As a landlord or property owner, one of the key documents that you need to secure is a Certificate of Occupancy. Regardless of whether you’re building from the ground up, changing property types, doing some major renovations, or fixing a fixer-upper, this certificate serves as proof that your property is built to code and is ready to be occupied by you or your tenants. However, this begs the question of what is required to get a Certificate of Occupancy. Continue reading to find out!
Key Takeaways Section
- A Certificate of Occupancy (CO) is legally required in San Antonio to prove that a property meets building codes, zoning laws, and safety standards before tenants can move in.
- Different types of COs exist—residential, commercial, temporary, and change-of-occupancy—depending on the property’s use and purpose.
- Common reasons for denial include unpermitted work, code violations, zoning conflicts, and incomplete inspections, which can cause costly delays.
Types of Certificate of Occupancy
We know from our experience in property services in San Antonio that the Certificate of Occupancy is the legal document that shows that a building (whether residential or commercial) passes all essential building codes for it to be safe and habitable. This certificate confirms that the property has gone through the necessary safety inspections and has passed. Considering this, all property owners and landlords must secure this document before they have anyone live in it.
That said, there are different types of Certificates of Occupancy, depending on the nature of the property (residential or commercial) and the intended use:
Residential Certificate of Occupancy
Property owners and landlords of single-family residential housing, duplexes, apartment complexes, and other residential income properties need to apply for a Certificate of Occupancy. This document verifies that the property is safe and livable for tenants.
Commercial Certificate of Occupancy
Owners of commercial properties – such as office spaces, industrial buildings, retail, etc., – apply for a Commercial Certificate of Occupancy. The requirements depend on the type of commercial property and the industry. Generally, this includes fire codes, ADA accessibility compliance, and parking regulations.
Temporary Certificate of Occupancy
Let’s say that you’re having some renovations done in your property. Later, much of your construction work is done, and you only have minor things to finish (landscaping, finishing, or even paperwork), then you can apply for a Temporary Certificate of Occupancy. This will allow you to have tenants move in and use the property while you continue to process any outstanding requirements.
Change of Property Type Certificate of Occupancy
Now, suppose you’re planning to convert a residential property to a commercial property, turning a single-family home into multifamily housing. In that case, you need to apply for a Change of Occupancy Certificate. This helps ensure that any converted property complies with the updated safety standards and building codes, depending on its new zoning classification.
What Is Required to Get a Certificate of Occupancy?
Now that you have a better understanding of what the Certificate of Occupancy is and the different types you can acquire, let’s discuss the requirements that you need to meet in order to receive this certification.
Applying for a Certificate of Occupation is a tedious process. It involves a lot of steps focused on ensuring that the property is up to code and meets safety regulations in order to ensure that the building is free and safe from potential harm. With this in mind, it’s safe to say that this is the most critical aspect of your application.
Let’s take San Antonio for an example. For residential properties, your property needs to meet the established standards and regulations on:
- Building and structural integrity
- Electrical wiring and systems
- Plumbing systems
- Fire safety
- Mechanical and HVAC systems
- Gas lines
- Sewage system
Steps to Obtain a Certificate of Occupancy
Let’s go through the process of obtaining a Certificate of Occupancy (again, with San Antonio as an example) from the moment you submit your application until it’s finally approved to be lived in:
- Submit an application to the city’s Development Services Department and pay the appropriate fee, depending on the type and size of property you have.
- Meet zoning compliance requirements to indicate whether your property is for residential or commercial use.
- Have your property inspected for building and structural soundness, electrical safety, proper plumbing, fire safety, sanitation, etc., and ensure that it meets modern code standards.
- For building renovations, make sure that you have all the necessary permits and that all required work has been inspected and signed off by the city.
- Request your local building or zoning inspection department for the final inspection of the property.
Common Reasons for Certificate of Occupancy Denial
We’ve covered what is required to get a Certificate of Occupancy. However, there is still a chance that your application will be denied, even with preparation! In order to be ready, here are some of the most common reasons:
Insufficient Documents
Failure to submit or filing incomplete documents will most likely result in the dismissal of your application. Make sure that all your permits, construction plans, and other paperwork are in order when you apply for a Certificate of Occupancy.
Unpermitted Construction Work
Building permits show the work authorized by your local government. Doing work that is not listed or does not have a proper permit can be a reason for your application to be denied. For example, demolishing or adding walls or making changes to your electrical or plumbing systems without a proper contractor. Doing this will require additional inspection and fines, which could potentially raise a red flag. The lack of a permit and inspection, even if the work is done correctly, is a major reason for denial.
Building Code Violations
Not all construction work meets building codes and standards. That is why it’s important to work with a qualified contractor who not only knows what they’re doing but is well-versed in local building codes and regulations.
Failed Property Checks and Inspections
Safety inspections are integral to the process of getting a Certificate of Occupancy. This includes structural, mechanical, electrical, plumbing, and fire inspections designed to guarantee that the property is compliant with local property codes and regulations. If you happen to fail an inspection, you are typically given a period to rectify the issue and request a re-inspection.
What Happens if You Rent Without a Certificate of Occupancy?
Applying for a Certificate of Occupancy as a landlord can feel overwhelming to the point that you may wonder if you could just skip the whole thing and proceed to rent your property without one. Let’s set the record straight: renting without a Certificate of Occupancy is illegal. So, you should never attempt to rent your property without securing one.
Otherwise, you can face fines and penalties from the city and local housing authorities. Another risk is that all of your lease agreements will be considered null and unenforceable. You may even have liability issues if your tenants get injured due to building code and safety violations. In some cases, the city may force your tenants to vacate your property due to safety concerns. With this in mind, it’s safe to say that it’s never worth skipping getting a Certificate of Occupancy, as you put your rental property at significantly more risk.
Streamline Property Management with Bay Property Management
As a landlord, it’s essential that you secure a Certificate of Occupancy for your rental property. Doing so not only protects your investment, but you can also ensure that your tenants are living in a safe and habitable environment.
However, navigating this process can be complex and time-consuming. So, having the best property management company–like BMG–on your side can make all the difference. With our team of real estate and property management professionals, we can help you coordinate inspections, manage residential property permits, organize documents, and so much more. Connect with us and let’s discuss how we can help you meet your goals.
