Rental Licensing FAQ
1. What is the Rental Licensing Program?
Per Ordinance 8840, adopted by the City Commission on April 1, 2014, the City’s Rental Licensing Program regulates all residential dwelling units, structures and premises that are rented by an owner for a tenant’s possession or occupancy, with a few exceptions. The Program requires owners to submit an application to obtain a license for each rental dwelling unit owned, and to renew such licenses on an annual basis. The Program also requires initial inspections of rental dwelling units, structures and premises, as well as cyclical inspections on either a 3 or 6-year cycle, depending on the condition of the units inspected (number of violations found per Ordinance 8840, Sections 6-1314 and 6-1315). Rental dwelling units may also be inspected in response to tenant complaints.
2. Hasn’t the City enforced a Rental Licensing Program for many years?
Yes, rental licensing and inspection has been required and enforced since 2002 (per Chapter 6, Article 13 of the City Code), but only for rental units located in single-family zoning districts (RS zoning), with a few exceptions. On April 1, 2014, the City Commission adopted Ordinance 8840 (which replaced Chapter 6, Article 13 with a new Chapter 6, Article 13) that required rental dwelling units located anywhere in the City to be licensed and inspected. On April 1, 2014, the City Commission also approved Administrative Regulations (and Appendices) for the expanded program in order to establish general policies and procedures for implementation and administration.
3. When do Ordinance 8840 license regulations become effective?
Rental units previously licensed under the RS zoning program will continue to be licensed under the prior program’s schedules and requirements until July 1, 2014. After July 1, 2014, owners of RS-zoned units will be transitioned to the new license application and renewal schedule outlined in Ordinance 8840 and the Administrative Regulations, and will be required to file their license renewal notice and stub (mailed by the City at least four weeks before a rental license expires) per the new schedule. Licenses issued/renewed after June 30, 2014 will be inspected in accordance with Ordinance 8840 requirements and the Administrative Regulations.
For rental units located outside RS zoning districts, initial licensing will begin on January 2, 2015 and continue through the end of 2015. Rental property owners will be required to file a license application for every rental property and dwelling unit they own in accordance with the license application and renewal schedule outlined in Ordinance 8840 and the Administrative Regulations. This schedule requires owners to file their initial license application during a specified month in 2015, depending on the beginning letter of the owner’s last name (if an individual) or owner entity name.
4. When will initial required City inspections begin for rental properties located in non-RS zoning districts?
Initial required inspections for non-RS zoned rental properties licensed during 2015 will not begin until July 1, 2015. Inspections for all licensed rental properties will be completed over a 3-year period per the inspection schedule set forth in the Administrative Regulations. The inspection schedule requires inspections to take place in either the first, second or third year, depending on the beginning letter of the owner’s last name (if an individual) or owner entity name.
5. When will required inspections for rental properties previously licensed under the RS zoning rental licensing program occur?
Rental units previously licensed under the RS zoning program will continue to be inspected under their current schedule. Beginning July 1, 2014, they be transitioned to the inspection schedule contained in the Administrative Regulations, but they will not be inspected sooner than three years from the date of their last inspection. Those properties inspected after July 1, 2014 may qualify for the incentive per Section 6-1312 of Ordinance 8840 and the Administrative Regulations (see question 9 for further information on qualifying for incentive).
6. Are there fees for licensing?
Yes, there are fees for initial licensing of rental units, subsequent annual license renewals and any required rental property inspections. Initial and annual license renewal fees range from $14 to $17 per licensed unit, depending on the number of units licensed by a single owner or entity, per the attached Ordinance 8840 fee schedule. There is also a $50 inspection fee for each required dwelling unit inspection paid in the year in which an inspection is required, which covers the cost of the initial inspection and one re-inspection. Additional inspection fees will be charged for required re-inspections beyond the first.
7. What rental property codes and/or conditions will be enforced under the Rental Program?
Ordinance 8840 lists 27 standards in Sections 6-1314 and 6-1315. City Rental Inspectors will apply these 27 standards upon inspection of a rental unit and any common areas and the exterior premises. The inspector will also inspect for and note other violations of the City’s Property Maintenance Code (Chapter 9, Article 6 of the City Code), but such violations will not affect the licensee’s license in a negative way. The 27 standards listed in Sections 6-1314 and 6-1315, as well as other possible Property Maintenance Code violations, are identified on an Inspection Form and Checklist and an Inspection Guide for Residential Rental Property, both of which were adopted by the City Commission as Appendices to the Administrative Regulations.
