Bloomington Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Bloomington,Minnesota?

Bloomington, Minnesota has strict regulations regarding short-term rentals, such as those listed on platforms like Airbnb and VRBO. The city's zoning code explicitly prohibits rentals of less than 30 consecutive days, classifying them as "transient lodging." This ban on short-term rentals applies citywide, with no exceptions for specific neighborhoods or zoning districts.

Property owners in Bloomington are required to obtain a rental license from the city's Environmental Health Division and comply with the rental housing code. However, since short-term rentals are not allowed, there is no specific license available for this type of rental. Owners who wish to rent out their property must ensure that the rental period is for a minimum of 30 consecutive days.

Compared to other cities in the Twin Cities metro area, Bloomington is not considered Airbnb-friendly due to its strict enforcement of the short-term rental ban. While some hosts may attempt to operate despite the rules, doing so comes with the risk of fines and legal consequences.

In summary, starting a short-term rental business in Bloomington, Minnesota is not possible under the current city regulations. Property owners must adhere to the minimum 30-day rental period and obtain the necessary rental license to operate legally.

Starting a Short Term Rental Business in Bloomington

If you're considering starting a short-term rental business in Bloomington, Minnesota, it's crucial to understand the local regulations. Short-term rentals, defined as rentals lasting less than 30 consecutive days, are currently prohibited in the city under Bloomington City Code §14.577(b).

The code specifically refers to these rentals as "transient lodging".This means that operating an Airbnb, VRBO, or any other type of short-term rental is not allowed in Bloomington. The ban applies citywide, with no exceptions for specific neighborhoods or zoning districts. It's important to note that this prohibition is strictly enforced by the city, and violating it could result in fines or legal action.

While some cities have embraced short-term rentals as a way to boost tourism and provide additional income for residents, Bloomington has taken a firm stance against them. The city's goal is to preserve the character of its residential neighborhoods and ensure that housing remains affordable and available for long-term residents.

If you own property in Bloomington and wish to rent it out, you must obtain a standard rental license from the city and comply with the rental housing code. This includes submitting to annual inspections by the Environmental Health Division. However, keep in mind that any rentals must be for a minimum of 30 consecutive days

Short Term Rental Licensing Requirement in Bloomington

As of March 2024, the City of Bloomington requires all short-term rental owners to obtain a rental license before operating their property as an Airbnb, VRBO, or other vacation rental. This licensing requirement applies to both owner-occupied and non-owner-occupied properties, ensuring that all short-term rentals meet the city's safety and quality standards.

To obtain a rental license, property owners must submit a completed application, provide proof of ownership, and pass a city inspection. The inspection process verifies that the rental unit complies with Bloomington's building and fire codes, as well as any additional requirements specific to short-term rentals.

Failing to obtain a rental license before operating a short-term rental in Bloomington can result in fines and legal consequences. The city actively enforces its licensing requirements to maintain the safety and well-being of both residents and visitors.

It is crucial for property owners to familiarize themselves with Bloomington's short-term rental regulations and licensing process before investing in or operating a vacation rental. By obtaining the necessary license and adhering to the city's rules, owners can ensure a compliant and successful short-term rental business in Bloomington.

Required Documents for Bloomington Short Term Rentals

Navigating the paperwork for obtaining a short-term rental license in Bloomington can seem daunting, but fear not – we've got you covered. To ensure a smooth and successful application process, you'll need to gather the following documents:

• Rental License Application: This form is the cornerstone of your application. Fill it out meticulously, leaving no stone unturned.
• Proof of Property Ownership: Whether you're the proud owner or a trustworthy tenant, you'll need to provide documentation that establishes your legal claim to the property.
• Floor Plan: A detailed floor plan of your rental unit is a must. This blueprint will help the city visualize the layout and ensure it meets all necessary requirements.
• Parking Plan: Guests need a place to park their vehicles, and the city wants to know you've got it covered. Provide a comprehensive parking plan that outlines where your guests can safely and legally park their rides.
• Certificate of Occupancy: If you're renting out a non-owner-occupied property, you'll need to obtain a certificate of occupancy from the city. This document ensures that your rental unit meets all safety and habitability standards.

