM who knows the ins and outs of this in your market.