Non-Homestead Clarification on Rental

[John Woodington]

Hoping someone here can clarify this for me.  I searched the forums and couldn't find much.  For reference, I live near Minneapolis, MN.

I'm looking to turn my current home into a rental property when we move out.  I've been emailing with the city (Brooklyn Park) and I need a rental license in order to be a landlord in the city.  On the license application, there is a line item called "Conversion Fee: $750 (if applicable)".  I'm assuming this is referring to whether or not I need to convert the property from Homesteaded (which it currently is, since it is my primary residence) to non-homesteaded.

I asked my contact at the city if I had to convert the house to non-homestead, but she wasn't sure.  I know the house next door to me is a rental, as are two or three other houses within a hundred feet of me, but only one of them is listed as non-homestead on the Hennepin County GIS map.

Do I have to convert this house to non-homestead when I start renting it, or can I leave it as is?  Are my neighbors who are renting the houses around me breaking the law by not having their properties categorized as non-homestead?  I just want to follow the rules so I don't screw something up, since this is my first rental.

Thanks for any insights.

[Tim Swierczek]

@John Woodington your rental license is with the city, your homestead status is with the county.  They are two different things.  I don't own in Brooklyn Park so I'm speculating here, but Minneapolis also has a conversion fee and it referrs to turning a owner occupied single family home into a rental home with a license.  The fee does not apply to duplexes (in Minneapolis).  I'm guessing they are similar or the same fee.


I wouldn't worry about nor copy your neighbors.  I suspect they are breaking the law but that is hardly a reason for you to do so, and they probably don't know if they ever get sued by their tenants they would have to refund 100% of paid rent for renting without a license.  It's about the dumbest thing you can do as a landlord.