Minneapolis, Minn., Code of Ordinances § 12 § 244.1870
Point-of-conversion or change of ownership inspection (Minneapolis Housing Code)
Operative Text
(a) A license or provisional license issued hereunder is nontransferable. A new license application shall be required for each change of ownership of a rental dwelling and whenever a dwelling is converted to rental usage. (b) Whenever a dwelling is converted to rental usage or when a rental dwelling changes ownership, the dwelling or dwellings shall be promptly inspected for compliance with the minimum standards set forth in section 244.1855 of this article. The fee for the inspection required by this section shall be one thousand dollars ($1,000.00) for the inspection of any dwelling converted to rental usage and four hundred fifty dollars ($450.00) for the inspections of a rental dwelling which has a change of ownership and which has not been inspected in the past six (6) months. This fee shall be in addition to the annual license fee. If, upon application for a license for any dwelling converted to rental usage, the owner or other natural person as defined in section 244.1840 (3) provides proof of prior attendance and successful completion within five (5) years prior to the date of application of a recognized fundamentals of rental property management course approved by the director of regulatory services, the fee for the inspection required by this section shall be reduced to seven hundred fifty dollars ($750.00). This provision shall not apply to condominium buildings containing six (6) or more dwelling units nor to any rental building containing more than four (4) dwelling units, nor to any rental dwelling owned by a nonprofit entity, as that term is defined in this title. The director of regulatory services may waive this provision if a property received a certificate of occupancy within three (3) years of the application date. (1) Conversion shall be defined as single dwelling buildings and buildings/units with separate PID numbers (condominium or townhouse with two (2) to five (5) dwelling units) that have been unlicensed for the previous twelve (12) months for which the owners are applying for a rental dwelling license. (c) Noncompliance with written orders duly issued pursuant to the inspection required under this section shall constitute cause for the imposition of adverse license action, including but not limited to license denial. (d) If the licensee discontinues rental use and re-occupies the converted dwelling as an owner occupant within twelve (12) months of paying the inspection fee, the owner may be eligible for a fifty (50) percent refund of the inspection fee, upon written application. The provisions of this section shall apply to any property re-converted to rental use after application for this refund.
Minneapolis Code § 244.1870 establishes that rental dwelling licenses cannot be transferred between owners, meaning a new license application is required every time a rental property changes hands or a non-rental dwelling is converted to rental use. At each such triggering event, the property must be promptly inspected for compliance with the city's minimum housing standards, with inspection fees ranging from $450 to $1,000 depending on the circumstances—though a reduced fee of $750 applies when a new owner of a converted property can show recent completion of an approved rental management course. Certain properties are exempt from this requirement, including larger condominium buildings, rental buildings with more than four units, and nonprofit-owned dwellings. Owners who stop renting and move back in within twelve months may be eligible for a partial refund of the inspection fee.
Plain English — not legal advice.
Under Minneapolis Code § 244.1870, operators acquiring a rental property or converting a dwelling to rental use must submit a new license application and arrange for a point-of-conversion or change-of-ownership inspection—the existing license does not carry over to a new owner. The applicable inspection fee is $1,000 for conversions to rental use or $450 for a change-of-ownership inspection (where no inspection has occurred in the prior six months), both assessed on top of the standard annual license fee; owners of newly converted properties who have completed an approved rental property management course within the past five years may qualify for the reduced $750 fee. Compliant operators respond promptly to any written orders issued following the inspection, since § 244.1870(c) makes noncompliance grounds for adverse license action, up to and including license denial.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Minneapolis Code § 244.1870 requires that whenever a rental dwelling changes ownership or is converted to rental use, the property must be inspected against the city's minimum housing standards before a new license is issued—giving tenants a structural assurance that the dwelling meets baseline conditions at the point of a new tenancy. If a property is operating under a license that was not properly obtained following a change of ownership or conversion, that noncompliance with § 244.1870 may be relevant to any licensing or habitability concerns a tenant raises with the city. Tenants who believe a property has changed ownership or been converted without the required inspection and licensing process may consider contacting Minneapolis regulatory services or reaching out to a local tenant-rights organization to understand what options are generally available.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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