Overview

Short-term rentals ARE ALLOWED in Andover, MN. However, the city has specific requirements that property owners must meet to operate a legitimate short-term rental business. The most recent regulatory development indicates that Andover voters recently rejected a proposal to add short-term rentals as a conditional use under zoning bylaws, yet the city still requires property owners to obtain the appropriate rental housing license based on their property type.

How to Start a Short-Term Rental Business in Andover, MN

Step 1: Determine Your Property Type and License Requirements

Based on Andover's current regulations, you must obtain either:

• Single-Family Rental License with external inspection, OR
• Multi-Family Rental License with interior inspection

The type of license required depends on your property configuration and intended use.

Step 2: Obtain the Appropriate Rental Housing License

The City of Andover requires all rental housing to be licensed and inspected. Licenses are issued for two-year terms and all rental housing is routinely inspected at least once within the license term and in response to public request.

Step 3: Complete Application Process

You can apply through either:

• Paper Applications:
  • Multifamily Rental Application (PDF)
  • Single-Family Rental License Application
• Online Applications: Available through the city's website

Step 4: Prepare for Inspections

New rental housing licenses are non-transferable, so expect to go through the full inspection process for your property.

Required Documents, Permits, Licenses, and Guidelines

Primary Requirements:

1. Rental Housing License

   • Single-family or multi-family depending on property type
   • Two-year license term
   • Non-transferable for new owners

2. Safety and Code Compliance

   • Properties must ensure safety and code compliance
   • May involve inspections and submission of safety checklists
   • External or interior inspections required based on license type

3. Zoning Compliance

   • Properties must comply with local zoning laws
   • Verify your property is in an appropriate zoning district for short-term rentals

4. Written Management Plan

   • Detailed plan for managing the short-term rental
   • Contact information and guest policies
   • Required by city regulations

5. Insurance Requirements

   • Proof of liability insurance required
   • Protects the city and neighbors from potential damages

6. Tax Compliance

   • Collect and remit applicable sales and lodging taxes
   • Standard Minnesota state requirements

7. Notification Requirements

   • Notification to adjacent property owners may be necessary
   • Inform neighbors of intent to operate short-term rental

Additional Considerations:

• External Approvals: May be necessary depending on property and use
• Septic System Compliance: Additional regulations may apply for properties within Anoka County
• Lodging Licenses: Minnesota Department of Health requirements may apply depending on location

Specific Regulations for Short-Term Rentals

City-Level Regulations (Andover, MN)

Rental Housing Licensing Requirements:

• All rental housing must be licensed and inspected
• Two-year license terms
• Non-transferable licenses for new owners
• Routine inspections at least once per license term
• Response to public requests for inspections

Inspection Requirements:

• Single-Family Properties: External inspection required
• Multi-Family Properties: Interior inspection required

Operational Requirements:

• Written management plan with contact information and guest policies
• Safety and code compliance
• Liability insurance proof
• Adjacent property owner notification (when required)
• Zoning compliance verification

County-Level Regulations (Anoka County)

• Additional regulations such as septic system compliance inspections may apply
• Properties may require lodging licenses from the Minnesota Department of Health depending on specific location within Anoka County

State-Level Regulations (Minnesota)

• Tax Requirements: Collection and remittance of sales and lodging taxes
• Health Regulations: Minnesota Department of Health lodging licenses may be required
• Landlord/Tenant Rights: Minnesota Office of the Attorney General provides guidance on landlord and tenant rights

Current Regulatory Status

As of 2024, Andover's short-term rental regulations are in a state of development. While voters recently rejected a proposal to add short-term rentals as a conditional use under zoning bylaws, the city continues to require rental housing licenses for short-term rental operations. The Planning Commission and Select Board are working on developing more comprehensive regulations, which may include specifics on compliance timelines and duty of care to transient renters.

Contact Information

Primary Contact: Building Department

Andover City Hall
1685 Crosstown Boulevard NW
Andover, MN 55304
Phone: 763-755-5100
Fax: 763-755-8923
City Hall Hours: Monday - Friday, 8AM to 4:30PM

Additional Resources:

• Building Department Forms: Available through city website
• Minnesota Office of the Attorney General: Landlord/Tenant Rights Information
• City of Andover Ordinances: Chapter 8 (referenced in rental housing licensing page)

Links to Source Pages

1. Andover Rental Housing Licensing: www.andovermn.gov/413/Rental-Housing-Licensing
2. RedAwning Market Analysis: www.redawning.com/pm/market-overview/andover-minnesota
3. Duplex Chick Metro Area STR Guide: duplexchick.com/2021/11/18/short-term-rentals-still-allowed-almost-everywhere-but-minneapolis-and-a-few-suburbs/
4. Andover Zoning Regulations: www.andovermn.gov/DocumentCenter/View/254/Title-12---Zoning-Regulations-PDF-

Important Notes for Investors

• Regulatory Uncertainty: While short-term rentals are currently allowed, the regulatory framework is still evolving
• Inspection Requirements: Properties must meet inspection standards, which may require upgrades or modifications
• License Renewal: Plan for routine inspections and license renewals every two years
• Zoning Verification: Always verify zoning compliance before purchasing property for short-term rental use
• Professional Consultation: Consider consulting with local real estate professionals and legal advisors familiar with Andover's current regulations

This guide represents the current regulatory environment as of 2024. Given the ongoing development of regulations, investors should verify current requirements with the city before making investment decisions.