8. Will the City inspect every licensed rental unit?
In the year when an owner’s licensed dwelling units are scheduled for inspection (the initial inspection or subsequent license renewal inspections on a required 3 or 6-year cycle), the City will select and inspect 10%, rounded up to the next whole number, but not to exceed 15, of the total number of dwelling units licensed by the owner/licensee. If more than five of the 27 violations listed in Section 6-1314 and 6-1315 are found during inspection of any unit in the sample, the City may select and inspect an additional 10%, rounded up to the next whole number, not to exceed 15. To minimize any inconvenience caused to tenants by inspections, The City will make a reasonable effort to prioritize in its selection of units “Qualified Vacant Units”, as defined in Section 6-1302, as well as the oldest of the units within the pool of units to inspect.
Example 1: In September 2015, rental property owner Joe Schmoe, an individual, licenses 34 total dwelling units housed within three fourplexes, three triplexes, four duplexes and five single family homes at various non-RS zoning locations throughout the City. Mr. Schmoe is scheduled for initial dwelling unit inspections in late 2015. In this case, the City will select four licensed units for inspection (10% of total owned, rounded up to next whole number). Because Mr. Schmoe has identified two Qualified Vacant Units, those units will be included in the inspection sample. If none of the four inspected units has more than five violations per Sections 6-1314 and 6-1315, no additional units will be selected for inspection. If the number of violations per Sections 6-1314 and 6-1315 exceeds five in any of the four inspected units, an additional four units may be inspected.
Example 2: In February 2015, Doe Enterprises licenses two large apartment complexes with 350 total units (175 units in each complex). The complexes are scheduled for initial inspections during January 2016. Although 10% of the total 350 units would be 35 units, the City will select only 15 units for inspection (split between the two complexes) since 15 is the cap. Four units have been identified by Doe Enterprises as Qualified Vacant Units, which will be included in the 15-unit inspection sample selected by the City. If none of the 15 inspected units has more than five violations per Sections 6-1314 and 6-1315, no additional units will be selected for inspection. If the number of violations per Sections 6-1314 and 6-1315 exceeds five in any of the 15 inspected units, an additional 15 units may be inspected.
Example 3: During November 2015, Kilroy Washere, an individual, licenses one duplex in North Lawrence and one triplex in the Oread area, both in non-RS zoning. Initial property inspections are scheduled during September 2016, and all units are occupied. In this case, the City will select one unit for inspection (10% of five units, rounded up to the next whole number). The inspected unit has seven violations per Sections 6-1314 and 6-1315, so another unit is selected for inspection, and only two violations are found. No additional units will be selected for inspection.
9. If few or no Rental Program violations are found during the City’s inspection of my unit/s, will I be rewarded for maintaining my property to a higher standard?
Yes, per Section 6-1312 of Ordinance 8840 and the Administrative Regulations, if not more than five of the 27 listed Rental Program standards are found to be in violation in any dwelling unit inspected as part of a required dwelling unit inspection sample, then all residential rental property licensed by that owner will be exempt from inspection for a period of six calendar years instead of three calendar years (exemption does not apply to any inspection made as a result of a complaint made during the exempted period).
10. Will an inspection be required for newly constructed or substantially renovated/reconstructed rental units or buildings?
No, Ordinance 8840 exempts residential rental property that is “New Construction” or that has undergone “Major Reconstruction” (as those terms are defined in Section 6-1302 of Ordinance 8840) for a period of six years from the date of the approved final inspection on a valid building permit issued by the City for the construction or reconstruction.
11. How will the City coordinate required inspections with owners and tenants?
Generally, the City will notify the owner/licensee that they have units due for inspection at the time of initial licensing or as part of their license renewal process. It is the owner’s responsibility to contact the City to schedule inspection dates and times. In no event will the City inspect with less than 72-hour notice, unless the tenant (if occupied) or owner (if vacant) consent to shorter notice.
The owner is requested to coordinate inspection dates and times with tenants; however, the owner will have no legal obligation to obtain from any tenant, on behalf of the City, consent for the City to perform any inspection or re-inspection. If the City obtains from the tenant written consent to perform any inspection or re-inspection, it will be on the Consent for Inspection Form attached as Appendix D to the Administrative Regulations. An owner will not be penalized where any inspection or re-inspection is delayed as the result of the actions of a tenant.
12. What can a landlord or property manager do to facilitate the inspection?
Coordinating and informing tenant(s) about the city’s program will help manage expectations about the inspection. In addition, completing a pre-inspection walk-through of the unit using the city’s checklist prior to the city’s inspection and bringing a supply of materials, such as batteries for smoke alarms and cover plates for outlets, to correct the commonly found violations during the inspection will reduce the possibility of being cited by the city inspector.
13. If I have multiple properties/dwelling units that are simultaneously due for inspection, and they are located in various parts of the City, how will that be coordinated with the City?
City staff will work closely with the owner/licensee to coordinate inspection schedules that are efficient for both the owner/licensee and City staff. Required inspections may be coordinated on a single day or over multiple days, or with various inspectors if it makes the process more timely and efficient.
