Property owner faces fine over Robbinsdale rental dispute
A home in Robbinsdale has become the center of a rental property dispute. (FOX 9)
ROBBINSDALE, Minn. (FOX 9) - A favor for a friend in need has turned into a legal issue in Robbinsdale, Minnesota. When a man agreed to let a woman in need stay in a house he owns, he had no idea that the city would get involved.
Mike Maloney and his partner bought a house on Zenith Avenue North in Robbinsdale with the purpose of flipping it. Now he's fighting with the city over whether it is a rental property or not.
"I think a tenant is something different than someone staying at a house or watching a house or a guest in the house," said Maloney.
After buying the house in April, Maloney says they remodeled the inside and then put it up for sale in September. While waiting for it to sell, Maloney is allowing a woman to stay there while she undergoes treatment for cancer.
"So I have a warm body watching the house, which is wonderful, and she has a place to live," said Maloney.
The city, however, says since Maloney and his partner don't live there, the home is considered a rental.
"I have rental houses in Robbinsdale,” said Maloney. “I'm glad to pay the fee. I'm glad to sign up for whatever rental program, but this isn't a rental. Our intent is to sell this house."
At a special hearing in front of the Robbinsdale City Council, Maloney appealed a warning he received for failing to obtain a rental license, which would cost a $750 startup fee as well as a $125 license fee every two years. He says since the woman doesn't pay rent, but is picking up the tab for some utilities, she is more of a guest than a typical tenant.
"If we've received a few bucks for utilities I thought were high, that's not a rental - that's reimbursement,” said Maloney.
But the city argues if it makes an exception for Maloney's house, where does it draw the line?
"I get why people have to follow rules,” said Maloney. “I'm just here to explain why maybe the rule doesn't apply this time."
The City Council voted to table the matter until next month because Maloney says the woman will be moving to another one of his properties by then and the issue will resolve itself. If that doesn't happen and Maloney doesn't get a rental license, he could face a $400 fine.