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Landlords say city rating system is unfair and mismanaged

Landlords say city rating system is unfair and mismanaged

The city of Rochester rolled out a new digital system last year to interact with property managers and owners on processes such as permitting and code enforcement. The change came with an online tool that rates rental properties, landlords and property managers based on their compliance with city building codes.

Most tenants seem to be unaware of the system so far.

Rochester property owners and managers are very familiar with the site. They say the new process unfairly values ​​their properties, especially those they are fixing up. Its potential for transparency is hampered by poor communication, they say, with city and code inspectors.

The rating system, produced in partnership with the Tolemi data platform and publicly available on the city-run BuildingBlocks website, assigns scores out of 100 to registered properties and owners.

Factors that go into calculating scores include active violations per unit, days since the property’s certificate of occupancy expired, and days since the oldest violation was cited. The lower the score of a property or owner, the higher the number of open violations accumulated.

The rating program was “well-intentioned,” said Kayla Thorp, a property manager and owner who runs Rochester Property Solutions with her husband, Jake. Together, they manage 175 homes and own about 65, primarily in Beechwood and the 19th Ward.

“The intent was to create a little more accountability and also incentivize property owners to do the right thing and operate within city guidelines and programs,” Thorp said.

The city’s website suggests the rating system could be used by city staff to “target enforcement” and provide tenants with data to help them make decisions about who to rent.

Where are the incentives in the homeowner rating program in Rochester?

At a landlord summit last year, city administrators told attendees that at some point in the rollout, the ratings would be a way to reward top-rated landlords with perks like fee waivers and longer deadlines for renewing occupancy certificates.

No such incentive has yet been tested, and the program in its current state has created an administrative burden for landlords, said Rebecca Zuber, who manages about 200 units in the city. Zuber helps homeowners repair and manage their homes, which includes inspecting properties and obtaining certificates of occupancy.

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Waiting for violations to be removed from his online property manager profile after an inspector confirmed they had been resolved was frustrating for Zuber. After getting positive results from a lead test at a Beechwood home she manages, Zuber sent three emails to the city seeking issuance of the property’s certificate of occupancy, but she was unsuccessful. got a response.

“My biggest problem right now is I’m filling out the certificates of occupancy, so I’m correcting all the violations – everything is done 100%, and they’re not updating their system,” Zuber said.

Any specific information on the Rochester code violation site?

Beyond the code violations, the site displayed incorrect information about who owns and manages the properties, Thorp said. The administrative burden, including tracking the accuracy of their scores and checking with the city to correct outdated information, falls on owners, she said.

“We don’t have the time or ability to keep track of this stuff all the time, so what ends up happening is we’re just left with a bunch of properties still associated with our account that we don’t manage ” she said. said.

The rating system lists properties that owners have recently purchased, which has become a frustration for Jay Molis, owner of 34 units in Rochester. Molis buys homes that need repairs – sometimes worth tens of thousands of dollars – and renovates them before applying for certificates of occupancy and renting them out.

“Fixers” under his name often have a certain number of violations, which lowers his score.

“They basically mark your reputation,” said Molis, who worries about the impression a lower-than-desired score could leave on potential tenants and investors. “A low score means you are now a bad landlord for the city… although this could be because we just purchased a property that needs work, or we have a property and the tenant has it ransacked. »

Rental with a lower score: “It gives me a bad image”

Ben Hart, a Rochester real estate agent and property owner, encountered a similar problem.

Of the six rental properties he owns and manages, five received top ratings, but one received a lower rating due to the lack of a certificate of occupancy. As he worked to paint and bring his South Wedge property up to code, his score suffered, even though he submitted a work plan to the city and requested that violations be carried over a six-year grace period. month.

“It makes me look bad. I don’t like it,” Hart said. “I’m working with the city to make this happen, and I’m actually getting grants (for repairs).”

As it stands, Hart said the system may discourage property managers from purchasing properties in poor condition with renovation projects.

“Who will want to invest if it tarnishes their reputation? » said Hart. “Then the worst properties will only get worse.”

— Christina Chkarboul is a summer intern at the Democrat and Chronicle and a student journalist at USC, where she focuses on earth sciences, global studies and journalism. Contact her at [email protected] with history tips related to code enforcementt.