Rental License Renewal: How to Make Sure You're Ready for City Inspections

When you decide to open a rental property (for long- and short-term rentals), you have to file for a residential rental property license through the city where your property is located, no matter what number of units you have or what kind of units they are. This license will have a date where it’s set to expire, and the city will reach out to you about renewing, whether you have a multi-family property or a single-family home you’re renting.

Managing this process can feel daunting. However, with proper preparation, it doesn’t have to be stressful. Understanding the requirements and making sure your property meets the city’s standards will help you avoid delays and expensive re-inspections. Let’s explore how to get your rental property ready for city inspections so you can renew your rental license with ease.

A rental license is a property owner’s official permission from the city’s department of housing to rent out a space legally. Depending on the city, these licenses typically need to be renewed every one to three years, and failure to renew on time can lead to fines or even a suspension of your right to rent.

The renewal process often includes:

It’s important to mark expiration dates on your calendar well in advance. Cities often have strict deadlines, and missing them can result in costly penalties or a lengthy process to get back in compliance.

City inspections are designed to ensure your rental units are safe, livable, and up to local codes. While inspection requirements can vary, the following are all part of a common inspection checklist:

If your city has specific codes related to rental properties, familiarize yourself with them ahead of time to avoid any surprises. The last thing you want is for the inspector to mark you on a lot of issues that then require a re-inspection. Should that happen, you often have to pay re-inspection fees, and the city will only grant you a “temporary rental license” until you pass inspection.

Being proactive is key when preparing for a rental inspection. A thorough pre-inspection walkthrough with your property management will help you spot potential issues before the inspector arrives.

Use a checklist to go over the basics:

Small repairs that are often overlooked, like replacing broken door handles or fixing a loose tile, can prevent minor issues from snowballing into larger problems during the official inspection.

Ensure your property is compliant with basic health and safety standards. Inspectors will want to see:

Making sure your tenants also understand these safety features can help keep them prepared as well. Setting standards for your residents to enter work orders when a smoke detector battery goes out or checking that these features are functioning often will save a lot of headache during your inspection.

Even with the best preparations, inspections don’t always go smoothly. If your property fails, don't panic! Here is what you need to do next:

Inspectors provide a detailed report outlining the areas of non-compliance. Common reasons for failing include:

Your inspection report should also state the amount of time you have to fix these issues and when you can expect the home inspector to return, plus any re-inspection fees due.

Once you receive the report, prioritize the necessary repairs. Here’s how to handle the process:

By taking swift action, you can avoid unnecessary delays in renewing your rental license.

Preparing your rental property for city inspections is all about being proactive and staying organized. Regular maintenance, understanding local codes, and conducting a pre-inspection walkthrough are all critical to ensuring your property passes inspection and your rental license gets renewed on time. By staying on top of these details, you can keep your property in compliance, your renters safe, and avoid hefty fines. For additional information, check out the rest of our Property Resource Center.