How Bloomington Handles Short-Term Rentals: A Practical Guide

Every city handles short-term rentals a little differently. In Bloomington, Minnesota, there are 4 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Taxes & Fees

Short-term rentals are prohibited in Bloomington under City Code Section 14.577(b), so the city does not collect a short-term rental license fee or a host-paid lodging tax on STRs. Bloomington does levy a 3 percent transient lodging tax on hotels, motels, and similar lodging establishments under authority of Minnesota Statutes Section 469.190, but that tax presumes a lawfully operating commercial lodging establishment, not a prohibited transient rental of a dwelling unit.

Key details: Code Reference: Sec. 14.577(b). Definition Section: Sec. 14.568. STR License Fee: None - prohibited. City Lodging Tax: 3% (hotels/motels). Enabling Statute: Minn. Stat. 469.190.

Operating a short-term rental in a Bloomington dwelling unit is an illegal rental under Section 14.577(b) regardless of whether the operator attempts to remit lodging or sales tax. Enforcement is handled by Bloomington Environmental Health (952-563-8934) under Chapter 14, can result in administrative citations, license denial, and abatement orders, and continued operation may be referred for prosecution as a misdemeanor under the city's general penalty provisions in Chapter 10.

This is not one of those rules that cities tend to ignore. Bloomington actively enforces its taxes & fees requirements.

Noise Rules

Because Bloomington City Code Section 14.577(b) prohibits short-term rentals of fewer than 30 consecutive days as transient lodging, there is no STR-specific noise standard. Any noise complaint at a property being used unlawfully as an STR is enforced under Bloomington's general noise ordinance in City Code Chapter 10 and the rental occupancy limits in Section 14.577, in addition to the underlying transient-lodging prohibition itself.

Key details: Code Reference: Sec. 14.577(b). STR Quiet Hours: None - STRs prohibited. General Noise Code: Chapter 10. State Backstop: Minn. Stat. 609.72. Enforcement: Police + Env. Health.

Operating any transient lodging in a dwelling unit is itself a violation of Section 14.577(b) and is referred to Environmental Health for abatement and administrative action. Noise events are separately enforceable under Chapter 10 nuisance provisions and Minnesota Statutes Section 609.72 disorderly conduct, with citations issued by Bloomington Police Department and prosecuted as misdemeanors under the city's general penalty provisions.

This is not one of those rules that cities tend to ignore. Bloomington actively enforces its noise rules requirements.

Parking Rules

Bloomington has no short-term rental parking regulations because City Code Section 14.577(b) prohibits transient lodging of fewer than 30 consecutive days in any dwelling unit. Parking at a property used as an unlawful STR is governed by the standard residential parking rules in the Bloomington Zoning Code and the on-street and overnight parking provisions in Chapter 9 of the City Code, the same rules that apply to every other home in the city.

Key details: Code Reference: Sec. 14.577(b). STR Parking Rules: None - STRs prohibited. Residential Parking: Zoning Code Ch. 19. Street Parking: City Code Ch. 9. Enforcement: Police + Env. Health.

Renting a dwelling unit for transient lodging is itself a violation of Section 14.577(b) and is referred to Environmental Health (952-563-8934) for abatement and administrative action. Parking violations such as front-yard parking, overnight street violations, or snow-emergency violations are separately enforceable under Chapter 9 traffic provisions and Chapter 19 zoning, with citations issued by Bloomington Police Department under the city's general penalty provisions.

Compared to other cities, Bloomington takes a harder line on parking rules. The enforcement and penalty structure reflects that.

Permit Requirements

Short-term rentals are prohibited in Bloomington. City Code §14.577(b) bans all rentals of less than 30 consecutive days, classified as transient lodging under §14.568. No STR license is available. The City Council reaffirmed this ban in August 2024.

Key details: STRs (<30 days): Prohibited citywide. City Code: §14.577(b). License Available: No (banned). Council Decision: Ban reaffirmed Aug 2024.

Unlicensed rental operation: $300 to $500 fine. License suspension for repeated complaints. Tax evasion referred to state revenue.

This is not one of those rules that cities tend to ignore. Bloomington actively enforces its permit requirements requirements.

The Bottom Line

Bloomington is tougher than many cities when it comes to short-term rentals. Out of the 4 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Bloomington, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Bloomington's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.