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

YES - Short-term rentals are explicitly allowed in Rochester, Minnesota, with specific regulations and requirements.

Short-term rentals (STRs) in Rochester, MN are defined as dwelling units rented for less than 30 days to guests, including properties listed on platforms like Airbnb and VRBO. The city has established comprehensive regulations governing both owner-occupied and non-owner-occupied STRs, with specific limits and requirements based on property type and configuration.

Maximum Stay Limit: 30 days or less

Key Distinction: Rochester differentiates between:

• Owner-occupied STRs: Where at least one owner occupies the property during rental periods
• Non-owner-occupied STRs: Where the owner is not present during rental periods

How to Start a Short-Term Rental Business in Rochester, MN

Step-by-Step Registration Process

1. Property Assessment

   • Determine if your property qualifies for STR use based on zoning and building type
   • Identify whether your STR will be owner-occupied or non-owner-occupied
   • Assess compliance with building code occupancy classifications

2. Initial Application Submission

   • Complete the Rental Property Certificate Application once the property is in your legal possession
   • Submit required fees ($56.00 per structure plus $18.50 per unit for one-year rental certificate)
   • Schedule an initial inspection (required for non-owner-occupied properties)

3. Public Safety Certification

   • Complete one of two mandatory safety programs:
     • Option 1: Landlord Public Safety Seminar (online video training + $50 exam fee)
     • Option 2: Phase I of Crime Free Multi-Housing Program
   • Certification is valid for life once completed

4. Registration and Licensing

   • Register as a rental owner or manager on Citizen Access portal
   • Obtain Short Term Rental certificate for non-owner-occupied properties
   • Register owner-occupied STRs with the city

Required Documents, Permits, Licenses, and Guidelines

Core Permits and Licenses

Rental Housing Certificate (Primary License)

• Required for all rental properties regardless of STR type
• Application: Rental Property Certificate Application
• Must be renewed annually

Short-Term Rental Registration

• Required for both owner-occupied and non-owner-occupied STRs
• Registration must be completed before listing on platforms

Lodging License (Conditional)

• Required if structure rents five (5) or more beds
• Obtained through Olmsted County Public Health
• Applies regardless of owner-occupancy status

Change of Occupancy/Use Permits (Multi-Family)

• Required for STRs in buildings with 3+ units
• Building code reclassification may be required
• Special review process if more than 25% of units are used as STRs

Required Documents and Forms

• Rental Property Certificate Application
• Change of Use Application (if converting from long-term to short-term rental)
• Inspection Request Form
• Photo/Video Submission for Inspections
• Public Safety Certification Completion
• Valid government-issued ID (driver's license, passport)

Building Code and Safety Requirements

Occupancy Classifications:

• Single-family: IRC-1, IRC-3, or R-3
• Duplex: IRC-2 or R-3
• Triplex/Four-plex: R-2
• Multi-family (>4 units): R-2 (reclassified to R-1 for STR use)

Safety Equipment Requirements:

• Smoke detectors
• Carbon monoxide alarms
• Emergency egress windows
• Fire extinguishers (non-rechargeable with self-verification tags)

Specific Regulations for Short-Term Rentals

Property Type Limitations

Single-Family Buildings (Owner-Occupied):

• Maximum: 1 STR unit
• Registration required
• No inspection required
• No building reclassification needed

Single-Family Buildings (Non-Owner-Occupied):

• Maximum: 1 STR unit
• Registration and inspection required
• Lodging license required if renting 5+ beds

Duplex Buildings:

• Maximum: 2 STR units
• Registration and inspection required
• Lodging license required if structure rents 5+ beds

Triplex/Four-Plex Buildings:

• Maximum: 2 STR units
• Registration and inspection required
• Building classification: R-2

Multi-Family Buildings (>4 Units):

• Maximum: 2 STR units per building
• Registration and inspection required
• Building reclassification to R-1 required
• 2% of units must be accessible per 2020 State Accessibility Code

Special Considerations

Condominium Restrictions:

• Maximum: 2 STR units per building
• Additional units require building reclassification
• Many associations restrict STR operations

Zoning Compliance:

• STRs in residential zones treated as accessory use if <25% of units

• 25% STR usage considered change of use requiring review

• Multi-family STRs may require commercial zoning district approval

Parking and Waste Management:

• No specific parking requirements, but adequate parking must be provided
• Waste disposal regulations apply:
  • Covered, durable containers required
  • Maximum storage: one week or until collection day
  • Curb placement only evening before collection

Tax Obligations

Lodging Taxes:

• 7% local lodging tax imposed by Rochester
• 8.125% combined state and county sales tax
• Hosts responsible for collection and remittance

Contact Information for Local Authority

Community Development Department

• Address: 4001 West River Parkway NW, Suite 100, Rochester, MN 55901
• Phone: 507-328-2311
• TTY/TDD: Available through city accessibility services
• Email: communitydevelopment@rochestermn.gov
• Hours: Monday-Friday, 8:00 AM - 4:30 PM

Rochester 311 (Service Requests)

• Phone: 507-328-2311
• Online Service Requests: Rochester 311 Portal

Olmsted County Public Health (Lodging Licenses)

• Contact for lodging license requirements and applications

Building Inspection Services

• Portal: Citizen Access
• Used for permit tracking and rental property management

Links to Source Pages

Official Rochester Government:

• Community Development - Rental Housing Resources
• Rochester Code of Ordinances - Chapter 7-5
• Rochester Code of Ordinances - Chapter 7-10 (Short-Term Rentals)

Required Forms and Applications:

• Rental Property Certificate Application
• Request an Inspection
• Rental Change of Use Application

Additional Resources:

• Rochester Short Term Rentals Information
• Citizen Access Portal
• Lodge Compliance - Rochester MN STR Guide

Enforcement and Penalties

Criminal Penalties:

• Operating without certificate: Misdemeanor
• Fine: Up to $1,000
• Jail time: Up to 90 days
• Both fine and imprisonment possible

Administrative Enforcement:

• Violation escalations can result in certificate suspension or revocation
• Inspection scores determine inspection cycles (1-4 years)
• Continued non-compliance may result in property condemnation

Compliance Monitoring:

• Regular inspections based on property scoring
• Guest registry requirements
• Community complaint investigation system
• Rental certificate transfer required within 30 days of property sale

This guide provides comprehensive information for STR investors considering Rochester, Minnesota as a market. Always verify current regulations with the Community Development Department before making investment decisions, as local ordinances and requirements may change.