Baudette, Minnesota Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Baudette, MN?

YES, short-term rentals are explicitly allowed in Baudette, MN. However, they are regulated through a licensing program that became effective February 1, 2024, under Ordinance 2023-12-01. The City of Baudette has established a comprehensive licensing system for short-term rental dwelling units, defined as properties rented for less than 30 consecutive days for tourist or transient use.

Key points for investors:

STRs are permitted with proper licensing
Annual permits are required ($150 fee)
Properties must meet specific safety and operational standards
Local agent is mandatory if owner resides more than 100 miles away
County conditional use permits may be required depending on zoning and location

What do Airbnb hosts actually earn in Baudette?

Baudette hosts earn a median $27,728/year with $206 ADR and 49% occupancy.

Top performers pull in $39,287+ per year.

See the full Baudette market breakdown

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

Step 1: Determine Required Permits

City of Baudette License: Required for all STRs within city limits
County Conditional Use Permit: May be required depending on property zoning and location within Lake of the Woods County

Step 2: Application Process

Complete City Application: Fill out the Short-Term Vacation Rental Permit Application from Baudette Planning and Zoning
County Application: If required, complete the Lake of the Woods County Short-Term Vacation Rental Application
Pre-Application Meeting: County requires pre-application meeting with planning staff

Step 3: Meet All Requirements

Provide all required documentation
Pay applicable fees
Complete notification requirements
Ensure property meets safety standards

Step 4: Annual Renewal

City permits renew annually on January 1st
Permits expire upon property sale or transfer
Maintain current insurance and compliance

Required Documents, Permits, Licenses, and Guidelines

City of Baudette Requirements

Permit Application Package Must Include:

Completed Short-Term Vacation Rental Permit Application
Permit Fee: $150.00 (cash or check payable to City of Baudette)
Floor Plan: Detailed floor plan of rental unit
Notification Proof: Written notification to all property owners within 350 feet
Aerial Property Map: Showing property lines, garbage receptacles, and parking spaces
Posted Notice Copy: Copy of required notice posted on property
Insurance Proof: Proof of liability insurance coverage
Local Agent Information: Required if owner resides 100+ miles from property

Safety Equipment Requirements

Smoke Detectors: At least one battery-operated or hard-wired smoke detector on each level
Carbon Monoxide Alarms: Within 10 feet of each sleeping room
Fire Safety Equipment: Fire extinguishers and clear emergency exit routes

Operational Standards

Guest Registry: Must maintain register of all guests for 18 months including:
- Name, address, license plate
- Date of arrival and departure
- Number of guests
Contact Requirements: Primary renter must be 21+ years old
Response Time: Owner or local agent must respond to complaints within 30 minutes

Lake of the Woods County Requirements (When Applicable)

County Application Package Includes:

Filing Fee: $200.00 (non-refundable) payable to Lake of the Woods County Treasurer
Recording Fee: $46.00 payable to County Recorder
Deed Documentation: Copy of property deed(s)
Site Plan: Detailed site plan showing all required elements
Septic Compliance: Current certificate of compliance (if septic system exists)
Additional Information: Maps, aerial photos, and other supporting documentation

County Application Process:

Pre-application meeting with county staff
Complete application with all required documentation
Site visit by Planning Commission members
Public hearing before Planning Commission
Final approval by County Board of Commissioners

Specific Regulations for Short-Term Rentals

City of Baudette Regulations

Parking Requirements:

Minimum 2 off-street parking spaces required per unit
All tenants/guests must comply with city parking regulations
Seasonal parking restrictions apply

Noise Standards:

No outdoor amplified sound between 10:00 PM and 8:00 AM
Sound must not be readily heard by surrounding property owners

Pet Policy:

Pets must be on leash or in fenced yard at all times
Continual nuisance barking prohibited
Pet policies must be posted in rental unit

Property Standards:

Garbage/refuse must be stored in completely enclosed containers
Rental units must have adequate trash service for occupants
All units must comply with federal, state, and local laws
Properties must comply with zoning requirements

Information Posting Requirements: Each rental property must post in a visible location:

Owner and local agent names and phone numbers
Local emergency contact information
Maximum overnight occupancy limits
Maximum non-overnight occupancy limits
Pet policy
Garbage and recycling plan
Parking information

Insurance Requirements:

Must provide proof of sufficient property insurance
Coverage must remain in place and be confirmable within 24 hours of city request
Minimum coverage requirements apply

County-Level Regulations (Lake of the Woods)

Conditional Use Permits: May be required for properties located:

In certain zoning districts
Near shoreland areas
In floodplain zones
In environmentally sensitive areas

County-Set Conditions May Include:

Type and extent of shore cover requirements
Increased yards and setbacks
Specified sewage treatment and water supply facilities
Landscaping and vegetative screening
Operational periods and hours
Deed restrictions
Specific location requirements for structures, parking, and signs
Construction type requirements

State of Minnesota Requirements

Safety Code Compliance:

