As a follow up to my post yesterday about the new security deposit legislation that the Cincinnati City Council enacted yesterday, I wanted to share some updated information with you on it care of Rob Calabrese of Prominent Title.
First, attached is a copy of the actual bill.
In summary if you own or control 25 or more units you have offer:
For those of you who are inclined to find a work around, its likely unwise to try to argue that since each asset, likely, is held in its own single purpose LLC, assuming each is less than 25 units, that the new legislation can be avoided. In the end you’re probably going to be costing yourself more time money and energy that it is worth. You should just abide by the new legislation.
Instead, the best thing to do is to select a rental insurance provider of your choice. Work with them to verify that they’ll be able to provide the coverage that the law dictates while giving you, the property owner, the surety you require that security deposit may have provided, at least in part.
If you would like to speak with an insurance agent familiar with the new legislation and can help provide solutions for you and your partners please reach out to my friend Jay Mueller at Camargo Insurance, 513.561.5311 or Jay@camargoinsurance.com.
I hope you’ve found these updates helpful.
Please let me know if there are any properties in your portfolio, be they in Cincinnati or otherwise, which we could value for your, or if you’re open to receiving offers.
Thank you,
First, attached is a copy of the actual bill.
In summary if you own or control 25 or more units you have offer:
- Rental security insurance that satisfies the following criteria:
- The insurance provider is an approved carrier licensed by, and in good standing with, the Ohio Department of Insurance;
- The coverage is effective upon the payment of the first premium and remains effective for the entire lease term; and
- The coverage provided per claim is no less than the amount the landlord requires for security deposits.
- Payment of a reduced security deposit, which amount shall be no more than fifty percent of the monthly rental rate charged for the subject rental unit.
For those of you who are inclined to find a work around, its likely unwise to try to argue that since each asset, likely, is held in its own single purpose LLC, assuming each is less than 25 units, that the new legislation can be avoided. In the end you’re probably going to be costing yourself more time money and energy that it is worth. You should just abide by the new legislation.
Instead, the best thing to do is to select a rental insurance provider of your choice. Work with them to verify that they’ll be able to provide the coverage that the law dictates while giving you, the property owner, the surety you require that security deposit may have provided, at least in part.
If you would like to speak with an insurance agent familiar with the new legislation and can help provide solutions for you and your partners please reach out to my friend Jay Mueller at Camargo Insurance, 513.561.5311 or Jay@camargoinsurance.com.
I hope you’ve found these updates helpful.
Please let me know if there are any properties in your portfolio, be they in Cincinnati or otherwise, which we could value for your, or if you’re open to receiving offers.
Thank you,
| cincy_renters_choice_legislation_-_final.docx |