Cleveland’s “Residents First” Law: Impact on Landlords

Cleveland rental property investors have recently been buzzing about the city's newly enacted “Residents First” law—a significant update to landlord-tenant policies designed to prioritize the rights and well-being of Cleveland renters. As a rental property owner, it’s essential to understand exactly what this new law entails, how it affects your rental operations, and how to remain compliant and profitable under the new guidelines.

In this detailed guide, we’ll clearly break down what the “Residents First” law means for landlords, the key provisions you need to understand, the potential impact on your rental business, and practical tips for navigating this changing regulatory landscape.

What Is Cleveland’s “Residents First” Law?

The Residents First law, recently enacted by the City of Cleveland, represents a major update to local landlord-tenant legislation. The goal of the law is to enhance tenant protections, improve housing quality standards, and provide stronger oversight of rental practices throughout the city.

Key Objectives of the Law:

• Strengthen tenants’ rights and protections against unfair eviction practices.
• Ensure timely and adequate property maintenance by landlords.
• Increase transparency and accountability in landlord-tenant relationships.
• Reduce housing discrimination and promote fair rental practices.

Important Changes Landlords Need to Know

The law introduces several new provisions landlords must clearly understand:

1. Increased Notice Requirements for Evictions

Under the new law, landlords must provide tenants with extended written notice periods prior to eviction proceedings, clearly specifying the reason for eviction. This gives tenants more time to address violations or seek alternative housing, and landlords must strictly adhere to these timelines.

• Previously: Typically 3–7 days' notice.
• Now: Generally 14–30 days' notice, depending on the reason for eviction.

2. Enhanced Housing Quality Standards and Inspections

Cleveland’s law now mandates regular property inspections to ensure rental properties meet basic health and safety standards. This includes proactive maintenance of:

• Plumbing and electrical systems
• Heating systems and appliances
• Structural integrity (roof, walls, foundations)
• Pest control and cleanliness
• Working smoke and carbon monoxide detectors

Landlords may face fines or penalties if their properties fail to comply with these inspections.

3. Mandatory Landlord Registration and Licensing

Landlords are now required to register their rental properties with the city annually, obtaining a landlord license. This registration includes:

• Landlord contact information and property addresses.
• Proof of compliance with property safety standards.
• Documentation of fair housing compliance.

Failure to register could lead to significant fines or restrictions on renting your properties.

4. Tenant Rights Education Requirements

Landlords must provide clear, written documentation outlining tenant rights, responsibilities, and available community resources at lease signing. This ensures tenants clearly understand their protections under local housing laws.

5. Limits on Rental Application Fees and Deposits

The law introduces caps on application fees and security deposits landlords can collect, preventing excessive upfront costs for tenants. Application fees must directly correlate with landlord costs for background checks, and security deposits are limited typically to one month's rent.

Potential Impacts on Rental Property Owners

While these changes might initially feel burdensome, the long-term impact can be positive if navigated correctly:

Possible Challenges:

• Higher administrative workload (more paperwork, compliance documentation).
• Increased property management intensity (regular inspections, proactive maintenance).
• Potentially higher operational costs (repairs, inspections, licensing fees).

Potential Benefits:

• Improved tenant-landlord relationships and reduced tenant turnover.
• Higher-quality rental housing leading to increased tenant retention.
• Potential for higher rents due to improved property conditions and standards.

How Cleveland Investors Can Navigate These Changes

To successfully adjust to the Residents First law, here are practical steps landlords should clearly follow:

1. Review and Update Your Lease Agreements

Immediately review and update lease documents to clearly reflect the new law's notice requirements, tenant rights information, and application/deposit policies.

2. Schedule Regular Maintenance and Inspections

Create a structured maintenance and inspection schedule to stay ahead of compliance requirements and reduce potential fines or violations.

3. Register Your Rentals with the City Promptly

Don’t delay—promptly register your properties and obtain the required landlord licenses annually to remain compliant and avoid unnecessary fines or penalties.

4. Train Your Property Management Team

Clearly educate your property management staff or contractors on new standards, ensuring compliance with all inspection protocols and tenant communication requirements.

5. Budget for Increased Costs

Factor in possible increases in administrative, licensing, and maintenance costs into your annual operating budget to ensure profitability remains stable.

Common Mistakes Landlords Should Avoid

When adapting to the new law, avoid these common pitfalls:

• Ignoring New Registration Requirements: Register promptly—delaying can cause costly fines.
• Overlooking Property Maintenance Requirements: Proactive maintenance is critical—don’t wait for violations or tenant complaints.
• Providing Incorrect or Insufficient Tenant Notices: Clearly understand and adhere strictly to required eviction notices and timelines.
• Charging Excessive Application Fees: Fees must reflect actual landlord costs clearly—excessive fees could result in penalties.

Frequently Asked Questions (FAQs)

Q: Does the Residents First law apply to all Cleveland rentals?
A: Yes. The law applies broadly across the city to virtually all residential rental properties.

Q: How often must properties be inspected under this law?
A: Typically, annual inspections are required, but specific intervals may vary based on property conditions and city guidelines.

Q: Are there exceptions or grandfather clauses for long-time landlords?
A: Generally no; the law applies equally to new and existing landlords alike, emphasizing consistency across the city’s rental market.

Why the Residents First Law Can Benefit Your Investments Long-Term

While compliance initially involves extra steps, the law ultimately encourages:

• Better tenant relationships and reduced turnover.
• Higher property values due to improved housing standards.
• A stronger local rental market reputation, attracting quality tenants.

By clearly embracing these changes proactively, landlords can actually improve long-term profitability, tenant satisfaction, and property appreciation.

Conclusion: Turning Regulatory Changes into Opportunities

Cleveland’s Residents First law represents a major shift towards stronger tenant protections, improved housing quality, and increased landlord accountability. Rather than seeing these regulations as obstacles, smart investors will embrace them as opportunities to raise rental standards, attract better tenants, and build a more resilient and profitable rental portfolio.

If you have questions about navigating Cleveland’s Residents First law, want help reviewing your rental compliance strategy, or simply want guidance on thriving in Cleveland’s evolving rental landscape, I’d be happy to offer personalized assistance.

Feel free to call or text me directly at 216-789-6736 anytime. Let’s keep your Cleveland rental investments strong, profitable, and fully compliant!

Warm regards,

Jack Krusinski

Cleveland Real Estate Agent & Investor

216-789-6736