Minneapolis, Minnesota Short Term Rental Regulations Guide for Airbnb hosts

Overview: Short-Term Rental Status in Minneapolis, MN

Short-term rentals are allowed in Minneapolis, MN under a structured regulatory framework. The city permits short-term rentals through either registration or licensing requirements, depending on the specific property type and ownership structure. Minneapolis has established comprehensive regulations to balance the economic benefits of short-term rentals with neighborhood protection and guest safety.

What do Airbnb hosts actually earn in Minneapolis?

Minneapolis hosts earn a median $32,744/year with $169 ADR and 68% occupancy.

Top performers pull in $47,158+ per year.

See the full Minneapolis market breakdown

Starting a Short-Term Rental Business in Minneapolis

Step 1: Determine Your Property Category

Minneapolis categorizes short-term rentals into three distinct types, each with different requirements:

Property Type A: Room Rentals

Renting individual bedrooms
No registration or license required (though platforms may still request exemption documentation)

Property Type B: Homesteaded Units or Condos

Primary residence rental
Short-term rental registration required
Maximum of 10 occupants regardless of property size

Property Type C: Non-Homesteaded Units

Investment properties or secondary homes
Requires short-term rental license
Maximum 10 occupants regardless of property size
Additional restrictions based on building size

Step 2: Complete Required Documentation

For All Short-Term Rental Registrations:

Management Plan addressing maintenance, noise, trash, and parking
Liability Insurance coverage (minimum $300,000)
Neighbor Notification letter distribution
Floor Plan showing exits and escape routes
Registration ID posting on platform listings

Additional Requirements for Non-Homesteaded Properties:

Certificate of Occupancy
Local Contact Person Information
Signed Compliance Statement with all applicable laws
Platform License if hosting through Airbnb, VRBO, or similar services

Step 3: Submit Applications and Fees

Registration Fees:

Short-term rental registration: $58
No fee for converting existing regular rental license to short-term license
Regular license fees apply for new non-homesteaded units

License Applications:

Submit applications to Business Licenses & Consumer Services
Complete personal information forms for all property owners and contacts
Platform-specific licenses required for hosting services

Required Documents, Permits, and Licenses

Primary Documentation Package:

Application Form (provided in short-term rental packet)
Management Plan (detailed operational procedures)
Neighbor Notification Letter (template provided)
Floor Plan Requirements (not to scale, showing directional north)
Rental License Inspection Checklist

Insurance Requirements:

Minimum $300,000 liability coverage
Coverage must specifically include short-term rental use
Additional property damage coverage recommended

Safety Standards:

Smoke detectors in all bedrooms and common areas
Carbon monoxide detectors where required
Fire extinguishers (minimum one per floor)
Clear emergency exit routes marked on floor plan
Electrical safety compliance

Specific Regulations for Minneapolis Short-Term Rentals

Ownership Restrictions:

Individual Limit: One short-term rental property plus primary residence
LLC Inclusion: Ownership limits apply to individuals and LLCs
Building Cap: Maximum 10% of units in buildings with 20+ units (excluding condominiums)

Occupancy Limitations:

Hard Cap: Maximum 10 occupants regardless of property size
Guest Safety: Must ensure safe sleeping arrangements within unit

Operational Requirements:

Platform Compliance: Include registration/license ID in all online listings
On-Site Posting: Registration must be displayed prominently near entrance
Neighbor Relations: Maintain management plan addressing neighborhood concerns
Emergency Protocol: Guests must know emergency contact procedures

Building-Specific Regulations:

Buildings Under 20 Units:

Maximum one non-homesteaded short-term rental unit allowed citywide

Buildings 20+ Units:

Maximum 10% of units can operate as short-term rentals
Does not apply to condominium buildings

Exemptions:

30+ Day Rentals: Not considered short-term rentals
Room Rentals: When only renting bedrooms (no license required)
Platform Discretion: Some platforms may require exemption documentation

Tax Obligations

State and Local Taxes:

Minnesota state sales tax (6.875%)
Local lodging taxes (vary by jurisdiction)
Potential special tourism taxes

Important: Tax obligations may be handled automatically by hosting platforms, or require separate registration with the Minnesota Department of Revenue for direct bookings.

