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

YES, short-term rentals are explicitly allowed in Brainerd, Minnesota and throughout Crow Wing County, but with significant regulatory requirements at both the county and city levels.

As of January 3, 2023, Crow Wing County requires all property owners operating short-term rentals within the county's planning and zoning jurisdiction to obtain a county license. The City of Brainerd is currently developing its own comprehensive STR regulations as of May 2024, but the county licensing system remains the primary oversight mechanism. Property owners must comply with both county requirements and any applicable city ordinances.

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

Starting an STR business in the Brainerd area requires following a multi-step process that addresses both county and potential city requirements:

1. Verify Zoning Compliance: Confirm your property is located in a zone that permits short-term rentals. County land use ordinances regulate STRs primarily through environmental and safety standards rather than arbitrary limits.

2. Obtain County STR License: Apply through Crow Wing County's mandatory licensing system, which applies to all properties within county planning and zoning jurisdiction.

3. Address Septic Compliance: Complete septic system requirements, which are strictly enforced and vary based on system age and type.

4. Secure Required Insurance: Obtain liability insurance with minimum coverage requirements.

5. Designate 24/7 Contact: Identify a responsible party available around the clock for emergency situations and guest issues.

6. Prepare for Inspections: Many jurisdictions require safety inspections covering smoke detectors, carbon monoxide alarms, fire extinguishers, and general property safety.

7. Register for Tax Obligations: Set up accounts for state sales tax and local lodging taxes collection and remittance.

Required Documents, Permits, Licenses, and Guidelines

Crow Wing County Short-Term Rental License Requirements

Primary Application Requirements:

• Property owner name, mailing address, email, and telephone number
• 6-digit account number and MUNIRevs Activation Code (provided by notification letter or county staff)
• 24 hours a day/7 days a week contact information (if different from property owner)
• Short-term rental physical address and parcel number
• Number of bedrooms and advertised occupancy
• Acknowledgment and agreement to licensing ordinance terms

Mandatory Documentation:

1. Septic System Compliance (One of the following):

   • Septic Installation Certificate (if system installed within last 5 years)
   • Compliance Inspection (dated within past 3 years, if system installed more than 5 years ago)
   • Waiver form for properties connected to municipal sewer or sanitary sewer district

2. Winter Compliance Option: During winter months, applicants may complete a "winter window" form allowing until June 1st to complete inspections when weather prevents compliance testing.

License Fees:

• $100 per advertised bedroom

Additional Requirements by Municipality:

• City of Nisswa: Requires transient lodging license and annual inspection
• City of Crosslake: Requires both zoning and rental permits with fees varying by property size and occupancy

Insurance Requirements:

• Liability insurance with minimum $300,000 coverage typically required
• Standard homeowner's insurance may not cover STR activities

Site Planning Requirements:

• Site plan or floor plan showing parking arrangements, bedroom locations, and emergency exits
• Verification of adequate off-street parking for all guests

Specific Regulations for Short-Term Rentals

Crow Wing County STR Regulations

Licensing Structure:

• County licensing applies to all STRs within county planning and zoning jurisdiction
• Licenses are renewed annually in January regardless of when prior license was issued
• Cities and local government units with contracts with the county must follow county licensing procedures

Classification System:

• Owner-Occupied Units: Typically requires only registration or simple inspection
• Non-Owner-Occupied Units: Investment properties, second homes, and resort properties requiring full compliance with permitting and safety standards

Operational Requirements:

• 24/7 contact designation mandatory for all rentals
• Compliance with shoreland management rules (setbacks, impervious surface limits, vegetative buffers)
• Noise, trash, and light control consistent with residential use
• Proper waste management and recycling adherence

Zoning Compliance:

• STRs only permitted in zoning districts allowing residential or resort uses
• Shoreland areas subject to additional environmental protections
• Minimum lot sizes and setback requirements apply
• Density limitations may apply in sensitive environmental zones

City of Brainerd STR Development (As of May 2024)

Current Status: The City of Brainerd is actively developing comprehensive STR regulations with the following proposed framework under consideration:

Proposed Caps and Zoning Restrictions:

• Proposed cap of 40 short-term vacation dwelling units city-wide
• 20 units restricted to Main Street district
• 20 units restricted to Town Center zoning district
• Up to 20 short-term rentals allowed in buildings with four or more units

Recent Regulatory History:

• February 2024: Earlier version with 20-unit cap and single-unit-per-owner limit failed final approval
• May 2024: Modified proposal passed first reading with expanded allowances
• Final city council approval pending as of May 2024

Minnesota State-Level STR Regulations

Tax Obligations:

• State sales tax rate: 6.875% (applies to stays under 30 days)
• Local lodging taxes: Counties, cities, or special districts add 3-5% on top of state rate
• Special tourism taxes may apply in high-visitation destinations

Business Registration:

• Minnesota Secretary of State registration required for business entities
• Minnesota Department of Revenue registration needed for direct tax collection and remittance

State Definition:

• No unified statewide definition of short-term rentals
• Many jurisdictions consider lodging under 30 days as "transient"
• Municipalities use terms like "vacation rental," "short-term rental," or "transient lodging"

Contact Information for Local STR Authorities

Crow Wing County Land Services (Primary County Authority)

Physical Address:

• Historic Court House
• 326 Laurel Street
• Brainerd, MN 56401

Phone Numbers:

• General Administration: 218-824-1067
• STR Hotline (Complaints): 218-824-1132
• Septic Compliance Assistance: 218-824-1010

Email Addresses:

• General Administration: coadmin@crowwing.gov
• STR-Specific: short.rental@crowwing.gov

Online Resources:

• STR License Application: crowwingcounty.munirevs.com/
• Online Complaint Form: lodging.munirevs.com/complaint/?cityid=678

Office Hours:

• Contact county directly for current office hours and availability

Minnesota Department of Revenue (State Tax Authority)

Online Resources:

• State tax registration and filing information available through Minnesota Department of Revenue website
• Contact information and filing requirements updated regularly online

City of Brainerd (Municipal Authority)

Note: As of May 2024, Brainerd's STR regulations were still in development. Contact City Hall for current status and requirements.

Links to Source Pages

Primary Regulatory Sources

• Crow Wing County Short-Term Rental Information: www.crowwing.gov/1621/Short-Term-Rental
• Crow Wing County STR Licensing Ordinance: www.crowwing.gov/DocumentCenter/View/17605
• Crow Wing County Land Use Ordinance: www.crowwing.gov/214/Ordinance-Policy

Application and Compliance Resources

• Online STR License Application: crowwingcounty.munirevs.com/
• Online Complaint Form: lodging.munirevs.com/complaint/?cityid=678
• Septic Compliance Inspection Waiver Form: www.crowwing.gov/DocumentCenter/View/17922
• Appeal Application: www.crowwing.gov/DocumentCenter/View/18146

News and Regulatory Updates

• Brainerd Dispatch STR Regulatory Coverage: www.brainerddispatch.com/news/local/short-term-rental-regulations-gain-momentum-again

Additional Resources

• Minnesota Department of Health Licensing Jurisdiction Map: www.health.state.mn.us/communities/environment/food/license/delegation.html

Important Note for Investors: The regulatory environment for short-term rentals in Brainerd continues to evolve, particularly at the city level. The county licensing system provides the baseline requirement, but investors should verify current municipal requirements and any pending ordinance changes before finalizing investment decisions. As tourism continues to grow in the Brainerd Lakes area, additional regulations may be implemented to manage density and preserve neighborhood character.