GSS Property Management · Minneapolis STR Compliance Guide
How to Get a Minneapolis Short-Term Rental License
Every STR host in Minneapolis is required by law to hold a license. Operating without one carries fines of up to $2,000. Here's the complete process — the rules, the paperwork, and how to keep more of your money — step by step.
Allow 2–6 weeks for processing. Apply before your first booking — do not list your property on Airbnb or VRBO until your license is approved.
What compliant hosts save
Do it right, and the license pays for itself
Staying compliant isn't just about avoiding trouble — it's money back in your pocket. Here's what our hosts protect every year.
$250
Workshop discount
Complete the City's free Rental Property Owner Workshop and you may qualify for a $250 discount.
25%
Late fee avoided
Renew by the March 1 deadline (before March 15) and you skip the mandatory 25% late penalty entirely.
$2,000
Fines avoided
Staying licensed keeps you clear of fines of up to $2,000 for operating without a license.
Executive summary & permitting rules
Before you apply, understand the four rules that decide whether — and how many times — you can operate a short-term rental in Minneapolis.
30-day threshold
Any stay of 30 days or fewer requires a short-term rental (STR) license — including listings on Airbnb and VRBO. Longer stays fall under a standard residential rental license instead.
One STR per owner
You may operate one short-term rental in addition to your primary home. This limit fully extends to LLCs and to individuals managing multiple LLCs — you cannot stack licenses across entities.
Extra units need a standard license
Any additional units you own beyond your one allowed STR require a standard rental license rather than a second STR license.
10% cap in large buildings
In multi-family buildings with 20 or more units, no more than 10% of the total units can operate as short-term rentals.
Property requirement matrix
Match your situation to the license you need:
| Your situation | What you need |
|---|---|
| Your primary home, or one additional property, rented for 30 days or less | Short-Term Rental (STR) license |
| A second (or more) short-term unit beyond your one allowance | Not permitted as an STR — requires a standard rental license |
| A spare room rented while you remain living on-site | Exempt — no STR license required |
| A lease longer than 30 continuous days | Standard residential rental license |
| A unit inside a building with 20 or more units | STR allowed only while the building stays under the 10% cap |
License exemptions
You are exempt from obtaining an STR license if:
You are renting out a spare room while remaining on-site in your home.
The lease term exceeds 30 continuous days — this instead requires a standard residential rental license.
Type 1 vs. Type 2 — which license do you need?
If you rent any property in Minneapolis for fewer than 30 consecutive days — on any platform (Airbnb, VRBO, Booking.com, or direct) — you need a Minneapolis STR license, unless one of the exemptions above applies. Which type you need depends on whether you live at the property.
| Type 1 | Type 2 | |
|---|---|---|
| Owner presence | Owner/occupant lives at the property | Owner does not live there (investment property) |
| Max rental nights | 180 nights/year | 60 nights/year (or unlimited in eligible zones — verify your zoning) |
| Typical host | Renting your home or spare room while traveling | Remote investor or property manager |
| Inspection required | Generally no | Fire safety inspection required before license issued |
What you'll need before you apply
Property address and legal description (on your deed or tax statement)
Proof of property ownership or landlord authorization (if renting)
Homeowner's or landlord's insurance with STR coverage — standard homeowner's insurance often excludes STR activity
Minnesota state ID or driver's license
Federal Tax ID or Social Security Number (for fee payment)
Short-term rental registration fee ($64; broader rental license fees vary by units and property tier — verify current fees before applying)
For Type 2: fire safety inspection documentation (see Step 3)
Verify your zoning
Not every Minneapolis property is eligible for a Type 2 STR license. Check your zoning on the City of Minneapolis zoning map (minneapolismn.gov → CPED → Zoning).
General guidance (verify with the city — zoning maps change):
R1–R2A (low-density residential)
Type 1 only in most cases
R3+ (medium/high-density residential)
Type 2 generally allowed
Commercial / mixed-use zones
Type 2 generally allowed
TOD (transit-oriented)
Verify with 311
Get STR-specific insurance
Standard homeowner's or renter's insurance does not cover short-term rental activity. You need a policy that explicitly covers STR hosting. Airbnb's AirCover provides some liability protection but does not replace a property insurance policy.
Proper Insurance
STR-specific, widely used by Airbnb hosts
CBIZ
STR endorsement on an existing policy
Slice
On-demand, per-night coverage option
Fire safety requirements (Type 2 properties)
Type 2 licenses require a city fire safety inspection. Prepare by verifying all items below before your scheduled inspection:
Smoke detector on every level and in every sleeping room
CO detector within 10 feet of every sleeping room
2.5 lb ABC fire extinguisher in kitchen, fully charged
All sleeping room windows meet egress size requirements (at least 20" wide, 24" tall, 5.7 sq ft opening)
Emergency exit information posted — a simple printed floor plan with exit arrows is sufficient
Submit your application
Online: Start on the City of Minneapolis Rental Licenses page and complete the application online. Fill in all fields, upload your insurance certificate and any required inspection documents, and pay the fee online.
In person: Minneapolis Service Center, Public Service Building, 505 S. Fourth Ave., Minneapolis, MN 55415. Bring the two required forms — the STR Application Packet and the Rental Property Checklist.
Minneapolis Service Center · Public Service Building · 505 S. Fourth Ave. · Minneapolis, MN 55415
Schedule your inspection (Type 2)
After submission, Minneapolis will contact you to schedule a fire safety inspection within 2–4 weeks. The inspector checks the items from Step 3. If anything fails, you have 10 business days to correct and request a re-inspection.
Receive your license
After approval, your license is mailed and also available digitally in the 311 portal. Your license number must be displayed in your Airbnb listing(under "Local laws" in listing settings) and on any advertising. Failure to display it is a separate violation from operating without a license.
Renew on time — and avoid the 25% penalty
All Minneapolis rental license renewals are due annually on March 1. Renewals processed after March 15 incur a mandatory 25% late fee — a cost that is entirely avoidable. Set a calendar reminder: an expired license carries the same penalties as no license, and renewing on time keeps that 25% in your pocket.
Fees, savings & deadlines
Save $250 with a free workshop
The City of Minneapolis offers free Rental Property Owner Workshops for owners and managers. Completing one may qualify you for a $250 discount — the fastest money a host can save on licensing.
Rental Property Owner WorkshopBase fees
A short-term rental registration is $64. Broader rental license fees depend on the number of units and the condition, or tier, of the property. Check the current schedule before you pay.
License Fees — City of MinneapolisRenewal deadline: March 1 annually. Renewals after March 15 add a mandatory 25% late fee. Mark both dates now — on a typical license, renewing on time saves you a quarter of the fee every year.
Official sources
Rules and fees change — always confirm against the City of Minneapolis directly:
Free Help
Want help with your application?
We've been through the Minneapolis STR licensing process ourselves. If you're using GSS for cleaning, we'll walk through your application on a free 30-minute call at no charge.
Continue reading
Prefer to reach us directly? We're available 9am–7pm CT, 7 days a week.