Minneapolis Approves Short-Term Rental Ordinances

Minneapolis Approves Short-Term Rental Ordinances Photo: Wikimedia Commons

November 01, 2017 12:46 PM

The Minneapolis City Council Friday approved a pair of ordinances designed to regulate short-term rentals in the city, allowing for tracking the number of such units and requiring hosting platforms, such as Airbnb, to advertise only units that have registered or obtained a rental license.

The city had not previously had a short-term rental policy in place.

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RELATED: Vote on St. Paul Short-Term Rental Ordinance Delayed

According to a release: 

  • A short-term rental property registration or rental license will not be required for an owner who lives at the property, rents a room and stays at the property during the entire rental period.
  • One will be required for an owner who lives at the property, rents out an entire unit and leaves the property at any point during the rental period.
  • A short-term designation on a rental license is also required for the owner of a non-occupied rental property who rents out an entire unit.

A guide to rental licensing in the city sets three tiers: Tier 1 is defined as "Well-maintained, managed, meets minimum housing code, and use very few city services." Tier 2 is defined as "Maintained to minimum housing code and use some city services." Tier 3 is defined as "Poorly maintained or managed and require excessive city services."

RELATED: St. Paul City Council Could Finalize New Short-Term Rental Regulations

The ordinances passed Friday apply to units rented for a period of fewer than 30 consecutive days per leasing period. The short-term rental registration fee is set at $46. Rental licenses for Tier 1 properties will range from $70 to $175, plus $5 for each additional unit. For Tier 2 properties, rental licenses will range between $112 and $350, plus $5 for each additional unit.

Those with a valid rental license for a Tier 1 or 2 property do not need to reapply. 

The city will begin accepting short-term rental registration and license applications on Dec. 1.

In addition, short-term rental hosting platforms that collect a booking fee, and often provide the online platform to advertise properties, will be required to submit an annual business license application. The annual license fee for a platform with fewer than 150 active dwelling units will be $630. The fee for those with 150 or more will be $5,000.

License applications for hosting platforms will also begin being accepted on Dec. 1.

In a statement, Airbnb Midwest spokesperson Ben Breit said Friday that the company feels the new regulations violates its legal rights:

"We're appreciative to Councilman (Jacob) Frey and his colleagues for their efforts throughout the legislative process," the statement read. "Unfortunately, the ordinance still violates the legal rights of Airbnb and its community. We will consider all legal options to protect innovation and the privacy of Minneapolis residents."

Members of the St. Paul City Council delayed a vote on new regulations in that city earlier this month.

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Frank Rajkowski

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