Grand Rapids Rental Certification: What Property Owners Need to Know

Obtaining and maintaining a rental certification is a requirement for rental properties in Grand Rapids. If a landlord fails to comply with this requirement, it could quickly escalate to compounding fines and restrictions on legally renting the property until the property is inspected and certified.

While this process seems straightforward, many property owners underestimate the time, coordination, and compliance involved. In this blog, we’ll walk you through how the Grand Rapids rental certification process works, what to expect as a property owner, and how to avoid common pitfalls.

What Is a Rental Certificate in Grand Rapids?

A rental certificate is issued by the City of Grand Rapids and confirms that the rental property meets minimum housing and safety standards. Before a property can be legally rented, it must:

  • Be registered with the City
  • Pass a housing inspection
  • Receive an active rental certificate of compliance

This applies to most non-owner-occupied residential properties within city limits. Each municipality, however, has its own process regarding rental registrations and certifications, so it’s best to contact the designated municipality to confirm its requirements for rental properties.

The Rental Inspection and Certification Process

The Rental Inspection and Certification Process

Step 1: Rental Property Registration

Before anything else, you must register your property with the City of Grand Rapids. Luckily, this process is simple and can be completed online via the Citizen Access Portal. On the website, you’ll complete the following:

  • Submitting ownership and contact information
  • Identifying a local agent (if applicable)
  • Paying the required registration fee

The city will not issue a certificate of compliance if the rental property is not accurately registered.

Step 2: Scheduling the City Inspection

Once the rental property is registered, you can schedule the rental inspection with the city. The city will likely reach out to you via email to coordinate scheduling, but you can also proactively reach out to the city to schedule the inspection by calling 616-456-3053 or emailing codes@grcity.us.

Step 3: Attending the Inspection

The inspection is conducted by a city inspector, who will walk through the property and document any violations or deficiencies.

Areas typically covered include:

  • Smoke and carbon monoxide detectors
  • Electrical and plumbing systems
  • Windows, doors, and egress
  • General habitability and safety conditions
  • Exterior conditions and structural elements

At the end of the inspection, one of two things will happen:

Pass

If the property passes the inspection, it means that the property meets all requirements. In this case, a certificate of compliance will be issued for either 2, 4, or 6 years. The most common certification length in the City of Grand Rapids is 4 years.

Fail

Even well-maintained properties can fail the initial inspection for issues such as:

  • Missing or outdated smoke or carbon monoxide detectors
  • Smoke or carbon monoxide detectors installed at incorrect heights or locations
  • Minor safety issues
  • Deferred maintenance

If violations or deficiencies are found during the initial inspection, then the city inspector will provide a correction list for the required repairs, as well as a specified timeframe for completion. The City of Grand Rapids usually allows 10-14 days for required repairs. A re-inspection will be scheduled for the end of the specified timeframe so the city inspector can verify that the violations or deficiencies have been corrected.

Once the corrections have been verified, the city inspector will pass the inspection, and a certification will be issued for either 2 or 4 years.

Deferred Repairs

If the city inspector cites needed repairs that cannot be completed in the provided timeframe, then you can request that those repairs be deferred. When this is done, the city inspector will issue a Notice of Violation, which allows a repair deadline extension of between 60 and 120 days.

This extension can be beneficial in several situations, including:

  • Weather: Exterior repairs are often weather-dependent, and much exterior work can’t be safely or correctly performed when it is raining, snowing, or near or below 40ºF. This can become an issue if the initial inspection takes place during the colder winter months or during stormy seasons.
  • Major Repairs: If extensive repairs are required, then the initial provided timeframe may not offer enough time to complete the scope of work needed.

When deciding whether or not to request deferred repairs, it’s important to know that an issued Notice of Violation may accompany fees and that, as mentioned above, the city inspector will not issue the Certificate of Compliance until all repairs have been completed, as verified by a re-inspection with the city inspector.

Tips and Common Issues to Avoid

Tips and Common Issues to Avoid

Over time, we’ve seen recurring issues that can create unnecessary delays, added costs, or amplify frustration for property owners navigating the rental certification process. Being aware of and understanding these upfront can help keep your property on track with fewer hurdles.

