The City of Eagan adopted a rental licensing ordinance on March 21, 2023, with the goal of ensuring safe housing for tenants and long-term maintenance of the City’s housing stock. The ordinance is similar to those adopted by more than a dozen Twin Cities’ communities, including Bloomington, Eden Prairie, Edina, Richfield, and St. Louis Park.
The City of Eagan takes a lot of pride in being a great place to live, work, and play. One way we do that is by keeping our neighborhoods healthy. As housing ages, communities can see unintended consequences like deferred maintenance and less attention to safety features such as smoke detectors.
This is why the council looked at a rental licensing program, and sought input from renters, landlords, and homeowners. Through our engagement efforts to inform this policy, we heard from nearly 500 Eagan residents that safety in housing is a top priority.
Rental Licensing Program Details
The rental licensing program will not begin implementation until July 1, 2023. Owners and managers should watch for communications from the City in the coming weeks. Licensing deadlines will be phased based on type of unit and geographic location. Inspections will be scheduled after the license application is received 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.
Annual licensing fees are as follows:
- Multifamily rentals — $190 per building plus $18 per unit
- Single unit rentals — $145 per unit
Ordinance Requirements
- 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
- 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.
- Licenses will be issued annually and are not transferable. New owners must obtain a new rental license.
- 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.
- Background checks will be required for new licensees. This requirement may be waived for owners of rental properties with current rental registrations.
- A one-time fee will be charged for the conversion of property from owner-occupied to rental. This fee will be waived for any current rental registrations.
- 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.
Resources
- Rental Licensing Ordinance
- International Property Maintenance Code
- 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
Contact Community Development:
(651) 675-5660
City Hall
3830 Pilot Knob Road
Eagan, MN 55122