14. Will the Rental Inspector make video recordings or take photographs during inspections?
Generally, the Rental Inspector will not make video recordings or take photographs. The Inspector is there to inspect and document Rental Program violations or Property Maintenance Code violations only, and video or photographs are generally unnecessary. Only in cases where an extreme life safety issue or immediate hazard exists, or where compliance by the owner or tenant is not making progress, might a photograph be taken, and usually with the tenant’s consent.
15. In Lawrence, July and August are typically high rental turnover and leasing months. Will rental inspections be required during these months?
Experience shows that some landlords prefer this time period to have their units inspected and some find it challenging. Per the Administrative Regulations promulgated by the City Commission, required rental property inspections will not be conducted during July or August, unless requested by the property owner. However, the City may inspect during these months in response to a complaint.
16. How will I be notified of violations found during rental unit inspections?
At the time of inspection, the Rental Inspector will verbally share their findings with the property owner during the inspection. For certain, easily fixable items, such as a dead or missing battery in a smoke detector or a missing electrical outlet cover, the owner may be allowed to fix those during the scheduled inspection time (assuming the owner has a battery or outlet cover with them).
When violations per Sections 6-1314 or 6-1315 are found during an inspection (and are not corrected during the inspection), the Rental Inspector will issue, via email or regular U.S. mail, a written Notice of Violation on the Inspection Form and Checklist included in Appendix C of the Administrative Regulations. If violations of the Property Maintenance Code, outside of Ordinance 8840 Sections 6-1314 or 6-1315 are found, the inspector will email or mail via U.S. mail a separate Notice of Violation under the City’s regular Property Maintenance Code enforcement program.
17. How long will I be given to correct violations found during inspection?
Generally, the written Notice of Violation issued by the City will give the owner thirty days to correct violations, although reasonable extensions of time may be requested in writing by the owner and may be granted by the City depending on the circumstances (such as for weather/seasonal factors or the availability of contractors hired by the owner to complete remediation work). If a noted violation poses an imminent threat to life, safety or health (such as an unvented gas appliance, dangerous electrical wiring or a collapsed/backed up sanitary sewer line), the City may require correction in less than 30 days.
18. Can a tenant be cited for a violation?
Yes, if it can be determined that the tenant is the cause of a Rental Program violation, a Notice of Violation may be issued to the tenant instead of to the owner.
19. What if I disagree with a Notice of License Denial or a Notice of Violation issued by the City?
Section 6-1317 of Ordinance 8840 allows any owner/licensee or tenant aggrieved by an action of the City in issuing a Notice of License Denial or a Notice of Violation to appeal such action to the Building Code Board of Appeals, provided a notice of appeal is filed with the Planning & Development Services Department within 14 days of the date of the Notice. A $25 docking fee will be charged at the time of filing.
20. What are the possible consequences if a rental property owner fails to license or correct violations of Sections 6-1314 or 6-1315?
Failure to license a residential rental property prior to renting, leasing, subleasing or letting to any tenant may be considered an unlawful act and may be prosecuted in municipal court as a municipal offense. Renting, leasing, subleasing or letting to any tenant a residential rental property that has one or more of the violations listed in Sections 6-1314 or 6-1315 may also be prosecuted in municipal court. Failure to correct within a reasonable time violations of Section 6-1314 or 6-1315, as identified in a Notice of Violation, may cause for the City Code Official or, in the case of an appeal from a Notice of Violation, the Building Code Board of Appeals, to place a rental license on probation or to revoke a rental license per Sections 6-1318 or 6-1319.
21. I heard that I will have to post a copy of my license in every rental unit. Is that accurate?
Licensees are not required to post copies of the license in dwelling units, on buildings or on residential property premises. However, Ordinance 8840 requires that the rental license be maintained by the licensee on the rental property premises, if possible, or at the licensee’s principal place of business, and be made available, upon request, to any tenant of a dwelling unit or to a City code official.
22. Will the city be communicating elements of this program to tenants?
Each September the City will mail to each licensed dwelling unit a postcard. The postcard will provide residents of the dwelling unit with a website address that contains general information about the Rental Licensing Program and relevant contact information for reporting to the city any suspected violations of the City Code.
23. Are rental units restricted in the number of tenants living in the unit?
Occupancy limits are a function of the Land Development Code (zoning) standards. Generally, occupants are those tenants living in the unit a majority of their time. The maximum number of allowed occupants is determined by the zoning district and use of the structure. RS (single-family) districts permit up to 3 unrelated occupants in a dwelling unit. Other districts permit up to 4 unrelated occupants. A congregate living structure may permit occupancies that exceed these minimums and are established at time of site planning the use. Section 20-601(d) of the city code establishes the specific occupancy standards.