Minneapolis Short Term Rental Regulation: A Guide For Airbnb Hosts

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

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in recent years. However, with this popularity comes the need for regulations to ensure the safety and well-being of guests, as well as to manage the impact of short-term rentals on local communities. In Minneapolis, Minnesota, the city passed regulations on short-term rentals in 2017, requiring hosts to obtain a standard rental license if they rented a property they didn't live in.

The regulations in Minneapolis require hosts who rent a property they don't live in to obtain a standard rental license. Hosts who live at a property they rent short-term but leave during guests' visits must pay a $46 annual fee. However, hosts who live and remain in the unit during short-term guests' visits are not required to get a license. In late-2020, the city amended its ordinance to cap short-term rentals to one property per host other than the one they live at, and cap short-term rentals to no more than 10 percent of units in a building more than 20 units.

By March 1 of this year, most hosts will be required to have a $50 short-term rental license, which also carries requirements of filing a management plan, having liability insurance, notifying neighbors of the short-term rental, posting a floor plan in the unit and including the rental license number in any online listings. Hosts who rent a room are not required to register or be licensed.In addition to these regulations, short-term rental hosts in Minnesota are required to collect and remit applicable taxes from guests. Failure to comply with state and local tax laws can result in fines and interest penalties.

Minneapolis is not alone in regulating short-term rentals. Other cities in Minnesota, such as Edina and Eagan, have banned short-term rentals altogether. However, many cabin country jurisdictions have been looking at regulations because so many properties in their region are being used as short-term rentals.

It's important for short-term rental hosts to be aware of the regulations and tax requirements in their city and state. Failure to comply with these regulations and tax laws can result in fines and penalties. Additionally, hosts should be aware of local regulations, such as permits, licenses, and registration requirements, as well as zoning and advertising rules. Homeowner associations, condominium communities, co-ops, and landlords may also have specific rules regarding vacation rentals.

Starting a Short Term Rental Business in Minneapolis

Minneapolis, like many cities, has seen a rise in short-term rental properties listed on platforms like Airbnb and VRBO. To operate a short-term rental business in Minneapolis, hosts must adhere to specific regulations set forth by the city.

In 2017, Minneapolis implemented regulations requiring hosts who rent out properties they do not live in to obtain a standard rental license. These regulations aim to ensure the safety and well-being of guests and neighbors, as well as to manage the impact of short-term rentals on the local housing market.In late-2020, the city further refined its regulations by limiting short-term rentals to one property per host, excluding their primary residence, and capping the number of short-term rentals in buildings with more than 20 units to no more than 10 percent.

Additionally, hosts are now required to obtain a $50 short-term rental license, file a management plan, carry liability insurance, notify neighbors, display a floor plan in the unit, and include the rental license number in online listings.

Short Term Rental Licensing Requirement in Minneapolis

To operate a short-term rental in Minneapolis, hosts must obtain either a registration or rental license, depending on the type of rental they offer. The city categorizes short-term rentals into three types based on the property and number of units in the building, each with its own set of requirements.

Hosts renting homesteaded units or condos where they reside are exempt from licensing but must still comply with safety and accessibility standards. Those renting non-homesteaded units in buildings with less than 20 units or in larger buildings must obtain a rental license and display the permit number on all listings.

Required Documents for Minneapolis Short Term Rentals

In addition to the rental license or registration, hosts in Minneapolis must submit various documents to ensure compliance with local regulations. These documents typically include local contact person information, a certificate of occupancy confirming property safety, a signed statement affirming compliance with laws, and payment of associated fees.

Minneapolis Short Term Rental TaxesShort-term rentals in Minneapolis are subject to taxes, and hosts are responsible for collecting and remitting applicable taxes from guests. Compliance with state and local tax laws is crucial to avoid penalties and fines for non-compliance.

Minneapolis-wide Short Term Rental Rules

Minneapolis mandates a rental license for any non-owner-occupied dwelling unit, regardless of whether rent is charged or if the unit is occupied by a relative. Annual rental license fees are due by March 1st and are non-transferable.

Does Minneapolis strictly enforce STR rules?

Minneapolis demonstrates a commitment to enforcing short-term rental regulations, as evidenced by the significant number of licenses issued. While enforcement may vary, the city's regulations are in place to maintain order and protect the interests of all stakeholders.

• How to Start a Short Term Rental Business in Minneapolis
• Determine the type of short-term rental you wish to operate.
• Understand and meet the specific requirements for your listing type.
• Obtain the necessary registration or rental license.
• Compile and submit all required documents and fees.
• Display your permit or registration number prominently in all listings.
• Adhere to all relevant laws and regulations governing short-term rentals.

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

For inquiries regarding short-term rental regulations and zoning in Minneapolis, reach out to the City’s Short-Term Rental Office at 612-673-3000 or via email at minneapolis311@minneapolismn.gov. The office can provide guidance on licensing procedures, regulatory compliance, and zoning requirements.

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

The opinions of Airbnb hosts in Minneapolis on Reddit and Bigger Pockets regarding local regulations vary. Some hosts express frustration with the strict regulations and the burden of compliance, while others appreciate the need for regulations to ensure safety and accessibility for guests.

One source suggests that Minneapolis is not Airbnb-friendly, and the regulations are strict1. However, another source notes that Minneapolis has integrated new regulations in 2021/2022 relating to the management of short-term rental properties, such as needing to apply for a license4.

Minneapolis approved regulations for short-term rentals in 2017, requiring hosts to be licensed with the city, allowing for inspections, and prohibiting rentals in certain cases2. The regulations were contentious at the time, with opponents raising concerns about preserving neighborhood character, restricting affordable housing supply, and taxation, while supporters were wary of regulations that might put an unnecessary burden on hosts and the challenges of enforcement5.

Despite the challenges, many hosts in Minneapolis continue to operate short-term rentals and comply with local regulations. The city's short-term rental regulations are designed to balance the needs of hosts, guests, and the community, while ensuring safety and accessibility for all5.

In summary, while some Airbnb hosts in Minneapolis express frustration with the strict regulations, others recognize the importance of regulations to ensure safety and accessibility for guests. Minneapolis has integrated new regulations in recent years, and the city continues to enforce and refine its regulations to balance the needs of hosts, guests, and the community.