Code Enforcement for Rental Properties

Information | Resources and Best Practice Models

One of the direct impacts of foreclosures and the corresponding decrease in home values is an increase in the number of residential rental units. Not only has the 300,000 foreclosures in Michigan increased the supply of renters, but the disposition process of foreclosed properties at low rates have created a new class of landlords, some of whom seek cheap, foreclosed property that they can rent without significant investment in acquisition or rehab and maintenance.

In order to monitor rental properties and ensure the integrity of neighborhoods, many communities have begun enacting Rental Registration/Certification Ordinances. These ordinances generally are designed to promote the continued maintenance of quality and safe rental properties, while at the same time enhance property values of all properties, and reduce the causes and spread of blight. Most Rental Registration/Certification Ordinances require that all rental housing be certified, inspected, and/or registered prior to occupancy. Although each ordinance may differ by community, at a minimum many require systematic inspections of all rental properties (usually either every two or four years). Additionally, many communities are considering enacting or updating rental property ordinances to respond to an increase in homeowners choosing to convert owner-occupied residences into rentals.

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