Location, Location, Restrictions – Why You Should Check With Your City Before Listing Your Twin Cities Short-Term Rental

In recent years, many Minneapolis and St Paul duplex and investment property owners have discovered the lucrative niche of offering short-term rentals on popular sites like Airbnb and VRBO.COM.

In sought-after neighborhoods near popular destinations, investors have achieved returns 30 and 40 percent higher than those earned by leasing to long-term residents.

Of course, with already low vacancy rates leading to housing shortages, and large amounts of tax revenue generated by area hotels, this trend toward vacation rentals has not come without pushback from a number of city governments. In fact, many local suburbs have passed ordinances either restricting or banning short-term rentals entirely.

If you’re considering buying a property that is either already a short-term rental, or you would like to operate under that model, narrowing the geographic search is challenging. Investors needed to either call each individual city under consideration, or hope to find a free Internet resource that provided a master list.

Below are a list of cities in the seven-county metro area and their restrictions on short-term rentals. As always, you should call the planning and zoning department in each individual city before buying a property. Many of the cities contacted did state city councils were discussing imposing restrictions on the short-term rental market.

• Afton – No restrictions on short-term rentals, though that may change soon.
• Andover – Property must either have a single-family rental license and external inspection or multi-family rental license and interior inspection.
• Anoka – No restrictions.
• Apple Valley – No short-term rentals allowed.
• Arden Hills – Short-term rentals allowed. Rental license required.
• Blaine – Short -term rentals allowed. Property must have a rental license, as well as an interior and exterior inspection.
• Bloomington – Short-term rentals are not allowed.
• Brooklyn Center – did not receive return call.
• Brooklyn Park –
• Burnsville – Allowed. Short-term rental license required. Form is available online.
• Chanhassen – Short-term rentals allowed.
• Chaska – Short-term rentals allowed. Property must have a valid rental license.
• Chisago – Short-term rentals not allowed.
• Columbia Heights – calls unreturned.
• Columbus – Short-term rentals allowed.
• Coon Rapids – Short-term rentals not allowed.
• Cottage Grove – Short-term rentals allowed with valid rental license.
• Crystal – Short-term rentals allowed with valid rental license.
• Eagan – Short-term rentals are prohibited.
• East Bethel- Short-term rentals allowed with a valid rental license and building inspection.
• Edina – Short-term rentals prohibited.
• Eden Prairie – Short-term rentals allowed with permit.
• Elk River – Short-term rentals allowed. Rental license required.
• Falcon Heights – No restrictions on short-term rentals.
• Forest Lake – Short-term rentals prohibited.
• Fridley – Short-term rentals allowed with valid rental license.
• Golden Valley – Short-term rentals allowed with valid rental license.
• Ham Lake – Short-term rentals allowed with valid rental license.
• Hastings – Short-term rentals allowed with valid rental license.
• Hopkins – Short-term rentals allowed in most locations, but there are some zoning restrictions. A rental license is required. Check with the city for restrictions. 952-935-8474.
• Inver Grove Heights – No restrictions on short-term rentals.
• Jordan – Restrictions on short-term rentals depending on the zoning district. Call with an address to learn whether or not it’s prohibited. 952-492-7940.
• Lakeville – Short-term rentals allowed if the owner lives on the property. The property may not be rented out to more than two separate parties per month. An administrative is permit required.
• Lauderdale – Short-term rentals allowed with valid rental license.
• Lilydale – No restrictions on short-term rentals.
• Lino Lakes – No restrictions on short-term rentals.
• Little Canada – Short-term rentals allowed with valid rental license.
• Maple Grove – No restrictions on short-term rentals.
• Mahtomedi – Short-term rentals prohibited.
• Marine On St Croix – Temporary prohibition on short-term rentals.
• Mendota Heights – Calls unreturned.
• Minnetonka – No restrictions on short-term rentals unless the property is larger than a single-family home, in which case there may be. Call them with your address and they will let you know if there are any restrictions.
• Mounds View – No restrictions on short-term rentals.
• New Brighton – Calls unreturned.
• New Hope – Allowed with valid rental license.
• New Market – No restrictions on short-term rentals.
• Northfield – Short-term rentals allowed with rental license, and provided the property meets the proper zoning laws. Call and provide a specific address for confirmation (507)645-3005.
• North St Paul – Short-term rentals allowed with a current rental license.
• Oakdale – No restrictions on short-term rentals.
• Plymouth – Short-term rentals permitted with current rental license.
• Prior Lake – Short-term rentals allowed with a temporary rental permit.
• Richfield – Allowed with a current rental license.
• Robbinsdale – Short-term rentals prohibited.
• Rosemount – Short-term rentals allowed with a current rental license. However, the property may not have more than two guests.
• Roseville – Property owner must have a business license and a short-term rental permit. No minimum or maximum stay required.
• Savage – Short-term rentals prohibited unless the guest stays for more than two weeks.
• St Francis – Short-term rentals prohibited.
• Shakopee – Calls unreturned.
• Shoreview – Short-term rentals allowed with a current rental license. Property may not have more than two guests at a time.
• Shorewood – Short-term rentals prohibited.
• St. Paul – Short-term rentals allowed with a rental license.
• Stillwater – Short-term rentals allowed with a special lease permit and short-term rental license. Approval is contingent upon the application for the rental license.
• St Louis Park – Stays less than six months in length are prohibited.
• Vadnais Heights – Short-term rentals allowed with a current rental license.
• Victoria – Calls were not returned.
• Wayzata – No restrictions on short-term rentals.
• White Bear Lake – Rental license is required. Check local zoning laws for any restrictions on short-term rentals.
• West St . Paul – A rental license is required for all short-term rentals.