Airbnb & VRBO Performance in Minneapolis Minnesota.

Short-Term Rental Regulations in Minneapolis, Minnesota for 2024

Licensing and Registration Requirements

• Short-Term Rental License: Hosts must obtain a short-term rental license for non-owner-occupied dwelling units. For homesteaded properties where the host resides, an active registration is necessary.
• License Fees: A $50 annual fee for short-term rental licenses, with varying fees for different types of properties ($46 for homesteaded, $70-$175 for non-homesteaded).

Operational Requirements

• Management Plan: Hosts must submit a written management plan detailing how the short-term rental will be managed, including contact information, guest policies, and parking arrangements.
• Liability Insurance: Proof of liability insurance is required to protect the city and neighbors from potential damages.
• Neighbor Notification: Hosts must notify adjacent property owners of their intent to operate a short-term rental using a provided template.
• Floor Plan: A floor plan of the unit must be posted in the rental property.
• Rental License Number: The short-term rental license number must be included in all online listings.

Ownership and Occupancy Limits

• One Property Limit: Hosts are limited to one short-term rental property in addition to their primary residence.
• Building Unit Cap: In buildings with 20 or more units, no more than 10% of the units can be used as short-term rentals.

Compliance and Enforcement

• Local Contact Information: Hosts must provide local contact person information as part of the application process.
• Certificate of Occupancy: A certificate of occupancy confirming property safety must be submitted.
• Signed Compliance Statement: A signed statement affirming compliance with all applicable laws is required.
• Penalties for Non-Compliance: Failure to comply can result in fines, warnings, and potential revocation of the short-term rental license.

Tax Obligations

• Tax Collection and Remittance: Hosts are responsible for collecting and remitting applicable taxes from guests. Non-compliance can result in fines and interest penalties.

Exemptions

• Room Rentals: Hosts renting a room in their primary residence are exempt from registration and licensing requirements.

Top Neighborhoods Generating Airbnb Revenue in Minneapolis, Minnesota

1. Downtown West

• Appeal: Downtown West is a hub of activity, offering easy access to live music, restaurants, bars, and entertainment options. The dense layout and extensive public transportation, including the Minneapolis Skyway System, make it ideal for pedestrians. Its central location ensures proximity to key attractions like the Convention Center and the Minneapolis Art Institute.

2. Uptown

• Appeal: Uptown is renowned for its vibrant atmosphere, walkable streets, and proximity to Lake Bde Maka Ska. Guests can enjoy a variety of restaurants, bars, shopping, and outdoor activities such as biking and walking along the lake's trails. The neighborhood's high Walk Score and bikeability make it a favorite among guests.

3. North Loop (The Warehouse District)

• Appeal: This neighborhood is a hip hotspot with a young, creative, and industrial vibe. Converted warehouses now house trendy bars, hip eateries, and boutiques. The area's walkability, great access to public transit, and greenspaces along the Mississippi River make it highly appealing to guests, especially young professionals.

4. Linden Hills

• Appeal: Linden Hills offers a picturesque setting with beautiful tree-lined streets, two tranquil lakes (Bde Maka Ska and Lake Harriet), and plenty of outdoor activities. The neighborhood's eclectic vibe, independent shops, and eateries, along with its small-town feel, attract families and those who love the outdoors.

5. Loring Park

• Appeal: Loring Park is home to the highly-rated 300 Clifton B&B, which offers a unique mansion experience with luxurious rooms, common areas, and amenities like a hot tub, game room, and movie lounge. The neighborhood's quiet and safe environment, along with its walkable distance to downtown attractions, makes it a popular choice for guests.

These neighborhoods are favored by Airbnb guests due to their unique blend of amenities, location, and overall guest experience, making them top generators of Airbnb revenue in Minneapolis.

Tips for Furnishing and Designing an Inviting Airbnb in Minneapolis, Minnesota

Define Your Property's Aesthetic

• Align your furniture and decor with the unique style of Minneapolis, considering the city's cultural and architectural influences.

Focus on Key Areas

• Prioritize the bedroom, living room, and kitchen, as these areas have the most impact on guests' comfort and experience.

Choose Functional and Comfortable Furniture

• Opt for beds with good quality mattresses (at least 8 inches thick) and consider memory foam for durability.
• Select sofas with washable covers and consider sofa beds to increase guest capacity.

Utilize Smart Storage

• Incorporate space-saving furniture like beds with drawers, wall hooks, and ottomans with storage to keep the space tidy and functional.

Enhance with Local Touches

• Add unique pieces from local markets, art fairs, or collaborations with local artists to give your space a personal and authentic touch.

Consider Multi-functional Furniture

• Use furniture that serves multiple purposes, such as folding tables, sofa beds, or dining tables that can double as workspaces.

Maintain a Theme

• If you choose a theme, ensure it complements the style of your home and the city. For example, a Minnesota-themed decor could include local artwork and state-themed accessories.

Ensure Easy Maintenance

• Pick furniture that is easy to clean and maintain. Choose durable materials and avoid items like real or faux leather.

Optimize Layout and Lighting

• Measure your rooms and plan the layout to maximize space and natural light. Avoid blocking windows and ensure there is ample space to move around.

Add Essential Amenities

• Provide necessary items like high-quality towels, basic toiletries, a hairdryer, and a first-aid kit. Ensure there is adequate storage for guests' personal items.

Incorporate Mirrors and Decor

• Use mirrors to make the space feel bigger and brighter. Add decorative elements like plants, throw blankets, and framed pictures to enhance the interior design without cluttering the space.

