Are property inspections/registration required in your market?

Casper, Wyoming
General Landlording & Rental Properties
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Are property inspections/registration required in your market?

Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

This is not uncommon for vacation rentals, but now cities are starting to enforce it for long-term rentals. Has this happened in your area? Do you think it's a good thing?

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Adam Martin
Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
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Let's be real a lot of these registrations or inspections aren't about safety or creating a better community they are a cash grab.  There is a town a few miles away that has a 40/year permit but all you do is send your check in each year.  What is the point besides for the town to get 40/rental in an area where there are a lot of rentals.  I'm fairly sure there is a housing authority or similar agency where renters can submit complaints in every community so I really see this as an unnecessary burden to landlords.  I wouldn't be against more extensive inspections for frequent fliers on the violation list though to ensure they are providing adequate housing and that things aren't simply going unreported that are major safety issues.  

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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    4y

    Not required in my market- I would guess that my state - Idaho, is likely the LEAST regulated state in the country when it comes to real estate. That can, and does cause problems, but mostly for amatuers. If you are operating in a professional way and caring for your properties and tenants, I think less regulation only benefits you. 

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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    4y

    @Nathan Gesner there are some areas of CA that I know of some in the areas of my rentals that do have inspections to keep the city's community in good condition per the city. I believe that code enforcement in each city are there for a reason for other people on that street or neighbor can report a house that is not a good rental; verses doing a blanket rental inspection which I think is more of a strict hold on people's rentals that would be in good shape anyway. 

    I see the good in it because some landlords are not as active in the property upkeep; however, that is where the neighbors need to step in (I have had multiple neighbors call be about just my grass not being green enough for their liking). There is a sense of pride and ownership with rentals especially if you are mom/pop owner or you are an asset manager managing thousands of units because you want those prices to be high are all reasons to keep those places in shape. Overall I think that the areas/cities should have code enforcement bulked up for people that call, but not put a blanket rental inspection in place for all homeowners.

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  • Billy Smith
    Shawnee Mission, KS · Member since 2016 · 716 posts · 313 votes
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    Yes in my area they do inspections when the fee is due every few years  my rentals are kept up so major issues . They only issues I have had  was young men rented a house kept too much crap out side ,trash cans not put behind a property line with a privacy fence ,I rode their *** to keep it right .

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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Corby Goade:

    Not required in my market- I would guess that my state - Idaho, is likely the LEAST regulated state in the country when it comes to real estate. That can, and does cause problems, but mostly for amatuers. If you are operating in a professional way and caring for your properties and tenants, I think less regulation only benefits you. 


    I bet Wyoming has you beat! (yes, Wyoming does exist)

    For professionals, I think it's more of a nuisance. That's how most laws work; they are written for the lowest-common demoninator.

    Instead of registering every single property and inspecting them, I think they would be more successful setting up easy reporting systems and investigating Landlords that are reported for violations. That way the law-abiding Landlords can operate without interruption.

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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
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    This would be my recommendation. Create a marketing/education system so it's easy to report violations, including pictures and other attachments. Then have a task force set up to investigate, confirm/deny, send warnings or fines, etc. 

    I see the blanket registration programs as a waste of resources because the slumlords are most likely the ones trying to hide.

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  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    4y

    Let's be real a lot of these registrations or inspections aren't about safety or creating a better community they are a cash grab.  There is a town a few miles away that has a 40/year permit but all you do is send your check in each year.  What is the point besides for the town to get 40/rental in an area where there are a lot of rentals.  I'm fairly sure there is a housing authority or similar agency where renters can submit complaints in every community so I really see this as an unnecessary burden to landlords.  I wouldn't be against more extensive inspections for frequent fliers on the violation list though to ensure they are providing adequate housing and that things aren't simply going unreported that are major safety issues.  

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    4y

    I'm glad you brought this up, Nathan.  A list should be compiled. 

    I remember looking into some cash flow markets in OH back in the day but was stunned when I saw a casual comment about the inspections/ registration of rentals there. 

    Really?  And nobody talks about it ?  This needs to be disclosed, especially if it's a known rental investor market.

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  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    4y

    In my market (city in Upstate NY), Code Enforcement must inspect every unit once every three years, or upon turnover, whichever occurs first.  A CO will not be issued, and new tenants cannot occupy until this inspection is done, and the inspection cannot be done until the unit is vacant and move-in ready.  This makes it extremely challenging when you strive for 0% vacancy, having one party move out on the 31st, and the next move in on the 1st, especially since the inspection has to occur either in the afternoon of the 31st (if they are out) or the morning of the 1st (prior to move-in).  Guess which day of the month the inspection slots get booked up immediately?  This dance is especially challenging when the last day of the month falls on a weekend or holiday, when city officials are not working.

    I have a very good reputation with the enforcement officers, and they do not hassle me as my units are always a step up from the others in my market.  I like the idea of this model, as it keeps out the slumlords, but it also creates logistical headaches for people like me who do not want to have vacancy between tenants in updated units.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
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    Not in my area. I agree with the person who said it is a cash grab. I do think all homes should be safe, but there is nothing stopping tenants reporting unsafe homes or moving/not renting them.  There are also people who make homes less safe by removing smoke detectors (often because they are put in a silly spot where they keep going off when an oven is opened).

