Warroad, Minnesota
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Warroad, MN
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STR Regulations for Warroad, Minnesota
(Prepared for investors planning to launch or operate a short‑term rental in Warroad, MN – last updated June 2025)
1. Overview – Are Short‑Term Rentals Allowed?
Explicit answer: The City of Warroad does not have a city‑specific ordinance that either bans short‑term rentals or creates a separate licensing regime for them. The Warroad Code of Ordinances (2017 S‑1 Supplement) contains no chapter or section that references “short‑term rental,” “vacation rental,” “transient lodging,” or similar terms. Consequently, short‑term rentals are permitted in Warroad as a residential‑use activity, provided the property complies with the city’s general zoning, building, fire, health, and public‑health codes as well as Minnesota state statutes governing transient lodging.
If you are operating a unit for stays of 30 days or less, you must meet the statewide registration, tax, and safety requirements outlined in Sections 4‑5 below.
What do Airbnb hosts actually earn in Warroad?
Warroad hosts earn a median $25,131/year with $192 ADR and 46% occupancy.
Top performers pull in $29,036+ per year.
See the full Warroad market breakdown2. How to Start a Short‑Term Rental Business in Warroad
| Step | Action | Why It Matters | |------|--------|----------------| | 2.1 Verify Zoning & Land‑Use | Contact the City Administrator or Planning Commission (Chapter 32, §§ 32.35‑32.39) to confirm the parcel’s zoning (e.g., R‑1 Residential, R‑2 Multi‑Family, C‑1 Commercial). | Many residential zones permit “lodging” only as a conditional use (see Chapter 157 – Zoning). A conditional‑use permit (CUP) may be required before you can rent the property on a short‑term basis. | | 2.2 Obtain a Conditional‑Use Permit (CUP) if required | Submit an application to the Planning Commission using the City’s CUP form (available from the City Administrator). Include site plans, parking layout, fire‑safety measures, and any proposed exterior alterations. | The City Council ultimately approves CUPs; a CUP ensures the activity is compatible with surrounding land uses and imposes any conditions (parking, signage, noise limits). | | 2.3 Register the Business with Minnesota | • Minnesota Department of Revenue (DOR) – obtain a Sales‑Tax/Transient‑Occupancy‑Tax account. <br>• Minnesota Department of Health (MDH) – complete the “Short‑Term Rental Registration” (required for units offering lodging to ≤ 30 days). | State law (M.S. 325F.85‑.89) classifies any stay ≤ 30 days as “transient lodging.” Registration is mandatory, and the state levies a 6.875 % lodging tax (plus any county tax). | | 2.4 Secure Fire‑Safety & Building Approvals | • Fire Marshal inspection (Chapter 93 – Fire Prevention). <br>• Building Permit for any interior remodeling, new egress windows, or installation of smoke/CO detectors. <br>• Roof‑ and‑structure safety verification. | Fire code compliance is enforced by the City Fire Marshal (see §§ 32.17‑32.20). The Marshal can perform on‑site inspections and issue a “Fire‑Safety Certificate.” | | 2.5 Health & Sanitation Permit | Apply to the Roseau County Health Department for a “Lodging‑Facility Permit.” Ensure compliance with Chapter 32 (Board of Health §§ 32.01‑32.04) and the Minnesota Food‑service rules (if you provide breakfast or kitchen facilities). | Minnesota law (M.S. 325F.85) requires health standards for lodging. The County Health Department will check water, sewage, garbage
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Overview of Warroad
Warroad is a small city of about 1,800 residents in Roseau County, in the far northwestern corner of Minnesota, perched along the southern shore of Lake of the Woods not far from the Canadian border. The community carries a distinctly outdoorsy, sports-loving character, and it is widely known as "Hockey Town USA" thanks to an extraordinary legacy of NHL-caliber players produced from such a small population. Beyond its hockey pedigree, Warroad serves as a gateway to some of Minnesota's most expansive lake country and forest wilderness. The nearest major city is Grand Forks, North Dakota, roughly 100 miles to the southwest, while Winnipeg, Manitoba lies about two hours to the north across the international border, and the Twin Cities are approximately five to six hours southeast.
Lake of the Woods is the headline natural attraction in the area, a vast body of water spanning more than 1,600 square miles across Minnesota, Ontario, and Manitoba. It is one of the most celebrated fishing destinations in the Upper Midwest, renowned for walleye, sauger, northern pike, and lake sturgeon, and its many islands, bays, and inlets draw boaters, anglers, and houseboaters throughout the warmer months. The lake is essentially at Warroad's doorstep, with public accesses and marinas just minutes from the city center.
A short drive west of town brings visitors to Zippel Bay State Park, a roughly 2,900-acre park on the northern reaches of Lake of the Woods. The park offers a sandy swimming beach, forested hiking trails, and camping facilities, providing a quieter alternative to busier state parks further south. Its location makes it a natural day trip or overnight stop for travelers exploring the Lake of the Woods region.
Downtown Warroad anchors the city's identity, where the famous outdoor hockey rink stands as the civic heart and a working monument to the community's sporting tradition. Year-round ice facilities reinforce the town's commitment to the sport, while small shops, cafes, and the headquarters of Marvin Windows and Doors give the central streets a quiet, locally rooted feel. A few blocks from the lakeshore, this compact downtown is easily walkable from most lodging options.
For short-term rental investors, Warroad combines a small-town setting with several genuine draw cards: world-class fishing and lake recreation in summer, a vibrant ice hockey culture in winter, and proximity to some of the most unspoiled wilderness in the Upper Midwest. The community's relative isolation limits competition, while its identity as a regional hub for outdoor and sporting tourism provides a dependable seasonal flow of visitors seeking a quieter alternative to Minnesota's more heavily visited lake destinations.
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