Budget Wisely

• Set a budget and differentiate between essential and non-essential items. Focus on quality over quantity, especially for key items like beds and linens.

Consider Accessibility

• Make your Airbnb accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms.

Timing of Updates

• Plan furniture updates during the off-season or short gaps between bookings to minimize disruption to your guests.

Discover Minneapolis: Top Attractions and Insider Tips for Your Stay

Must-Visit Attractions

• Minnehaha Park: A popular park featuring the 53-foot Minnehaha Falls, hiking trails, and picnic areas.
• Minneapolis Institute of Art: A world-class art museum with a diverse collection of over 89,000 works of art.
• Minneapolis Sculpture Garden: Home to the iconic Spoonbridge and Cherry sculpture, this garden is a must-visit for art and nature lovers.
• Mill City Museum: Located in the ruins of the Washburn A Mill, this museum offers a glimpse into Minneapolis's industrial past.
• Guthrie Theater: A renowned theater known for its innovative productions and stunning architecture.
• Nickelodeon Universe: An indoor theme park at the Mall of America, featuring roller coasters, a zip line, and other thrilling attractions.

Cultural and Entertainment Highlights

• Eat Street: A vibrant street lined with diverse restaurants, cafes, and shops, offering a taste of global cuisine.
• Uptown: Known for its lively atmosphere, Uptown features a mix of boutiques, restaurants, and entertainment venues.
• Science Museum of Minnesota: A great place for families, with interactive exhibits and a giant screen theater.
• Hell's Kitchen: A unique restaurant offering a dining experience with a twist, known for its eclectic menu and atmosphere.

Insider Tips

• Explore the Chain of Lakes: Minneapolis is famous for its chain of lakes, including Lake Calhoun, Lake Harriet, and Lake of the Isles. These lakes offer beautiful walking paths, picnic spots, and water activities.
• Visit the Mall of America: Besides shopping, the Mall of America offers a variety of dining options, an aquarium at SEA LIFE, and the Nickelodeon Universe theme park.
• Follow in Prince's Footsteps: Visit landmarks like the Sound 80 recording studio and the Minneapolis nightclub featured in "Purple Rain" to experience the city's rich music history.
• Enjoy Local Cuisine: Minneapolis is known for its diverse dining scene, including the nation's best Somali cuisine, classic diner fare, and authentic birria tacos.

Additional Tips for Guests

• Take Advantage of Tax-Free Shopping: Minnesota does not tax clothing or shoes, making shopping at local boutiques and the Mall of America even more appealing.
• Attend Local Events: The Twin Cities host hundreds of annual events, from small-town celebrations to one of the largest state fairs in the country.
• Explore the Mississippi River: The Mississippi River runs through the city, offering scenic views, boat tours, and walking paths along its banks.

By sharing these attractions and insider tips, you can help your guests make the most of their stay in Minneapolis and experience the unique charm of the city.

Practical Tips to Run a Successful Short Term Rental Business in Minneapolis, Minnesota

To ensure a smooth and profitable short-term rental business in Minneapolis, several practical tips can make a significant difference. Here are some key considerations:

Noise Regulations and Guest Communication

Inform your guests about quiet hours and noise regulations to maintain a harmonious environment for both your guests and neighbors. Including this information in your digital and physical house manual helps set clear expectations.

Comprehensive House Manual

Create a detailed digital and physical house manual that includes essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also outline house rules, guest policies, and any specific regulations mandated by the city.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks and ensure that guests have all the necessary access codes before their arrival.

Parking Instructions

Include detailed parking instructions with photos in your house manual to help guests navigate any parking challenges. This can prevent confusion and potential issues with neighbors or local authorities.

By implementing these strategies, you can enhance the guest experience, reduce potential conflicts, and ensure compliance with Minneapolis's short-term rental regulations, ultimately contributing to the success of your business.

Here is a brief list of house cleaning providers in Minneapolis, Minnesota:

House Cleaning Services

Karen's Green Cleaning

• Offers regular, deep, and bi-monthly cleanings
• Services include sweeping, vacuuming, mopping, dishes, dusting, and more
• Uses green cleaning supplies
• Contact: 612-299-1918.

Imagine Maids of Minneapolis

• Provides standard, deep, and same-day cleaning services
• Services include floor cleaning, sanitizing, trash removal, dish washing, and organizing
• Also offers post-construction and event cleaning
• Contact: 763-324-8699.

Mexicleaning

• Offers standard cleaning, deep cleaning, post-construction cleaning, and move-in/move-out cleaning
• Flexible scheduling including same-day and recurring cleanings
• Contact: 651-705-4778.

The Maids of Minneapolis

• Specializes in house cleaning for health
• Services include vacuuming, dusting, and detailed cleaning of every room
• Emphasizes a happy and cohesive team for consistent results
• Contact: Available through their website.

Mill City Cleaning

• Provides standard routine cleanings, move-out/move-in cleaning, and deep cleaning services
• Additional services include carpet steaming and window cleaning
• Contact: 612-822-2012.

These services cater to various cleaning needs and offer different packages and scheduling options.

Short-Term Rental Management Fees in Minneapolis, Minnesota

In Minneapolis, Minnesota, the fees for managing short-term rentals can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. This level of service ensures that all aspects of the rental are handled professionally, from attracting guests to managing the property's upkeep. On the other hand, basic services that may only include listing and booking management can be less expensive. Additionally, property owners may incur extra fees for services like cleaning, repairs, or design enhancements, which can further impact the overall cost of short-term rental management.