In February 2024, the City of Cleveland enacted the Residents First legislative package, aiming to enhance tenant protections and ensure better accountability among property owners. A pivotal component of this legislation is the Local Agent in Charge (LAIC) requirement, which has significant implications for property management companies and individual landlords.Cleveland Scene+7Legal Aid Society of Cleveland+7Home | City of Cleveland Ohio+7
Understanding the Local Agent in Charge Requirement
Under the new ordinance, property owners who reside outside of Cuyahoga County must designate a Local Agent in Charge who resides within the county. This agent assumes legal responsibility for the property’s maintenance and management, sharing liability with the owner for any code violations, including potential civil and criminal penalties. The intent is to ensure that there is a local point of contact accountable for addressing property issues promptly, thereby improving housing conditions for residents. Signal Cleveland+3bomacleveland.org+3Legal Aid Society of Cleveland+3Signal ClevelandLegal Aid Society of Cleveland
Responsibilities for Property Management Companies and Landlords
Property management companies and individual landlords must comply with several key mandates under the Residents First program:
- Property Registration: All non-owner-occupied residential units must be registered annually with the city. The registration process requires providing detailed information about the property, the owner, and the designated LAIC. KJK | Kohrman Jackson Krantz+2DAWGS+2dwellingnetwork.com+2
- Lead-Safe Certification: Properties built before 1978 must obtain lead-safe certification to ensure they are free from lead hazards. This involves conducting inspections and addressing any identified issues.
- Tax and Utility Compliance: Owners must demonstrate that property taxes are current and that any owner-paid utilities are not in arrears. Home | City of Cleveland Ohio+1Legal Aid Society of Cleveland+1
- HVAC Inspections: For buildings with four or more units, an annual inspection of the heating, ventilation, and air conditioning systems by a licensed contractor is required to ensure tenant safety and system efficiency. Legal Aid Society of Cleveland+1dwellingnetwork.com+1
Legal Challenges and Ongoing Appeals
The implementation of the Residents First legislation has faced legal opposition. In early 2025, several property management companies filed a lawsuit challenging the constitutionality of the law, particularly taking issue with the LAIC requirement. They argue that the mandate infringes upon due process and equal protection rights by imposing excessive documentation requirements and potential liabilities on local agents. DAWGS+5Legal Aid Society of Cleveland+5Signal Cleveland+5Akron Cleveland Association of REALTORS
The Akron Cleveland Association of REALTORS® (ACAR) has also expressed concerns that the law could lead to increased rents, negatively impact property values, and deter investment in the local real estate market. They contend that the additional burdens placed on property owners and managers may have unintended consequences that ultimately disadvantage residents. Signal Cleveland+3Akron Cleveland Association of REALTORS+3Reddit+3
Moving Forward: Compliance and Advocacy
Despite the ongoing legal proceedings, the Residents First legislation remains in effect, and property owners are expected to comply with its provisions. Property management companies and landlords should take proactive steps to adhere to the new requirements, including designating a qualified LAIC, completing necessary property registrations, and ensuring all compliance measures are met to avoid potential fines and legal complications.
Engaging with local real estate associations and staying informed about the progress of legal challenges is also advisable. These organizations can provide valuable resources, updates, and advocacy efforts aimed at addressing the concerns of property owners and managers in light of the new regulations.
For detailed information on the Residents First program and guidance on compliance, property owners can refer to the City of Cleveland’s official resources or consult with legal professionals specializing in real estate and property management law.
As the situation evolves, it is crucial for stakeholders in the Cleveland real estate market to remain vigilant, informed, and engaged in discussions surrounding the Residents First legislation and its implications for property management practices.
