Are rental registries the key to promoting housing market stability? One Iowa State University housing researcher thinks so
AMES, Iowa — For Iowa State University housing researcher Jane Rongerude, the COVID-19 pandemic was a major turning point. The global crisis shook the housing industry to its core. Many renters who lived comfortably ahead of 2020 were faced with sudden hardship, unemployment and eviction notices. And on the other end, residential rental property owners (RRPOs) were unable to collect rent and pay their own expenses.
With support from the National Science Foundation and the Polk County Housing Trust Fund, Rongerude — an associate professor of community and regional planning — and her research team were able to “lean into their curiosities” and investigate the factors that were contributing to this “eviction and mortgage crises,” she said. Their investigation led them to seek out RRPOs.
“There’s very little research on RRPOs and that was the intent of this effort, to find them and talk to them,” Rongerude said. “But we ran into a roadblock; we couldn’t find any. And I really think if we want a stable rental housing market, we need to know who owns these properties.”
In her recent journal article, “Rental Registries and the Business of Providing a Home,” published in the peer-reviewed Journal of the American Planning Association, Rongerude argues the registry would be a valuable tool for local governments as it would allow for better communication between cities and residential property owners.
“To me, it’s so practical,” she said. “We need that basic information so we can better understand the population of residential rental property owners and to recognize the unique challenges faced by different types of owners and ownership entities.”
These registries can also promote housing market stability. Rental registry data gives communities a deeper look into their rental housing stock and having that oversight can ensure rental properties inspections are up to date and the dwelling is safe for tenants to live in, Rongerude said.
Licensure and LLCs
At its most basic, a rental registry is a public database that lists every rental property in a city and provides a mailing address and contact information for the owner or ownership entity. Many cities and localities already have their own databases, and Rongerude hopes other communities follow suit as she believes rental registries could be the solution to consolidating information on RRPOs — making it accessible to everyone.
“In my article, I suggest we should set up these registries like they do for businesses,” Rongerude said. “Businesses like hair salons and funeral homes are all regulated; why not RRPOs? We don’t know if these folks are locals or if they’re managing these properties from other states or countries.”
Tracking down RRPOs can get complicated as some choose to put their properties under their limited liability company or LLC. While doing that offers a layer of protection over the residential rental property owner’s assets, it’s still not immediately clear who the owner is.
Disaster planning
Over 90 percent of rental units in the City of Cleveland were built before 1978 — the same year consumer use of lead-based paint was banned in the U.S. As a result, many residents, especially low-income residents of color, may be renting homes contaminated with lead, Rongerude said.
As Cleveland looks mitigate the risk of lead exposure, the city rolled out its own rental registry earlier this year to ensure its RRPOs were compliant with new regulations put in place to keep the community safe.
“This city serves as a great example of how registries can be used to really keep the community informed,” Rongerude said. “There’s an open line of communication with RRPOs so they can be engaged in decisions that may impact their properties.”
The rental registry dispute
While rental registries offer local governments valuable data for enhancing planning, forecasting and governance, implementation has been quite challenging. Some organizations that represent residential rental property owners, like the National Apartment Association (NAA), oppose rental registries as they believe such registries could create financial burdens or violate personal privacy rights.
“This is expensive data when you have to buy it from outside sources,” said Rongerude. “But there are challenges when trying to start a new database. Rental registries usually come with fees that RRPOs must pay. And when it comes to privacy, the NAA claims rental registries could violate Fourth Amendment protections against unlawful search and seizure.”
Even as rental registries face opposition, Rongerude hopes cities and planners remain steadfast in their implementation.
“If we can identify those little tweaks that need to be made to help these systems function more equitably, I’m going to be an advocate of it,” Rongerude said. “This is why I’m in planning. I’m looking for practical ways to improve communities and help everyone thrive.”
Contacts
Jane Rongerude, Associate Professor, Community and Regional Planning, jrong@iastate.edu
Lauren Johnson, Communications Specialist, College of Design, laujohn2@iastate.edu
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