Otsego, Minn., Mun. Code Ch. 100 (2026) § 4-6-4

A. License Required:


1. No person, firm, or corporation shall operate a rental dwelling unit without first having obtained a license to do so from the City as provided in this chapter.


2. Single family, two-family, townhouse dwelling units where there is more than one (1) owner within a single building, and condominium multiple family dwelling units shall require a separate license for each dwelling unit.


3. Townhouse dwelling units owned by one (1) owner within one building and multiple family dwellings shall require one license per principal building as defined by the zoning ordinance under single ownership.


4. State licensed boarding care homes, nursing homes, and, residential care facilities, including memory care, whether a principal use or as incorporated within a multiple family building shall be exempt from the requirements of this chapter.


B. Application For License: Applications for rental licenses shall be made in writing to the City by the owner of the rental dwelling unit(s) or his/her designated agent. The applicant shall supply:


1. The name, address and telephone number of the dwelling owner, the owning partners if a partnership and/or that of the corporate officers if a corporation.


2. The name, address and telephone number of the designated resident agent, if any.


3. The name, address and telephone number of the management representative.


4. The name, address and telephone number of the vendee, if the dwelling is being sold through a contract for deed.


5. The legal address of the dwelling.


6. The type of dwelling.


7. The type and number of dwelling units within the dwelling.


8. Number of occupants.


9. A description of the procedure through which tenant inquiries and complaints are to be processed.


10. An acknowledgement that the owner or designated agent has received a copy of this chapter.


11. Prior to approving an application for a rental housing license, the property owner shall provide certification to the City that there are no delinquent Property Taxes, special assessments, interest, or City utility fees due upon the parcel of land to which the rental housing license application relates.


C. License Fees:


1. Fees for renewal of licenses under this chapter shall be due not less than thirty (30) days prior to the license expiration date. In cases of new unlicensed dwellings, license fees shall be due upon issuance of the certificate of occupancy.


2. The amount of license fees shall be as set forth in section 3-1-2 of this Code. The licensee shall not be entitled to a refund of any license fee upon revocation or suspension of the license. However, the licensee shall be entitled to a refund of any license fee, prorated monthly, upon proof of transfer of legal control or ownership. (Prior Code § 7-11-4)


D. Inspection Required:


1. No license shall be issued or renewed under this chapter unless the rental dwelling and its premises conform to this Code and the laws of the State; the City shall require an inspection of the rental dwelling and premises to make that determination.


2. Single family, townhouse, and condominium dwellings: An inspection shall be required at the time of application for an initial license and for renewal of an existing license issued on December 31, 2017 or thereafter every three (3) years.


3. Multiple family dwellings within a building under single ownership: An inspection shall be required at the time of application for an initial license and for renewal of an existing license every five (5) years from the date of approval. For renewal of an existing license, a schedule shall be established subject to approval of the building official for annual inspection of areas of the principal building outside of the rental dwelling units and not less than twenty percent (20%) of the rental dwelling units within the premises.


4. Failure to schedule or allow such inspection shall be dealt with as provided by title 1, chapter 5 of this Code.


E. Procedure:


1. The City Clerk shall determine if an application for a license under this chapter is complete within fifteen (15) days of receipt of the application and payment of the license fee; an application shall be determined to be complete only if all required information is provided.


2. If the City Clerk determines that an application is incomplete, they shall inform the applicant in writing of the information required to be provided to complete the application.


3. The City shall review the application and order any investigation, including background investigations, necessary to verify the information provided with the application.


4. The City Clerk shall either approve or deny the license within thirty (30) days after receipt of a complete application.


5. Denial Of An application:


a. The city clerk shall provide an applicant written notice sent via first class U.S. mail of a application for license having been denied stating the reasons for the action and the right of the applicant to request a hearing to appeal the decision.


b. Upon receiving the notice of an application for license being denied, the applicant shall ten (10) days to request a hearing to appeal the decision.


c. If requested by an applicant within the allowed timeframe, a hearing shall be scheduled within thirty (30) days from the date of the request.


d. Hearing:


(1) The hearing shall be conducted by the city council.


(2) The applicant shall be provided opportunity to refute the reasons for the application having been denied, to plead for issuance of the license, or to justify the actions for which the city denied the license, including the cross examination of witnesses that testify against the applicant and the right to produce witnesses on their behalf.


(3) The city council shall give full consideration to all evidence presented during the hearing and make a determination whether to deny or issue the requested license.


(4) The city clerk shall notify the applicant via first class U.S. Mail of the city council decision stating, in detail, the reasons for the action within ten (10) days of the close of the hearing.


e. Appeal: Any person whose license is denied following a hearing by the city council shall have the right to appeal that decision to Court of Appeals.


F. Term Of License:


1. Each license shall be issued annually and shall expire one year following the issuance thereof. License renewals for the following years shall be filed not less than thirty (30) days prior to the license expiration date.


2. A license issued in accordance with this chapter shall expire upon a change in ownership of the property.


3. Application for renewal of a license issued under this chapter shall be submitted not less than thirty (30) days prior to the expiration of the current license.


G. Posting License: Every licensee of a rental dwelling shall cause to be conspicuously posted in the main entryway or other conspicuous location therein the current license of the respective rental dwelling.


(Prior Code § 7-11-4; amd. Ord. 2018-11, 10-22-2018; Ord. 2024-07, 6-24-2024)