Ramsey County, Minnesota Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Ramsey County, Minnesota?

Short-term rentals (STRs) through platforms like Airbnb and VRBO have become increasingly popular in Ramsey County, Minnesota in recent years. However, hosts looking to start an STR business need to be aware of the various regulations and licensing requirements at both the county and city level.

Starting a Short-Term Rental Business in Ramsey County

To legally operate a short-term rental in Ramsey County, hosts must obtain the proper licenses and permits from their city. The specific requirements vary depending on the property type and whether the rental is owner-occupied:

In St. Paul, a Short-Term Rental Host license is required to rent out any dwelling unit or portion thereof for periods of less than 30 days. The application requires proof of insurance, a fire certificate of occupancy for non-owner occupied units, and payment of an annual license fee. There are also limits on the number of licenses available based on property type.

Minneapolis has similar licensing requirements, including a $50 annual fee, liability insurance, and notifying neighbors. As of March 2022, the city caps hosts to operating one short-term rental property besides their primary residence.

Some Ramsey County suburbs like Roseville are also adopting STR ordinances to limit the location and number of rentals allowed. One host on the Bigger Pockets forums reported having to sell properties or switch to long-term rentals after zoning changes imposed 30-day minimum stays in their area.

Overall, aspiring STR hosts in Ramsey County need to carefully research the regulations in their specific municipality. Enforcement of these rules has increased in recent years as the industry has grown. Failure to comply can result in fines or properties being shut down.

The key is to get properly licensed from the start and stay up-to-date on any regulatory changes that could impact your business. Connecting with other local STR investors and host groups can provide helpful guidance in navigating the process.

With the proper planning and due diligence, operating a short-term rental can still be a profitable venture in Ramsey County for those willing to play by the rules. The area remains a popular destination for travelers, with hundreds of active Airbnb listings.

Short-Term Rental Licensing Requirements in Ramsey County

While Ramsey County itself does not directly regulate short-term rentals, the cities within the county have their own licensing and permitting requirements that hosts must follow. The process varies depending on the specific municipality:

In St. Paul, short-term rental hosts must obtain a Short-Term Rental Host License from the Department of Safety and Inspections (DSI) for each property they plan to rent out for periods of less than 30 days. The application requires:

• A completed Short-Term Rental Host Application form
• Proof of insurance with at least $300,000 in liability coverage (unless only listing on Airbnb, VRBO or HomeAway)
• A current Fire Certificate of Occupancy for non-owner occupied units
• Payment of the annual license fee based on the DSI Fee Table

Licenses must be renewed yearly by submitting a signed Affidavit of Compliance, Workers' Compensation Form, and the renewal fee. DSI will conduct an investigation before issuing or renewing any license.

Failure to obtain the proper Short-Term Rental Host License in St. Paul is considered unlawful and could result in fines or legal action against non-compliant properties. The city has been increasing enforcement in recent years as the popularity of platforms like Airbnb has grown.

Other Ramsey County cities like Roseville, Maplewood, and White Bear Lake have also implemented STR regulations and licensing programs that hosts must comply with. The requirements and fees can vary, so it's important for hosts to contact their local city offices for the most up-to-date and accurate information.

Overall, the short-term rental licensing process in Ramsey County cities typically takes several weeks from submitting a complete application to receiving the license. Hosts should begin the process well in advance of when they hope to start renting out their property.

With the growing scrutiny on STRs, it's crucial that hosts in Ramsey County familiarize themselves with all applicable regulations to avoid potential penalties and ensure the long-term viability of their rental business. Working with an experienced local STR consultant can help navigate the complexities of remaining compliant.

Required Documents for Ramsey County Short-Term Rentals

While Ramsey County itself does not directly regulate short-term rentals, hosts must comply with the licensing and permitting requirements of the specific city where their rental property is located. The documents needed can vary, but generally include:

1. Short-Term Rental License Application: This form, obtained from the local city office, collects basic information about the host, property, and intended use. It is the first step in the licensing process and must be completed in full.
2. Proof of Insurance: Hosts must submit an ACORD Certificate of Insurance showing liability coverage of at least $300,000 for the rental property. The certificate should list the host's name, rental address, and have the city as the certificate holder. Some cities waive this requirement if renting only through licensed platforms like Airbnb or VRBO that provide insurance.
3. Fire Certificate of Occupancy: For non-owner occupied rentals in cities like St. Paul, a current Fire Certificate of Occupancy is required to verify the property meets fire safety standards. This involves an inspection and approval from the local fire marshal.
4. Affidavit of Compliance: When renewing a short-term rental license each year, St. Paul hosts must sign and submit an affidavit affirming they remain in compliance with all city regulations.
5. Workers' Compensation Form: This state-required form, filed with the license renewal, clarifies whether the host has employees and is properly insured.
6. Payment of License Fees: Hosts must pay the applicable license fee, which can range from $50 to several hundred dollars annually depending on the city and type of rental. Fees are typically paid when submitting the initial application and upon each yearly renewal.

In addition to these common documents, some Ramsey County cities may have additional requirements like property inspections, zoning checks, or notifying neighbors of the rental use. Hosts should always consult their local city offices and municipal codes for the most accurate and up-to-date information on required short-term rental documents.

Failing to obtain or renew the necessary licenses and paperwork can result in fines, revocation of rental permits, or properties being ordered to cease operations. With cities across Ramsey County stepping up enforcement of STR regulations, it's crucial for hosts to stay informed and compliant to avoid jeopardizing their business.

Ramsey County Short-Term Rental Taxes

In addition to obtaining the proper licenses and permits, short-term rental hosts in Ramsey County must collect and remit various state and local taxes on their rental income. The specific taxes and rates can vary depending on the location of the property within the county.

1. State Sales Tax: The Minnesota state sales tax rate of 6.875% applies to short-term rentals of less than 30 days. This tax is collected from guests as part of the rental price and then remitted to the Minnesota Department of Revenue.
2. Local Sales and Special Taxes: Many cities and counties in Minnesota also impose additional local sales taxes ranging from 0.5% to 3% on short-term rentals. For example, the City of St. Paul has a 0.5% sales tax that applies to lodging. These local taxes are collected in addition to the state sales tax.
3. Lodging Taxes: Some municipalities in Ramsey County have specific lodging taxes that apply to short-term rentals. In St. Paul, there is a 3% lodging tax on the total rental price for stays of 30 nights or less. This tax is separate from the sales taxes and goes towards funding local tourism promotion and facilities.

It's important for hosts to carefully track and collect the appropriate taxes on their short-term rental income. Failure to do so can result in audits, fines, and other penalties from state and local tax authorities. Hosts should consult with a tax professional to ensure they are in full compliance.

Possible Deductions and Write-Offs

Short-term rental hosts may be able to deduct certain expenses related to their rental business on their income taxes. Some common deductible expenses include:

1. Mortgage interest and property taxes
2. Utilities like electricity, water, and internet
3. Cleaning and maintenance costs
4. Supplies for guests like toiletries, linens, and coffee
5. Fees paid to rental platforms like Airbnb or VRBO
6. Depreciation of furniture and appliances used in the rental

Hosts should keep detailed records and receipts for all rental-related expenses. Consulting with a tax advisor can help identify and maximize any available deductions to offset rental income and reduce overall tax liability.

By understanding the tax obligations and strategically tracking expenses, short-term rental hosts in Ramsey County can stay compliant and operate a profitable business. As regulations and tax rates can change over time, it's crucial to stay informed and adapt to any updates in order to avoid potential issues down the road.

Minnesota-Wide Short-Term Rental Rules

In addition to the specific regulations in Ramsey County and its cities, short-term rental hosts must also comply with several state-level laws and requirements that apply throughout Minnesota:

State Sales Tax: The Minnesota Department of Revenue requires all short-term rental hosts to collect and remit the 6.875% state sales tax on rentals of less than 30 days. This tax is collected from guests as part of the rental price and then paid to the state on a regular basis.

State Lodging License: The Minnesota Department of Health (MDH) requires any property rented out for less than 30 days to have a state lodging license. This involves an inspection to ensure the rental meets health and safety standards. The initial license fee ranges from $165 to $250 depending on the number of units, with a $40 renewal fee each year.

Fire Safety Requirements: The Minnesota State Fire Code applies to all short-term rentals, mandating working smoke and carbon monoxide detectors, fire extinguishers, and clear emergency exit routes. Local fire departments may conduct inspections to verify compliance.

