Short-Term Rentals in Minneapolis, MN

Every city handles short-term rentals a little differently. In Minneapolis, Minnesota, there are 10 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.

Insurance Requirements

Minneapolis requires short-term rental hosts to carry liability insurance of at least $300,000, or book exclusively through a platform providing equivalent coverage, before renting out a registered or licensed unit.

Key details: Minimum coverage: $300,000 aggregate liability. Alternative: platform providing equal coverage. Citation: § 244.1845(c)(4). Administered by: director of regulatory services.

Operating a short-term rental without the required $300,000 liability coverage (or equivalent platform-provided coverage) is noncompliance that can support denial, cancellation, or revocation of the short-term rental registration or license after notice and a hearing.

Host Platform Liability

Minneapolis requires Airbnb, Vrbo and similar booking platforms to hold a hosting platform license and to pull unlicensed listings from their sites.

Key details: License required: Yes, annual hosting-platform license. Governing chapter: Minneapolis Code Ch. 351. Records retention: 3 years of booking data. Delisting duty: Must remove unlicensed listings on notice. Revocation bar: 5-year ban on new license.

Adverse license action under § 351.80: fines, license conditions, suspension, denial or revocation; a revoked or denied applicant is barred from holding another platform license for five years. Enforcement also runs through § 1.30 citations and Chapter 2 administrative offenses per § 351.90.

Compared to other cities, Minneapolis takes a harder line on host platform liability. The enforcement and penalty structure reflects that.

Repeat Violator Strikes

A Minneapolis short-term rental hosting platform that gets its license revoked or denied for violating Chapter 351 can't obtain a new one, under the same or a different name, for five years, and Tier III-classified rental dwellings are barred from short-term rental use entirely.

Key details: Platform re-license ban: 5 years after revocation or denial. Ban applies to: same or different business name. Tier III rental dwellings: ineligible for short-term rental use. Governing chapters: Ch. 351 (platforms) and Ch. 244 (hosts). Enforced by: licensing official, director of regulatory services.

Operating an unlicensed hosting platform, or one whose license was revoked or denied, is enforceable under § 1.30 and Chapter 2 as an administrative offense, plus injunction or abatement under § 351.90; a revoked operator cannot relicense under any name for five years.

Compared to other cities, Minneapolis takes a harder line on repeat violator strikes. The enforcement and penalty structure reflects that.

Primary-Residence-Only Rule

Minneapolis splits short-term rentals into two tracks: a lighter registration for owner-occupied (homestead) units and full rental licensing for non-homestead units.

Key details: Owner-occupied, owner present during stay: no registration needed. Homestead but not present during rental: registration required. Non-homestead (not owner-occupied): full rental dwelling license required. Buildings under 20 units: max 1 STR license per owner.

Operating a non-homestead short-term rental without the rental dwelling license, or a homestead unit without required registration, exposes the owner to license denial, revocation, or administrative citation under Chapter 2.

Taxes & Fees

Minneapolis STRs collect 6.875 percent MN sales tax, 3 percent Minneapolis lodging tax, 2.5 percent Minneapolis entertainment tax, plus county taxes. Platforms like Airbnb remit most automatically.

Key details: MN sales tax: 6.875 percent. City lodging: 3 percent. City entertainment: 2.5 percent. County adds: ~0.65 percent. Platform remittance: Airbnb/VRBO yes.

Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [Minneapolis code enforcement](https://www.revisor.mn.gov/statutes/cite/469.190) directly for current fines, enforcement procedures, and hearing options.

Compared to other cities, Minneapolis takes a harder line on taxes & fees. The enforcement and penalty structure reflects that.

Short-Term Rental Permits

Minneapolis requires a rental dwelling license for non-homestead short-term rentals and a short-term rental registration for owner-occupied homestead units before renting to guests through Airbnb or similar platforms.

Key details: Homestead property: short-term rental registration required. Non-homestead property: rental dwelling license required. Occupancy cap: 10 persons maximum per unit. Large-building cap: 10% of units (20+ unit buildings). Liability insurance: $300,000 minimum coverage.

Operating without the required license or registration is grounds for denial, suspension, or revocation of the rental dwelling license, plus removal from short-term rental platforms and code enforcement citations.

Compared to other cities, Minneapolis takes a harder line on short-term rental permits. The enforcement and penalty structure reflects that.

Short-Term Rental Parking Rules

Minneapolis requires short-term rental hosts in buildings under 20 units to submit a management plan addressing parking, noise and trash before the city issues a short-term rental dwelling license.

Key details: Applies to: non-homestead STRs, buildings under 20 units. Plan must address: noise, trash, parking. Required for: short-term rental dwelling license. Format set by: director of regulatory services.

Failure to submit the required parking management plan blocks issuance of the short-term rental license; an existing registration can also be denied, canceled or revoked for noncompliance after notice and hearing under Chapter 2.

Occupancy Limits

Minneapolis caps every short-term rental at ten occupants regardless of the property's size, a flat limit set in the city's short-term rental ordinance and enforced alongside registration and licensing rules.

Key details: Occupancy cap: 10 persons per unit. Applies: Regardless of property size. Section: § 244.1845(c)(5). Enforced by: Director of regulatory services.

Operating an unregistered or unlicensed short-term rental, or exceeding the ten-person cap, can lead to denial, suspension, or revocation of the rental license or short-term rental registration by the director of regulatory services.

Noise Rules

Minneapolis requires licensed short-term rentals in small buildings to submit a management plan covering noise, trash, and parking before they can operate.

Key details: Applies to: Buildings under 20 units. Plan must address: Noise, trash, parking. Also required: 24-hour complaint phone line. Also required: Neighbor notification letter. Citation: Code of Ordinances § 244.1845(e).

Renting without an approved management plan means the unit fails to qualify for the required short-term rental dwelling license; operating under a denied, canceled, or revoked license or registration exposes the owner to the same enforcement path as any unlicensed rental dwelling, including denial of the license after a hearing under Chapter 2.

Host Presence Rule

Homestead short-term rentals in Minneapolis need only a registration, not a full rental license, when the owner lives in the unit and stays there during the rental period; renting the whole home while away instead requires the registration without that exemption.

Key details: Exemption trigger: Owner occupies unit during rental. Partial rental only: Only a portion of unit rented. Homestead but absent: Registration still required, no license. Non-homestead property: Full rental dwelling license required. Citation: § 244.1845(b) and (d).

Operating a homestead short-term rental without the required registration, or exceeding the host-presence exemption's scope, is enforceable under Chapter 244's licensing provisions: registration denial, revocation, or administrative citation.

The Bottom Line

Minneapolis is tougher than many cities when it comes to short-term rentals. Out of the 10 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Minneapolis, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

Keep in mind that Minneapolis can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.