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.

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:

1. Application Form (provided in short-term rental packet)
2. Management Plan (detailed operational procedures)
3. Neighbor Notification Letter (template provided)
4. Floor Plan Requirements (not to scale, showing directional north)
5. 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:

• Minneapolis Short-Term Rental Registration Portal
• Short-Term Rental Application Packet
• Rental Property Checklist
• Short-Term Rental Ordinance (Title 12)
• STR Goodman Amendment

Platform-Specific Information:

• Airbnb Minneapolis Regulations

Fee Information:

• License Fee Schedule

Key Takeaways for STR Investors

1. Minneapolis has a mature, structured STR market with clear pathways to compliance
2. Registration is straightforward for homesteaded properties but more complex for investments
3. Occupancy limits are strict (10 people maximum) regardless of property size
4. Insurance requirements are significant ($300,000 minimum coverage)
5. Building density limits apply to large multi-unit properties
6. 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.