Overview: Are Short-Term Rentals Allowed in East Saint Paul, MN?

YES, short-term rentals are allowed in Saint Paul, Minnesota, which includes East Saint Paul. As of December 2, 2017, short-term rentals became permitted throughout the City of Saint Paul by ordinance. However, East Saint Paul specifically may have additional local regulations that investors should verify directly with their local authorities.

By Saint Paul's legal definition, a Short-Term Rental (STR) consists of a dwelling, or portion of a dwelling unit, rented for a period of less than thirty days. These rentals cannot be used for commercial or social events and cannot be advertised unless compliant with city, state, and federal law.

How to Start a Short-Term Rental Business in This Market

Step 1: Determine Property Eligibility and Zoning Compliance

Before purchasing or listing a property, verify:

• The property's zoning allows short-term rental use
• Whether the property is owner-occupied or non-owner-occupied
• The maximum number of STR units permitted based on building type and zoning district
• Whether conditional use permits are needed for your specific situation

Step 2: Obtain Required Licenses

Both hosts and platforms must obtain city licenses and renew annually:

• Short-Term Rental Host License - Required for all STR operators
• Short-Term Rental Platform License - Required for hosting platforms like Airbnb, VRBO

Step 3: Meet Safety and Insurance Requirements

• Obtain proper insurance coverage
• Complete fire safety inspections if required for your property type
• Ensure compliance with building codes and occupancy limits

Step 4: Register for Tax Obligations

• Apply for state and local sales tax numbers
• Set up systems to collect and remit lodging taxes
• Understand reporting requirements

Required Documents, Permits, Licenses, and Guidelines

License Application Requirements (All Required at Submission)

For Single Family Buildings:

Owner Occupied:

• Application and fee
• Proof of Insurance
• No Fire Certificate of Occupancy required
• Maximum 1 STR dwelling unit

Non-Owner Occupied:

• Application and fee
• Proof of Insurance
• Fire Certificate of Occupancy paperwork (application/fee OR documentation of active Fire C of O)
• Maximum 1 STR dwelling unit

For Duplex Buildings:

Either Unit Owner Occupied:

• Application and fee per STR dwelling unit
• Proof of Insurance
• Fire Certificate of Occupancy required for each STR unit
• Maximum 2 STR dwelling units total

No Unit Owner Occupied:

• Application and fee per STR dwelling unit
• Proof of Insurance
• Fire Certificate of Occupancy paperwork required
• Maximum 1 STR dwelling unit

For Triplex and Four-Plex Buildings:

Any Unit Owner Occupied:

• Application and fee per STR dwelling unit
• Proof of Insurance
• Fire Certificate of Occupancy required for non-owner occupied units
• Maximum 3-4 STR dwelling units depending on building type

No Unit Owner Occupied:

• Application and fee per STR dwelling unit
• Proof of Insurance
• Fire Certificate of Occupancy paperwork required
• Maximum 1 STR dwelling unit (or 2 in non-RL-RT1 zoning districts for four-plex)

For Buildings with More Than Four Units:

• Maximum 50% of dwelling units can be STRs, up to 4 units maximum
• Application and fee per STR dwelling unit
• Proof of Insurance
• Fire Certificate of Occupancy required for all non-owner occupied STR units

Important Limitations and Exceptions

1. Conditional Use Permits: The number of STR dwelling units may exceed 4 if a building owner obtains a conditional use permit for a larger number of units.

2. Occupancy Limits: The zoning occupancy limit of any STR dwelling unit may be exceeded with a conditional use permit for large one and two-family dwellings on large lots.

3. Platform Licensing: Platforms must obtain their own license and comply with reporting requirements.

Specific Regulations for Short-Term Rentals

Saint Paul City Regulations

Prohibited Activities:

• Use for commercial or social events
• Advertising without compliance with city, state, and federal law
• Non-compliance with posting requirements

Operational Requirements:

• Compliance with zoning occupancy limits
• Annual license renewal required
• Must display permit/license numbers in advertisements
• Subject to noise, nuisance, and parking regulations

Zoning Compliance:

• STRs must comply with underlying zoning district requirements
• Some areas may have additional restrictions based on zoning classification
• Accessory Dwelling Units have specific STR regulations

Ramsey County Regulations

No specific county-level STR regulations were identified in the provided sources. County regulations typically focus on health, safety, and building codes rather than STR-specific rules.

Minnesota State Regulations

Tax Obligations:

• Minnesota State Sales Tax applies to STR transactions
• Saint Paul Lodging Tax of 3% applies to room charges
• Saint Paul Sales Tax of 0.5% may also apply
• Hosts must obtain appropriate tax identification numbers and file regular reports

State Definition: Minnesota defines Lodging Establishments as structures offering accommodations for less than a week, which includes most short-term rentals.

Insurance and Liability: State law requires adequate insurance coverage for rental operations. Hosts should consult with insurance professionals to ensure proper coverage.

Contact Information for Local Authorities

Saint Paul Department of Safety and Inspections

Primary Contact for STR Licensing and Compliance

Email: dsi-informationandcomplaints@ci.stpaul.mn.us Phone: General Information: 651-266-8989 Hours: Available weekdays, 7:30 a.m. - 4:30 p.m.

For Non-Emergency Information: Email through the city's report incident system Website: Saint Paul STR Licensing

Minnesota Department of Revenue

For Tax Registration and Reporting

Website: Minnesota Department of Revenue - Lodging Tax Phone: Contact through state revenue department channels

East Saint Paul Specific Contacts

Note: While Saint Paul regulations apply to the city proper, East Saint Paul may have additional local requirements. Investors should contact:

East Saint Paul City Hall (to be verified as specific contact information wasn't provided in sources)

Important Source Links and Resources

Official Saint Paul Government Resources

• Short-Term Rentals Main Page
• Short-Term Rental Host License
• Short-Term Rental Platform License
• Fire Certificate of Occupancy

Planning and Zoning Resources

• Short-Term Rental Basics PDF
• STR Licensing Ordinance
• STR Zoning Ordinance
• Zoning and Building Code Occupancy Limits

Tax and Revenue Resources

• Minnesota Lodging Tax Guidelines
• Saint Paul Sales and Use Tax Information

Historical and Planning Documents

• 2016 City Council STR Study Report

Metro Area Comparison Resources

• Twin Cities STR Restrictions Overview

Critical Investment Considerations for East Saint Paul

1. Verify Local Jurisdiction: Confirm whether your specific property falls under Saint Paul or East Saint Paul jurisdiction, as this affects which regulations apply.

2. Zoning Due Diligence: Always verify zoning compliance before purchasing, as some areas may have additional local restrictions not covered by Saint Paul's citywide ordinance.

3. Insurance Requirements: Ensure adequate coverage for STR operations, as standard homeowner's policies may not cover short-term rental activities.

4. Tax Registration: Complete state and local tax registration before beginning operations to avoid penalties.

5. Fire Safety Compliance: Budget for potential fire safety improvements, especially for non-owner-occupied properties.

6. Neighbor Relations: Establish protocols for addressing neighbor concerns to maintain positive community relations and avoid complaints that could lead to license suspension.

Disclaimer: This guide is based on information available as of the provided sources. Regulations can change, and East Saint Paul may have additional local requirements. Always verify current regulations with local authorities before making investment decisions.