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

Yes, short-term rentals are explicitly allowed in Park Rapids, Minnesota, but they are heavily regulated. Both the City of Park Rapids and Hubbard County have established comprehensive regulatory frameworks for short-term rentals. STRs are permitted uses under Hubbard County's Shoreland Management Ordinance and require both city and county licensing to operate legally. The city requires an annual permit ($100 fee), while the county requires an annual license for properties within shoreland areas.

How to Start a Short-Term Rental Business in Park Rapids

Step 1: Determine Your Regulatory Requirements

Your property's regulatory requirements depend on its location:

• Within City Limits: You need both a City of Park Rapids STR permit and potentially a County STR license if your property is in a shoreland area
• Outside City Limits but in Hubbard County Shoreland: You need only a County STR license
• Outside Shoreland Areas: County STR license may not be required, but verify with local authorities

Step 2: Obtain Required Permits and Licenses

1. City of Park Rapids STR Permit (if within city limits)
2. Hubbard County STR License (if within shoreland areas)
3. Rental Registration License (if not already registered as a rental property)
4. Rental Property Inspection (if not already completed)

Step 3: Complete the Application Process

• Submit applications to the appropriate authorities
• Pay applicable fees
• Provide all required documentation
• Pass any required inspections
• Display permits conspicuously on-site during rentals

Step 4: Ongoing Compliance

• Submit monthly lodging tax reports (even if no rentals occurred)
• Maintain current certifications and licenses
• Post required information in your STR
• Enforce quiet hours and occupancy limits
• Respond to complaints and county inquiries within 120 hours

Required Documents, Permits, Licenses, and Guidelines

City of Park Rapids Requirements

Short-Term Rental Permit Application (Annual)

• Application fee: $100 (or $50 if applied after October 1)
• Valid rental registration license with current inspection
• Written consent from property owner (if different from applicant)
• Certification of compliance with city codes
• Proof of linear street density compliance

Additional City Requirements:

• Display permit conspicuously on-site during all rentals
• Submit monthly lodging tax remittance forms
• Provide monthly rental activity reports (standard form or own format)
• Maintain property in full conformity with rental requirements
• No outstanding corrections from previous inspections

Hubbard County Requirements

Annual STR License (Required for shoreland properties)

• Current SSTS (septic) certificate of compliance
• Property tax payment verification (no delinquencies)
• Passing water test for nitrate and coliform (within one year)
• Minnesota Department of Health license or certification that license not required
• Color photos of the STR structure
• Aerial image showing STR on property
• Contact information for responsible party
• Good Neighbor Brochure acknowledgment

Documentation to Maintain and Provide Upon Request:

• Name, current phone number, and email of responsible contact person
• Map showing property boundaries
• Emergency contact information
• Maximum overnight guest occupancy figures
• Solid waste compliance documentation

State-Level Requirements

Minnesota Sales Tax

• Collect 6.875% state sales tax on rental amounts
• Any applicable local sales taxes
• Monthly remittance required

Specific Regulations by Jurisdiction

City of Park Rapids STR Regulations

Permitting Process:

• Administratively approved permit
• City Planner reviews applications for completeness, zoning compliance, and standards
• Conditions may be imposed to protect health, safety, and welfare
• Planning Commission hearing required for revocations

Operational Requirements:

• No STR may operate without a valid annual permit
• Permit must be displayed conspicuously on-site
• Property must meet linear street density requirements
• Compliance with Chapter 152 (STR Regulations) and Chapter 151 (Zoning Regulations)

Revocation and Enforcement:

• City Council may revoke permits following Planning Commission hearing
• Civil enforcement costs, disbursements, and attorney fees may be assessed
• Violations of permit conditions or other laws/regulations may result in penalties

Hubbard County Shoreland STR Regulations

Licensing Requirements:

• Separate license required for each STR unit on a lot
• License cannot be transferred to different parties
• Annual renewal required
• License required before May 1, 2022, and ongoing

Occupancy Limits:

• Overnight guests limited to one person per 75 gallons daily sewer system design flow
• Holding tank properties: one person per 200 gallons tank capacity
• Occupancy limits must be included in all web-based advertisements

Property Standards:

• Current SSTS certificate of compliance required
• Septic systems must be designed with 75 gallons flow per person
• Passing water test for nitrate and coliform (within one year)
• Sufficient vehicle parking (onsite or legal public parking)

Operational Requirements:

• Quiet hours: 10:00 PM to 7:00 AM (enforcement by property owner)
• Property boundary map provided to renters
• Required information posted visibly in STR unit:
  • Owner/operator contact information
  • Local contact person information
  • Emergency contact information
  • Maximum overnight guest occupancy
  • Hubbard County Good Neighbor Brochure
• Solid waste collection and disposal compliance
• Guest formal acknowledgment of compliance requirements

Structural Limitations:

• No more than one STR structure on lots not meeting duplex lot size criteria
• No more than two STR structures on lots meeting or exceeding duplex lot size criteria
• STR regulations only apply when property is actively used as STR

State-Level Regulations (Minnesota)

Taxation:

• 6.875% state sales tax on rental amounts
• Local sales taxes may apply
• Monthly remittance requirements

Health and Safety:

• Minnesota Department of Health licensing requirements for certain accommodations
• Written certification required if MDH license not needed

Contact Information for Local Authorities

City of Park Rapids

City Planner

• Address: 212 Second Street West, Park Rapids, MN 56470
• Phone: (218) 732-3163
• Fax: (218) 237-2754
• Website: www.ci.park-rapids.mn.us
• Email: Contact through city website or phone

Permit Applications:

• Submit to City Planner with application fee
• Applications may be submitted with new rental registration license and inspection request

Hubbard County Environmental Services Office (ESO)

Bryan Haugen, Environmental Services

• Address: 301 Court Ave., Park Rapids, MN 56470
• Phone: (218) 732-3890
• Email: bryan.haugen@co.hubbard.mn.us

County Administrator: Jeff Cadwell (for policy questions)

For STR Licensing: Hubbard County Environmental Services Office

Links to Source Pages

City of Park Rapids Official Documents

• 2025 Short Term Rental Application
• City Rental Forms and Information
• City Website - Main Page

Hubbard County Official Documents

• Shoreland Management Ordinance - Amendment 20
• County Website

News and Analysis

• Park Rapids Enterprise - Short-term rentals face new regulations in Hubbard County

Critical Compliance Notes for STR Investors

1. Dual Jurisdiction: Properties within Park Rapids city limits require compliance with both city and county regulations
2. Shoreland Focus: Hubbard County regulations are specifically designed for shoreland properties and focus heavily on septic capacity and environmental protection
3. Proactive Licensing: All STRs in shoreland areas required licensing by May 1, 2022, and annually thereafter
4. Tax Compliance: Monthly lodging tax reporting is mandatory even for properties with no rental activity
5. Documentation Burden: Significant documentation requirements including water tests, septic certifications, and contact information maintenance
6. Enforcement Mechanisms: Both jurisdictions have revocation powers and may assess enforcement costs
7. Neighbor Relations: Good Neighbor Brochures and posted information requirements reflect community focus on maintaining neighborhood character

This regulatory framework represents a mature approach to STR regulation that balances economic opportunities with community protection and environmental stewardship. Investors should budget additional time and costs for compliance compared to less regulated markets.