Overview: Are Short-Term Rentals Allowed in Monticello, MN?

Based on available evidence, short-term rentals appear to be permitted in Monticello, MN under the city's existing rental unit licensing framework, though the city is currently evaluating specific regulations for short-term rentals as part of their Planning Commission workplan for 2025.

The city has established a comprehensive rental housing ordinance that requires all rental properties to be licensed annually, with inspections every other year. While specific short-term rental regulations are under development, investors can operate under the current rental licensing requirements until more specific STR rules are implemented.

How to Start a Short-Term Rental Business in Monticello

Step 1: Property Compliance Verification

Before establishing your STR, ensure your property meets all local rental housing standards:

• Property must comply with the International Property Maintenance Code
• Property must meet Minnesota State Building Code requirements
• Property must pass required safety inspections

Step 2: Obtain Required Rental License

Monticello requires all rental properties to obtain an annual rental license:

• Submit complete application to the Building Safety Department
• Application must be signed prior to submission
• License will be issued upon receipt of completed application, payment of required fee, and passing of required inspections
• Note: 2026 Residential Rental License Applications are now past due and fees are doubled - plan accordingly for 2027

Step 3: Schedule Required Inspections

• Inspections are required every other year for licensed rental properties
• Schedule inspections by calling Building Safety Department at (763) 295-3060
• Inspections cannot be scheduled until application and fee have been received
• Appointments require 24-hour notice

Step 4: Ongoing Compliance

• Maintain current rental license status
• Comply with all inspection schedules
• Address any nuisance or code enforcement issues promptly

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements

• Residential Rental License Application (updated annually)
• Property must pass required inspections
• Compliance with City Rental Housing Ordinance
• Compliance with International Property Maintenance Code

Key Regulatory Documents

1. City International Property Maintenance Code Ordinance
2. City Rental Housing Ordinance
3. Rental Property Checklist

Application Submission Requirements

• Completed and signed application
• Required fee payment
• Scheduled inspection appointment
• Property compliance verification

Specific Regulations for Short-Term Rentals

Current Status: Under Development

The Monticello Planning Commission is currently evaluating specific regulations for short-term rentals as part of their 2025 workplan activities. This suggests that comprehensive STR-specific regulations are being developed but may not yet be finalized.

Current Applicable Regulations

City-Level Requirements:

• All rental properties must be licensed annually
• Properties must pass inspections every other year
• Properties must comply with International Property Maintenance Code
• Properties must comply with Minnesota State Building Code

Zoning Considerations:

• STR operations must comply with existing zoning district requirements
• Commercial lodging is permitted in certain zoning districts (as evidenced by approved hotel developments)

Safety and Code Requirements:

• Minnesota State Building Code compliance
• International Property Maintenance Code compliance
• Fire code compliance
• Public nuisance ordinance compliance

Pending Regulations

The Planning Commission has identified "Evaluation of regulation on short term rentals" as an active topic for 2025, indicating that specific STR regulations are being developed and may include:

• Potential permit requirements specific to STR operations
• Safety and occupancy standards
• Operating hour restrictions
• Parking requirements
• Noise limitations
• Length-of-stay restrictions

State-Level Considerations

Minnesota State Requirements:

• Minnesota State Building Code compliance
• Minnesota Fire Code compliance
• State tax obligations (sales tax and lodging tax may apply)
• Consumer protection requirements

Contact Information for Local Authority

Primary Contact: Building Safety and Code Enforcement Department

Phone: (763) 295-3060
Email: buildingdepartment@MonticelloMN.gov
Address:
City Hall
505 Walnut St, Suite 1
Monticello, MN 55362

Hours: Contact department directly for current hours of operation

Additional City Contacts

Main City Line: (763) 295-2711
Fax: 763-295-4404
Email: info@ci.monticello.mn.us
Address:
City of Monticello
505 Walnut Street
Monticello, MN 55362

Planning and Development

Community Development Department:
Contact through main city line (763) 295-2711
Email: info@ci.monticello.mn.us

County Contacts (Wright County)

Administration:
3650 Braddock Avenue NE
Buffalo, MN 55313
Phone: (763) 682-3900
Alternative: (800) 362-3667

Source Pages and References

City of Monticello Official Resources

1. Rental Unit Licensing: www.monticellomn.gov/250/Rental-Unit-Licensing
2. Planning Commission Meeting Minutes: www.monticellomn.gov/AgendaCenter/ViewFile/Item/1086?fileID=16700

Related Municipal Codes and Documents (Available through city website)

1. City International Property Maintenance Code Ordinance
2. City Rental Housing Ordinance
3. Rental Property Checklist
4. Monticello Zoning Ordinance & Maps
5. Monticello Subdivision Ordinance

County-Level Resources

1. Wright County Ordinances: www.wrightcountymn.gov/817/Ordinances

Important Considerations for STR Investors

Monitor Regulatory Development

Given that the Planning Commission is actively evaluating STR regulations in 2025, investors should:

• Monitor Planning Commission meeting agendas and minutes
• Contact the Community Development Department for updates on STR regulation development
• Be prepared for potential additional requirements once regulations are finalized

Compliance Strategy

Until specific STR regulations are implemented:

• Operate under existing rental licensing framework
• Ensure full compliance with current building and safety codes
• Maintain excellent property standards to avoid nuisance violations
• Consider proactive consultation with city officials regarding your STR plans

Market Position

Monticello is experiencing significant development activity, with several commercial lodging projects approved and under development, suggesting a growing hospitality market. The city's location along Interstate 94 and near regional attractions makes it a viable STR market, though investors should be prepared for evolving regulatory requirements.