Realtors: Rental licensing ordinance violates rights

It seems the rental license ordinance does conflict with state law and probably would violate the rights of tenants and property owners if passed. One thing is for sure, it adds more stress to a shaky real estate market still in shock.

Yes, the real estate market has improved but we are nowhere out of the woods yet. There are Evanston property owners that are hurting. They are underwater, and each year they watch helplessly as home values plunge but not property taxes. The last thing we need is to add another layer of government regulation. Evanston already has more rental regulations than any other city in the state.

A few days ago I was appraising an Evanston foreclosed home and struck up a conversation with a local Realtor who specializes in pricing and marketing distressed properties. As we discussed the condition of the market and shared stories of how the fortunes of entire families were wiped out and how many of them stayed in their foreclosed homes as long as possible because they couldn't afford to go anywhere else we both concluded that there is more pain to come. There are too many Evanston property owners right now conflicted with the decision on whether to make their mortgage payments or stop altogether.

Aldermen have admitted that the current requirement to register rental properties, an ordinance passed in 2008, is a failure. If city staff can't keep track of how many landlords are renting properties without registering how can the city keep track of landlords renting without a license? I know aldermen intentions are good but this is not the time to add more layers of government regulation.

It's diffiult to say exacly how much of an affect this rental licensing ordinance would have on property values. I believe it will have more of an affect on the negative side of the ledger than the positive. There are investors who buy properties in Evanston to rent. If they are required to pay a rental license every year that includes city inspections they will not buy property in Evanston or they will buy but simply raise rents to cover the additional costs related to the ordinance. Either way, it's a negative toward our local real estate market. 

Since 2008, property values of most homes have declined but property taxes have not. Property owners if anything else need relief not more regulation. For most of us, property is our most valuable asset. We get nervous and antsy when the value of our property goes down as taxes go up year after year. More regulation of this sort only harms demand to buy in Evanston and thus negatively affects real estate value. 

Requiring owners of condos, single-family homes and mult units to pay a fee every year to have a license to rent is not necessary, won't work and adds more stress to a stressed out real estate market where tens of thousands of property owners have seen a hefty decline in their home values. Evanston has laws on the books that are adequate tools to deal with problem landlords. Use them.

Maybe eliminating the failed rental registration requirement would provide relief to Evanston property owners and city staff unable to manage the program. The rental license ordinance will come up for a vote at  this Monday's council meeting. I hope aldermen do the right thing and vote it down.

Aldermen intentions are good but it's the wrong time to pass a rental license ordinance. People are hurting. Don't add to the pain.