St. Paul, Minnesota Short-Term Rental Regulation A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in St. Paul, Minnesota?

St. Paul's short-term rental landscape has evolved significantly since December 2017, when the city officially allowed short-term rentals throughout its boundaries. If you're looking to dive into the Airbnb or VRBO market in Minnesota's capital city, understanding the regulatory framework is crucial for success. Let's explore what you need to know to operate legally and profitably in St. Paul.

Starting a Short-Term Rental Business in St. Paul, Minnesota

Starting a short-term rental business in St. Paul requires careful planning and adherence to local regulations. The city defines a short-term rental as a dwelling or portion of a dwelling rented for less than 30 days. These properties cannot be used for commercial or social events and must comply with all city, state, and federal laws before being advertised on any platform.

The first step in establishing your STR business is obtaining a Short-Term Rental Host license from the Department of Safety and Inspections (DSI). This license is mandatory for anyone who wants to operate legally in St. Paul and must be renewed annually. The application process involves submitting detailed information about your property, including contact details and proof of insurance.

For insurance requirements, you'll need to provide an ACORD Certificate of Insurance showing coverage of at least $300,000 for the short-term rental use, listing the licensing name and rental address as the insured, and "City of Saint Paul" as the certificate holder. However, if you're exclusively using Airbnb, VRBO, or HomeAway (which are licensed short-term rental platforms in St. Paul), you can indicate this on your application instead of providing separate insurance documentation.

The licensing requirements vary based on your property type. For owner-occupied single-family homes, you'll need to submit an application with the fee and proof of insurance. Non-owner-occupied properties require an additional Fire Certificate of Occupancy, which involves an inspection to ensure the property meets safety standards.

For multi-unit buildings, the regulations become more complex. In duplexes where one unit is owner-occupied, each STR unit requires its own license but no Fire Certificate of Occupancy. However, if neither unit is owner-occupied, both the license and Fire Certificate are mandatory. Buildings with more than four units can have up to 50% of dwelling units (maximum of 4) as short-term rentals, unless a conditional use permit is obtained for more units.

Local hosts on Reddit and Bigger Pockets have shared mixed experiences with the licensing process. One Reddit user mentioned that obtaining the license was straightforward when all required documents were prepared in advance, while others have noted the importance of compliance for long-term success.

It's worth noting that before 2017, St. Paul did not have specific ordinances regulating short-term rentals, and they weren't listed as a permitted use in the Zoning Code. The current regulatory framework represents the city's effort to balance the growing popularity of platforms like Airbnb with the need to maintain neighborhood integrity and safety standards.

Beyond city regulations, you'll also need to comply with state tax requirements. In Minnesota, short-term rental hosts must collect, report, and remit sales and use taxes on the full sales price of lodging for rentals less than 30 days. If you're using platforms like Airbnb or VRBO that act as "accommodations intermediaries," they may handle tax collection on your behalf, potentially simplifying your obligations.

The enforcement of these regulations appears to be increasingly strict, according to discussions in real estate investing forums. Some hosts report having to sell properties or switch to long-term rentals after St. Paul implemented its ordinances. This suggests that the city takes compliance seriously, making it essential for prospective hosts to understand and follow all requirements from the outset.

For specific inquiries about short-term rental regulations in St. Paul, you can contact the Department of Safety and Inspections at 375 Jackson Street, Suite 220, Saint Paul, MN 55101, by phone at 651-266-8989, or via email at safetyinspections@ci.stpaul.mn.us.

Starting a short-term rental business in St. Paul requires an upfront investment in licensing and potentially property upgrades to meet safety standards, but with proper planning and compliance, it can be a rewarding venture in this vibrant Midwestern city.

