Rental license fees
Overview
Inspection fees
Most new rental licenses require a change of ownership fee or a conversion fee. These one-time fees cover the cost of a rental license inspection.
Discounts
Save $250 on the fee to convert a building into a rental. Take an approved property management course.
License fee calculator
Basic fees
License fee structure
Each tier has a fee for the building and a fee per unit. Additionally, Tier 2 and 3 properties pay a supplemental fee.
For example, if you rent two units in a Tier 2 building, we charge $105 for the building plus $75 for each unit. The supplemental fee is $121. In total, you would pay $376 for a rental license.
For condominiums, we base the fee on the total number of rental units.
All licenses expire on March 1 of each year. If you apply for your rental license between Sept. 1 and Feb. 28, we prorate the license fee is by 50%.
Building and per unit fees for 1 to 3 units
| Tier | Building fee | Fee per unit |
|---|---|---|
| Tier 1 | $98 | $41 |
| Tier 2 | $105 | $75 |
| Tier 3 | $121 | $190 |
Building and per unit fees for 4 or more units
| Tier | Building fee | Fee per unit |
|---|---|---|
| Tier 1 | $167 | $12 |
| Tier 2 | $197 | $29 |
| Tier 3 | $231 | $98 |
Supplemental fee
| Tier | 1 to 3 units | 4 or more units |
|---|---|---|
| Tier 1 | $0 | $0 |
| Tier 2 | $121 | $347 |
| Tier 3 | $243 | $578 |
We use data from the last two years to decide if a building is Tier 1, Tier 2 or Tier 3. That data includes inspections, violations and solid waste clean-ups.
Additional fees
Late fee
All rental license renewals are due on March 1 each year. Renewals received after March 15 are subject to a 25% late fee.
Administrative fee
When you buy a rental property, you must apply for a rental license within 60 days of closing. If you do not, the City charges an administrative fee. This fee is $250 for the first unit, plus $20 for each additional unit.
Conversion fee
Properties that need a conversion inspection
Any unit that becomes a rental must be inspected. The fee for this inspection is $1,000.
- Single family homes that were owner-occupied or not licensed for the last year
- Duplexes and triplexes with separate property ID numbers
- Condominium, co-op and townhouse buildings with all the following:
- One to five units
- Units with separate property ID numbers
- Units with no license for one year
Properties that do not need a conversion inspection
- Certificate of Occupancy issued in the last three years
- Certificate of Code Compliance issued in the last year
- Restoration Agreement completed in the last year
- Non-profits
- Qualifying relative homestead dwellings
- Mixed-use commercial properties (one to four units is a change of ownership)
Change of ownership fee
Properties that need a change of ownership inspection
If the owner changes, we must inspect the rental property. The fee for this inspection is $450.
- Single family homes that do not meet the conversion definition
- All duplexes, triplexes and fourplexes
- Mixed-use commercial properties with one to four units
Properties that do not need a change of ownership inspection
- Certificate of Occupancy issued in the last three years
- Certificate of Code Compliance issued in the last year
- Restoration Agreement completed in the last year
- Non-profits
- Qualifying relative homestead dwellings
- Properties with an approved rental license or change of ownership fee paid in the last six months
Discounts
Discounts on conversion fees
An owner or agent who attends our rental property management workshop can get back $250 of the fee for converting a property to a rental.
Contact us
Administrative Team
Regulatory Services
Payment phone line
We take credit card payments for fire commercial registration, rental licensing, code enforcement citations, HazMat and Kitchen Exhaust Cleaning permits, and assessments for nuisance abatement violations.
Address
Public Service Building
505 Fourth Ave. S., Room 510
Minneapolis, MN 55415
Open hours
9 a.m. – 3 p.m.
Tuesday – Thursday
This voicemail is not monitored. Outside of these hours, please contact 311.
Inspections Services
Regulatory Services
Phone
Address
Public Service Building
505 Fourth Ave. S., Room 510
Minneapolis, MN 55415