Non-Homestead Clarification on Rental
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.
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@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.