City Council approves short-term rental ordinances

The City Council has approved two ordinances regulating short-term rentals in Minneapolis — a rapidly growing part of the sharing economy.

The new regulations will allow the City to track the number of short-term rental units in Minneapolis and require hosting platforms, such as Airbnb and VRBO, to advertise only units that have registered or obtained a rental license.

Under the short-term rental ordinance, rental properties are categorized as follows:

  • A short-term rental property registration or rental license is not required for an owner who lives at the property, rents a room and stays at the property during the rental period.
  • A short-term rental property registration is required for an owner who lives at the property, rents out an entire unit and leaves the property during the rental period.
  • A short-term designation on the rental license is required for the owner of a non-occupied rental property who rents out an entire unit. Only Tier 1 or Tier 2 rental licenses are eligible for this designation.

The ordinance applies to dwelling units rented for a period of fewer than 30 consecutive days per leasing period. The short-term rental registration fee is $46. Rental licenses for Tier 1 properties will range from $70 to $175, plus $5 for each additional unit, and $112 to $350 for Tier 2 properties, plus $5 for each additional unit. You do not need to reapply if you have a valid rental license and are a Tier 1 or Tier 2 property. For more information about rental licensing fees, visit the Rental Licensing Fees webpage. The City will begin accepting short-term rental registration and license applications Dec. 1, 2017.

Short-term rental hosting platforms, which collect a fee for booking services and often provide an online platform for property owners to advertise a dwelling unit, will be required to submit an annual business license application. The annual license fee for a platform with fewer than 150 active dwelling unit listings will be $630, and for a platform with 150 or more active listings will be $5,000. The City’s Business License division will start accepting license applications for hosting platforms Dec. 1, 2017.

For more information, go to the City’s web page on short-term rentals.