The city of Reading is cracking down on illegal rental properties.

A new ordinance now in place will help keep residents safe, officials said, but landlords said it could cost them their livelihood.

"The day of illegal rentals in our city is over," said Mayor Vaughn Spencer, D-Reading, standing outside an illegal rental property on South Ninth Street in the city.

City inspectors will now be slapping placards on the windows of illegal rental properties, Spencer said.

During a news conference Wednesday, the mayor and inspection officers cited three properties throughout the city.  It's part of the new rental housing ordinance that went into effect Feb. 1, going after the owner for not having the property registered correctly.

Once the illegal rental signs go up, the owner is faced with a $1,000 penalty.    

"After 15 days, on the 16th day, another $300 a month will be assessed to the property," said Ron Natale, city codes manager.

According to the mayor and Natale, it's a matter of public safety, citing a home in the 800 block of Greenwich Street as an example.

A fire broke out there last week. The home was not registered, and firefighters had a hard time getting in, Spencer said.

Inspectors said the new ordinance will help ensure everything is up to code and safe, but talk with a landlord like Jim Billman, who owns 100 rental units, and he has a different theory.

"I believe the city is looking for ways they can make money," said Billman, who pointed out that the ordinance was written without any input from landlords. 

All the added fees will leave landlords broke, or put the tenant on the street, Billman said.

"It's adding on a lot of costs, which in the long run gets passed on to the tenants," said Billman.

Property owners do have a chance to appeal, inspectors said.

Billman said he is creating a panel, going line by line through the ordinance he will take to city council.  He said he wants to come up with a solution that would work for both parties.

In the meantime, city officials want residents who notice a placarded building they believe is unoccupied to report the property by calling the Citizen Service Center at 877-727-3234.