Landlord Rental Home Licenses
Do I Need to Have a Rental License?
A common question for Minnesota landlords is whether they are obligated to have a rental license. The state of Minnesota does not require landlords to be licensed at all, and this determination is left up to each individual city. Typically such licensing requirements can be found in city ordinances, and these can vary greatly.
Almost all large cities in Minnesota have ordinances concerning rental properties, and most require some form of rental licensing or registration. In many cases these licenses must be renewed annually, which can come at some expense for landlords. A Minnesota rental license varies in cost depending on the city, and there are some Minnesota cities that charge only a one-time fee for the necessary registration. Other cities go as far as to require annual inspections in order to renew the license, and may order that a landlord make certain changes or repairs in order to maintain the license.
One of the biggest concerns with Minnesota rental licensing is what license laws mean to landlords attempting to evict tenants. While this issue has not been addressed significantly in Minnesota case law, the Minnesota Court of Appeals held in 2007 that a landlord could not evict a tenant for failing to pay rent if the landlord had not properly licensed the rental home. Further, the Court of Appeals has also held that a landlord cannot even collect rent if they do not have a proper license, meaning that a landlord may even be liable for paying back a tenant for a period of time where a license was not in place.
Another licensing concern that landlords must consider is whether the license may be revoked. Minnesota law allows a city to revoke a rental license where the landlord received notice of the proposed revocation, that the landlord was provided notice as to the grounds under which the revocation was going to take place, and was given the opportunity to be heard.
Typical grounds under which a landlord may lose their license include failure to comply with city zoning, failing to meet occupancy or housing code, failing to adequately keep up the condition of the property, or even failing to pay an annual licensing fee. These grounds can be complicated and burdensome for landlords, especially in the most restrictive Minnesota cities (such as Minneapolis).
Landlords who are unsure about the rental home ordinances in their city concerning rental licensing or rental registration should contact an experienced Minnesota landlord attorney for advice and guidance. Meeting complex registration or licensing requirements can be time consuming and costly for a landlord, depending on where their rental property is. It is highly recommended to contact an attorney with any concerns regarding this process. The landlord attorneys at RAM Law PLLC can provide guidance on all landlord licensing and registration issues. Call our attorneys now at 651-468-2103 or contact us through our convenient online submission form.