The council has officially approved a five-year contract with an inspector tasked with enforcing rental property codes.
On December 16, the Newton City Council reached a decision to enter into a five-year contract with Iowa Inspections, LLC, the city’s former rental inspector. This move comes despite objections from local landlords who argued that the inspection practices are costly and cumbersome, particularly given that the outside consultant operates from outside Jasper County.
Four inspection firms have submitted responses to the city’s request for quote (RFQ), among them the firm that has previously conducted inspections for the city. Iowa Inspections has announced a fee structure for their services, starting at $90 for the first unit and $25 for each additional unit within the same building for the initial three years. Following this period, the charges will rise to $100 per unit, while the fee for additional units will remain at $25 during the last two years.
Re-inspection fees mirror the costs associated with the initial inspection fees. Individuals who fail to attend their scheduled appointments will incur a charge of $100. Iowa Inspections maintains current certifications, holding titles as a certified building official, housing code official, residential building inspector, property maintenance and housing inspector, as well as a residential utilities inspector.
The company conducts inspections on numerous rental properties across Central Iowa, covering locations such as Albia, Ankeny, Centerville, Chariton, Creston, DeSoto, Knoxville, Oskaloosa, Van Meter, and Windsor Heights. Iowa Inspections serves as a building official and inspector for the engineering consulting firm Veenstra & Kimm Inc., based in Des Moines.
Fred Rhodes, a landlord in the area, expressed his opposition to the City of Newton’s rental inspection program and the council’s deliberation on renewing its contract with Iowa Inspections. Rhodes criticized the “exorbitant” rise in fees, asserting that an inspection should take no more than 10 minutes to complete.
“Whenever we increase expenses on rental properties, these expenses will ultimately be transferred to the tenant,” Rhodes stated. A government official recently informed a property owner that, in the event of cost increases, the owner is expected to absorb these additional expenses. Their actions reflect a complete lack of understanding. That is not how business operates.
According to Rhodes, investors are required to see a return on their investment; without the prospect of profit, they are unlikely to proceed with the investment. Rhodes called on the city to seek a more economical approach to conducting these inspections, emphasizing the need for solutions that will serve the community rather than neighboring areas in the metropolitan region.
“Significant funds are being allocated outside our community, despite the potential benefits these resources could bring to local residents.” “A viable approach would involve creating a list of city-approved contractors that landlords could contact for inspections,” Rhodes stated, highlighting his experience as a property owner in Kansas City, where such a list is already in place.
Rhodes reported that the inspectors in Kansas City impose a fee of $50 for each inspection and express satisfaction with the opportunity to undertake the work. According to him, the inspection duration is comparable to that in Newton, and he asserted that the contractors are equally meticulous. Rhodes stated that once the process is complete, the funds will remain within the community, contributing to its economic growth.
He contested the city’s interpretation of the state code. Cities with populations comparable to Newton are mandated to implement a rental inspection program. Rhodes contended that the city is not obligated to employ a certified inspector for the inspections.
Carl Smith, a resident of Kellogg, reiterated the sentiments expressed by Rhodes, particularly regarding the decision to engage an outside consultant, which he argued could be sourced locally with ease. Erin Chambers, the director of community development, highlighted that any local consultant interested in the matter would have been required to consult with the city.
“This was posted to the city’s website,” she stated. “Any party interested in city work would have received a notification via email or cellphone if they had signed up for alerts.” Alternatively, one can simply keep an eye on the city website for updates. A search was conducted for local firms, and hard copy documents were dispatched.
All four firms that submitted responses to the RFQ were located outside of the city. The entities involved are Safe Building, Bluffs Inspections Service, and Willdan Engineering. Chambers addressed the certification issues stemming from Rhodes. The city is seeking individuals who possess certification in the enforcement of the codes established by the council, according to her statement.
Council member Mark Hallam expressed interest in the proposal put forth by Rhodes. However, he raised concerns about the timing, noting that the city was already “under the gun” with the current contract with Iowa Inspections set to expire on Dec. 31. Iowa Inspections was contracted to conduct inspections for the city in late 2019, followed by another engagement in 2021.
City staff report that 85 percent of rental property owners successfully pass inspections on their initial attempt. Most landlords in Newton successfully pass their inspections.
