(Prepared for investors planning to launch or operate a short‑term rental in Warroad, MN – last updated June 2025)

1. Overview – Are Short‑Term Rentals Allowed?

Explicit answer: The City of Warroad does not have a city‑specific ordinance that either bans short‑term rentals or creates a separate licensing regime for them. The Warroad Code of Ordinances (2017 S‑1 Supplement) contains no chapter or section that references “short‑term rental,” “vacation rental,” “transient lodging,” or similar terms. Consequently, short‑term rentals are permitted in Warroad as a residential‑use activity, provided the property complies with the city’s general zoning, building, fire, health, and public‑health codes as well as Minnesota state statutes governing transient lodging.

If you are operating a unit for stays of 30 days or less, you must meet the statewide registration, tax, and safety requirements outlined in Sections 4‑5 below.

2. How to Start a Short‑Term Rental Business in Warroad

| Step | Action | Why It Matters | |------|--------|----------------| | 2.1 Verify Zoning & Land‑Use | Contact the City Administrator or Planning Commission (Chapter 32, §§ 32.35‑32.39) to confirm the parcel’s zoning (e.g., R‑1 Residential, R‑2 Multi‑Family, C‑1 Commercial). | Many residential zones permit “lodging” only as a conditional use (see Chapter 157 – Zoning). A conditional‑use permit (CUP) may be required before you can rent the property on a short‑term basis. | | 2.2 Obtain a Conditional‑Use Permit (CUP) if required | Submit an application to the Planning Commission using the City’s CUP form (available from the City Administrator). Include site plans, parking layout, fire‑safety measures, and any proposed exterior alterations. | The City Council ultimately approves CUPs; a CUP ensures the activity is compatible with surrounding land uses and imposes any conditions (parking, signage, noise limits). | | 2.3 Register the Business with Minnesota | • Minnesota Department of Revenue (DOR) – obtain a Sales‑Tax/Transient‑Occupancy‑Tax account. <br>• Minnesota Department of Health (MDH) – complete the “Short‑Term Rental Registration” (required for units offering lodging to ≤ 30 days). | State law (M.S. 325F.85‑.89) classifies any stay ≤ 30 days as “transient lodging.” Registration is mandatory, and the state levies a 6.875 % lodging tax (plus any county tax). | | 2.4 Secure Fire‑Safety & Building Approvals | • Fire Marshal inspection (Chapter 93 – Fire Prevention). <br>• Building Permit for any interior remodeling, new egress windows, or installation of smoke/CO detectors. <br>• Roof‑ and‑structure safety verification. | Fire code compliance is enforced by the City Fire Marshal (see §§ 32.17‑32.20). The Marshal can perform on‑site inspections and issue a “Fire‑Safety Certificate.” | | 2.5 Health & Sanitation Permit | Apply to the Roseau County Health Department for a “Lodging‑Facility Permit.” Ensure compliance with Chapter 32 (Board of Health §§ 32.01‑32.04) and the Minnesota Food‑service rules (if you provide breakfast or kitchen facilities). | Minnesota law (M.S. 325F.85) requires health standards for lodging. The County Health Department will check water, sewage, garbage