(Investor‑focused, compliance‑first reference)

1. OVERVIEW – Are Short‑Term Rentals Allowed in Richmond, MN?

Short answer: In the City of Richmond a “short‑term rental” is only permitted when the operation qualifies as a Bed & Breakfast under the city’s Zoning Ordinance (Chapter 107). The definition limits stays to no more than seven consecutive nights in any 30‑day period, requires the property to be owner‑occupied, and treats the business as a home occupation subject to the standards in Section 107‑238. No separate “STR license” exists in the municipal code; any rental that does not meet the Bed & Breakfast criteria is prohibited in residential districts.

Stearns County (the jurisdiction that administers the “Short‑Term Rental” program) allows STRs provided a county‑issued permit is obtained. The county permit is required for any dwelling offered for rent fewer than 30 days, regardless of whether it meets the city’s Bed & Breakfast definition.

State of Minnesota does not license STRs, but owners must collect and remit Minnesota lodging tax (6.875 % plus any local lodging tax imposed by Stearns County) and the regular sales tax on the rental price. No state‑level registration is required for the rental activity itself.

2. HOW TO START A SHORT‑TERM RENTAL BUSINESS IN RICHMOND, MN

2.1 Pre‑Launch Feasibility & Zoning Verification

| Step | Action | Reference | |------|--------|-----------| | a. Verify Zoning | Confirm the parcel is in a residential district where Bed & Breakfast is a permitted or conditional use (see Chapter 107‑III and the district‑specific use tables). | Richmond Zoning Ordinance – Chapter 107 | | b. Owner‑Occupancy Check | The operator must live on the property (owner‑occupied) for the Bed & Breakfast definition to apply. | § 107‑2 (Definitions) | | c. Review Home‑Occupation Standards | Ensure the STR will meet the limits in Section 107‑238 (signage, parking, traffic, no external alterations, etc.). | Richmond Zoning Ordinance – § 107‑238 | | d. Conditional‑Use Permit (CUP) – If Needed | If the district treats Bed & Breakfast as a conditional use, prepare a CUP application (site plan, narrative, parking, fire‑safety measures). | City Planning Department |

2.2 County Permit – Stearns County STR Program

| Step | Action | Reference | |------|--------|-----------| | a. Obtain Application Package | Download the “Short‑Term Rental Application” from the Stearns County website (link provided in Section 6). | County STR Portal | | b. Prepare Required Submittals | • Property deed or proof of ownership <br>• Site plan (lot size, parking, access) <br>• Floor plan showing bedroom/ bathroom counts <br>• Proof of liability insurance (minimum $500 k) <br>• Smoke‑detector and carbon‑monoxide certificate (as required by Minnesota Fire Code) | County Ordinance – “Permit Requirements” | | c. Submit Application & Fee | Most applications are submitted online; fee varies by unit count (e.g., $150 / unit, renewable annually). | County STR Permit | | d. Schedule Safety Inspection | County Environmental Services will contact the owner to set an inspection date (fire, health, building code). | County Ordinance – “Inspection” | | e. Receive Permit | Upon satisfactory inspection, a permit number is issued and must be displayed in the rental unit. | County Ordinance – “Permit Display” |

2.3 State Tax Registration & Remittance

| Action | Details | |--------|---------| | Register for Minnesota Tax ID | Obtain a Minnesota Tax ID (Sales/Use Tax) via the Minnesota Department of Revenue (MDR) portal – no separate STR license required. | | Collect Lodging Tax | Apply the 6.875 % state lodging tax + any local lodging tax (Stearns County currently adds 1 %). | | Collect Sales Tax | The rental price is subject to the state’s 6.875 % sales tax (the same base rate). | | File Returns | File monthly or quarterly electronic returns through the MDR’s e‑Services platform. |

2.4 Operational Setup

| Requirement | Guidance | |-------------|----------| | Maximum Stay | In the city’s Bed & Breakfast definition: ≤ 7 consecutive nights in a 30‑day window. County permits may allow longer stays (up to 29 nights). | | Occupancy Limit | Follow the local fire‑code occupancy limits (often 2 persons per bedroom plus 1 additional). | | Parking | Provide one off‑street space per guestroom; additional spaces must be shown on the site plan. | | Signage | Permitted only as allowed under Home‑Occupation standards (small, non‑illuminated, address‑only signage). | | Noise & Nuisance | Comply with local noise ordinances (generally 10 p.m. – 7 a.m. quiet hours). | | Guest Communication | Post house rules, emergency contacts, and local tax‑remittance information inside the unit. | | Record‑Keeping | Maintain a guest ledger (names, dates, addresses) for at least 3 years – required for tax reporting and county inspections. |

3. REQUIRED DOCUMENTS, PERMITS, LICENSES & GUIDELINES

3.1 City of Richmond (Municipal)

| Document / Permit | Who Issues It | Typical Fee | Where to Find | |-------------------|--------------|------------|---------------| | Conditional‑Use Permit (CUP) – if Bed & Breakfast is a conditional use in the zoning district | City Planning Commission / City Council | $150 – $300 (varies by case) | City Planning Department – application on city website (see “Apply for a Permit” link in Chapter 107). | | Home‑Occupation Registration (often bundled with CUP) | City Zoning Administrator | $50 – $100 | City Hall – Zoning Office. | | Fire / Safety Inspection (City) | Local Fire Department (or contracted inspection service) | $75 – $150 | Schedule through City Fire Marshal. | | Business Tax Registration (if applicable) | City Clerk/Treasurer | None | City Hall – Business Licensing Section. |

Note: If the STR meets the Bed & Breakfast definition exactly, no separate municipal permit may be required beyond the CUP (if applicable) and any fire‑safety inspection.

3.2 Stearns County (County)

| Document / Permit | Who Issues It | Typical Fee | Where to Find | |-------------------|--------------|------------|---------------| | Short‑Term Rental Permit (annual) | Stearns County