Rental license fees

Rental license fee information for the City of Minneapolis.

Rental license tiers & fees

Tiers

The City uses a tiered rental license billing structure. The fee increases based on the number of units in the structure or the higher tier of the property. Condominium units are priced based on the number of total licensed rental units.

 License Fee (based on property condition tier)
   1-3 Unit Buildings  4+ Unit Buildings
 Building Fee Fee Per Unit Building Fee  Fee Per Unit 
Tier 1  $85 $35  $145 $10 
Tier 2  $90 $65 $170 $25 
Tier 3 $105 $165 $200 $85

 

Supplemental Fee (based on fee level)
  1-3 Unit Buildings 4+ Unit Buildings
Tier 1 $0 $0
Tier 2 $105 $300
Tier 3 $210 $500

 

A property’s tier is based on two years of information that includes inspections, violations, and solid waste clean-ups.

Learn more about the tiering process

Administrative fee

After purchasing a rental property, the new owner must apply for a license within 60 days of closing, or an administrative fee will be charged. This administrative fee starts at $250.00 and increases by $20.00 for each additional unit.

Change of ownership fee

When a rental property changes ownership, it must be inspected for compliance with the Housing Maintenance Code. The fee for this inspection is $450.00.  

Properties qualifying for a change of ownership inspection

  • Single family homes that don't meet the Conversion definition
  • All duplexes, triplexes, and fourplexes
  • Mixed-use commercial properties with one to four units

Exceptions 

  • Certificate of Occupancy issued within three years (new construction)
  • Certificate of Code Compliance issued within 12 months (condemnation, rehab) 
  • Restoration Agreement completed within 12 months
  • Non-profit organizations
  • Qualifying relative homestead single family dwellings
  • Properties granted a rental license exemption
  • Properties where a rental license has been approved within six months
  • Properties where a Change of Ownership fee has been paid within six months

Conversion fee

When a dwelling is converted to rental property or has not had a license for the past 12 months, it must be inspected for compliance with the Housing Maintenance Code. The fee for this inspection is $1000.00. 

Properties qualifying for a Conversion inspection

  • Single family homes when the property was previously owner-occupied or had not been licensed for 12 months
  • Duplexes and triplexes with separate property ID numbers
  • Condominium, co-op, and townhouse units in buildings with one to five units whose units have separate property ID numbers and have not been licensed for 12 months

Exceptions

  • Certificate of Occupancy issued within three years (new construction)
  • Certificate of Code Compliance issued within 12 months (condemnation, rehab) 
  • Restoration Agreement completed within 12 months
  • Non-profit organizations
  • Qualifying relative homestead single family dwellings
  • Mixed-use commercial properties (one to four units would be considered a change of ownership)

Conversion Fee Discount

Owners and agents who attend a fundamentals of rental property management course may qualify for a $250 reimbursement of the conversion fee.

Late fee

All rental licenses expire at the end of February. A rental license renewal received after March 15 is subject to a penalty charge of 25% of the license fee.

Prorated rental licenses

The annual license fee is reduced by 50% for applications submitted between September 1 and the end of February. A rental license must be obtained prior to renting or offering to rent the property.

Contact us

Inspections Services Division

Regulatory Services

Phone

612-673-3000

 

Address

Public Service Building
505 S. Fourth Ave., Room 510B
Minneapolis, MN 55415