Short-Term Rental Licensing Requirement in St. Paul

To operate a short-term rental (STR) in St. Paul, hosts must obtain a Short-Term Rental Host license from the Department of Safety and Inspections (DSI). This license is mandatory for anyone renting out a dwelling unit or portion thereof for periods less than 30 days. Here's a comprehensive list of requirements based on the official city website:

1. Completed Short-Term Rental Host Application form
2. Proof of insurance: An ACORD Certificate of Insurance showing coverage of at least $300,000 for the short-term rental use, listing the licensing name and rental address as the insured, and "City of Saint Paul" as the certificate holder
3. Current Fire Certificate of Occupancy for non-owner occupied units
4. If the property is non-owner occupied and lacks a current Fire Certificate of Occupancy, a completed Provisional Fire Certificate of Occupancy Application and associated fee must be submitted

• Payment of the annual license fee ($42 as of 2025)
• Signed Addendum to License Application
• Completed Workers' Compensation Form

For renewals, hosts must submit:

• Annual fee
• Signed Affidavit of Compliance
• Updated Workers' Compensation Form

It's important to note that if you're exclusively using Airbnb, VRBO, or HomeAway (which are licensed short-term rental platforms in St. Paul), you can indicate this on your application instead of providing separate insurance documentation.

To submit these requirements, hosts should visit the Department of Safety and Inspections at 375 Jackson Street, Suite 220, Saint Paul, MN 55101. Alternatively, some forms and payments may be submitted online through the city's official website.

The licensing process typically takes several weeks from the submission of a complete application to receiving the license. However, this timeline can vary depending on the volume of applications and whether a Fire Certificate of Occupancy inspection is required.

Operating an STR without a valid license in St. Paul is considered unlawful and can result in significant penalties. As of 2025, running an unlicensed STR is classified as a petty misdemeanor, carrying a fine of $300. The city has been increasing enforcement efforts in recent years, initially focusing on education but moving towards more stringent measures for non-compliant hosts.

It's crucial for hosts to ensure all existing building permits are closed out prior to the issuance of the short-term rental license. The license expires one year from the date of issuance and must be renewed annually to maintain compliance with city regulations.

By adhering to these licensing requirements, STR hosts in St. Paul can operate their rentals legally and avoid potential fines or legal issues. The city's approach aims to balance the growing popularity of short-term rentals with the need to maintain neighborhood integrity and ensure guest safety.

Required Documents for St. Paul, Minnesota Short-Term Rentals

To operate a legal short-term rental in St. Paul, you'll need to prepare and submit several key documents. Each serves a specific purpose in ensuring your rental meets the city's standards for safety and compliance. Here's what you'll need:

1. Short-Term Rental Host Application: This is the primary form that collects essential information about you as the host and your property. It must be completed in full and submitted to the Department of Safety and Inspections. The application can be obtained directly from the DSI office or through the city's official website.
2. ACORD Certificate of Insurance: This document proves you have liability coverage of at least $300,000 for your rental property. The certificate must list your name, the rental address as the insured, and "City of Saint Paul" as the certificate holder. Your insurance provider can issue this document. Note that if you exclusively use Airbnb, VRBO, or HomeAway (licensed platforms in St. Paul), you may indicate this on your application instead of providing separate insurance documentation.
3. Fire Certificate of Occupancy: Required for non-owner occupied properties, this certificate verifies your rental meets fire safety standards. For existing buildings with a current certificate, you'll need to provide documentation of the active Fire C of O. For properties without one, you must submit a Provisional Fire Certificate of Occupancy Application and pay the associated fee.
4. Workers' Compensation Form: This form verifies your compliance with Minnesota workers' compensation laws. It's required for both initial applications and renewals. The form is available from the Department of Safety and Inspections.
5. Affidavit of Compliance: For license renewals, you must sign this document affirming that your rental property remains in compliance with all city regulations. This form is typically sent to you with your renewal invoice before your license expires.
6. Change of Ownership Form: If you're purchasing a property that already has a Certificate of Occupancy and the responsible party is changing, you'll need to submit the C of O Change of Ownership form to the Department of Safety and Inspections.
7. Proof of Closed Building Permits: Any existing building permits must be closed out before a short-term rental license will be issued. This requires final inspections for any construction or renovation work that required permits.
8. Conditional Use Permit Application: If you're seeking to exceed the standard limits on the number of short-term rental units in a building (more than 4 units or 50% of units in larger buildings), you'll need to apply for this special permit through the city's planning department.

