Property management groups are expressing opposition to a proposed ordinance in Lansing that would require landlords to have insurance to cover relocation costs for tenants of red tagged properties.
Cortney Frato spoke Monday night to the Lansing City Council on behalf of the Property Management Association of Mid-Michigan.
She says most renters insurance policies already cover relocation costs caused by natural disasters, but wouldn’t cover issues stemming from deferred maintenance or negligence.
“This isn’t only a question of cost, but feasibility,” Frato said.
Kristy Welch is a property manager for KMG Prestige and also spoke on behalf of the association, echoing Frato’s sentiment.
“When I talked to my risk management department, she didn’t even think this kind of insurance existed, and let alone could not imagine the cost it will cost properties,” Welch said.
She says the ordinance would lead to landlords increasing rent and would create a higher barrier for investors to enter the housing market, exacerbating a shortage of housing options.
Welch also suggested that many red tags stem from tenant behavior rather than landlord negligence.
Joe Neller spoke on behalf of affordable housing company Simtob Management. He says they are generally supportive, but asked for more clarity in determining whether the landlord or tenant is at fault for red tags.
“We think the city should have as many tools at its disposal to hold bad landlords accountable,” Neller said. “The problem is that when this body makes policy, they can’t make policy that only applies to bad landlords. It applies to all landlords.”
Mayor Andy Schor said during his State of the City address earlier this year that holding bad landlords accountable would be a priority.
“To all the landlords out there just looking to make a buck without providing good housing that complies with the law, I’m here to tell you that we will use every power in our arsenal to make you fix the property, or we will see you in court,” Schor said in his March address.
Council members didn’t act on the proposed ordinance during their meeting last night. Their next meeting is in two weeks, on July 28.