The hot-button issue of landlord licensing is again on the table following a Logan city ruling some say goes against the intent of the law.
From the time the city introduced the idea of licensing last summer through ratification in March, the word's been that one landlord would need one license, regardless of the number of units operated. Logan officials didn't consider that landlords often break up holdings into multiple limited liability companies, or LLCs, in part to isolate impacts of lawsuits to single properties.
However, the license ordinance does not address LLCs.
Upon realizing the hole in the code, Community Development Director Jay Nielson last month ruled that a license is required of each LLC with the result being some landlords would need multiple licenses. Nielson said requiring each property-oriented LLC to be licensed is the same as is done with LLCs in other fields.
"In my mind it's disingenuous," said Municipal Councilman Herm Olsen, who sat on a committee of landlords, tenants and officials that hammered out the ordinance during four months' negotiation.
The committee meant to have only one $50 license be required of each landlord, Olsen argued.
Given the contentious process that at times pits landlords and the city against each other, Olsen said, "We just don't want to make these guys feel like they were deceived."
Mark Lundt, an owner or manager of 90 rental units in Logan who sat on the committee, said the group meant for individuals, not LLCs, to be licensed. The cost difference isn't a huge deal, Lundt said, but trust between landlords and the city is.
"Whatever gains there are (for the city) aren't worth the negativity," he said. "Animosity between the city and landlords isn't healthy for anyone."
Mayor Randy Watts calls the LLC issue an oversight and said he hopes a revival of the debate is not in store.
"I hope it doesn't get blown out," he said. "I just wish the council would back off a little and we'll work through it."
On Tuesday the council directed city staff to find out how other cities handle LLCs and report results at a future meeting.
The licensing requirement starts July 1. Of the city's approximately 2,200 landlords, only one has so far been granted a license. The city is currently processing 20 applications. Original Article
