ADUs in Minneapolis can be rented long-term subject to Rental Licensing under Code Chapter 244. Short-term rentals require a Minneapolis Short-Term Rental License under Chapter 339, including platform registration and host/non-host rules. Minnesota Stat. Β§504B preempts municipal rent control unless authorized at the state level.
Minneapolis regulates residential rentals through Chapter 244 (Maintenance and Housing Code) β every unit rented to a non-owner must have an active rental license, with three tiers (Tier 1 standard, Tier 2 intermediate inspections, Tier 3 frequent inspections based on compliance history). ADUs are licensed as separate units. Short-term rentals (under 30 consecutive days) are regulated under Chapter 339 (Lodging Establishments and Short-Term Rentals), adopted 2018 and amended in 2021. Key STR rules: (1) Host-occupied STRs (owner present during stay) require a Short-Term Rental Host License; (2) Non-host-occupied STRs (entire unit, no owner present) require a Short-Term Rental Non-Host License and are limited to a maximum of 90 rental nights per year if the property is not the owner's primary residence; (3) Platform registration is required (Airbnb, VRBO must verify license numbers); (4) Annual license fees ranging from $46 to $300 depending on type; (5) Lodging tax: Minnesota Sales Tax (6.875%) + Minneapolis Lodging Tax (3%) + Hennepin County Tax. Long-term rentals (30+ days) are not subject to Chapter 339 but require a Chapter 244 Rental License. Minnesota state law (Minn. Stat. Β§504B) generally preempts municipal rent control, though St. Paul adopted rent stabilization in 2021 under a citizen ballot measure β Minneapolis voters narrowly defeated a similar measure in 2021.
Unlicensed long-term rental: Ch. 244 violation, administrative penalty, possible Tenant Anti-Harassment claim. Unlicensed STR: $500 per night under Β§339.220, license revocation, platform delisting. Failure to collect lodging tax: Minnesota Department of Revenue enforcement.
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