Minneapolis Airbnb - warning letters

14 Replies

They aren’t asking much, just that you have a rental license.

I run an Airbnb and his doesn’t bother me at all. It’s such a nominal inconvenience that should make the rentals better.

At the same time I hope they don’t take it any further than just requiring a standard rental license!

Have you heard if Airbnb or the larger platforms are fighting their fee?  Could see it going both ways, the fee may be small relative to their operations but they may not want to set precedent that everyone can charge them.

Interesting and glad to hear this isn't a huge issue,  we are looking at doing this with a few smaller properties along with corporate short term rentals near hospitals.

With the massive influx of units added to the platform for the Super Bowl, the need arose. I highly doubt all of these units will stay actively available and were most likely one time opportunities. I definitely am in support of cities doing licensing and collecting taxes compared to banning, restricting, and doing everything possible to disrupt the market.

It seems more like an indirect way of raising municipal revenue and removing the 'interested landlords.' Doesn't seem like a problem to individuals who view real estate as a business rather than a hobby.

Interesting to see the Sharing Economy mature and develop!

St Paul did the same thing (see link below)

https://www.twincities.com/2018/03/02/attention-ai...

I have a property that is listed on Airbnb full time and the demand has been very low the past couple of months, most likely due to the influx of properties listed for the Superbowl. I'm hoping that many of those places drop off and the supply goes back to a more manageable level. I read somewhere (can't find the source right now) that there were 1,200 units on Airbnb in the Twin Cities in February 2017 and 5,600 in February 2018. 

Originally posted by @Peter Ulstad :

St Paul did the same thing (see link below)

https://www.twincities.com/2018/03/02/attention-ai...

I have a property that is listed on Airbnb full time and the demand has been very low the past couple of months, most likely due to the influx of properties listed for the Superbowl. I'm hoping that many of those places drop off and the supply goes back to a more manageable level. I read somewhere (can't find the source right now) that there were 1,200 units on Airbnb in the Twin Cities in February 2017 and 5,600 in February 2018. 

I haven't been following too closely - did St. Paul copy Minneapolis' ordinance or did they create something quite different?  Didn't know St. Paul passed anything.

@Andrew Heairet that's very interesting. It looks even more comprehensive that Minneapolis regulations.

It seems as if the wild wild west of Airbnb rentals is coming to an end and will start to be most regulated in most cities. I know most major metros are taking action and restricting them somehow.

Originally posted by @John Woodrich :
Originally posted by @Peter Ulstad:

St Paul did the same thing (see link below)

https://www.twincities.com/2018/03/02/attention-ai...

I have a property that is listed on Airbnb full time and the demand has been very low the past couple of months, most likely due to the influx of properties listed for the Superbowl. I'm hoping that many of those places drop off and the supply goes back to a more manageable level. I read somewhere (can't find the source right now) that there were 1,200 units on Airbnb in the Twin Cities in February 2017 and 5,600 in February 2018. 

I haven't been following too closely - did St. Paul copy Minneapolis' ordinance or did they create something quite different?  Didn't know St. Paul passed anything.

St Paul actually made the first move in the Airbnb regulations beating Minneapolis to the punch, if you can believe that. 

@Peter Ulstad I noticed that when I saw the dates.  Was following MPLS as I have several clients who operate in the area, hadn't seen anything on St. Paul, only discussions that they were watching Mpls.

This is still shaking its self out with properties that have associations too. Most of those condo HOA's rules and regs don't allow for leases of less than 6months or a year. Anyone know how people are getting around it or are they just ignoring it and hoping not to get fined?? I've been hesitant to recommend my clients purchase units for that purpose even though I think the numbers on a short-term rental are attractive for lofts/condos because of the awesome location and relatively lower entry costs. The risk or a combative board and their ability to fine you into oblivion worries me, any thoughts??

Originally posted by @Brooks Johnson :

This is still shaking its self out with properties that have associations too. Most of those condo HOA's rules and regs don't allow for leases of less than 6months or a year. Anyone know how people are getting around it or are they just ignoring it and hoping not to get fined?? I've been hesitant to recommend my clients purchase units for that purpose even though I think the numbers on a short-term rental are attractive for lofts/condos because of the awesome location and relatively lower entry costs. The risk or a combative board and their ability to fine you into oblivion worries me, any thoughts??

For people with HOAs to consider - I never advise anyone to go against their HOA agreement but some people do it anyhow. I know people who have purchased condos that don't allow renters and they have rented them out, I put these in the same category. Sure there are ways to make money in RE going against the rules but that is not how I operate.

Just an update. I received one of the letters from the City of Minneapolis. It was rather threatening, so I called the city as I have an active rental license. The clerk from Mpls 311 basically told me that they hired a third party to do the research and are sending letters to everyone with a property listed on Airbnb and not checking whether or not there are active rental licenses on the properties. I was told to just ignore the letter. I wonder how many people are going to get scared off because of these notices. 

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