Beware of Expired Rental Licenses
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I have previously written about the new Minneapolis Rental License Fees. I have even talked about how the City of Minneapolis has hired people with the sole purpose for finding unlicensed rentals.
When buying an investment property anywhere, not just in Minneapolis, it is easy to assume that the property that you are buying has a rental license. You need to check! In many cities, you can simply call the licensing department. In Minneapolis, you can simply dial 311 and they will tell you.
The problem with no active rental license is that it can cost significant amounts of money ($1000 fee plus license cost in Minneapolis) to get the building licensed again. In some cases, the building may not be eligible for a license (See my License Lost for Good story).
Do your homework!
I have a technical question: If you do a contract-for-deed, do you need a rental license?
You are conveying ownership with a Contract for Deed so no you do not need a rental license. By the way, it is the buyers responsibilty to record the deed.