Rental inspection program develops new goals to continue positive trajectory

Improvements for the city’s rental inspection program are in the works, and, based on a presentation from staff earlier this month, new expectations have been set for the future of the program, including creating a new database, providing online forms, growing relationships and being a resource to landlords.

Bethany Hovda, administrative assistant for the city’s community development department, serves as the permit technician administering the rental inspection program. She gave a presentation to council members at their April 7 meeting to update officials on the program’s progress and its goals moving forward.

Creating a new database is a crucial part in making the entire program work more efficiently. The efforts to collect information for the previous database was a time-consuming feat, but Hovda said the new database will reduce the time it takes to process the rental permits, inspection notices and registration notices.

Although all of the city’s online rental property inspection forms can be found online, they cannot currently be submitted online. Hovda hopes in the coming year that everything can be submitted online to improve the efficacy of the program and boost convenience for landlords.

Establishing open communications with everyone involved in the rental property inspection program is another goal Hovda has set for herself. She felt like the previous senior city planner was excellent at this particular area of the job, and Hovda said it is why the current rental inspection data is so positive.

“I would really like to step into it and continue what he started with that,” she said.

Hovda added that she wants the rental inspection program to serve as a resource for emergency services and other city services and departments.

Rental inspections, Hovda said, are mandated by the state. Any city with a population over 15,000 must have a rental inspection program. In 2018, the city council adopted goals to amend the rental permit and inspection program. Prior to that, rental inspections were carried out by the Newton Fire Department.

Shortly after the council set new goals, staff solicited requests for qualifications (RFQs) and received three responses. Of those responses, council settled on Iowa Inspections to carry out the rental inspection process. In fall 2019, the city’s rental inspection program was established and implemented.

The RFQ process was repeated again in 2021 and 2024. Each time Iowa Inspections was chosen to carry out the inspections.

Iowa Inspections is still contracted with the city until 2029.

From 2025 until 2027, rental property owners are charged $90 for the initial inspection for the first unit (up from $75) and then $25 for reach additional unit. If a rental property owner fails to appear at an inspection, they will be charged a $100 no-show fee. The re-inspection costs the same as the initial.

Costs for initial inspections increase to $100 from 2028 to 2029, and then $25 for each additional unit. The no-show fee and re-inspection fee remain the same. Hovda said the increased price reflects the increases in costs of operations for Iowa Inspections; the city also does not want to skimp on their contractor.

“It seems fair for everybody involved,” Hovda said.

In total, there are 2,274 rental units and 716 rental properties in the city of Newton. Hovda said those totals will change soon since the apartments at Plant 1 Lofts in Legacy Plaza will be added, increasing by 78 units. Hovda noted a large majority of rental properties — about 500 — are on the east side of town.

Over half of the rental property owners in Newton have a mailing address in the city, meaning they likely live in the community too. Most are Iowa residents, and then there is a small portion that operate long distance outside the state. By and large, Hovda said, it is a local industry.

Currently, 98 percent of all rental properties in Newton have been inspected, and 98.5 percent of all units have been inspected once. Comparing data from 2023 to 2024, Hovda noted the number of properties passing their inspections on the first try has increased from 110 to 251.

“We’re seeing the numbers heading continually in the right direction, passing more easily and with fewer inspections,” Hovda said.