Are you curious about the exciting world of short-term rentals (STR) in the scenic state of Minnesota? Get ready for an engaging exploration of the vacation rental landscape in this beautiful region!

In this write-up, we'll dive deep into the world of short-term rentals in Minnesota, shedding light on everything from legal aspects to the essential details that can enhance your hosting experience. We'll tackle the vital questions every aspiring host should consider before stepping into the short-term rental business in Minnesota.

In Minnesota, there isn't a singular, statewide definition for short-term rental properties. Instead, the state's approach is largely decentralized, leaving most of the regulatory power to local cities, towns, and counties. Generally, short-term rentals are understood as rentals of 30 consecutive days or less, although some places may use a slightly different duration, like 28 days. Each municipality in Minnesota can create its own local ordinances, which can cover aspects like permits, occupancy limits, inspection requirements, and eligibility for short-term rentals. Therefore, the specific rules can vary significantly depending on the location within the state.

In Minnesota, the regulations regarding the length of stay for short-term rentals define short-term lodging as rentals that are less than 30 days. Additionally, rentals for a period of 30 days or more are also considered short-term if there is no enforceable written lease agreement in place that requires the customer to give notice of their intention to end the lease. This means that any rental lasting less than 30 days, or longer rentals without a specific lease agreement, fall under the category of short-term rentals. These rentals are subject to sales tax and potentially other local taxes depending on the location within the state.

If you're renting out a room, apartment, house, or other dwelling on a short-term basis, you're generally responsible for collecting, filing, and remitting short-term rental taxes to Minnesota tax authorities. However, if you only rent out your property occasionally or as an isolated incident, you may not be required to collect these taxes.

The location of your rental determines which tax jurisdictions you must report to, the taxes you need to collect, and the appropriate tax rates. The taxes that may apply to your short-term rental in Minnesota include state sales tax, state-administered special local tax, and local sales, use, or lodging tax.

It’s also important to register with tax authorities before you begin collecting taxes on your short-term rental. Depending on your location, this could include registering with the Minnesota Department of Revenue and possibly local tax authorities.

Additionally, all lodging-related services provided within a guest room in Minnesota are taxable. This includes items such as food and drink, cleaning fees, pet fees, rollaway bed fees, extra person fees, and charges for providing services such as laundry.