What does Hesperia's rental license mean for a buyer?

You’re buying a Hesperia home to rent out, or considering one that already has a tenant. Before closing, check the property’s rental housing business license and inspection history. The City requires rental owners to register, pay associated fees and complete its inspection requirements, with self-certification available to qualifying owners. An existing tenant or a vacant home doesn’t remove that work from your purchase checklist.

This is general information, not legal or tax advice.

What does the rental license require?

Hesperia requires all rental property owners to register under its Rental Housing Business License and Inspection Program, subject to the exemptions listed on the City’s page.

The City of Hesperia’s program page cites Chapter 5.72 and says the program was adopted in January 2021 to support basic habitability and well-maintained rental homes. Registration includes an application, associated fees and successful completion of an inspection performed by the City’s Code Enforcement division.

Rental housing business licenses must be renewed annually. Single-family and multi-unit rental properties are included, and currently vacant rental properties are not exempt.

The page lists exemptions for hotels and motels offering short-term stays only; religious, school-owned or medical housing; mobile homes, RVs or RV parks; owner-occupied homes renting out one room; and junior ADUs within owner-occupied homes. Check the property’s actual use against those descriptions before assuming an exemption applies.

What should you check before closing?

You should ask for the current license, the latest inspection or self-certification records, and information about unresolved property obligations before closing.

Start with the seller or listing agent. Ask whether the home is currently rented, whether a current Hesperia rental housing business license exists, and when the last inspection or self-certification took place. Request the paperwork behind those answers so you can review the property’s status.

Then ask the City’s Rental Housing office about open violations, unpaid fees or liens. Those details matter because eligibility for self-certification depends on the absence of specified violations and outstanding obligations. A seller’s use of self-certification is a reason to examine that documentation.

Your California seller disclosure review is another place to organize questions about the property’s condition. Keep the City’s license and inspection records alongside that review so unresolved questions remain visible before closing.

For your purchase budget, keep rental program costs separate from the questions covered in the supplemental property tax bill guide. Ask for the applicable program fees before relying on a seller’s expense figures.

What happens to the license when the property sells?

The City’s page directs a seller to a Change of Owner application, but it does not say whether an existing license transfers to a buyer.

The form is called the Rental Housing Business License and Inspection Program - Change of Owner/Owner Occupied Application. The page says to complete it if the rental property has been sold or the property is owner occupied. The City determines whether the property is eligible for exemption and contacts the applicant if more information is needed.

A buyer should ask the Rental Housing office what purchasing a rented home requires. The program page gives the office number as 760-947-1357. Describe the intended use and ask what application and inspection steps apply to the purchase.

We were helping a buyer evaluate a tenant-occupied Hesperia home when the rental license came up. He thought the seller’s existing license would automatically remain valid after closing. We reviewed the city process with him so he knew what the change in ownership required and could include that responsibility in his plans.

When can you use self-certification?

You can opt into self-certification if the property meets the City’s eligibility requirements and you maintain a current rental housing business license.

The City requires no active violations of the Hesperia Municipal Code, California State Building Code, or Housing and Health Safety Code. It also requires no outstanding citations, inspection or abatement fees, special assessments or liens associated with the property.

Qualifying owners inspect using a City-provided checklist. The owner signs a Self-Certification Affidavit, with one affidavit per property even when the property contains more than one unit. Required photographs show the full frontage with the property address clearly displayed and the full rear. The City may request additional photographs or information.

Documentation is due within 30 days, along with renewal fees. Late documentation may lead to the property being considered non-compliant and removed from self-certification, with the difference between that fee and the full annual program fee due.

If the property is ineligible, the City notifies the owner, full registration renewal fees are due, and the City works with the owner to schedule interior and exterior inspections.

What does the City inspect?

Code Enforcement inspects property exteriors and a portion of unit interiors, using a list that the City’s page says is not exhaustive.

The listed conditions include a neat, habitable property without trash and debris, trash receptacles, and a disposal contract with the City’s franchise waste hauler. The page also addresses adequate parking, landscaping that is not dead, and sidewalks and walking paths kept in good repair.

The list says graffiti, broken windows and fencing are repaired within 72 hours of notification to the owner or agent. It lists water and sewer or septic maintenance or service mechanical components as kept in working order. It also lists pools and spas as maintained according to the San Bernardino County Department of Public Health.

For properties with four or more units, the list requires a sign with the owner or management company’s name, address and phone number. Tenants work with the owner to coordinate interior inspections and re-inspections. Ask for any unresolved inspection items when reviewing a rented property’s records.

How do water service and management paperwork fit in?

Water service requires its own owner paperwork, and using a property manager does not remove the owner’s rental license responsibility.

On its Rental Property Requirements page, the City says a tenant requesting water service must include a Property Owner Acknowledgement form. Property managers must include an Authorization of Agent to Act on Owner’s Behalf form.

The owner needs a business license regardless of whether the water account is in the tenant’s or property management’s name. If a tenant will move into the home you plan to rent, expect the water service request to need your acknowledgement form.

Renewal has a separate management requirement: if a property manager handles renewals, the owner must also submit a Local Agent Authorization Form. The City’s program page places ultimate responsibility for compliance on the property owner. Ask which forms are on file and which need attention as part of the purchase.

What costs and compliance issues belong in your budget?

Your budget should account for applicable license and inspection fees, renewal work and a re-check at the first renewal.

Ask the City for the applicable amounts. Its news flash says the fee schedule was amended in October 2022 to reduce maximum license processing and inspection fees, but that statement does not give you a current dollar amount for this property. Any City inspection must be paid in full before a renewal license is issued.

The program page says failure to pay required fees may result in a $500 fine, and failure to obtain a business license may result in a $500 fine.

The City’s Nondiscrimination Policy and Complaint Procedure Related to Housing and Programs Receiving Federal Funds also says failure to comply with fair housing laws may result in license application denial or license termination. The Santa Ana rental registry guide for new owners addresses that city’s separate requirements.

The short version

Buying a Hesperia rental means checking the license, confirming the inspection path and asking the City what the ownership change requires.

Get the records before closing, resolve questions about fees or violations, and confirm the forms needed for renewal and water service. Keep those obligations in the property’s operating budget.

For another part of your purchase review, use the home value tool.