August 2010 Sound Advice

Sound Advice: Getting an Education on Certificates of Compliance

Do you own a property that includes a rental unit of any size? It may be as small as a rented room in your home or as large as a multi-unit apartment complex. The municipality in which your property is located has a legal right to monitor the condition of rental units within its boundaries.

Typically, your municipality’s building or zoning office inspects rental units to evaluate their condition and habitability. Once a rental unit passes inspection(s), the municipality generates a Certificate of Compliance or Occupancy-different municipalities use different names. Some municipalities, like the City of Ithaca, simultaneously define the number of legal bedrooms and the number of legal occupants permitted to reside in the house or apartment. Tompkins County municipalities differ as to the length of a valid Certificate of Compliance/Occupancy, but in most cases the Certificate is valid for a few years.

Thanks to the internet, landlords can access information about their community's policies via the municipal website. For those who prefer conversation, building or zoning department employees are helpful and well informed.

Given its high tenancy rate, the City of Ithaca maintains particularly strict oversight of rental properties. Many landlords are unaware that the onus of responsibility for contacting the City of Ithaca Building Department to update and renew Certificates of Compliance rests with the property owner. All current City Certificates include an expiration date-mark your calendars!

When a Certificate of Compliance lapses out of date, getting a new one usually involves a short cycle of inspections and repairs. City of Ithaca Building Department staffers recommend that City property owners allow a minimum of 60 days to receive an updated Certificate of Compliance.

The City of Ithaca Building Department provides a checklist of items to help landlords know what to expect from the housing inspection process:
http://www.ci.ithaca.ny.us/vertical/Sites/%7B5DCEB23D-5BF8-4AFF-806D-68E7C14DEB0D%7D/uploads/%7B896AFE36-3806-48A6-A7FE-D9B152256873%7D.PDF

There are fees associated with the renewal of these certificates and they too are the responsibility of the property owner.
http://www.ci.ithaca.ny.us/index.asp?Type=B_LIST&SEC={09058DEC-2178-4154-BAFD-8B9A9812FCE8}

No matter where your income property is located, if you are preparing your property for sale, it is especially important to have a current Certificate of Compliance. Banks and credit unions usually require valid Certificates before money can be lent.

Not ready to sell your property? It is still vital to keep your Certificate up to date. As a property owner you can be fined or found liable if your rental property is not adequately maintained, lacks current and appropriate Certificates, or is found to be in violation of local occupancy regulations.

Also, experienced property management firms, including the Cornell University Housing Office, are likely to require that you have a valid Certificate before they are willing to publish information about your property for rent.