When a Farmington Hills house that is already a registered rental changes hands, the city does not start the new owner on a fresh three-year cycle. The new owner has 30 days after the sale to register the property. Any existing certificate of compliance transfers with it and "shall be valid until its expiration or revocation." The city's own guide says the certificate is valid for three years from the date it was issued.
That gives an investor a date to find before writing an offer. The seller's certificate might have been issued last month or nearly three years ago. In the second case, the buyer closes, registers, and faces a renewal inspection almost right away, on a house they have owned for a few weeks.
The Clock Belongs to the Certificate, Not the Deed
Farmington Hills runs what it calls the Single-Family Rental Dwelling Registration, Safety and Maintenance Inspection Program. Single-family rentals have to register, and the city inspects them at least once every three years. About 800 homes are on that rotation, according to a December 2025 report from the city manager to council.
Take a hypothetical example. A certificate issued in January 2024 runs out in January 2027. A buyer who closes this October takes over the remaining few months. The city says it will "attempt to notify you via email 60-90 days before expiration," and renewing before the certificate expires is the owner's or agent's responsibility. The reminder goes to whatever contact information the city has on file. That is why the guide asks owners to report contact changes during the three-year term. A sale is exactly the moment that information goes out of date.
Here is the sequence after closing, taken from the ordinance and the city's process guide:
- Within 30 days of the sale: register as the new owner. The 2025 application asks for proof of ownership and a $140 fee. First-time applications go by email to [email protected]. After staff approve one, the fee can be paid online through BS&A with a 3% card processing fee, or by check.
- When the inspection is scheduled: the owner mails tenants 21 days' notice, posts the notice at the home's entrance, and has the owner or a representative on site. The guide says it is not the tenant's job to accompany the inspector.
- Before the certificate issues: any open building permits or enforcement actions on the property have to be finalized.
- If violations are found: the city sets a correction deadline and a reinspection. Citations follow if violations are still open after three inspections.
Step three is where a seller's history becomes the buyer's problem. If a previous owner replaced a deck or a water heater and never closed out the permit, the new owner has to get that permit finalized before the city will certify the rental. Since early March 2026, building permit applications and inspection requests go exclusively through the city's online BS&A portal, so closing out an old permit now happens there.
What the Inspector Looks At Today
The current program is mostly about the outside of the house. The guide says the inspection "covers the exterior of the property only," uses the 2015 International Property Maintenance Code, and includes no interior inspection unless conditions listed in City Code Chapter 7, Section 350(3) apply. The city's exterior checklist, revised December 2024, covers:
- Exterior property areas and nuisances
- Detached structures
- Pools and spas
- Gutters and drainage
- The exterior structure and envelope
- Lighting and wiring
- Stairs, decks, porches, balconies, and guards
For a buyer, the checklist works as a pre-offer walkaround. Failing gutters or a loose deck guard on an inherited certificate is more than a punch-list item. It is a correction with a reinspection date attached. Under the ordinance, renting a single-family dwelling without the required registration is a municipal civil infraction, and the city can also go to court for abatement.
The Proposal That Would Move Inspections Indoors
Council has discussed changing that exterior focus, and the discussion explains why the certificate date matters more than it used to.
On December 8, 2025, the City Council held a study session on Draft City Code Amendment 4, 2025. The draft would extend registration and inspection from single-family homes to all residential rental dwellings, duplexes and multifamily included. The city counts about 60 multifamily complexes with more than 10,000 units. Expanding the program would add interior inspection items. Earlier sessions had narrowed the focus to four life-safety items: dryer venting, smoke alarms, GFCI wall outlets, and furnace certification.
The approved minutes record that "Council discussion reflected general consensus in favor of adopting an ordinance." Council members raised different priorities. Councilmember Knol suggested starting with older rental units, which are more likely to lack basic safety features. Councilmember Boleware suggested exemptions or delayed applicability for new developments. Councilmember Starkman raised tenant notice and privacy during inspections. Mayor Rich weighed housing affordability against safety risks, including missing or non-working smoke and carbon monoxide detectors.
