Minneapolis rental license requirements

This page is a simple, plain-language explanation of how Minneapolis's residential rental licensing rules generally work. It does not replace official guidance from the City and is not legal advice, but it can help you understand what to expect before you start.

Who needs a Minneapolis rental license?

In general, a license is required when:

• You own a dwelling unit in Minneapolis, and
• The owner is not occupying the unit (even if no rent is paid or the occupant is a relative), or
• The unit is vacant but advertised for rent.

Important: The city states that every rental property in Minneapolis must have a license. Licenses are not transferable—if ownership changes, a new license must be obtained.

Common examples

Exemptions

Relative homestead: If you occupy the property and a family member lives with you in the same unit, a rental license is not required.

Roommates: No rental license required for roommates as long as you own and occupy the property (subject to housing/zoning limits).

Key parts of the licensing process

The Minneapolis residential rental license process generally has these main parts:

What the inspection typically looks at

The city's tiering page explicitly calls out examples of life-safety items that contribute to scoring, including:

• Smoke detectors operational and correctly located
• Carbon monoxide detectors within required distance of bedrooms
• Working heat and basic utilities
• Electrical systems appear safe and functional
• Windows and doors that operate and lock properly
• Safe, usable exits in case of an emergency
• Property condition and habitability standards

The city uses tiering so that higher-risk properties are inspected more frequently. Tier 1 properties are inspected every 8 years, Tier 2 every 5 years, and Tier 3 every 1 year.

Documents you'll need

Typical documentation requested during the process may include:

• Rental License Application (City form) with owner(s), property, and unit grid information
• Articles of Organization (if owned by a business entity)
• Proof of Ownership (must match "owner of record" in county property records)
• Local Contact / Agent Information (if owner lives >60 miles away or outside specified counties)
• "Who to Call" poster and rental license certificate (for posting at property)

Special considerations

Tiered Fee Structure

Fees are tiered and depend on building size (1-3 units vs 4+ units) and property condition tier (1, 2, or 3). Tier 1 properties have the lowest fees; Tier 3 properties have the highest fees and are inspected annually.

Annual Renewal Deadline

Renewals are due March 1 each year, and the license year runs March 2 to March 1. After March 15, late renewals can add a 25% penalty of the license fee.

Local Contact Requirement

If the applicant lives more than 60 miles driving distance from the property (or outside certain counties), a local agent/contact is required and receives official communications.

Additional Fees

Administrative fee (if new owner doesn't apply within 60 days of closing): starts at $250 + $20 per additional unit. Change of ownership inspection fee: $450 (many 1-4 unit scenarios). Conversion inspection fee: $1,000 (e.g., property converted to rental or not licensed for 12+ months).

How we fit into this process

Our role is to make this easier for owners by:

• Verifying whether your property requires a rental license using city/public data sources
• Helping estimate fees using the city's tiered fee structure
• Preparing your application with unit grid, ownership docs, and local contact information if required
• Submitting the application and handling fee payments
• Tracking renewal deadlines (March 1) to help avoid late penalties
• Ensuring compliance with posting requirements and change notifications