All these documents must be submitted to the Department of Safety and Inspections located at 375 Jackson Street, Suite 220, Saint Paul, MN 55101. The department can also be reached by phone at 651-266-8989 for questions regarding documentation requirements.

Ensuring all your paperwork is complete and accurate before submission will help streamline the licensing process and avoid unnecessary delays in getting your short-term rental business up and running in St. Paul.

St. Paul Short-Term Rental Taxes

Operating a short-term rental in St. Paul comes with several tax obligations that hosts must understand and comply with. These taxes are collected from guests and remitted to various government agencies. Here's a breakdown of the tax landscape for STR operators in St. Paul:

Minnesota State Sales Tax: All short-term rentals in Minnesota are subject to the state sales tax rate of 6.875% for stays less than 30 days. This tax applies to the total rental amount charged to guests and must be remitted to the Minnesota Department of Revenue.

St. Paul City Sales Tax: The city of St. Paul imposes an additional 1.5% sales tax on short-term rentals. When combined with the state sales tax, this brings the base sales tax rate to 8.375%.

St. Paul Lodging Tax: Short-term rental operators must collect a 3% lodging tax on the total rental price for stays of 30 nights or less. This tax is separate from sales taxes and funds local tourism promotion and facilities.

Transit Sales Taxes: The Minneapolis-St. Paul metro area charges additional transit-related taxes, including a 0.25% sales tax for housing and a 0.75% transportation sales tax that apply to short-term rentals.

Total Tax Burden: When all applicable taxes are combined, the total tax rate on short-term rentals in St. Paul can reach approximately 9.88%. This significant percentage should be factored into your pricing strategy to ensure profitability while remaining competitive.

It's worth noting that platforms like Airbnb and VRBO now collect and remit state taxes on behalf of hosts for bookings made through their platforms. However, hosts should verify which specific taxes are being handled by these platforms, as locally administered taxes may still be the host's responsibility to collect and remit.

Tax Deductions and Write-offs for STR Operators

Short-term rental hosts in St. Paul can offset some of their tax liability through various deductions. Here are potential write-offs to discuss with your tax professional:

1. Mortgage interest on the property used for short-term rentals
2. Property taxes paid on your rental property
3. Rental insurance premiums
4. Utilities including electricity, gas, water, internet, and cable TV
5. Cleaning and maintenance costs between guest stays
6. Guest supplies such as toiletries, coffee, and welcome gifts
7. Repairs and renovations necessary for the property
8. Furniture and appliance depreciation
9. Marketing expenses including professional photography and listing fees
10. Professional services such as accountant and attorney fees
11. License and permit fees paid to the city of St. Paul

If you only rent part of your property or rent it for both short-term and personal use, you'll need to allocate these expenses appropriately. For example, if you rent your entire home 10% of the year, you'll typically be able to deduct only 10% of expenses like mortgage interest and property taxes.

It's important to note that if you qualify for the "14-day rule" (renting your property for 14 days or less per year), your rental income is tax-free, but you cannot claim any of these deductions for the rental portion of your property use.

Keeping detailed records of all rental-related expenses is crucial for maximizing your legitimate deductions while ensuring compliance with tax laws. Consider working with a tax professional who specializes in short-term rental properties to optimize your tax strategy.

Minnesota Wide Short-Term Rental Rules

Short-term rental hosts in St. Paul must not only comply with city-specific regulations but also adhere to Minnesota state laws that govern vacation rentals. Understanding these statewide requirements is essential for operating a compliant and successful STR business.

Sales and Use Tax Obligations

Minnesota state law requires all short-term rental operators to collect, report, and remit sales and use taxes on the full sales price of lodging for stays less than 30 days. As of 2025, the Minnesota state sales tax rate is 6.875%. This tax must be collected and remitted to the Minnesota Department of Revenue unless your booking platform acts as an "accommodations intermediary" and handles this on your behalf.