Contact Information for Local Authorities

Primary Regulatory Contacts:

Minneapolis 311 (General Information & Applications):

Phone: 311 or 612-673-3000
Email: minneapolis311@minneapolismn.gov
Hours: 7 a.m. - 7 p.m., Monday - Friday
TTY: 612-263-6850

Business Licenses & Consumer Services:

Phone: 612-673-2080
Fax: 612-673-3399
Email: businesslicenses@minneapolismn.gov
Address: Public Service Building, 505 Fourth Ave. S., Room 220, Minneapolis, MN 55415

Inspections Services Division (Regulatory Services):

Phone: 612-673-3000
Address: Public Service Building, 505 S. Fourth Ave., Room 510B, Minneapolis, MN 55415
Hours: 8 a.m. - 4:30 p.m., Monday - Friday

Online Resources:

Property Information: apps.ci.minneapolis.mn.us/AddressPortalApp/
Registration Printing: Available through city online portal
Application Packets: Available for download from city website

Source Links and Additional Resources

Official City Documents:

Platform-Specific Information:

Airbnb Minneapolis Regulations

Fee Information:

License Fee Schedule

Key Takeaways for STR Investors

Minneapolis has a mature, structured STR market with clear pathways to compliance
Registration is straightforward for homesteaded properties but more complex for investments
Occupancy limits are strict (10 people maximum) regardless of property size
Insurance requirements are significant ($300,000 minimum coverage)
Building density limits apply to large multi-unit properties
Local government support is available through multiple contact channels

This regulatory framework provides certainty for investors while maintaining neighborhood character and guest safety standards. Success in Minneapolis requires careful adherence to these requirements and ongoing relationship management with both guests and neighbors.

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Ask the AI Advisor about Minneapolis

Minneapolis is the larger of the Twin Cities and the seat of Hennepin County in the U.S. state of Minnesota. Home to roughly 425,000 residents in the city itself and more than three million across the surrounding metro area, it sits along the upper Mississippi River, just northwest of its twin Saint Paul, which serves as the state capital. Known for an unusual abundance of lakes and parks, a deep arts and theater scene, and a hardy Midwestern character, Minneapolis also functions as a gateway to the wider Upper Midwest, including the lake country of central and northern Minnesota. The nearest truly large out-of-state city is Chicago, about 355 miles to the southeast.

Just south of downtown in the suburb of Bloomington lies the Mall of America, one of the largest shopping and entertainment complexes in the United States, drawing tens of millions of visitors each year with hundreds of stores, an indoor amusement park, and an aquarium. Roughly ten to fifteen minutes by car from the Minneapolis central business district, it anchors a hospitality corridor that includes major hotels, waterparks, and Minneapolis–Saint Paul International Airport just minutes away.

The city's chain of lakes — including Bde Maka Ska, Lake Harriet, Lake of the Isles, and Cedar Lake — form a beloved network of parks, beaches, and paved trails just west of downtown, drawing walkers, runners, and cyclists through every season. A short drive west of the central business district leads to the Walker Art Center and the adjacent Minneapolis Sculpture Garden, where the iconic Spoonbridge and Cherry sculpture anchors a free, open-air gallery. These institutions reflect a community that values the outdoors as much as it values creative expression.

About five miles south of downtown, Minnehaha Falls Regional Park features a 53-foot waterfall cascading into the Mississippi River, with limestone bluffs, walking trails, and riverfront picnic areas. Together with the historic Stone Arch Bridge and the Grand Rounds Scenic Byway, the falls illustrate how Minneapolis has long made the river — and the green spaces around it — central to its identity.

For short-term rental owners, Minneapolis offers a year-round mix of business travel, conventions downtown, major sporting events, and outdoor tourism tied to its lakes, the Mississippi River, and easy day trips to the Minnesota River Valley and the St. Croix. Few U.S. cities combine big-city amenities with such immediate access to nature, and that balance is what makes the Minneapolis market durable through every season.