Two new municipal ordinances make me glad I'm out of the business of rental properties.
Speedway's new ordinance is especially awful. Do you really want landlords to be police? This is what they will have to become if fines to landlords result from tenant misbehavior. From WIBC's report:
The Speedway Town Council has approved some tough, new apartment regulations, despite protests from apartment dwellers and landlords alike.
The ordinance requires owners of rental properties to pay an annual licensing fee as well as a permit fee, per rental unit. The licensing fees were set at $25 for a landlord with five or fewer units. Those with more than five units will pay a $125 fee.
The ordinance also allows the Speedway Town Council to revoke the operating license of rental properties if those addresses see a lot of police runs.
Opponents say the fees are too high, and say they’ll just give landlords an excuse to raise rents.
And to become extra nosy. It isn't worth it to a landlord to lose his license just because a tenant does a lot of loud late-night partying. So, higher rent is just the beginning of the landlord protecting himself all the way to the expense of the tenant.
Greenwood recently passed an ordinance prohibiting the rental of a home within three years of its' construction. From an Indy Star report:
Mayor Charles Henderson says his plan, motivated by what he describes as a sour housing development deal, is designed to help maintain property values.
"I want to send a message that people deserve some protection and that anybody that buys into an addition can feel comfortable it isn't going to be turned into a rental community," said Henderson, whose idea could also face an up-or-down vote tonight. "It would help protect folks that get crossed up."
The Mayor also sends the message that if you bought thinking you would be there for a while, but got transferred to LA or Chicago within three years, you have to sell and take a major loss in sales commissions to the realtor. After all, the first several years of any mortgage payments are mainly interest, with little equity being built. I guess these people who get crossed up aren't in the Mayor's 'protection' plan. And it does little to help property values. If you can't rent it, you have to sell it fast, which means you sell at a lower price, which reflects poorly on the neighborhood.
It also prevents newer, nicer housing from entering the rental market in Greenwood. Is this a sort of plan to keep renters in older, deteriorating houses?
Local governments sure are making it harder to be a landlord in Central Indiana- and a tenant!