Executive Overview

• Allowed: Yes. Effective December 2, 2017, short-term rentals are allowed throughout the City of Saint Paul, including downtown Saint Paul (Ward 2).
• Business model: An STR consists of a dwelling, or portion of a dwelling unit, rented for fewer than thirty days. STRs may not be used for commercial or social events (including but not limited to parties, weddings, etc.).
• Licensing: Both hosts and platforms are required to obtain a City of Saint Paul Short-Term Rental license and renew annually. Listings may not be advertised unless the host and platform are compliant with all city, state, and federal laws.
• Zoning limits: The number of STR dwelling units per building is capped, typically at four STR units (with allowances/conditional use for larger numbers; see table below). Hotels are defined by specific criteria (staffed front desk, exterior signage, daily housekeeping) and are not considered STRs under the ordinance.
• Enforcement: The city’s enforcement is primarily complaint-based. As of June 2024, Airbnb listings significantly outnumbered licensed STRs, indicating ongoing compliance gaps and enforcement challenges.

Sources:

• City STR program page and ordinance references (Saint Paul Safety & Inspections).
• STR enforcement article (MyVillager, 2024).
• Municode (Saint Paul Code of Ordinances).

How to Start an STR in This Market

• Pre-screening
  • Confirm zoning and unit cap: Review zoning and STR unit caps for your building type and configuration; verify owner-occupancy status affects unit allowances and fire Certificate of Occupancy requirements.
  • Pro Forma: Model revenue using conservative assumptions, factoring in Saint Paul’s seasonality (summer peak; winter softness except around the Winter Carnival).
• Licensing and safety setup
  • License application (host and platform): Apply for a City Short-Term Rental Host License and, if listing on platforms, a Short-Term Rental Platform License. Renew annually.
  • Insurance: Secure proof of insurance at application.
  • Fire Certificate of Occupancy (Fire C of O): Non-owner-occupied STR units must obtain and maintain an active Fire C of O. Owner-occupied single-family STRs do not require a Fire C of O. Larger or non-owner-occupied properties should be prepared to submit documentation of an active Fire C of O.
• Listing and compliance
  • Advertising: Only list units with valid licenses; include license number in listings where required by the platform/city.
  • Taxes: Comply with Minnesota lodging sales and use tax (state rate 6.875%). Depending on local taxes, additional rates may apply (see Minnesota Department of Revenue guidance). If managing through platforms, confirm collection/remittance mechanics.
  • Ongoing compliance: Maintain license renewal, respond to complaints, ensure occupancy caps, and monitor platform and ordinance updates.
• Operations
  • Guest screening: Enforce rules that prohibit parties and commercial/social events.
  • Local partnerships: Consider professional property management (e.g., Summer’s network) for pricing, guest communications, maintenance, and compliance.
  • Documentation: Maintain copies of licenses, insurance, Fire C of O, tax filings, and compliance logs.

Required Documents, Permits, Licenses, and Guidelines

City of Saint Paul requirements (all STRs citywide, including downtown):

• Short-Term Rental Host License
  • Application and fee.
  • Proof of insurance.
  • For non-owner-occupied units: documentation of an active Fire Certificate of Occupancy.
• Short-Term Rental Platform License (if listing on platforms)
• Fire Certificate of Occupancy (Fire C of O)
  • Required for all non-owner-occupied STR units.
  • Owner-occupied single-family STRs are exempt from the Fire C of O requirement.
• Advertising compliance
  • Listings must be compliant with city, state, and federal law; platform listings must include license number and remove unlicensed listings as required.
• Zoning/occupancy limits
  • STR unit caps vary by building type and owner-occupancy; see table below.
• Conditional Use Permit (CUP)
  • Required to exceed four STR units in a single building or to exceed zoning occupancy limits for large one- and two-family dwellings on large lots.
• State-level lodging tax compliance
  • Hotels and Other Lodging Establishments Industry Guide (Minnesota Department of Revenue).
• Accessibility and safety
  • Adhere to occupancy limits, safety protocols, and general property standards.

Specific Regulations: City/County/State

• City of Saint Paul (applies to downtown Saint Paul)
  • Licensing: Mandatory for hosts and platforms; annual renewals.
  • Use restrictions: STRs cannot be used for commercial or social events.
  • Advertising: Listings must be compliant; platforms must include license numbers and remove unlicensed listings.
  • Zoning caps: Maximum STR units per building and conditional allowances as detailed in the table below.
  • Hotel definition: To avoid STR treatment, an establishment must have a staffed front desk, exterior signage, and daily housekeeping.
• Ramsey County
  • County lodging tax may apply (0.5% local option). Always confirm current rates and applicability with the Minnesota Department of Revenue.
• State of Minnesota
  • Lodging sales and use tax (state rate 6.875%); lodging tax rules governed by the Department of Revenue’s industry guidance.