Landlord-Tenant Laws: While not specifically designed for short-term rentals, Minnesota's landlord-tenant laws around issues like property maintenance, security deposits, and evictions provide a general legal framework that hosts need to be aware of.

Hosts who fail to comply with these state-level regulations risk facing fines, penalties, and potentially having their rental shut down. The MDH has the authority to levy fines of up to $10,000 for operating without a proper lodging license.

It's important to note that these Minnesota-wide rules are in addition to, not in place of, any regulations imposed by Ramsey County or local cities. Hosts need to ensure they are meeting requirements at all levels of government in order to legally operate a short-term rental business.

Navigating this complex web of state and local regulations can be challenging. Many hosts choose to work with a Minnesota-based short-term rental consultant or property manager to help ensure full compliance and avoid any potential issues. With the proper planning and oversight, operating an STR can still be a viable investment opportunity in Ramsey County and throughout Minnesota.

Does Ramsey County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, Ramsey County, and its cities appear to be increasingly strict in enforcing short-term rental regulations compared to some other areas. Many hosts report having to sell properties or switch to long-term rentals after the county and cities like St. Paul implemented new ordinances limiting STRs in recent years.

While Ramsey County itself does not directly regulate short-term rentals, the cities within the county have been passing more restrictive rules. St. Paul's 2017 ordinance requires hosts to obtain an annual license for each STR property, with the number of licenses capped based on property type. Hosts must meet various requirements like having insurance, passing inspections, and paying fees.

Other Ramsey County cities like Roseville are also adopting STR ordinances that limit the location and number of rentals allowed, sometimes imposing 30-day minimum stays that make it difficult to operate short-term. One host on Bigger Pockets reported having to sell or convert their Roseville rental properties after such changes.

So while some hosts may still attempt to skirt the rules, Ramsey County and its cities do not seem particularly Airbnb friendly compared to other markets with looser regulations. The county has been increasing enforcement in recent years as the popularity of STRs has grown.

Hosts looking to operate short-term rentals in Ramsey County should carefully research the specific rules for their property's location, as the regulations can vary significantly between cities. Getting properly licensed and complying with all the local requirements from the start is crucial to avoid issues down the road. Operating STRs despite the rules is increasingly risky as enforcement ramps up.

How to Start a Short-Term Rental Business in Ramsey County

Starting a short-term rental business in Ramsey County requires careful planning and compliance with various local regulations. Here are the key steps to get started:

1. Research local regulations: Before investing in a rental property, thoroughly review the short-term rental ordinances for the specific city where the property is located. Cities within Ramsey County like St. Paul have detailed requirements around licensing, property types, occupancy limits, and more that hosts must follow.
2. Obtain necessary licenses and permits: Apply for the required Short-Term Rental Host License from your city, which typically involves submitting an application, proof of insurance, passing inspections, and paying an annual fee. If the property is not owner-occupied, additional requirements like a Fire Certificate of Occupancy may apply. Begin the licensing process well in advance of when you plan to start renting, as it can take several weeks to complete.
3. Prepare your property: Ensure the rental unit is safe, clean, and well-maintained. Install necessary safety features like smoke detectors, fire extinguishers, and carbon monoxide alarms. Consider making cosmetic upgrades to make the space more appealing to guests. Tailor your property's amenities and decor to your target guest demographic, such as families, business travelers, or tourists.
4. Set up your business entity: Consider forming an LLC or other business structure to protect your personal assets and establish a professional image. Obtain a federal EIN number and register your business with the Minnesota Secretary of State.
5. Create a compelling listing: Take high-quality photos of your property and write an engaging description that highlights its best features and amenities. Be transparent about any quirks or limitations. Study other successful listings in your area for inspiration on how to make yours stand out.
6. Establish house rules and rental agreements: Develop a clear set of house rules that guests must agree to, covering issues like maximum occupancy, noise levels, parking, and pet policies. Use a rental agreement that protects your rights and limits your liability as a host.
7. Implement a dynamic pricing strategy: Research local events, seasonal demand, and comparable listings to optimize your nightly rates. Consider using automated pricing tools that adjust rates based on market conditions. Don't race to the bottom on price. Delivering an exceptional guest experience can justify premium rates.
8. Automate and outsource: Take advantage of tools like smart locks, noise monitoring devices, and cleaning management software to streamline your operations. Consider hiring a reputable short-term rental management company to handle day-to-day tasks.
9. Promote your listing: In addition to listing on popular platforms like Airbnb and VRBO, promote your rental on social media, travel blogs, and other channels where your target guests spend time. Encourage satisfied guests to leave reviews, which can be powerful social proof for future potential bookings.
10. Keep detailed records: Maintain organized records of all income and expenses associated with your rental business. This will make tax season much easier and provide documentation in case of any disputes or legal issues.

