Are Short-Term Rentals Allowed in Duluth, MN?

Yes, short-term rentals are explicitly allowed and regulated in Duluth, Minnesota. The city has established a comprehensive permitting system that categorizes short-term rentals into three distinct types, each with specific requirements and operational parameters. The city actively manages these rentals through the Planning Division and Construction Services & Inspections Division to ensure compliance with safety standards and community compatibility.

How to Start a Short-Term Rental Business in Duluth

Step-by-Step Process

1. Determine Your Rental Type

   • Accessory Home Share (owner present during rental)
   • Accessory Vacation Dwelling Unit, Limited (owner absent, max 21 nights/year)
   • Vacation Dwelling Unit/Accessory Vacation Dwelling Unit (owner absent, full operation)

2. Review Requirements and Guidelines

   • Visit the Planning & Development Division's Short Term Rentals web page
   • Review the Frequently Asked Questions document
   • Watch the instructional video on Short Term Rentals

3. Complete the Application Process

   • Submit application through ePlace (Duluth's online permitting system)
   • Pay required fees
   • Schedule required inspections

4. Obtain Additional Licenses

   • Minnesota Department of Health Lodging License
   • State Tax Identification Number from MN Department of Revenue
   • City of Duluth Tourism Tax registration

5. Secure Required Insurance

   • Obtain appropriate liability coverage
   • Ensure compliance with local insurance mandates

Required Documents, Permits, Licenses, and Guidelines

City of Duluth Requirements

For Accessory Home Share:

• Accessory Home Share Permit (Planning Division)
• Operational Permit (Life Safety Division)
• Building code compliance review (Construction Services & Inspections)

For Accessory Vacation Dwelling Unit, Limited:

• Accessory Vacation Dwelling Unit, Limited Permit (Planning Division)
• Operational Permit (Life Safety Division)
• Building code compliance review (Construction Services & Inspections)

For Vacation Dwelling Unit/Accessory Vacation Dwelling Unit:

• Interim Use Permit (Planning Division)
• Building Permit (Construction Services & Inspections)
• Operational Permit (Life Safety Division)

State and Federal Requirements

• Minnesota Department of Health Lodging License ($175-300 fee)
• MN Department of Revenue State Tax Identification Number
• Tourism Tax Registration with City of Duluth
• Insurance Coverage with minimum liability requirements

Renewal Requirements

• Accessory Home Share Permits: Expire after 3 years or upon change of ownership
• Accessory Vacation Dwelling Unit, Limited: Expire December 31st annually
• Operational Permits: Require renewal every 3 years
• All permits are non-transferable upon change of ownership

Specific Regulations for Short-Term Rentals

Duluth City Regulations

Accessory Home Share (AHS):

• Maximum 4 guests for 1-29 nights
• Maximum 2 bedrooms for rent
• Property owner must permanently reside at unit and be present during rental
• Only one rental listing per night allowed
• No cap on number of permits citywide

Accessory Vacation Dwelling Unit, Limited (AVDUL):

• Maximum 9 guests for 2-7 consecutive nights
• Maximum 21 total nights per calendar year
• Maximum 4 bedrooms for rent
• Property owner must permanently reside at unit but need not be present
• No cap on number of permits citywide

Vacation Dwelling Unit/Accessory Vacation Dwelling Unit (VDU):

• Maximum 9 guests for 2-29 consecutive nights
• Maximum 4 bedrooms for rent
• Entire unit rental without owner presence
• Guest totals determined by number of bedrooms
• Cap on permits citywide (except in Form districts where cap doesn't apply)
• When new permits become available, information posted on Planning's Short Term Rental web page

St. Louis County Regulations

For properties outside Duluth city limits but within St. Louis County's jurisdiction:

Definition: Short-term rental dwelling unit for accommodations furnished for less than 30 days for compensation

Permit Types:

• Performance Standard Permit: $410 fee (zones: FAM, MU, SMU, RES, LSO, LCO)
• Conditional Use Permit: $685 fee (zones: COM, SENS)

General Standards:

• Post emergency contacts for police, fire, hospital, septic pumper, and operator
• Provide current contact information for property management
• Post Aquatic Invasive Species prevention guidelines
• Visual demarcation of property lines
• General liability insurance on file with County
• Compliance with all local, state, federal requirements

Additional Residential Zone (RES) Standards:

• Minimum 300-foot buffer between short-term rental uses
• Licensed land surveyor property line location (or written agreement with adjoining owners)
• Adequate vegetative screening required

Contact Information for Local Authority

City of Duluth Divisions

Planning Division (for permits)

• Website: duluthmn.gov/planning-development/land-use-zoning-and-applications/applications-checklists/short-term-rentals/
• Email: planning@duluthmn.gov
• Phone: 218-730-5580
• Address: City Hall, Room 160, 411 West First Street, Duluth, MN 55802

Construction Services & Inspections Division (for building code review)

• Website: duluthmn.gov/csi/
• Email: permittingservices@duluthmn.gov
• Phone: 218-730-5240
• Address: City Hall, Room 100, 411 West First Street, Duluth, MN 55802

Life Safety Division (for operational permits and inspections)

• Website: duluthmn.gov/fire/
• Phone: 218-730-4380

Tourism Tax Office

• Website: www.duluthmn.gov/finance/tourism-taxes/
• Phone: 218-730-5350

St. Louis County (for properties outside city limits)

Planning & Zoning Department

• Duluth Office: Government Services Center, 320 W 2nd St, Duluth, MN
• Virginia Office: Government Services Center, 201 S 3rd Ave W, Virginia, MN
• Phone: 218-471-7103
• Email: LandUseInfo@stlouiscountymn.gov
• Website: www.stlouiscountymn.gov/departments-a-z/planning-zoning/land-use/short-term-rentals

State Agencies

Minnesota Department of Health (for lodging license)

• Website: www.health.state.mn.us
• Phone: 651-201-5000

MN Department of Revenue (for tax ID number)

• Website: www.revenue.state.mn.us
• Phone: 651-282-5225

Source Links

• Primary Duluth STR Information: duluthmn.gov/csi/short-term-rentals/
• Duluth Planning Division STR Page: duluthmn.gov/planning-development/land-use-zoning-and-applications/applications-checklists/short-term-rentals/
• St. Louis County STR Information: www.stlouiscountymn.gov/departments-a-z/planning-zoning/land-use/short-term-rentals
• St. Louis County STR Fact Sheet: www.stlouiscountymn.gov/LinkClick.aspx?fileticket=3BF0wwXddNw%3D&portalid=0
• Minnesota STR Overview: www.steadily.com/blog/airbnb-short-term-rental-laws-and-regulations-in-minnesota

This comprehensive regulatory framework demonstrates Duluth's commitment to balancing the economic benefits of short-term rentals with community preservation and guest safety. The multi-tiered approach allows for various hosting scenarios while maintaining appropriate oversight and standards.