Reviewed and updated 6/30/2020

Short-term rentals are now legal in Minneapolis & St. Paul with regulations for hosts including registration. According to the Minneapolis ordinance, there are different requirements depending on the type of short-term rental. The following is from the Minneapolis government website: Short-Term Rental Registration.

  • A short-term rental property registration or rental license isn’t required for an owner who lives at the property, rents a room, and stays at the property during the rental period.
  • A short-term rental property registration is required for an owner who lives at the property, rents out an entire unit, and leaves the property during the rental period.
  • A rental license is required for the owner of a non-occupied rental property who rents out an entire unit. Only Tier 1 or Tier 2 rental licenses are eligible for this designation.

St. Paul residents are required to obtain a short-term rental license, register their property with the city, and pay certain taxes and fees.

Update: According to St. Paul’s Short-Term Rental Basics, hosts must provide “proof of appropriate property insurance”. Currently, the City doesn’t have specific requirements on the type of property or liability coverage. Despite the vague requirement, if you’re a host in St. Paul, you should check with your current insurance carrier to make sure you have proper insurance coverage. Your policy should include coverage for your building (house, cottage, condo), contents, income, and provide commercial general liability (the only liability coverage sufficient for a short-term rental business). 

Proper Insurance for short-term rental properties

As short-term rental insurance requirements crop up across the U.S., it’s important that you make sure you have the best coverage possible to protect you and your business. Traditional homeowners policies exclude coverage for “business activity” (i.e. short-term rental), meaning, the policy you currently have may not be enough.

With a policy from Proper Insurance, you will have comprehensive short-term rental insurance to cover your primary residence or investment property. With coverage for building, contents, income, and liability ($1,000,000 commercial general liability and an additional $1,000,000 if the property is also your primary residence), you can have peace of mind as you run your profitable business.

Call Proper Insurance today to discuss the best policy for your short-term rental business – (888) 631-6680!

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