When looking to buy a rental property, you must be mindful of the transfer of the rental license. This post will provide a quick guide to ensuring that everything goes as smoothly as possible during and after your sale.
Before buying a rental property, go into the Department of Code Enforcement and Neighborhood Conservation. Information for the East Lansing office can be found here. Once there, look at the rental file and included documents. Are there any concerns about the property that haven't been met? Next, look at the rental license. From this, you will be able to see how many people are permitted to rent, as well as any other conditions that need to be met. Staff should be able to answer any questions you have about conditions on your prospective license. Next, look at the most current inspection. Make sure any violations on the inspection have been corrected, and make sure you ask the seller about anything of concern. The staff will know if there is a history of violations at this property, as well as possible conditions resulting from violations. Lastly, obtain a payment history, and ensure there are no outstanding balances on the property. Make sure you address any concerns that come up during this process with the seller.
Once you have reviewed the property documents and are pleased with your chosen property, it would be a good time to submit a new owner application to the Department of Code Enforcement and Neighborhood Conservation. Although you do have up to a year after the sale to submit this form, if someone is renting and this form is not completed, you could be charged for renting without a license, as the old license expires on the date of sale.
After the sale, provide notification of the exact date of ownership to the Department of Code Enforcement and Neighborhood Conservation within 10 days, and the license, along with all pre-approved conditions will be transferred to you on the date of sale.
I would be happy to help you find a rental property to fit your needs. Please feel free to visit my website and get started today.
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