If you're using platforms like Airbnb or VRBO (which qualify as accommodations intermediaries under Minnesota law), you may not need to register separately to collect sales and use taxes, as these platforms are responsible for registration as retailers and typically handle tax collection. However, it's crucial to verify exactly which taxes your platform collects, as you may still be responsible for certain local taxes.

Fair Housing Compliance

All short-term rental operators in Minnesota must comply with federal fair housing laws. This means you cannot discriminate against potential guests based on protected characteristics such as race, color, religion, national origin, sex, familial status, or disability. Violating these laws could result in federal lawsuits.

Insurance Requirements

While specific insurance requirements are typically set at the city level, Minnesota state law requires that all rental properties maintain adequate liability coverage. For short-term rentals, this typically means having specialized short-term rental insurance or a homeowner's policy that explicitly covers short-term rental activity.

Health and Safety Standards

Minnesota enforces statewide health and safety standards that apply to all rental properties. Short-term rentals must meet basic habitability requirements, including functioning heating systems, adequate plumbing, and electrical systems that meet state building codes.

By understanding and complying with these Minnesota-wide regulations in addition to St. Paul's specific requirements, short-term rental hosts can ensure they're operating legally while avoiding potential fines and penalties. This comprehensive approach to compliance helps protect both your business interests and the safety and satisfaction of your guests.

Does St. Paul Strictly Enforce STR Rules?

St. Paul has demonstrated a clear commitment to enforcing its short-term rental regulations since they were officially implemented in December 2017. The city's approach to enforcement has become increasingly stringent over time, with a dedicated enforcement team and structured audit process in place to ensure compliance.

St. Paul is not particularly Airbnb-friendly compared to other cities. While the city didn't outright ban short-term rentals, it created a comprehensive regulatory framework that imposes significant requirements on hosts. The $40 annual fee for hosts might seem reasonable, but the $10,000 platform fee imposed on companies like Airbnb and VRBO indicates the city's serious approach to regulation. In fact, when the regulations were first approved, Airbnb spokesperson Ben Breit expressed disappointment, stating that "the city is moving forward with an ordinance that will lead to low compliance and imposes platform requirements that violate federal law," and even suggested the company might challenge the regulations in court.

In conclusion, St. Paul takes its short-term rental regulations seriously and enforces them with growing strictness. The city is not particularly Airbnb-friendly compared to other markets with looser regulations, and many hosts have found it challenging to operate profitably within the regulatory framework.

How to Start a Short-Term Rental Business in St. Paul

Starting a short-term rental business in St. Paul requires careful planning and adherence to local regulations. Follow these steps to launch your STR venture successfully:

1. Research Local Regulations: Begin by thoroughly familiarizing yourself with St. Paul's short-term rental ordinances and zoning regulations. The city allows STRs throughout its boundaries but has specific rules in place to ensure compliance with zoning, building codes, and safety standards. Take time to understand occupancy limits, minimum stay requirements, and any neighborhood-specific restrictions that might affect your property.
2. Obtain a Short-Term Rental Host License: Apply for a Short-Term Rental Host license from the Department of Safety and Inspections (DSI). This license is mandatory for legal operation and must be renewed annually. The application process involves submitting detailed information about your property, including contact details and insurance information. The license fee is relatively affordable compared to other cities, making St. Paul an accessible market for new hosts.
3. Secure a Fire Certificate of Occupancy: For non-owner occupied properties, you'll need to obtain a Fire Certificate of Occupancy to ensure your rental meets fire safety standards. This involves an inspection of your property to verify compliance with safety regulations. If your property doesn't currently have a certificate, you'll need to submit a Provisional Fire Certificate of Occupancy Application and pay the associated fee.
4. Obtain Proper Insurance Coverage: Secure appropriate insurance coverage for your short-term rental property. You'll need to provide an ACORD Certificate of Insurance showing coverage of at least $300,000 for the short-term rental use, listing your name and rental address as the insured, and "City of Saint Paul" as the certificate holder. If you're exclusively using platforms like Airbnb or VRBO, you may be able to indicate this on your application instead of providing separate insurance documentation.
5. Register for Tax Collection: Register with the Minnesota Department of Revenue to collect and remit the required state and local taxes. This includes the state sales tax (6.875%), St. Paul city sales tax (1.5%), lodging tax (3%), and transit-related taxes. Some platforms may collect certain taxes on your behalf, but you should verify which specific taxes are being handled and ensure you're compliant with all tax obligations.
6. Prepare Your Property: Make your property guest-ready by ensuring it's clean, well-maintained, and equipped with essential amenities. Consider incorporating popular features like smart home technology, cozy décor, and locally-sourced artwork to make your listing stand out. Invest in quality furnishings and appliances to enhance guest experience and potentially command higher rates.
7. Create Compelling Listings: Develop engaging listings for your property on platforms like Airbnb and VRBO. Use high-quality photos, write detailed descriptions highlighting unique features, and emphasize proximity to local attractions. Be transparent about house rules and expectations to attract suitable guests and minimize potential issues.
8. Establish Operating Procedure: Create efficient systems for guest communication, check-in/check-out processes, cleaning, and maintenance. Consider using property management software to streamline operations. Establish relationships with reliable local service providers like cleaners, handymen, and property managers to help manage your STR efficiently.
9. Implement Dynamic Pricing: Use dynamic pricing tools to adjust your rates based on demand, seasonality, and local events. St. Paul experiences seasonal fluctuations, with peak tourism during summer months and slowdowns in winter. Strategic pricing will help maximize revenue while maintaining competitive occupancy rates throughout the year.
10. Maintain Ongoing Compliance: Stay informed about any updates or changes to regulations and ensure continuous compliance with all requirements. Keep detailed records of your rental activity, maintain your property to high standards, and promptly renew your licenses and certificates to avoid penalties or operational disruptions.

By following these steps and proactively addressing regulatory requirements, you can establish a successful and compliant short-term rental business in St. Paul. The city's rich history, diverse culture, and natural beauty make it an attractive destination for travelers, offering good potential for STR operators who are willing to navigate the regulatory landscape.

Who to Contact in St. Paul about Short-Term Rental Regulations and Zoning?

For inquiries regarding short-term rental regulations and zoning in St. Paul, hosts should reach out to the Department of Safety and Inspections (DSI). This department is the primary point of contact for all matters related to short-term rental licensing, compliance, and zoning requirements. Here's how you can get in touch:

Department of Safety and Inspections (DSI)

1. Address: 375 Jackson Street, Suite 220, Saint Paul, MN 55101
2. Phone: 651-266-8989
3. Fax: 651-266-9099
4. Email: safetyinspections@ci.stpaul.mn.us
5. DSI Main Office/Permit Desk Hours: Monday to Friday: 8:00 am - 4:00 pm (Closed on Weekends & Holidays)

Building Inspectors' Office:

1. Phone: 651-266-9002
2. Hours: Monday to Friday, 7:30 am - 9:00 am

For specific inquiries, you may also want to contact:

Zoning Section:

Phone: 651-266-9008

Building Plan Review Section:

Phone: 651-266-9007 (for information on Building Code construction and permit requirements)

Heritage Preservation Commission Staff:

Phone: 651-266-9078 (for information on historic districts or sites, design guidelines)

In addition to official city contacts, short-term rental hosts in St. Paul can benefit from joining local communities and forums to share experiences and stay informed about regulations. Some useful groups include:

1. Minnesota Airbnb Hosts Facebook Group
2. Minnesota Short-Term Rental Alliance (MNSTRA)
3. r/TwinCities subreddit (often discusses local rental regulations)
4. Bigger Pockets forums (Real Estate section, Minnesota subforum)

These communities can provide valuable insights from experienced hosts navigating St. Paul's short-term rental landscape. However, always verify information from these sources with official city channels to ensure compliance with current regulations.