Cleveland’s Chapter 365 stands: What landlords need to know after the BVG Properties ruling

If you’re a Cleveland-area landlord, you’ve probably heard the complaints — or made them yourself. Cleveland’s rental registration and lead-safe certification requirements feel like a lot. The fees, the inspections, the Local Agent in Charge paperwork… it can feel like the City is making it harder than ever to be a responsible property owner.

You’re not wrong to feel that way. And you’re definitely not alone. In fact, a group of landlords felt strongly enough about it to take the City of Cleveland to federal court.

They lost.

The BVG Properties Case

In early 2025, BVG Properties, LLC and two other landlord LLCs filed a lawsuit in the U.S. District Court for the Northern District of Ohio challenging Cleveland’s Chapter 365 — the ordinance that requires rental registration, lead-safe certification, a designated Local Agent in Charge, and annual fees for non-owner-occupied residential properties.

The landlords threw everything they had at it. They claimed the ordinance violated their constitutional rights to equal protection and due process under the Fourteenth Amendment. They sought a temporary restraining order, a preliminary injunction, and a declaratory judgment that the whole thing was illegal.

On August 29, 2025, Judge Pamela A. Barker issued a 53-page opinion and order dismissing every single claim. The Motion to Dismiss was granted. The preliminary injunction was denied as moot.

Every argument the landlords made was rejected.

What the Court Said

The court’s ruling was thorough and decisive. Here are the key takeaways:

On Equal Protection: The landlords argued they were being treated differently from other similarly situated property owners. The court found these allegations were “conclusory and unadorned assertions” without enough factual support. Simply saying you’re being treated unfairly isn’t enough — you have to show specifically how and why.

On Due Process: The landlords claimed their due process rights were violated, but the court found they failed to identify any specific fundamental right or constitutionally protected interest that was being infringed. The claims were, in the court’s assessment, “wholly conclusory.”

On the Ordinance Itself: The court ultimately determined that the questions raised about Chapter 365 — including whether LLCs qualify as “owners” under the ordinance — involve novel issues of Ohio state law that are best resolved by Ohio state courts, not federal courts. The federal court declined to weigh in on what is fundamentally a question about a Cleveland city ordinance.

What This Means for Property Owners

The bottom line is straightforward: Chapter 365 is the law, it is being enforced, and the most significant legal challenge against it has failed.

If you own non-owner-occupied rental property in Cleveland, you need to:

• Register your rental units with the City of Cleveland Department of Building and Housing
• Obtain a lead-safe certification for your properties
• Designate a Local Agent in Charge — a real person in Cuyahoga County or an adjacent county
• Pay your registration fees and stay current on property taxes and utilities

Non-compliance isn’t just risky — it’s expensive. Late fees run $100 per unit. Failure to comply is a first-degree misdemeanor. And perhaps most importantly for your bottom line, Cleveland Housing Court will not grant eviction judgments without proof of active rental registration. That means if you can’t evict a non-paying tenant because your paperwork isn’t in order, you’re losing money every single day.

We Understand — and We’re Here to Help

Look, we get it. Nobody loves more paperwork and more fees. But the reality is that these requirements exist to protect tenants — especially children — from lead paint hazards and to ensure that rental properties in Cleveland are properly maintained and managed.

And the reality after this ruling is that compliance is not optional.

That’s where we come in.

PbFree Ohio specializes in lead risk assessments and lead-safe inspections throughout the Cleveland area. We make the lead-safe certification process fast, affordable, and painless. Whether you have one property or fifty, we’ll get you compliant so you can get your Rental Certificate and keep your units on the market.

CLELocalAgent provides Local Agent in Charge services for property owners who don’t live in Cuyahoga County or a contiguous county. Instead of scrambling to find someone local to take on that responsibility, let us handle it. We serve as your designated agent, satisfying the Chapter 365 requirement so you can focus on what matters — managing your properties.

Don’t Wait

The City is actively enforcing Chapter 365. Every day you’re not in compliance is a day you’re exposed to fines, criminal liability, and the inability to protect your investment through the court system.

The legal challenge has been tried. It failed. It’s time to get compliant.

Contact us today:

• PbFree Ohio: pbfreeohio.com | burkons@pbfreeohio.com
• CLELocalAgent: clelocalagent.com

This blog post is for informational purposes only and does not constitute legal advice. For questions about your specific legal obligations, consult a licensed attorney. Case reference: BVG Properties, LLC v. City of Cleveland, No. 1:25-cv-00430-PAB (N.D. Ohio Aug. 29, 2025).