STR Dwelling Unit Limits and Requirements (City of Saint Paul)

• Single Family (Owner Occupied): 1 STR unit allowed; no Fire C of O required.
• Single Family (Non-Owner Occupied): 1 STR unit allowed; Fire C of O required.
• Duplex (Either Unit Owner Occupied): 2 STR units allowed; one license per STR unit; no Fire C of O.
• Duplex (No Unit Owner Occupied): 1 STR unit allowed; one license per STR unit; Fire C of O required.
• Triplex (Any Unit Owner Occupied): 3 STR units allowed; one license per STR unit; Fire C of O for non-owner units.
• Triplex (No Unit Owner Occupied): 1 STR unit allowed; one license per STR unit; Fire C of O for non-owner units.
• Four-Plex (Any Unit Owner Occupied): 4 STR units allowed; one license per STR unit; Fire C of O for non-owner units.
• Four-Plex (No Unit Owner Occupied): 1 STR unit in RL-RT1 Zoning Districts; 2 STR units in all other zoning districts; one license per STR unit; Fire C of O for non-owner units.
• Building with more than Four Units: 50% of dwelling units, up to 4; one license per STR unit; Fire C of O for non-owner units. CUP required to exceed 4 units.

Important notes:

• The number of STR units may exceed 4 if the building owner obtains a conditional use permit for a larger number.
• Zoning occupancy limits may be exceeded via CUP on a case-by-case basis for large one- and two-family dwellings on large lots.

Contact Information

• City of Saint Paul – Department of Safety & Inspections (DSI)
  • General Information: 651-266-8989
  • Email (non-emergency): dsi-informationandcomplaints@ci.stpaul.mn.us
  • Address: 15 Kellogg Blvd. West, Saint Paul, MN 55102
  • For incident reporting/complaints, use the city’s “Contact the City” or “Report an Incident” portal (see link below).

Important Compliance Note

• Enforcement is primarily complaint-based. A backlog of delinquent licenses exists due to staffing turnover and software transitions. Operating with a delinquent or missing license is illegal; property owners remain responsible for compliance regardless of licensing status.

Links to Source Pages

• City of Saint Paul – Short-Term Rentals: www.stpaul.gov/departments/safety-inspections/open-operate-expand-business/business-licenses-and-permits/short-term-rentals
• Short-Term Rental Basics (PDF): www.stpaul.gov/sites/default/files/2023-10/Short-Term%20Rental%20Basics.pdf
• STR Licensing Ordinance (PDF): www.stpaul.gov/sites/default/files/Media%20Root/Safety%20%26%20Inspections/DSI.STR%20-%20Licensing%20Ordinance%20Final.pdf
• STR Zoning Ordinance (PDF): www.stpaul.gov/sites/default/files/Media%20Root/Safety%20%26%20Inspections/DSI.Licensing.Short_Term_Rental_Zoning_Ordinance.pdf
• Occupancy Limits (PDF): www.stpaul.gov/sites/default/files/2021-06/Occupancy%20Limits_revised_6-9-21.pdf
• STR Zoning Unit Limits (PDF): www.stpaul.gov/sites/default/files/Media%20Root/Safety%20%26%20Inspections/DSI.Licensing.Short_Term_Rental_Zoning.pdf
• Fire Inspections / Certificate of Occupancy: www.stpaul.gov/departments/safety-inspections/fire-inspections
• Short-Term Rental Host License: www.stpaul.gov/departments/safety-inspections/licenses/short-term-rental-host
• Short-Term Rental Platform License: www.stpaul.gov/departments/safety-inspections/licenses/short-term-rental-platforms
• Report an Incident/Complaint: www.stpaul.gov/report-incident
• MN Department of Revenue – Hotels and Other Lodging Establishments Industry Guide: www.revenue.state.mn.us/guide/hotels-and-other-lodging-establishments-industry-guide
• Saint Paul Code of Ordinances (Municode): library.municode.com/mn/st._paul/codes/code_of_ordinances
• News Article: “St. Paul’s regulation of Airbnbs is falling short of expectations” (MyVillager): www.myvillager.com/news/general_news/st-paul-s-regulation-of-airbnbs-is-falling-short-of-expectations/article_2ac499f2-6fb0-11ef-a9f9-03fd8932f4c4.html