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Rental Licensing and Inspections

Application

    Rental License Application Packet [PDF]


Why Must Rental Units Be Licensed?

The City of Burnsville first passed a rental license ordinance in 2005 to help ensure the continued health, safety and welfare of all Burnsville residents who live in rental properties and in surrounding neighborhoods. Since operating a rental property is a business, doing so also requires that certain responsibilities and standards be upheld.
By requiring rental properties be licensed, the City can help ensure owners, operators and managers are taking reasonable steps to provide a safe, secure and sanitary environment for tenants and neighboring residents. Rental property owners/managers are also responsible for providing a reasonably noise-, nuisance- and annoyance-free residence.

Requiring rental licenses and minimum standards for upkeep also helps maintain property values and assure the preservation of the City’s existing housing supply.



Updated Rental License Ordinance:
Click here to view.

Highlights:

  1. Clarification of dwellings that require a rental license to include rented manufactured homes and each individual unit of a multi-unit rental. Condominiums, townhouses and single family homes being rented out – whether by a rental company or an individual – will also still require a license
  2. Updated list of dwellings that are exempt from the ordinance (which currently includes retail, commercial and industrial rentals; licensed nursing homes; and licensed assisted living facilities.) that includes relatives, military leave, snowbirds, and contract for deed situations.  
  3. Introduction of an annual fee for ALL rental property licenses to cover the costs of proactive building maintenance inspections.

    Apartment Complex: A multi-unit apartment complex will be charged a license fee of $130 per building and $10 per unit. Multi-unit apartment complexes with shared common space will also be subject to an additional annual fire inspection fee currently estimated at $150 per building.
    (In this scenario, the annual license fee for a four-building, 150-unit apartment complex would be $2,620 [$130 x 4 buildings = $520 | $10 x 150 units = $1,500 | $150 x 4 buildings = $600])

    Individual Unit (single-family, condo, townhome or manufactured home): Owners of all individual unit rentals (that are not part of an association, complex or who do not own multiple rentals in the same building) will be charged a rental license fee of $150 annually.

    Individual Unit (single-family, condo or townhome) - Within Association or Same Building: - Owners that rent out individual units located within an association or within the same building will be charged $110 for each individual unit within the building or association.

    Townhome Complex: Owners who rent out multi-unit townhomes within a townhome rental complex will be charged $80 per building and $10 per unit.

    Manufactured Home Parks: Manufactured home park owners who own and rent out individual homes within their park will be charged $250 per park, and $40 per rented manufactured home. Individual manufactured home owners (who do not own the park in which their home is located) who rent out their unit will be subject to the individual unit fee of $150.

    License applications are due two months prior to license expiration. If you do not know when your license expires please contact 952-895-4440.

    If your license expires:
      Your application is due:
    March 31
      January 31
    June 30
      April 30
    September 30
      July 31
    December 31
      October 31

  4. Proactive inspection of ALL rental properties for building and fire code compliance every three years. As proposed, 1/3 of an apartment complex's units would be inspected each year. Individual Unit rentals (single-family, condo, townhomes, manufactured homes) would be inspected once every three years.
  5. Proactive inspection of all MULTI-UNIT APARTMENT rental property common spaces and exteriors for fire code compliance every year
  6. Established a rental conversion fee, ($500 onetime fee), paid when owner-occupied units are converted to rental status. The conversion fee and rental license fee cover the first year’s license and initial inspection, along with one follow-up inspection. Conversion fees will be implemented in January 2013 and are applicable to single-family, townhomes, condos and manufactured homes converted to rentals. Conversion fees are waived for current license holders.
  7. Added provisions requiring property to be in good repair and non-hazardous, and language to strengthen rental license revocation provisions (making license revocation an option for failure to implement the Minnesota Crime Free Housing Lease Addendum and clarifying that outstanding property maintenance, building code or fire code violations can result in license revocation).  This is meant to streamline enforcement actions on poorly maintained and unsanitary units. 
  8. Modified the current STAR Program to eliminate the “three level” system. 
  9. Expanded and clarified definitions section; providing a better-defined process for compliance with correction orders including appeals; and including procedural provisions for revocation, suspension, denials and reinstatement of licenses.
  10. Modified language so ordinance violation results in license revocation rather than a misdemeanor.

Why the Changes?
These changes are the result of a growing concern over unmaintained, unsafe and deteriorating rental properties in Burnsville. An updated ordinance allows the City to proactively inspect rental properties to help ensure the safety and well-being of the residents who live there. The changes will streamline the license process, provide for regular inspections, provide for cost recovery to the City, clarify procedures and provide new resources for enforcing the code.

History
Burnsville is one of few cities in the Twin Cities with a rental license ordinance that did not charge an annual license fee to cover the cost of inspections. [Click here for a list of rental license fees and information for the top 20 population cities in Minnesota]

In 2011, Burnsville City officials spent nearly 600 hours dealing with the property maintenance issues and poor living conditions of one of Burnsville’s rental complexes. As the City’s housing stock continues to age, these issues will continue to stress and demand resources if not kept in check. By charging a “user fee” to operate a rental property in Burnsville, the City can become more proactive in dealing with these issues, and generate the revenue to maintain the progress. 
 


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