- Improve neighborhoods
- Reverse the trend in some declining neighborhoods
- Improve the overall housing stock
- Raise the minimum standard of living
- Ensure safe, healthy housing of all
- Answer to complaints from citizens
- Reduce the number of landlord tenant disputes over property conditions
- Make the community an attractive place for people to live and move to and create jobs in
Nationwide, cities have implemented similar plans. Illinois has rental inspections from Galena to Carbondale and Chicago's suburbs to the Quad Cities.
So what exactly is a rental inspection program?
- Some cities license landlords to root out the bad ones. As a non-home rule city, that's not a power our city has. We can however require a landlord to have an occupancy permit to rent out a unit. The occupancy permit is issued if the property is completely up to code. Some cities require a new permit annually, some require it every time tenants change, and some vary the time frame according to the condition of the property. Sterling is considering the option to grade properties so that a property that meets all standards gets a permit that lasts for a few years. Properties that have only minor deficiencies that don't risk the tenants health may get a 1 year permit. If the property has a major deficiency or is an immediate hazard to the tenant, the property may only get a permit good for a month or less, if one at all depending on the severity.
What will the City look for?
- Due to the number of properties to inspect, the first round of inspections will likely be exterior only, unless there is a reason to suspect the interior is in an unsafe condition. When it's time to renew, the inspections should be staggered enough to allow the inspector time to inspect the interior as well as the exterior.
- Exterior
- Roof in good condition
- Gutters in tact
- Chimney stable
- Windows and screens unbroken
- Foundations in good condition
- Paint not chipping away
- Steps and railings secure
- Yard mowed and free of junk
- Accessory structures in good condition
- Interior
- Plumbing works (supply and drain)
- Electric: Access to panels, no bare wiring, fixtures secure, plates around switches and outlets
- Working carbon monoxide and smoke detectors
- Walls in good condition
- Occupancy load
- Ingress/egress (doors secure, entrances unobstructed, etc)
- Rodent or insect infestation
- Evident mold or mildew problems
- Evidence of roof leaks
How will this effect the landlords?
- Once registered as a rental property with the code enforcement office, if the property is up to code as it should already be, the landlord will only need to pay a small fee for the occupancy permit which is good for multiple years.
- Better maintained properties=better rents=better tenants=better neighborhoods. Everyone benefits from better neighborhoods!
How can this benefit landlords?
- This establishes a level playing field for lower rent properties. Good landlords that reinvest in their properties shouldn't have to compete against landlords that let their properties deteriorate so that they can make an extra few dollars
- The program will protect your property's value. Your neighbors dilapidated properties may be dragging down the amount you can sell or rent out your property for or worse, make it more difficult to get your property rented
- Optimistically, the bad landlords with no desire to fix or maintain properties will sell out to the good landlords that will maintain the property
- Attract a better pool of renters
How can landlords be proactive?
- Improve screening of rental applicants (requiring an application fee or paying $50 up front to do a background check can save a lot more in damage and eviction fees down the road)
- Many landlords fail to secure a lease with their tenants
- Create a conditions checklist signed by the tenant and landlord agreeing to the condition of the property
- Learn how to evict without the cost of an attorney
- Don't accept work for rent... it often leads to quarrels. Make sure you get a lease signed by your tenant. Don't move in new tenants before the property is cleaned and fixed for the next tenant
- Adjust security deposits as necessary
- Work with the Sterling Police Department and the "Crime Free Housing Program." Use the Crime Free/Drug Free lease addendum that part of the program
Bottom line, how much will this cost?
- We anticipate that more than half of the City's cost will come from the rental occupancy permit fees. Subject to change, I would venture to say this would equal $30-$40 per permit. If your property was up to code, that's about $1 a month. If your property is not up to minimum standards, your permit won’t go as far, but your property should be up to code regardless of the rental inspection program
- The remainder of the cost would come from the City's general fund. The Council and staff are so concerned with the state of our neighborhoods, that we believe $1 a month on rental units is worth it to ensure we make progress on our neighborhood improvement. We’re not going to cut any other service to make this happen. If the budget dictates, down the road it may mean the permits average out to $2 or $3 a month, but again, for our long-term outlook, we believe this is a necessary program
