Landlords: Why Detroit's Proposed Rental Rules Are Not What They Seem - Part 1

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Monique Burns - Detroit Section 8 Investing
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The City of Detroit is having a hearing about the City Council's new proposal. The hearing date will be announced in September. Detroit has some of the toughest rental regulations in the country. We are required to do a Lead Inspection Risk Assessment (LIRA) that costs us $450-$500. We also need to have a $195 city inspection. If we have Section 8, we bypass those two tests and send in our passed inspection form and get a Certificate of Compliance for a processing fee of something like $73. The new fee structure being proposed is $150/year.

Our certifications are good for three years and will remain good for three years if the proposal passes. So a non Section 8 house costs $500 (lead) + $195 (city test) + $73 (processing) = $768 and it's good for 3 years or you could say it's $256/year.

For a Section 8 house my cost is $73 for three years or $24/year.

Detroit is trying to get more of us in compliance so they are changing up how they are doing it but it really doesn't make sense. For instance, they are saying no more LIRA test. They will reduce it to a dust swipe test. That means they take a certain kind of wipe and wipe around windows that cause lead dust. They would take soil samples outside. They send those tubes in to be tested. That all costs MORE money. Yet, they want to take the whole test price down from $195 for three years to $150 per year. Even if the new yearly fee will cover the extra expenses, there are also the expenses of the inspectors being certified to do the wipe tests. And doing the wipe tests without the rest of the LIRA tests has been tried in Grand Rapids and Flint only to be stopped later because one test isn't even good without the other.

In Part 2 I will cover the rest of the proposed rules: The new fees, putting liens on our houses for past unpaid fees, the revamped escrow program, how they want us to advertise, and my idea of how they can get more of us in compliance.

For more details about the proposed changes, I summarize them in my blog:
www.greatdaypropertymanagement.com/moniques-blog/2024/8/22/new-detroit-rental-inspection-rules-you-need-to-know

If you want to discuss buying a Detroit turnkey rental, please go to my calendar here and book a call:

If you want to learn more about our online course, Section 8 Rental Mastery, book a call here:

Link to Course: Section 8 Rental Mastery


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I don't always update this page because my properties have a buyer sometimes before they're done and I can list them on this page. You can email me too at Monique@greatdaypm.com

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**Disclaimer:**
I'm not a lawyer, and the information shared in this video is for informational purposes only. It is not intended to be legal advice. Please consult a qualified attorney for any legal concerns or questions you may have.

0:00 Intro
2:05 BSEED -- My theory why they are proposing the changes
3:52 No more Lead Inspection Risk Assessment required
8:00 Will need LIRA if lead infected person rents
8:39 Current requirements for Section 8 rentals
9:11 My take

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PLAYLISTS

Section 8 Secrets Revealed:


Detroit Investor Information:


Properties:
East Side of Detroit:
West Side of Detroit:

Detroit Renovation Project Start to Finish:



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About our company:
Great Day Realty buys houses in Detroit, renovates them to high standards that will pass city and Section 8 inspections, places deserving tenants, and then flips the houses to investors from all over the country and all over the world. We then guide you to manage the house yourself or we can refer you to our team member for property management.

To Tenants:
Please check my website for rental qualifications, available properties, and a rental application: www.GreatDayPropertyManagement.com/rent

Website:
TikTok:
Instagram: Instagram.com/Monique_burnss

Great Day Realty, LLC
14685 E. 11 Mile Road, Suite A
Warren, MI 48088
(248) 390-3982 Monique's cell
Monique@GreatDayPM.com

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