Mankato, Minnesota Rentals License

[Angel Alcantar]

Hello,

I posted this in the Gen buying and selling real estate forum on BP. Figured I'd re-post this to MN specific forum in hopes that someone has any experience or knowledge in this. 

I currently live in Mankato, Minnesota. Mankato has a law whereby no more than 30% of your block can have a rentals license. You must own a rentals license to allow any type of rental activity and to allow more than one other person to live in your house, regardless if they are paying rent or not (not related to the family that is) (I think this is a zoning thing). Currently, my block has over the 30% of rentals licenses (some were grandfathered in).

Does anyone know if I can buy a rentals license from an existing party? Or know a way where I could at least have more than one other person stay with me? It seem the law is so tight in Mankato for this. 

I'm in the process of trying to close on a house in Mankato - and I know that getting a RL license would be extremely difficult. My only option would be to put my friends name on the deed with me if I want them to live with me and then figure out a different option later when they move out. 

[John Woodrich]

Calling the city is the easiest way to get your answer.  There are several Mankato investors on here but their comments hold no grounds if you get a complaint from the city.  If you are potentially going to violate the rules I would just ask anonymously.  If you can't get a license you are probably OK moving your friend in the house so long as you are a good neighbor.  Who is to say that you two aren't in a relationship???  Most cities don't care until there is a complaint.

I definitely wouldn't put your friend on the title.  If he attains ownership he gets the rights that go along with it.  In a dispute a co-owner can take another to court and potentially force a sale.  Not saying it would happen but it seems like a lot of risk that can be avoided.

BTW - how did you find out the block is over 30% rented?