It is becoming more and more common, in Michigan, that cities such as Royal Oak, Detroit, and Dearborn, require landlords to register their residential properties as rentals and get approval from the City prior to landlords renting the property to tenants. While this seems like a simple requirement, registering residential rental properties with the City and acquiring a Certificate from the City can be time-consuming, and depending on the condition of the property, costly. However, the penalties for not doing so are severe and can cause even more legal and financial difficulties for the landlord.
Every city that requires these registrations has somewhat different requirements, but typically they involve submitting an application and having the property inspected by a City Inspector prior to a Certificate being issued allowing the property to be rented to tenants. If the inspector finds issues where the Property is not up to code, they will require appropriate repairs be made and another inspection be conducted prior to a Certificate being issued. The certificate will not be issued until the property passes inspection. For landlords dealing with rental property registration, inspections, or city requirements, a West Bloomfield, MI real estate lawyer can help you understand the process and address potential issues before they become more costly.
There are many circumstances where landlords have not registered their rental properties including: the landlord’s attempt to avoid the expenses of the application, inspection, and repairs, landlords, or perhaps even lack of knowledge of the requirement to register the rental property. Unfortunately, “I did not know I had to register my rental with the city” is not going to be an explanation the City Building Department or judges are going to excuse.
The consequences for this failing to register starts with fines, and sometimes the city will take away the ability to apply for and obtain a Certificate for a period of time. However, this is just the beginning of the consequences for the landlord. Repeated violations of the requirement of registration of rental property can be elevated to misdemeanors in some jurisdictions such as Royal Oak. This misdemeanor, if the landlord is convicted, would be part of the landlord’s criminal record from that point forward.
Failure to obtain the appropriate certificate can lead to Landlords’ loss of rights to take certain legal action against the tenant as well. For instance, in the City of Detroit, landlords also lose the ability to collect rent from tenants, or to evict tenants for nonpayment of rent. This can be particularly troublesome for landlords if they have a tenant in their property who legally does not have to pay rent to them and the landlords are barred from pursuing an eviction for nonpayment of rent.
Courts are strict in enforcing these ordinances and will dismiss eviction cases based upon nonpayment of rent if properties are not properly registered with the City. Even if a Certificate is later obtained, the landlord will likely be unable to collect all or a portion of the rent for the time period where the Certificate was not yet obtained.
As you can see, registering residential rental properties and obtaining proper Certificates from the City is an important part of being a landlord. If you need assistance in registering your rental property or are having trouble evicting your tenant because your property is not registered with the City, contact our office today so our experienced attorneys can assist with your property. If you need assistance with rental property registration or are facing difficulties with a tenant because your property is not properly registered, contact Gudeman & Associates, P.C. to discuss your situation and available options.