Smoke alarm requirements vary by construction date
Emergency escape and rescue openings (egress windows) required
Carbon monoxide alarm requirements
Minnesota State Fire Code compliance

Tax Obligations:

6.875% sales tax on rentals under 30 days
Must register with Minnesota Department of Revenue
Platforms typically collect and remit taxes automatically
Direct bookings require manual tax collection and remittance

Contact Information for Local Authorities

City of Baudette

Planning and Zoning Department

Address: PO Box 548, Baudette, MN 56623
Phone: 218-395-0102
Primary contact for city STR licensing
Application processing and permit issuance
Code enforcement and compliance monitoring

Lake of the Woods County

Land and Water Planning Department

Address: 206 8th Ave SE, Suite #290, Baudette, MN 56623
Phone: 218-634-1945
Website: www.co.lake-of-the-woods.mn.us
County contact for conditional use permits
Zoning compliance and environmental regulations

Minnesota Department of Revenue

Phone: 651-296-6181 or 800-657-3777
Website: www.revenue.state.mn.us
Sales tax registration and filing assistance

Emergency Contacts

Emergency Services: 911
LakeWood Health Center (Baudette): Contact local directory
Fire Department: Contact city hall for local department contact

Important Sources and Links

Official Documents and Applications

City of Baudette Short-Term Vacation Rental Permit Application
- Source: City of Baudette Planning and Zoning
- Link to application PDF
- Contains complete application form and city requirements
Lake of the Woods County Short-Term Vacation Rental Application
- Source: Lake of the Woods County Land and Water Planning
- Link to county application PDF
- Comprehensive application for county-level permits
Ordinance 2023-12-01 Summary
- Source: Northern Light Region publication
- Link to ordinance summary
- Official notice of STR licensing requirements effective February 1, 2024
Minnesota State Fire Marshal Requirements
- Source: Minnesota Department of Public Safety
- Smoke alarm and egress window requirements
- Contact: Minnesota State Fire Marshal Division at 651-201-7221

Regulatory Reference Materials

The Offer Sheet - Lake of the Woods STR Guide
- Source article
- Comprehensive market analysis and regulatory overview
- Updated October 2025

Important Notes for Investors

All applications and permits must be completed before operating an STR
City and county regulations may be updated periodically
Contact local authorities for the most current requirements
Consider working with local property management companies familiar with regulations
Keep all documentation current and readily available for inspection

This guide provides the essential regulatory framework for operating a short-term rental in Baudette, MN. Always verify current requirements with local authorities before proceeding with any rental operations.

Next step

Found a property in Baudette?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Baudette

Baudette is a small city in far northern Minnesota that serves as the county seat of Lake of the Woods County, perched on the south bank of the Rainy River where it flows out of Lake of the Woods toward Hudson Bay. The community has a population of roughly 1,100 residents, and its downtown hugs the river, giving the town a distinctly border-town feel with shops, marinas, and outfitters catering to travelers crossing to and from Ontario. Anglers, snowmobilers, hunters, and summer road-trippers pass through in steady numbers, and the town has a friendly, outdoorsy, working-class character rather than a polished resort vibe. Baudette sits about 320 miles north of the Twin Cities (Minneapolis–Saint Paul) and roughly 280 miles northwest of Duluth, with the nearest sizable Canadian city, Winnipeg, located about three and a half hours to the northwest.

The marquee draw in the area is Lake of the Woods, the enormous lake that gives the surrounding county its name and laps at Baudette's northern edge. The lake spans more than a million acres across Minnesota, Manitoba, and Ontario and is widely considered one of North America's premier walleye fisheries, attracting thousands of fishing parties every open-water season and ice anglers in winter. Resorts, guides, and charter operations are clustered right in town, and visitors can also book passage on the M.V. Kenora, a passenger vessel that cruises into the lake's open waters during the summer months.

A short drive east of Baudette along the lake's south shore leads to Zippel Bay State Park, a Minnesota state park known for its white sand beach, clear shallows, and campground tucked among pines. It is a popular family stop in summer for swimming, paddling, and picnicking, and in winter the same bay draws snowmobilers riding the regional trail network. The park lies within about twenty minutes of town.

Closer in, the Lake of the Woods County Museum and nearby Pioneer Village preserve the area's logging, fur-trade, and homesteading past, with relocated historic buildings, vintage equipment, and exhibits on local Indigenous history and the early European settlers who arrived in the late 1800s. The museum is an easy walk from most of Baudette's lodging and a good rainy-day stop.

Baudette makes a compelling base for a short-term rental because it sits at the intersection of several distinct traveler flows: summer walleye anglers, fall hunters, winter snowmobilers, and the steady stream of cross-border tourists moving between Minnesota and Manitoba. Its small size means limited hotel supply, and visitors planning a fishing trip, a family lake vacation, or a long weekend riding the surrounding state and provincial trail systems often prefer a house with a kitchen, dock access, or room for a group, leaving reliable year-round demand for well-located rental properties.