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FEDERAL COURT -- Forced Inspections of Rental Properties | Episode 152
FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's
FEDERAL COURT -- Forced Inspections of Rental Properties | Episode 152
FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's
ratings:
Length:
7 minutes
Released:
Oct 26, 2015
Format:
Podcast episode
Description
There’s been a IMPORTANT RULING in federal court that’s big for owners of rental properties… and this one is all about MANDATORY GOVERNMENT INSPECTIONS of rental houses. If you’re a prospective owner of rental property, pay close attention to this one. I’m Bryan Ellis. This is episode 152.----Hello, SDI Nation! Welcome to the podcast of record for savvy self-directed investors like you!If you’re a rental property owner with property located in a jurisdiction that has mandatory rental property inspections – particularly in the jurisdictions that FORCE the inspection and DEMAND that you pay for it, too – you know how much of a problem those inspections can be, with very substantial, very detailed, and sometimes very ARBITRARY standards which can cost property owners thousands of dollars, even for very well maintained properties.Many locales even include CRIMINAL penalties for landlords who fail to comply with the inspection requirement. That’s right… I said CRIMINAL penalties. It’s a big deal.But there’s a problem… a problem for jurisdictions that do this sort of thing.You see, there’s this little thing called the Fourth Amendment to the United States Constitution. That’s the one that guarantees the rights of citizens against unreasonable search and seizure of their persons, their papers, their effects and YES… their HOUSES without probable cause as evidenced by a warrant.Now, I realize that some of the more bleeding heart types out there will immediately think that it’s a good thing for the government to be able to force their way into a home, without being asked or welcomed, and to inspect that property for whatever purpose deemed suitable by the government. But I, my friends, am not a bleeding heart. I think – and the law agrees with me – that you have rights as a property owner, and when a government forces its way into your property – particularly under the threat of criminal prosecution, and under the demand that YOU PAY for that forced inspection – well, then your rights against unreasonable search and seizure have been trampled for both landlord AND tenant.Thankfully, a federal court judge for the Southern District of Ohio recently came to the same conclusion.The case was called Baker vs City of Portsmouth, which was handled by the 185 Center For Constitutional Law on behalf of four rental property owners and one tenant.The bottom line of this case is that, surprisingly but happily, the court did it’s primary job: To protect citizens – in this case, individual investors like you and me – from unreasonable government encroachment.Ahhh yes… you think this is a genuine public safety issue, don’t you? It’s not, folks. Here’s the deal: The honest observer will see that these forced inspections have two purposes: First, to generate revenue for the government – both directly by charging inspection fees, and indirectly by driving spending for repairs which is then subject to local sales tax – and second, to directly and substantially influence the “type of people” who live in an area. Yes, that’s right… it’s incredibly easy to see where an inspector can harshly apply an arbitrary standard while inspecting the property of an “undesirable” resident, thus effectively forcing that tenant to reconsider where to live and/or own property.Surely the government wouldn’t do that to you, an honest, decent individual investor… would they?Well, now they definitely won’t in the city of Portsmouth in Ohio. And frankly, it’s quite reasonable to see how this legal rationale could spread to other parts of the country as well… there’s just not a lot of gray area in this.It was so cut-and-dry, in fact, that the judge in this case not only ended the unreasonable searches being performed by the city of Portsmouth, but he also allowed a related lawsuit to continue, in which landlords are suing the city for reimbursement of the inspection fees they’ve been forced to pay over the years… fees which were, as you’ll recall, enforced under t
Released:
Oct 26, 2015
Format:
Podcast episode
Titles in the series (100)
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