Remember, attention to detail is key when assembling these documents. Incomplete or inaccurate information could lead to delays or even denial of your application. But fear not, with a little preparation and organization, you'll be well on your way to welcoming guests to your Bloomington short-term rental in no time!

Bloomington Short Term Rental Taxes

As a short-term rental host in Bloomington, it's crucial to understand and comply with the applicable tax regulations. Failure to do so can result in hefty penalties and legal consequences. Let's break it down for you.

When it comes to taxes, short-term rental owners in Bloomington are required to collect and remit state sales and use taxes on the full sales price of lodging. This means that you must charge your guests the appropriate state sales tax rate on top of your nightly rental rate.

Unlike some other cities in Minnesota, such as St. Paul and Rochester, Bloomington does not impose an additional local sales tax on short-term rentals. This simplifies the tax calculation process for hosts, as you only need to account for the state sales tax rate.

It's important to note that the state sales tax rate in Minnesota can vary depending on the location of your rental property and the services you provide. As of 2024, the general state sales tax rate is 6.875%, but certain cities and counties may have additional local taxes that apply.

To ensure compliance, it's recommended that you consult with a tax professional or refer to the Minnesota Department of Revenue's guidelines for short-term rental taxation. They can provide you with the most up-to-date information and assist you in properly calculating and remitting the required taxes.

Keeping meticulous records of your short-term rental income and taxes paid is also essential. These records will not only help you stay organized but will also be invaluable in the event of an audit or tax inquiry.

Bloomington wide Short Term Rental Rules

The City of Bloomington takes an unequivocal and uncompromising approach when it comes to short-term rental properties like Airbnb and VRBO. Its municipal code, under section 14.577(b), explicitly prohibits the operation of "transient lodging" in any residential area throughout the city limits. This all-encompassing ban categorically disallows homeowners from renting out their properties for short stays of less than 30 consecutive days.

Bloomington's stance is crystal clear - short-term rentals are not merely regulated, but entirely forbidden within its jurisdiction. The city's zoning laws and housing policies make no exceptions or provisions for hosts to obtain permits or licenses to legally operate vacation rentals or temporary guest accommodations.

This hard-line position leaves no room for ambiguity. Regardless of the rental duration, number of bookings, or size of the property, any attempt to monetize a residential home through short-term guest lodging is considered an unlawful violation of Bloomington's municipal code. Strict enforcement measures are in place to identify and shut down any illicit short-term rental operations.

For individuals or companies seeking to tap into the lucrative home-sharing market, Bloomington's resolute prohibition sends an unambiguous message - this city is not a viable market for short-term rental entrepreneurship under the current regulatory environment. Prospective hosts must look elsewhere or await potential future policy changes before exploring short-term rental opportunities within Bloomington's city limits.

Does Bloomington strictly enforce STR rules?” Is Bloomington Airbnb friendly?

If you're an aspiring Airbnb entrepreneur looking to get in on the short-term rental game in Bloomington, Minnesota - think again. This Minneapolis suburb takes a strict, no-nonsense approach to enforcing its outright ban on vacation rentals like Airbnb and VRBO.

Bloomington is definitely not an Airbnb-friendly city compared to others that allow and regulate short-term rentals through licensing and permitting. The city's rental housing inspection program actively monitors properties to catch any illegal short-term rental operations.

Don't be fooled into thinking you can fly under the radar either. Browse online forums like Bigger Pockets and Reddit, and you'll find very few, if any, reports of Airbnb hosts successfully operating in Bloomington despite the clear-cut rules prohibiting it.

One Bigger Pockets user bluntly stated, "Bloomington is very strict on not allowing short-term rentals and will issue fines if they catch you operating one." Another considered an Airbnb investment in the city but thought better of it after learning of the ban.

On Reddit, local residents confirm that Bloomington shows zero tolerance for short-term rentals. As one person put it, "Bloomington is very clear that they are not allowed there under any circumstances."

The writing is on the wall - trying to run an Airbnb in Bloomington is simply not worth the risk of penalties and fines from the city's strict enforcement. For short-term rental investors, it's best to look elsewhere for more Airbnb-friendly locales. Bloomington means business when it comes to its vacation rental prohibition.