Several design questions were still open when the session ended:
| Open question in December 2025 | What the minutes record |
|---|---|
| Appeals | City Attorney Joppich called the appeal process a key unresolved issue, with options including the Building Board of Appeals or a new body |
| Who counts as a renter | Staff said roughly 300 to 400 single-family properties claim family-member occupancy without compensation, which currently excludes them from inspection |
| Exemptions | Credit for HUD, state, insurance, or mortgage inspections was left for staff research |
| Conditions on certificates | Staff floated requiring outstanding city fees to be paid and a responsible local agent to be named before a certificate issues |
| Rollout | Staff said implementation would be incremental if council moved forward |
Council also asked what other cities charge. Troy charges a $75 registration fee for properties with 1 to 150 units, $125 for 151 to 300 units, and $200 for more than 300, plus $51 per unit for inspection.
The December 2025 minutes are the most recent detailed record of the proposal in the city materials reviewed for this post, and they end with staff and counsel asked to come back with a refined ordinance. The September 28, 2026 council summary lists three ordinances enacted that night, C-3-2026 through C-5-2026, all dealing with fire prevention. One of them, C-5-2026, updated the city's Residential Smoke Alarms section to reference the current edition of the International Fire Code. The city's Rental Inspection page still describes the program as single-family registration with an exterior-focused inspection. Before relying on either version, a buyer can confirm the current status with the Planning and Community Development Department.
Here is why that matters for a single-family buyer now. An inherited certificate issued years ago puts the next inspection on the city's calendar, and the posted records do not show which rulebook will apply by then. A certificate issued recently gives the owner more time to see how the ordinance settles before the next inspection.
The Tax Line That Changes at the Same Closing
The rental certificate transfers, but the seller's homestead status does not. Michigan's Principal Residence Exemption excuses a qualifying home from local school operating millage, up to 18 mills. Treasury's instructions for Form 2368, the PRE affidavit, list income property as ineligible. The seller rescinds the exemption with Form 2602, which lists both a sale and conversion to a rental as reasons. Treasury says the rescission is due within 90 days, and a failure to rescind can carry a penalty of $5 a day, up to $200. The city attorney told council in December 2025 that the original rental ordinance was partly meant to address homestead versus non-homestead classification issues.
In Farmington Hills, the gap between homestead and non-homestead rates is not the same everywhere. It depends on which school district the parcel is in. Oakland County's certified 2025 rates per $1,000 of taxable value are the latest published. Treasury says 2026 rates will not post until August 2027.
| School district portion of Farmington Hills | 2025 PRE total | 2025 non-PRE total | Gap per $100,000 taxable value |
|---|---|---|---|
| Clarenceville | 39.4924 | 57.2805 | $1,778.81 |
| Farmington Public | 42.8732 | 55.7693 | $1,289.61 |
| Walled Lake Consolidated | 39.4568 | 57.1148 | $1,765.80 |
The city's own historical rate sheet lists higher non-PRE totals, because it adds a flat 18 mills to each homestead total. The table uses the county's certified figures. Two rentals at the same price can carry noticeably different tax bills depending on the school district line, and the listing sheet usually shows only the seller's homestead bill.
Two Utility Details Landlords Inherit
Water and sewer bills in Farmington Hills attach to the property, not the customer. The Oakland County Water Resources Commissioner can add balances 180 or more days past due to property taxes. WRC also does not take final meter readings or issue final bills. Instead, the title company or agent requests the billing history and balance so the next bill can be prorated. Starting July 1, 2026, the city replaced minimum bills with fixed ready-to-serve charges. For a 5/8-inch meter, that is $9.67 for water and $6.63 for sewer per billing cycle, plus usage charges. Those charges come with every billing cycle, including the months a rental sits empty between tenants.
FAQ
Does the inspection reset when the house sells? No. The ordinance transfers the existing certificate to the new owner, and it stays valid until it expires or is revoked.
Will the city inspect inside a single-family rental? Under the current guide, only when conditions listed in City Code Chapter 7, Section 350(3) apply. The interior items came from the December 2025 draft expansion. Staff at 248-871-2545 can confirm whether anything has changed since then.
Who answers program questions? The Planning and Community Development Department at 248-871-2545 or [email protected].
If you're weighing a Farmington Hills rental, Andrea Yakobe can help you request the seller's certificate date, open-permit history, and water account balance before you write an offer, so the 30-day registration window holds no surprises. Schedule a quick market consultation or book a showing today.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
