Rental Licensing

Licensing deadlines will be phased based on type of unit and geographic location.  Tentative application due dates:

• Multi-unit rentals — Accepting applications now
• Single-unit rentals North of Diffley Road — Accepting applications now
• Single-unit rentals South of Diffley Road — February 1, 2024

Annual licensing fees:

• Multi-unit rentals — $190 per building plus $18 per unit 
• Single-unit rentals — $145 per unit 

Additional fees:

• Application fee, associated with background check — $25
  • Background checks will be required for each individual person having 20% or more ownership interest in the rental property. This requirement will be waived for owners of rental properties that were registered prior to March 21, 2023.  
• Conversion fee — $290
  • A one-time fee will be charged for the conversion of property from owner-occupied to rental. This fee will be waived for rental properties that were registered prior to March 21, 2023. 

Rental licenses will be processed online.  Look for a link to the online application in the coming weeks.  Licensees must provide certification that a written lease agreement including the Minnesota Crime Free Housing Lease Addendum is used for all tenants, appropriate criminal background checks are used for both prospective tenants and rental managers, and the licensee and its manager will attend regular training provided by the City.

• Consent to Criminal Background Check form for each individual person having 20% or more ownership interest in the rental property.  This form will be uploaded as an attachment to your online application.
• Crime Free Lease Addendum example

Inspections will be scheduled after the license application is approved and will reoccur approximately once every three years and upon complaint. Landlords must provide tenants with at least a 24-hour notice of an inspection. If repairs or corrections are required, reinspections will be scheduled.

• Multi-unit Rental Inspection Checklist
• Single-Unit Rental Inspection Checklist

• Licenses will be issued annually and are not transferable. New owners must obtain a new rental license.
• Some types of rental units are exempted from licensing requirements including rental to the owner’s qualifying relatives, housing licensed by the State of Minnesota, rental of rooms within owner-occupied units, and Contract for Deed purchases provided the document is recorded with Dakota County
• Every rental unit will be inspected at least once every three years, for a new license, or upon complaint. Multiple uncorrected maintenance violations will be grounds for license nonrenewal, suspension, or revocation.
• A licensee subject to non-renewal, suspension, or revocation has a right to a hearing. No vacant units may be rented during a period of license suspension or revocation, and the City Council may direct collected rents to be paid into an escrow account to pay for repairs.

• Learn how we got here: Eagan Considers Rental Licensing Ordinance, Rental Licensing: Residents Weigh In, January 10th 2023 City Council meeting, March 21st 2023 City Council Meeting