Purchasing East Lansing Rental Properties: What You Need to Know

East Lansing—as most residents and visitors know—is a wonderful community. It has a terrific mix of high quality of life and affordability. In fact, according to Livability.com, East Lansing is one of the top 100 best places to live in the United States.  

East Lansing’s high quality of life and constant inflow and outflow of college students make it an attractive place to purchase rental properties.

I have seen it myself.

Since 2007, I have specialized in the sale and acquisition of East Lansing rental properties. If you are thinking of purchasing or selling a rental property in the city, there are several important things to keep in mind. Specifically, I am referencing the different types of license classes that can be relevant to renting a home. By understanding what they are and the differences between them, you can efficiently purchase and rent out property in the East Lansing area. You can also avoid unforced errors which can cause lost time, money, and legal headaches.

Purchasing and Renting Out Properties in East Lansing

To start owning and managing rental property in East Lansing, prospective landlords must proceed through a variety of requirements as outlined here. After they purchase the actual property, prospective landlords must apply for an initial rental license. The process, on average, takes about two to five months, so prospective landlords must be cognizant of this fact when evaluating their budget and potential income.

In that initial application form (which you can find here), there are several important requirements that applicants must follow. One of those, as alluded to above, is ensuring that you are seeking the correct class of license. You can find more detailed documentation on classes of licenses here, but the bottom line is that there are six different classes. The major differences among these licenses center on factors like renewal dates, the type of dwelling that leasing or renting out, whether the owner resides in the building, and specifics about people who can become tenants in a room or building.

For instance, a class I license is renewed every 39 months. It authorizes the owner of a one-family dwelling in which the owner resides to lease or rent a room to one person. By contrast, a class III license is renewed every 13 months. It authorizes the owner of a one-family dwelling in which the owner doesn't reside or a two-family dwelling to lease or rent the dwelling to a family of two unrelated people per rental unit. There are additional caveats to these general licensing classes, especially for owners who are applying for initial rental licenses. Those caveats deal with residential zoning districts (you can find more details here).

While there was a moratorium on licensing before I entered the real estate business in 2004, applying for the right initial rental license is critical. The Rental Housing Division of East Lansing regulates rental licensing in the city and inspections for licensing. If you are found to be renting without a license or are renting out your property in violation of your rental license, you may be subject to fines and other penalties.

Therefore, before even purchasing your rental property, it is helpful to foresee how you plan on using your property. Think about whether you want to live in the property itself and how many people you want to be tenants in your building. Along with this, you must take your time when completing the application and ensure that you have not made any mistakes. Not only could you be penalized for applying for the wrong class of rental license, but you will be spending your valuable time fixing errors that you could have avoided.

Because of this, I recommend that you do not complete the application by yourself. Instead, I encourage you to work with an expert in this area. Whether you are an investor or the parent of an MSU student, working with a professional can save you time and give you the peace of mind that you are complying with these important East Lansing regulations.

Starting Your Journey

East Lansing is a great place to purchase a rental property. The opportunity is significant. However, I encourage you to work with an expert to ensure that you are applying for the correct rental license. Whether you decide to work with me or another professional, hiring a trusted guide can make the process much easier. 

East Lansing Students Return

As we are entering the fall months, it is easy to observe countless changes occurring in our community. Events like the Sun Dried Music Fest to the Michigan Chicken Wing Festival signal that summer is coming to an end. 

But as we prepare for fall to officially arrive, there is one more change that happens every year. It’s a change that may have become second nature to us, yet it always remains a somewhat disruptive force in our day-to-day lives.

I’m specifically talking about students returning to Michigan State University. 

There is no doubt that MSU remains a signature part of our community. Yet for certain parts of the year, MSU is much louder as it makes its presence known. Even if you don’t live close to the MSU campus, this ritual of tens of thousands of students returning to our community can disrupt normal life in the city. 

Because of this, it is helpful to develop a quick and easy plan so that you can navigate Lansing during this extremely busy time. By doing so, you can eliminate stress and enjoy the remaining moments of summer in our city.

How Returning MSU Students Will Affect East Lansing

According to the MSU move-in timeline, the university will be facilitating a two-day move-in for incoming students. That move-in is scheduled to occur on Saturday, August 24 and Sunday, August 25. But having said this, the official MSU move-in timeline is for students moving into university housing. This does not account for other students moving into our community. You can expect that students will be moving into our community leading up to the first day of classes, which are on Wednesday, August 28.

Because of this, you can expect to see many MSU students and their families in our community for the next few days. This will undoubtedly create some traffic challenges. Quite clearly, there will be traffic congestion on and near the campus itself, especially on August 24 and August 25. To be perfectly honest, you should try avoiding that area until move-in is complete. This is true even if you want to park near campus. While there are meters and gated lots for parking, they can get expensive and they will likely be full. 

Along with congestion near the MSU campus itself, there will be a large amount of traffic around the Hub and Landmark apartment complexes. The city decided not to close roads to accommodate move-ins for these two buildings, so you will need to allocate some extra time if you plan on driving near those apartment complexes.

Even if you think you can avoid some of the move-in congestion by avoiding the MSU campus or popular apartment complexes, you will quickly discover that the entire city is going to be buzzing. Continuing construction in downtown East Lansing, along with this new influx of students and their families, will mean that traffic is going to be extremely slow. Whether you simply want to grab a quick lunch or enjoy spending a Saturday night in East Lansing, you will need to add some time to your travel plans. Just be patient and expect to sit in traffic for longer than you might. 

Along with this, you may want to think about parking further away than normal and walking to your final destination. Parking in downtown East Lansing can be a challenge, so keep this in mind when you are traveling over the next few days. It goes without saying, but restaurants, bars, and your favorite stores in East Lansing are going to be more crowded than usual. Just take a breath, be patient, and relax. You can still have a great time, notwithstanding a more crowded East Lansing for the next few days.

The Value of Preparation

As you know, MSU is an extremely large educational institution. There will be many students and families entering our community in the next few days. Because of this, I highly encourage you to be patient and make a plan before you drive around East Lansing. Don’t hesitate to take a different road or walk a bit further to your destination. By doing this, you can minimize your stress while still enjoying the next few days in East Lansing. We wish you the best of luck!