Minnesota Short Term Rental Law
Short Term Rentals in Minnesota
Many Minnesota investors and property management companies have become increasingly involved in the short term rental market over the past several years. This market is rapidly expanding, despite a temporary slow due to Covid-19. In fact, the number of short-term rental properties in Minnesota has been expanding at an unprecedented rate, as more and more of the population elects to stay at a short term rental instead of a hotel or other lodging. While this growth has opened a great deal of opportunity for investors and those looking to add an additional source of income, Minnesota law has slowly started to catch up to this niche. As laws have changed and Minnesota cities and counties have increasingly regulated this field, many property owners and management providers have found themselves confused by these new laws.
What is a short term rental?
A short term rental, otherwise known as a vacation rental, is short term lodging usually provided to guests seeking lodging similar to a hotel. In other words, a short term rental usually provides lodging for one night or multiple nights, but rarely longer than a couple weeks. This lodging is temporary, not permanent or extended, and often is designed to accommodate vacationers or those traveling on business.
What are some short term rental options in Minnesota?
Most short term rental property owners list their properties on vacation rental websites to maximize exposure to potential guests. Many of these websites are well known, while other fledging websites have attempted to break into the market. Several of the most common are:
What Minnesota laws govern short term rentals?
Minnesota law has been relatively slow in catching up to the short term rental market. Short term rental regulation is, at least for now, mainly relegated to the city and county level, with many cities and counties choosing to create and enforce different regulations. This can be confusing for property owners, and often can lead to expensive and time consuming headaches. Before a prospective owner chooses to buy a property that they wish to list as a short term rental, they should consider all controlling city and county restrictions and licensing requirements. While licensing requirements are not as stringent or widespread as those surrounding traditional rental properties, those requirements appear to be tightening.
For example, the city of St. Paul requires that all short term rental properties be licensed by the city, and requires a licensing fee and application be submitted, along with several other documents. Similarly, Hennepin County has added restrictions on short term rentals, and has differentiated them from hotels and other lodging establishments.
As an added complication to an area that is already complex, Minnesota requires that property owners collect sales tax on their short term rentals (unless the rental is an isolated and non-regular event). Some providers may assist with this, but running afoul of this tax provision can result in serious consequences to a Minnesota short term rental property owner.
Do I need a Minnesota short term rental lawyer?
Our team of Minnesota short term rental lawyers assist clients with advice and representation concerning their short term rental properties. This includes drafting lease and guest agreements, reviewing and advising owners about compliance with local requirements, and when necessary, litigating disputes that arise. If you own or manage a short term rental, call the Minnesota short term rental attorneys at RAM Law PLLC or submit our online submission form to set up a consultation.