How to Start a Short Term Rental Business in Bloomington

While Bloomington currently prohibits short-term rentals like Airbnb and VRBO, savvy entrepreneurs should stay alert for any future changes to local regulations. If the city eventually moves to allow and license these rental businesses, acting swiftly will be key to getting ahead of the competition. Follow these steps to hit the ground running:

Monitor Updates Vigilantly
Keep a close eye on announcements from the City of Bloomington regarding potential short-term rental reforms. Subscribe to email updates, follow city channels on social media, and regularly check the city website for news.

Analyze the New Rules Thoroughly
If Bloomington amends its laws, carefully examine all new short-term rental regulations. Understand the licensing process, zoning restrictions, building codes, taxation requirements, and operational guidelines to the letter.

Obtain Licenses and Permits Promptly
As soon as applications open, submit all required license and permit paperwork. The early bird gets the worm - being first in line gives you an advantage over later applicants.

Ensure Code Compliance
Well before your first guests arrive, arrange for professional inspections to verify your rental property meets all applicable building, fire, and safety codes. Costly violations can derail your business.

Market Your Property Strategically
With licenses and code inspections secured, create listings on popular platforms like Airbnb and VRBO. Invest in high-quality photography and compelling descriptions to make your property stand out.

Manage Tax Obligations Diligently
Register with state and local authorities to ensure you are collecting and remitting the proper lodging taxes on all bookings. Precise tax compliance protects your investment.

Operate a Tight, Responsible Ship
Once you start welcoming guests, adhere strictly to all rules covering noise, parking, maximum occupancy, and other operational requirements. Building a reputation for a well-managed rental is invaluable.

By preparing diligently and acting decisively if regulations change, you can position yourself as a leading Bloomington host from day one. Staying proactive gives you a vital competitive edge.

Who to contact in Bloomington about Short Term Rental Regulations and Zoning?

When it comes to understanding the rules around short-term rentals in Bloomington, there's no better source than going straight to the city itself. The Planning Division at the City of Bloomington is the definitive authority on all zoning ordinances and regulations related to rental properties.

Don't waste time scouring outdated online forums or dealing with misinformation. Get the facts directly from the city by giving their Planning Division offices a call at 952-563-8920. The knowledgeable staff can clearly explain Bloomington's current stance on short-term rentals like Airbnb and VRBO, as well as any future changes being considered.

What do Airbnb hosts in Bloomington on Reddit and Bigger Pockets think about local regulations?

Bloomington's current prohibition on short-term rentals like Airbnb and VRBO has drawn mixed reactions from prospective hosts in the area. While some begrudgingly accept the city's firm stance, others express frustration at being shut out of a lucrative business opportunity.

On the Bigger Pockets real estate investing forum, the consensus is that Bloomington means business when it comes to enforcing its short-term rental ban. "They are very strict and will issue fines if they catch you operating an illegal rental," warned one member who looked into Airbnb hosting in Bloomington. Another prospective host shared that they abandoned plans for a short-term rental after reviewing the city's clear-cut regulations prohibiting such activities.

The discussion on Reddit's /r/TwinCities forum echoed similar sentiments. "Bloomington is very clear that Airbnbs are not allowed there under any circumstances," stated one Redditor familiar with the city's policies. While some lamented the lack of legal short-term rental opportunities in Bloomington and other Minneapolis-St. Paul suburbs, others defended the cities' rights to determine their own zoning laws.

Despite the restrictions, a few daring voices on these forums hinted at attempting to operate "under the radar" short-term rentals in Bloomington. However, most recognized the risks of significant fines and legal repercussions if caught violating the city's ordinances. "I wouldn't chance it in Bloomington unless you want to pay hefty penalties," cautioned one poster.

Overall, while some prospective Airbnb hosts in Bloomington bemoan being shut out of a profitable side-gig, the general consensus is one of resigned acceptance that the city is quite serious about upholding its short-term rental prohibition. As one commenter bluntly put it, "Bloomington just isn't an Airbnb-friendly town right now, like it or not."