The City of Iowa City has been on the look out for rental properties without a rental permit. City code states that if the owner of a property is not the occupant of the dwelling, a rental permit is required. There are no exceptions, even if the two parties are family members and no lease agreement exists. North Liberty and Cedar Rapids have similar requirements. Coralville code is more lenient in such cases and does not require a permit for properties where one family member owns a property and another relative lives in the unit. The City of Iowa City checks utility records against rental permit rolls and neighborhood complaints to find properties that might not be in compliance with the code.
Rental permit fees are $157 per structure plus $17 for each unit and $8 for each bedroom. A one-time $40 fee for the City’s Certificate of Structure Compliance is also needed. Inspections are done every two years.