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

YES - Short-term rentals are explicitly allowed and regulated in Marshall, MN. The City of Marshall has adopted a comprehensive Residential Rental Code (Ordinance 24-003) that specifically includes short-term rentals within its regulatory framework. All residential rental properties, including short-term rentals, bed and breakfasts, and vacation rentals (such as those operated through Airbnb, VRBO, or similar platforms), must be registered with the City of Marshall. This registration requirement is designed to ensure basic life safety features are built into each rental unit and to maintain oversight of rental properties throughout the city.

The city has positioned itself as a business-friendly environment for STR operations while maintaining necessary safety and livability standards. As a university community with approximately 50% of residents living in rental properties, Marshall has carefully crafted regulations that balance investor opportunities with community welfare.

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

Starting an STR business in Marshall involves a systematic registration and compliance process. The city has streamlined this through an online portal system, but the process requires careful attention to specific requirements and deadlines.

Step 1: Property Acquisition and Compliance Assessment

Before purchasing or converting property for STR use, verify that the property zoning allows for short-term rental operations. The ordinance explicitly prohibits subleasing or subletting of units for short-term rental if the underlying zone prohibits such use. Consult the city zoning ordinance and, if necessary, contact the Planning and Zoning department to confirm permitted uses for your specific property.

Step 2: Registration Portal Setup

Create an account through the City's RTVision online portal at: mn-ci-marshall.onegov.rtvision.com/core/login.php. This is the primary platform for all rental property registrations, including short-term rentals. While online registration is required, the city offers assistance at City Hall for those experiencing technical difficulties.

Step 3: Complete Required Documentation

Prepare all necessary documentation including property sketches, safety system information, and completed self-inspection forms. For short-term rentals, you'll need to complete the standard registration requirements plus the Supplemental Short Term Rental Form specifically designed for STR operations.

Step 4: Property Management Setup

Ensure you have either local ownership (within 50 miles of Marshall) or designate a local property manager who meets the proximity requirements. This is a critical compliance element that applies to all rental properties in Marshall.

Required Documents, Permits, Licenses, and Guidelines

Core Registration Requirements

Registration Application Components:

• Property owner information (name, address, phone, email)
• Local property manager details (if different from owner)
• Property street address and unit count
• Authorized repair/service contact information
• Property sketch showing rental units and parking layout
• Fire safety system testing dates (sprinkler, alarm, extinguishers)
• Acknowledgment of Rental Ordinance familiarity and compliance intent
• Signed self-inspection checklist for each rental unit

Specific Short-Term Rental Documentation:

• Supplemental Short Term Rental Form - Required specifically for STR operations
• Lodging Tax Form - State tax compliance for temporary accommodations
• Annual self-inspection certification (saved documentation)

Registration Certificate Requirements:

• Must be posted in common entry areas or distributed to all tenants
• Certificate must be readily noticeable and accessible
• Electronic certificates generated through the RTVision portal

Safety and Compliance Standards

Properties must comply with the Marshall Housing Code and Residential Rental Unit Checklist, covering:

• Smoke and carbon monoxide detector installation and maintenance
• Fire safety equipment and emergency egress
• Structural integrity and habitability standards
• Sanitation and environmental health requirements

Tax and Business Compliance

• Lodging Tax Registration - Required for all short-term rental operations
• State sales tax compliance where applicable
• Business registration if operating as commercial entity

Specific Regulations for Short-Term Rentals in Marshall, Lyon County, and Minnesota

City-Level Regulations (Marshall Municipal Code Article 18-VIII)

Occupancy Limits: Short-term rental occupancy is specifically calculated using the "bedrooms multiplied by two plus one" formula. For example:

• 1-bedroom unit: Maximum 3 guests
• 2-bedroom unit: Maximum 5 guests
• 3-bedroom unit: Maximum 7 guests
• Individual room rentals: Maximum 2 people per bedroom

Operational Requirements:

• No minimum stay requirement specified
• Registration required for all STR operations including bed and breakfasts
• Condominium STR use permitted with registration
• Subleasing prohibited if underlying zoning doesn't allow STR use

Safety and Inspection Framework:

• Annual self-inspection required for all rental units
• City inspections conducted only on complaint basis
• 48-hour response requirement for addressing tenant complaints
• Inspection fees assessed for substantiated complaints
• Compliance with Marshall Housing Code mandatory

Property Management Requirements:

• Owner or local property manager must reside within 50 miles of Marshall
• Local property manager must be authorized to make decisions regarding rental, occupancy, and maintenance
• Management company must be licensed, bonded, and/or insured

Zoning Compliance: Short-term rental operations must comply with underlying zoning requirements. Properties must verify that short-term rental use is permitted in their specific zoning district before registration.

