Property owners who wish to rent out their single-family home, duplex, townhome or condo must apply for an annual business license before a tenant moves in. This requirement applies to any dwelling unit that is not owner-occupied, including dwelling units which are vacant or occupied by a relative of the owner. All license renewals must be postmarked by Jan. 1. After July 1, all new licenses (renewals not included) will be half-price until the end of the calendar year. Visit the licenses page to learn how to apply for a rental license and download the application.
Inspections and other requirements
City ordinance enables city staff to inspect rental property once every two years to ensure it is being maintained to minimum property maintenance code requirements. These minimum property maintenance requirements apply to all homes, as well as apartment buildings and businesses. Owners must correct code violations in a timely manner. To prepare for a residential inspection, view a list of common identified property maintenance items that could be corrected prior to the inspection.
The property owner or manager must have attended an approved training program with The Minnesota Crime Free Multi-Housing Program before a rental license is issued. A provisional license may be issued for six months to accommodate the training schedule. An owner whose only rental housing is either unoccupied or homesteaded by a relative is not required to attend the training program. Read more about the Minnesota Crime-free Rental Housing Program.
The business license requirement does not apply to:
- A dwelling unit occupied by the owner for a minimum of six months per calendar year.
- Rented rooms within an owner-occupied dwelling unit.
- Unoccupied dwelling units being offered for sale which have been issued a Certificate of Property Maintenance that remains in effect.
For more information, call the building and energy department at 952.924.2588.