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
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    Not in Arizona. I did have to get an initial inspection on one of my STRs, but that was it. Nothing for LTRs.

    I feel that the Govt has too much overreach already and should find another way to assure that units are safe.......cleanliness is another matter IMO....

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  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    4y

    Yes and it's a headache in NJ. Almost impossible to keep up with. At the end of the day it's a form of taxation. Some towns it's a total joke, they just want a registration every year and a fee to go along with it. Nothing behind it. 

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    Depends on the jurisdiction. We have jurisdictions that require rental licenses, some that dont, some that require rental inspections, some that dont.

    Since Im in and out of multiple properties a week, and see some of the absolute deplorable conditions some landlords maintain their properties in...Im generally in favor of rental inspections and licensing. 

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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
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    One of the counties I invest in has inspections, the other two do not. It is not a big deal and I know they made one of the LLs in the neighborhood clean up garbage and get a bigger dumpster so that was a lot better than his tenants leaving trash where they should not (around our dumpster).

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    I believe property inspections are a waste of money, they don’t get specific and all they do is RE come from you to experts who will be able to pinpoint what the issues are. Only reason I’d get one is for negotiation purposes 

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  • Mark S.
    Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 474 votes
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    @Nathan G. Minneapolis requires them, has for years.

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  • Jeff SchemmelBusiness Member
    Real Estate Agent · Saint Paul, MN · Member since 2014 · 384 posts · 401 votes
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    Minneapolis & Saint Paul both require them and use a tiering system.  I like it, but it's obvious they have a hard time enforcing them in both cities.

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  • Karl B.
    Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    4y

    We have them. It starts of once a year and after a few passes it goes to every two years. I think it's a good thing overall but there are some inspectors who are such sticklers that it's insane. Like receiving a conditional pass because the plastic light switch cover has a quarter inch crack in it. 

    I know there are some landlords in my city who have failed to pay the yearly registration fees as well. One would think the city would go after them but as of two years ago I was told the city wasn't doing anything about it (my city also had over a million dollars in unpaid parking tickets but they're finally beginning to boot cars with some frequency so hopefully they get on the bad landlords as well).

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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
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    Quote from @Karl B.:

    So they create a law and force the requirement on everyone even though the majority of Landlords are good, then they fail to enforce the law on the bad actors. Yep, sounds like government!

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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
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    Quote from @Nathan Gesner:

    Yeah, the blanket registration is for sure a waste of resources and for some of my area you don't even know that it applies to you since it's so hard to track. This means it's not running effectively or not even running at all since not a lot of people know about it. 

    If it was a reporting system, more people would be involved with that then anything else for sure! 

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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
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    @Nathan Gesner it's not in Austin but was in Minneapolis and I hated it. If you're a slumlord and don't take care of your properties the market will dictate that you don't get as high of rents or occupancy. I don't need the city to police me, a free market is more efficient.

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
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    Quote from @Jordan Moorhead:

    @Nathan Gesner it's not in Austin but was in Minneapolis and I hated it. If you're a slumlord and don't take care of your properties the market will dictate that you don't get as high of rents or occupancy. I don't need the city to police me, a free market is more efficient.


    Well said! I am not a fan of big government, but then neither am I a fan of slumlords.....but the market will take care of them, albeit eventually.....

    There is too much room for bad practices in allowing a Govt entity to decide whether or not a property owner can rent their property or not. I went through this for decades with Building Inspectors and their power trips and capricious attitudes. You never know if you're going to get an inspector who just had a fight with his girlfriend and is not going to pass you no matter what.

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  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
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    Not yet! Not a fan as a sizeable PM company. Government entities overreaching is never a good thing.
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  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
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    Not required in my area. I am not in favor of them for the following reasons:

    1. They don't cut both ways. They don't mind inspecting your unit and taking a fee and denying you a renewal for something minor or even unnecessary, but don't offer any assistance at getting rid of slobs that junk up the property.

    2. Tenants already have several remedies for slumlords. They can enlist the help of the court to fix genuine issues, as the states that I know of have escrow systems wherein a tenant can pay rent to the court instead of the landlord until genuine issues get resolved. They can in many states make the repairs themselves if a landlord refuses and withhold that amount from the rent, or have the court reimburse them. And they can move, regardless of lease status, since no court is going to uphold a lease for a property that has real issues that the landlord refused to address.

    3. I'm not an anti-government guy but these kinds of programs are generally woefully inefficient unless they have real resources, which costs money, which then raises the cost of doing business which then raises the costs of rent.

    4. If you're a good landlord, you don't need the inspections. It's just a lot of aggravation for those who already do the right thing.
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  • Tim Miller
    Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes
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    Yeah, Hagerstown, MD has somewhat reasonable requirements. Inspect every 4 years at turn over. Yearly license - $75 Per Unit.

    Frederick, MD will start Jan. 1, 2023. Any LL that doesn't register will be fined $1,000 a day.

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
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     Welcome to Govt run housing.......

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