County-Level Regulations

Lyon County Tax Requirements: Short-term rental operators must comply with county tax obligations including property tax assessments and any applicable local option taxes. The Lyon County Auditor-Treasurer's office handles property tax inquiries and provides tax information through their official channels.

State-Level Regulations (Minnesota)

Minnesota Building and Fire Codes: All STR properties must comply with applicable Minnesota Building Codes and State Fire Code requirements. These include:

• Building safety standards
• Fire safety equipment and emergency egress
• Accessibility requirements where applicable
• Health and sanitation standards

State Lodging Tax Requirements: Minnesota imposes lodging taxes on short-term rental operations. Hosts are responsible for collecting and remitting applicable state and local lodging taxes. The Minnesota Department of Revenue provides guidance on lodging tax obligations.

Registration Process and Compliance Timeline

Initial Registration (Current Timeline)

• Registration Term: 2 years for all properties
• Current Registration Period: January 1, 2024 - December 31, 2025
• Initial Registration Deadline: December 31, 2024
• Fee Waiver Opportunity: Properties registered before September 1, 2024 receive fee waiver
• Registration Fee: $100 per building (waived for timely initial registration)

Ongoing Compliance Requirements

Annual Self-Inspection:

• Required every year for all rental units
• Completed forms must be maintained and available for city review
• Inspection must cover all rental units and common areas

Registration Renewal:

• Occurs on even-numbered calendar years
• Renewal forms due by December 15th of renewal year
• Same documentation requirements as initial registration

Complaint Response:

• 48-hour response window for addressing tenant concerns
• City inspection triggered if issues not resolved within timeline
• Owner responsible for repair costs and city inspection fees if violations found

Contact Information for Local STR Authority

Primary Contact: City of Marshall - Community Planning Department 344 West Main St. Marshall, MN 56258 Hours: 8:00 AM to 4:30 PM Phone: 507-537-6760

Online Resources:

• Registration Portal: mn-ci-marshall.onegov.rtvision.com/core/login.php
• Rental Registration FAQ: ci.marshall.mn.us/community_planning/rental_registration_faq.php
• Rental Code Information: ci.marshall.mn.us/community_planning/marshall_rental_code.php
• City Ordinances: marshall-mn.municipalcodeonline.com/book?type=ordinances

Planning and Zoning Department: For zoning compliance verification and permit questions:

• Phone: 507-537-6760
• Planning Commission meetings available at: meetings.municode.com/MeetingsPage/index?clientCode=MARSHALL

Report Concerns: Tenants can report safety or maintenance concerns at: marshallmn.rja.revize.com/forms/7931

Links to Source Pages

Official City Resources:

• ci.marshall.mn.us/community_planning/marshall_rental_code.php - Main rental code landing page
• ci.marshall.mn.us/community_planning/rental_registration_faq.php - Comprehensive FAQ covering all registration aspects
• marshall-mn.municipalcodeonline.com/book?type=ordinances#name=ARTICLE_18-VIII_RESIDENTIAL_RENTAL_CODE - Complete rental ordinance text
• mn-ci-marshall.onegov.rtvision.com/core/login.php - Online registration portal

Related Resources:

• ci.marshall.mn.us/community_planning/planning___zoning/index.php - Zoning information and compliance
• ci.marshall.mn.us/community_planning/self-inspection-forms.php - Required inspection forms
• ci.marshall.mn.us/community_planning/permits/index.php - Building permits and safety requirements

Municipal Code Sections:

• Chapter 86 Zoning Ordinance: marshall-mn.municipalcodeonline.com/book?type=ordinances#name=CHAPTER_86_ZONING
• Housing Code PDF: Available through city document center
• Flood Ordinance: marshall-mn.municipalcodeonline.com/book?type=ordinances#name=CHAPTER_38_FLOODS

Third-Party Resource:

• Lodge Compliance Marshall County Information: www.lodgecompliance.com/local-jurisdiction/marshall-county-mn (Note: This is a commercial compliance service)

State Resources:

• Minnesota Department of Revenue: www.revenue.state.mn.us
• Minnesota State Statutes: www.revisor.mn.gov
• Lyon County Tax Information: www.lyonco.org/departments/auditor-treasurer/tax-information

This comprehensive regulatory framework positions Marshall as a viable market for STR investments while maintaining necessary oversight to protect both guests and the community. Investors should carefully review all requirements and maintain ongoing compliance to ensure successful operations in this university community environment.