What Investors Need to Know About Compliance for Detroit Investments

By Own It Detroit

Wooden stamp with the word compliance written

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What Investors Need to Know About Compliance for Detroit Investments

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Legal Note: This article is not a substitute for legal counsel. If you need direct assistance for your Detroit investments, reach out to the Own It Detroit professionals for a rapid response!

Have you ever been in a situation where there have 'always been rules,' but enforcement was lax? Maybe your workplace has guidelines or an existing policy book, but no one really makes an effort to ensure that everyone follows the rules. 

Compliance and regulation

Suddenly, you've got an enforcement officer on-site handing out penalties for violating terms you didn't even know existed—and everyone is confused. Perhaps a new boss took over and actually read that company handbook. The rules were always there, and there was an expectation that everyone should be familiar with the rules and follow them. However, now the new person in charge is taking them seriously—and assessing punishment where it's been absent for so long. 

We're finding this situation to be a new challenge for many local and long-distance investors who have owned Detroit investments for many years. The Own It Detroit team knows it can create some panic to suddenly be held accountable to rules you might or might not know, but there's no need to worry. Here's what investors need to know about staying compliant with Detroit investment properties.

Being Compliant Isn't New

Doing the work to offer high-quality rental properties that provide safe homes for renters isn't new. However, the city's efforts to enforce compliance is a new thing for many Detroit investors. What does that really mean?

According to the city government's website, 'The Buildings, Safety Engineering, & Environmental Department (BSEED) is responsible for making sure that all rental properties in the city are properly registered, up to code, and have obtained a Certificate of Compliance.' 

Having that certificate is a requirement to operate legal rental properties in the Motor City. Where you might have been able to self-monitor your properties to keep them in good condition for renters before, the city is now stepping up its efforts to make sure rental properties comply with codes and safety regulations. 

What Is Compliance?

There's no need to panic—but there might be work to do to make sure your Detroit investments meet the city's requirements and have the paperwork to verify your compliance. City officials have provided an abundance of information on their website to help real estate investors navigate the compliance problem, but it can be overwhelming.

If you have a significant portfolio, the best local property management team can help you tackle the tasks required to make sure you're following the rules with the proper verification. Compliance includes:

  • Registering each property with the city
  • A city inspection 
  • Receiving your certificate of compliance (after passing the inspection)
  • Re-registering and re-certifying each year (depending on each type of Detroit rental property in your portfolio).

During the city inspection, someone must represent you on-site with each property. If you're not local (or cannot coordinate your schedule to match the inspector's schedule), our team is here to handle every inspection, the paperwork, and follow through with any action needed to make sure every property passes compliance. 

'How Can My Properties Comply?'

  • Your Detroit investments must meet the standards for all city ordinances that apply to rental property housing.
  • Many rental properties exist in old building structures that no longer meet the current standards for safe living environments.
  • However, even if your portfolio includes new builds, these properties must also follow the compliance certification process.

Our Detroit metro property management team can review your property and look for issues that won't pass an inspection. We've had great success within the past twelve months spotting problems and resolving them for investors to pass city inspections and receive their certificates. 

Cracking, peeling paint

Issues like lead paint abatement are common problems that require effective action to provide a safe Detroit rental property while meeting the city's standards. Our renovation team understands how to eliminate this hazard efficiently and cost-effectively. 

Compliance Keeps Our City in-Demand

  • The city's focus on compliance is a good thing for real estate investors.
  • It's an effort to preserve aging buildings, reduce blight, and make Detroit a desirable place for people to live and work.
  • When our city thrives, your real estate portfolio thrives as well.

Renters want safe homes. When investors are proactive with compliance and offer safe, well-maintained properties, they enjoy better residents and tremendous cash flow! 

We're Compliance Experts

Before you feel like new compliance enforcement efforts are an expensive problem for your Detroit investments, let the right professionals get involved. The Own It Detroit team has significant experience with successful rental properties in the metro area. While the new enforcement policies do create extra steps for verification, our team has a long history of handling property rehabs to keep buildings up to code and remove lead paint hazards. 

We make compliance a hassle-free part of making more money in Detroit! We know the rules and the steps required to navigate the inspection and certification process—and investors must act quickly to register their properties. Contact us to speak with one of our real estate investment professionals and ensure your properties stay compliant.  

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