How does Minneapolis, MN define a short-term (Airbnb) rental (STR)?
A short-term (Airbnb) rental in Minneapolis is a property that offers somewhere to stay or live temporarily. These include homes or a portion of an existing home.
Source: https://www.revenue.state.mn.us/guide/sales-residential-short-term-rentals
Can investors own more than one vacation rental property in Minneapolis, MN?
Unfortunately, no. Due to local Minneapolis regulations, investors are limited to just one short-term (Airbnb) rental property. As such, investment opportunities may be more limited in Minneapolis than in other regions.
Does Minneapolis have any zoning restrictions for STRs?
Yes, but don’t panic – they’re not too strict! Minneapolis has some zoning restrictions for short-term rentals, in that they are allowed provided that the STR is in a residential area. A valid hotel license is required.
In Minneapolis, can an investor own and operate their Airbnb property as a business entity?
Yes! Investors are allowed to operate AirBnB properties as short-term rentals as a business entity (for example, a limited company), provided that they still meet the other criteria. For example, a single investor can only own one additional STR.
Top 200 Airbnb Rental Markets
Use our Airbnb comparison tool to instantly compare the top 200 short-term (Airbnb) rental markets in the US by returns on investment, occupancy rates, revenue, home price, and more…
In Minneapolis, MN, can investors register accessory dwelling units (ADU), duplexes, and multifamily homes as Vacation Rentals?
Yes, this is a possibility. Properties with additional accessory dwelling units can rent out the extra space as a Airbnb vacation rental in Minneapolis; however, you can still only own one additional vacation rental property on top of your own home dwelling. It’s also worth noting that short-term and regular rentals must be registered separately.
Source: https://www.theduplexdoctors.com/blog/granny-flats-minneapolis
What is Minneapolis’s requirement for obtaining a Vacation Rental License?
In order to obtain a vacation rental license, you will need to complete the application form, which includes your personal information and information about the property. You will also need to complete a management plan, create and send a neighbor notification letter, and fill out the pre-inspection property checklist. You may also need to provide a sample floor plan.
Sources: https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/rental-licenses/short-term-rentals/
What are the costs associated with a Vacation Rental License in (Minneapolis, MN)?
Obtaining a vacation rental license costs approximately $50. However, additional expenses may also be required, such as $1000 for a property conversion inspection if the property was previously owner-occupied. There may also be supplemental fees and administrative fees, among others.
Source: https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/rental-licenses/fees/
Does Minneapolis, MN have Vacation rental occupancy limits?
Yes. No more than ten people can stay in a Minneapolis short-term (Airbnb) rental at any one time, irrelevant of the size of the property itself. For multi-unit properties, no more than 10% of units can also be used as an STR.
Sources: https://www.startribune.com/minneapolis-cap-on-short-term-rentals-upsets-operators-developers/600013349/
https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/rental-licenses/short-term-rentals/
Does Minneapolis require an inspection for investors to obtain an STR license? What are the physical and structural requirements for a vacation rental?
Yes, an inspection is required as part of the STR application process. The requirements for a short-term (Airbnb) rental are numerous and can be found as part of the Short Term Rental pack; however, some of the key physical and structural requirements include (but are not limited to):
- Structurally sound foundation, roofing, and walls
- Weather-protected wood surfaces
- Weathertight siding and walls
- A leak-free roof without missing shingles
- Debris-free guttering
- Securely attached stairs with graspable handrails for safety
- Well-maintained fences
- Managed yard areas and green spaces
- No commercial vehicle parking
Does Minneapolis, MN have any responsible agent requirements?
Yes. Suppose a property is being managed by a responsible agent rather than the owner directly. In that case, this information must be provided by the director or owner at the time of registering the short-term rental. They must provide readily available information regarding the rental’s registration number, emergency contact information, street address, floor plans, information regarding the city’s C11, and the like.
Source: https://lims.minneapolismn.gov/Download/FileV2/22877/Short-Term-Rentals-Title-12-Ordinance.pdf
Does Minneapolis have specific insurance requirements for a Vacation Rental?
Yes, there are some specific insurance requirements you’ll need to meet. Vacation rental properties in Minneapolis require liability insurance that covers the usage of the rental property, totaling no less than $300,000. Alternatively, coverage can be made with a dedicated short-term (Airbnb) rental platform on a per-transaction basis, providing that the plan offers equal or greater coverage.
Source: https://www.proper.insure/airbnb-laws-minnesota/#AirbnbLawsforMinneapolis
What are the duration and renewal terms of a Minneapolis Vacation Rental license?
License fees are due annually. However, annual license fees for renewals between September 1st and the end of February are discounted by 50%.
Source: https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/rental-licenses/fees/
In Minneapolis, do Airbnb and VRBO remit taxes on the host’s behalf? Are there any taxes that the host must track and pay directly to Minneapolis?
Yes, you may still have to pay some taxes directly to Minneapolis as an AirBnB host. While guests pay Minnesota Sales Tax and Local taxes directly through their reservations, hosts are responsible for other tax obligations.
Source: https://www.airbnb.co.uk/help/article/2311?_set_bev_on_new_domain=1679015241_NGVhNzhjNjNjY2Zk
Who should I contact if I have questions regarding Minneapolis Vacation Rentals?
If you have any questions about your vacation rental, you may want to contact:
- Inspection Services Division on 612-673-3000
- Minneapolis 311 on 311
Are there any new laws and regulations that the city is requiring?
Minneapolis integrated several new regulations in 2021/2022 relating to the management of short-term rental properties, such as needing to apply for a license and list all registration numbers on any adverts and the like.
