It was a only a matter of time before cities started creating "Landlord" rules for minimum standards for single family rental property.
Grand Rapids Michigan has just passed a inspection requirement on single family rental properties.
This was directly caused by the investors that did minimal clean up and repairs and started renting properties that were not safe or functional in many cases.
We can look at the market of foreclosure homes that created a depressed below market price and greed to snap up as many of these homes as possible. Making the investment the priority instead of the quality of the home after the investment.
From years of investing I can tell you maintenance is one of the first drains on your capital. Fixing requiresappropriate licensed service providers or inspections after the repair. In many cases none of these issues were done. The property owner fixed electrical, plumbing, roofing and other required repairs to get the property rentable. Today we may start seeing a new sell off in the single family rental market because of the rental market. As of July 1, 2012 the new inspection requirement will go into effect.
Here is an article link Single Family Rental Housing Inspection. Multi-family inspection requirements were already in place.
Being a member of the RPOA, (Rental Property Owners Association) this inspection requirement was not a surprise. The RPOA worked with city to help protect landlords during the drafting of the bill for inspections of single family homes. Small investors will find it as a very big deal while the pros already know what to expect and how to handle the new inspection requirements. Most larger Investors have a blend of multi-family and single family homes. I have stayed away from single family with the exception of resale as a rent to own option.
This is also part of a revenue generator in difficult budget times. It isn't being presented that way but face facts. Permits will generate more inspections and fines.
It does have a couple hidden issues. For the renter this should help provide more consistent living environment. It may also increase rents or low profits for the landlord because of increased costs to meet code demands. Depending on the market, property location and demand.
Thinking of selling your Rental Property. Find out how your can attract investors with a "Flexible Real Estate Selling Option" Plan.