By following these steps and staying attuned to the evolving regulatory landscape in Ramsey County, aspiring short-term rental hosts can launch a compliant and successful business. While the process requires diligence, the potential rewards of joining this growing industry make it an appealing entrepreneurial path for many.

Who to Contact in Ramsey County about Short-Term Rental Regulations and Zoning?

For questions about short-term rental regulations and zoning in Ramsey County, hosts should contact the specific city where their rental property is located, as the cities are primarily responsible for regulating STRs within the county.

In St. Paul, the Department of Safety and Inspections (DSI) oversees the licensing and enforcement of short-term rentals. Hosts can contact DSI for information on license applications, renewals, inspections, and zoning requirements:

1. Phone: 651-266-8989
2. Email: DSIInformation@ci.stpaul.mn.us
3. Address: 375 Jackson Street, Suite 220, Saint Paul, MN 55101

For zoning-specific questions in St. Paul, hosts can reach out to the DSI Zoning Section at 651-266-9008.

In other Ramsey County cities like Roseville, Maplewood, and White Bear Lake, hosts should contact their respective city planning or community development departments for the most current information on STR ordinances and zoning rules. Contact information can usually be found on the city's official website.

Ramsey County property owners may also find it helpful to connect with other local STR hosts and investors to share experiences and get advice on navigating the regulatory landscape. Some online communities to check out include:

1. Ramsey County Short-Term Rental Hosts Facebook Group
2. St. Paul Airbnb Hosts Forum on Airbnb.com
3. Minnesota Short-Term Rental Alliance (MnSTRA)
4. Bigger Pockets Minnesota Real Estate Investors Forum

By building relationships with both local officials and fellow hosts, STR operators in Ramsey County can stay informed of any regulatory changes and learn best practices for running a compliant and successful rental business.

What Do Airbnb Hosts in Ramsey County on Reddit and Bigger Pockets Think about Local Regulations?

Hosts on real estate investing forums like Bigger Pockets and Reddit have shared mixed experiences navigating the regulatory landscape for short-term rentals in Ramsey County. While some have found success, others report challenges with increasingly restrictive city ordinances.

On the Bigger Pockets forums, one host described having to sell or convert their Roseville rental properties to long-term after the city imposed a 30-day minimum stay that made it difficult to operate short-term. This highlights the risk of cities changing regulations after hosts have already invested in STR properties.

Another Bigger Pockets user considering starting an Airbnb business in the Twin Cities area was advised to carefully research the specific rules for each municipality, as they can vary significantly within Ramsey County. Hosts emphasized the importance of getting properly licensed and complying with all local requirements from the start to avoid issues down the road.

In the r/AirBnB_Hosts subreddit, a post from a prospective host looking to purchase a duplex in St. Paul to live in one unit and Airbnb the other received feedback about the city's strict rental density and licensing limitations. Commenters noted that in addition to the standard rental license, St. Paul requires a separate short-term rental license that can be difficult to obtain in some areas due to the city's "one rental per block" rule and overall caps on the number of licenses.

Overall, while Ramsey County cities like St. Paul have not outright banned short-term rentals like some other major metros, the consensus among local hosts is that the regulatory environment has gotten tougher in recent years. Rising license fees, inspection requirements, zoning restrictions, and in some cases prohibitive minimum stay lengths are making it harder for casual hosts to get started with STRs.

Hosts in Ramsey County advise others to do thorough due diligence on the local rules before buying a property to use as a short-term rental. Even then, the risk remains that cities could enact new ordinances that negatively impact the viability of STRs. Connecting with other local hosts through meetups and online forums can provide valuable guidance in navigating the complexities of remaining compliant.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.