The Hidden Pitfalls of Cleveland’s Local Agent in Charge Requirement for Out-of-Town Property Owners
Investing in rental properties can be a lucrative venture, especially in cities like Cleveland where real estate opportunities are abundant. However, for out-of-town property owners, Cleveland’s specific regulations—particularly the requirement to designate a Local Agent in Charge—can present significant challenges that aren’t immediately apparent. In this blog post, we’ll explore why this requirement is a serious concern for non-local investors and how it might impact your ability to manage your property effectively.
Understanding the Local Agent in Charge Requirement
Cleveland Codified Ordinance 365.02 mandates that all non-owner-occupied residential units be registered with the city. As part of this registration, property owners must designate a Local Agent in Charge—a person responsible for the maintenance, management, and legal compliance of the property. This agent must reside in Cuyahoga County or a contiguous county and must be at least 18 years old.
The Local Agent in Charge isn’t just a figurehead; they are legally obligated to share responsibility with the property owner for the property’s upkeep. This includes accepting service of any Notice of Violations and potentially facing criminal, civil, or administrative liabilities alongside the owner.
The Challenge for Out-of-Town Property Owners
At first glance, this might seem like a reasonable requirement—after all, someone local should be responsible for a property’s day-to-day issues. However, the reality is far more complex and problematic for non-local owners.
Few Locals Are Willing to Take On This Role
The form’s acceptance section (as shown below) requires the Local Agent in Charge to agree to potentially severe legal responsibilities. The liability they face can be daunting, especially without any ownership stake in the property. Finding a local individual who is both qualified and willing to assume these risks is extremely difficult.
Why This Is a Major Problem
For many out-of-town investors, this requirement can feel like an insurmountable hurdle. Here’s why:
1. Increased Liability: The Local Agent in Charge shares liability with the property owner. This includes criminal, civil, and administrative responsibilities, which are significant risks for anyone stepping into this role.
2. Difficulty in Finding Willing Participants: Given the potential risks involved, few locals are willing to take on the role of Local Agent in Charge without substantial compensation, if at all. This can leave property owners in a difficult position, unable to find a representative and thus unable to comply with the city’s regulations.
3. Impact on Compliance: Without a designated Local Agent in Charge, property owners cannot complete the necessary registration process. This non-compliance can lead to fines, legal action, or even being forced to cease renting the property.
How We Can Help
Recognizing the challenges that out-of-town property owners face, our company offers a unique solution. We act as your Local Agent in Charge, taking on the responsibilities that the role entails. Our team is fully equipped to handle the maintenance, management, and compliance needs of your property, ensuring that you meet all of Cleveland’s stringent requirements.
Our Services Include:
• Assuming the Role of Local Agent in Charge: We accept the legal responsibilities and liabilities on your behalf, ensuring that your property remains compliant with all local laws.
• Comprehensive Property Management: Beyond just fulfilling the role, we manage your property’s day-to-day operations, from maintenance to tenant relations.
• Expert Knowledge of Cleveland’s Regulations: We stay updated on all local ordinances, including Chapter 365, to ensure full compliance and protect your investment.
Conclusion: Protect Your Investment
Cleveland’s Local Agent in Charge requirement may seem like a minor detail, but for out-of-town property owners, it’s a significant obstacle. By partnering with us, you can bypass the stress of finding a willing local representative and ensure your property is managed effectively and remains compliant with all local regulations.
Contact us today to learn more about how we can help you navigate this challenging aspect of property management in Cleveland.