Higher fees surprise Carpentersville property owners

Landlords and some village officials in Carpentersville say a $500 fee required to license rental properties is deterring potential investors from buying empty homes while also straining current rental owners.

The village's audit and finance commission raised the fee from $175 to the current rate in late 2008 to cover the costs of registering and inspecting rental properties, said the village's community development director, Cindy McCammack.

"The last thing the village needs to do is get rid of people who are bringing money into the community," said Gary Schweitz, who owns a number of rental properties in the village.

The fee applies to single-family homes, as well as single-family attached homes like townhouses and condominiums. A $75 fee applies to each unit in an apartment building.

McCammack said the fee covers all aspects of licensing and inspecting a property, from code enforcement officer salaries to the office space needed to conduct the rental property program.

But property owners argue fees in neighboring municipalities are more reasonable, and in many cases, not required for single family homes.

For example, a rental license in Elgin costs $71 per year but is valid for three years if the property is free of violations upon inspection.

Elgin's rental license program director, Tina Stupa, said the fee covers administrative costs for the license and the inspection.

West Dundee charges a $35 administrative fee to register rental properties, but does not conduct inspections, assistant village planner Jennifer Becker said.

Landlords say the higher fee makes Carpentersville unappealing to investors at a time when the village is struggling to fill empty homes. There are currently 767 foreclosed homes in the village, and that number is expected to rise.

Tom Roeser, president of Otto Engineering, said the fee is a hidden tax.

"These are the kinds of things where you ask, 'Why are we paying taxes and what services are our taxes paying for?'" said Roeser, who owns about 60 rental properties in the village. "This is another burden on business owners."

So much of a burden that some property owners could pull out of Carpentersville in favor of a less expensive town.

"I would consider selling the properties if they want to push us out like that," said Mike Walocha, president of Palatine-based M&L Properties, which owns six homes in Carpentersville. "It is like Carpentersville doesn't want investors, which doesn't make sense to me."

The higher fee also baffles Village President Bill Sarto, who said he opposed the increase at the audit and finance commission level.

"We should be supporting investors who want to come in and purchase these vacant homes, but with the fee we are hurting the cause," Sarto said.

"Right now, we are missing the opportunity to have people purchase homes at a reduced price. I think it is shortsighted to not realize that rental properties more attractive to people, rather than buying, because mortgages and financing are more difficult to obtain these days."