Obviously they are putting more pressure on out of state investors that invest within Cleveland proper, but spreading liability to the property manager is a new twist. The mayor has been hot on out of state investors and poor property managers since his campaign.
I was speaking with an agent last night who said that their brokerage told the property management division to get out of any contracts within the city limits. They don't want the company to be potentially liable if an owner doesn't follow through with the inspections and repairs.
After the GFC, we needed the capital investment or they would have had to tear down more houses than the thousands that they already have. Apparently now those investments are less interesting to city hall.
As always, some bad actors cause burdensome regulations for everyone else.
Per the Akron Cleveland Association of Realtors:
"For example, in Cleveland, a local agent in charge must be identified if the property is not owner-occupied. However, if the owner lives in Cuyahoga County or a contiguous county, the owner may be listed as the local agent in charge. If the owner does not meet that residency requirement, another human being must be identified as the local agent in charge. If a problem arises with the property, the City will attempt to contact the owner and hold them accountable. However, if that effort fails, the local agent is equally liable – criminally and civilly – for any fees, fines, etc. associated with the property."
