According to the City’s Rental Ordinance (Rental Inspection and Property Licensing Act, RIPLA), effective November 16, 2021, it is unlawful for any person to own, operate, or maintain a single-family or multiple household Dwelling in Madison as a rental property without a current and valid Rental License issued by the City for each separate location. It is also unlawful for any person to occupy any such Dwelling that does not have a current and valid Rental License.
A written application for a Rental License, signed by the owner or his/her agent, must be filed with the City, along with payment of a $500 rental permit fee payable in cash or check to the City of Madison. Owners must also post and maintain a $25,000 bond, collateral, or letter of credit as surety with the application, a copy of the warranty deed, and a rental application. Inspections are scheduled after the receipt of all required documents. Once the property has passed inspection and the permitting process has been completed, a Certificate of Compliance will be issued. No power will be transferred to the tenant’s name(s) until a property Owner has fulfilled each provision as stated in the ordinance.
Certificates of Compliance shall expire one (1) year after the issue date or upon the termination of the rental agreement or lease governing the Rental Unit for which such Certificate of Compliance was issued, whichever occurs first. Before reletting the Rental Unit, the Owner shall notify the City of such intent to relet and obtain a new Certificate of Compliance. Upon the date of inspection for a Certificate of Compliance, if the owner or his agent fails to appear at the Dwelling or if the Owner’s home fails inspection, a latter inspection shall be conducted, and a fee of two hundred and fifty dollars ($250.00) shall be assessed to the owner for the second inspection.
If an Owner sells or otherwise conveys his/her interest in a home for which a Rental License is currently issued, the original Owner must notify the City within 30 days after such a sale or conveyance. If the new Owner is reletting the property, he/she must adhere to the Rental Permitting procedures as stated in the Rental Inspection and Property Licensing Act (RIPLA).