  1. Not Notifying Tenants
  2. In Michigan, landlords must provide reasonable notice to tenants of any visits to the property. For many landlords in West Michigan, this notice period is typically set as 24 hours in the lease agreement. This requirement is no different for notifying tenants of upcoming city-related inspections and repair work. You don’t want the rental certification process to be delayed because the tenants deny entry due to not receiving proper notice.

  3. Waiting Too Long to Start the Process
  4. Some landlords incorrectly view the rental certificate expiration as the date they should aim to start the recertification process; however, starting the process this late significantly increases the chances that the former certificate will expire before the next one is issued, resulting in fines from the city. If the property is vacant and a certificate expires or isn’t in place before leasing to the property to a new tenant, it can delay occupancy or also result in fines.

  5. Not Budgeting for Repairs
  6. It’s always best practice to put aside funds on a regular basis toward maintenance repairs, which can also help fund any cited repairs for the city rental inspection.

There are a few different ways that landlords calculate how much money should be set aside for repairs, a couple of the most common frameworks are ones based on the property value or ones based on gross rental income. For example, someone using a property value-based framework usually sets aside 1% of the property value annually. Someone using a gross rental income-based framework may set aside 8%-10% of the gross rental income per month.

A More Practical Approach to Avoiding These Issues

A More Practical Approach to Avoiding These Issues

While the city defines the requirements for obtaining a rental certificate of compliance and the steps required to do so, how you manage the process on your end can potentially make a significant difference. A lot of this difference boils down to project management, including scheduling appointments, coordinating vendors, tracking timelines, and communicating with all involved parties.

Our Proccess

At United Properties of West Michigan, we handle the rental certification process fully in-house for our owner clients, from registration through final approval and issuance of the certificate of compliance.

To make this process as simple and hands-off as possible, our team:

  • Schedules the initial inspection with the city
  • Attends the initial inspection with the assigned city inspector
  • Coordinates any required repairs and attends the re-inspection (if repairs were needed)
  • Advocates for our owners if unnecessary repairs are cited as being required by the inspector
  • Manages deferred work deadlines if any extensions are needed

We find that a proactive approach and consistent communication with the city works best and helps property owners avoid the frustration and stress from missed deadlines, repeat inspections, and confusion about the process.

Pre-Inspections: To Do or Not to Do?

While some landlords and property management companies may choose to complete pre-inspections before the scheduled city rental inspection in an attempt to repair anything that the city inspector may cite during the inspection. The benefit is that the fewer items cited by the city inspector, the higher the likelihood of a longer certification term being issued. In fact, you are most likely to only receive a 6-year certificate of compliance if there are no repair items cited during the inspection.

That sounds like a great idea, but it’s not seamless. The unfortunate reality is that despite there being code regulations that guide the city inspection process, there seems to be a lack of consistency for what repairs are cited by any given city inspector. This can make predicting what repairs to complete during a pre-inspection difficult.

Rather than adding additional upfront costs to our owner clients through formal pre-inspections that may not provide any true benefit, we take a more practical approach by factoring possible city-cited repairs based on code requirements and our experience into our bi-annual inspection and Rent Ready processes.

  • During our bi-annual inspections, we identify and communicate potential issues early and throughout the year as they are discovered.
  • If a property is going through a Rent Ready and a city inspection is approaching, our technicians will call out items that are likely to be flagged.

Our goal is to maintain compliance and improve the chances for a longer certification without adding unnecessary added costs for our owner clients.

Final Thoughts

The Grand Rapids rental certification process is manageable, but it’s rarely as simple and quick as it first seems. Coordinating registration, inspections, repairs, and ongoing renewals requires project management skills, as well as having adequate time and resources to manage the process efficiently. If you’re navigating the rental certification process now, or want to avoid delays in the future, having a clean and well-thought-out plan of action makes all the difference.

If you’d like to talk through the best approach for your situation, or if you’d like to learn more about how United Properties makes owning rental properties easier by coordinating this process and so much more, reach out to us for a free consultation.