Short Term Rental Ordinance

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At its June 8, 2026 meeting, the city council adopted a short-term rental ordinance requiring short-term rental properties to be homesteaded and registered with the city.

Currently, all rental properties in Minnetonka are required to be registered with the city, regardless of the rental period's duration. The Minnetonka City Council recently discussed the need for an ordinance to specifically regulate Short-Term Rentals in the community. A short-term rental is a property that an owner rents – either all or part of a home – to guests for less than 30 days.

On April 27, 2026, the council reviewed the first draft of the ordinance and requested changes, including:

  • Continue to require short-term rentals to register with the city; and
  • Require that to be eligible for the registry, short-term rentals must be homesteaded. This means only property owners who occupy their homes as their primary residence may rent that property (wholly or partially) as a short-term rental.


At its June 8, 2026 meeting, the city council adopted a short-term rental ordinance requiring short-term rental properties to be homesteaded and registered with the city.

Currently, all rental properties in Minnetonka are required to be registered with the city, regardless of the rental period's duration. The Minnetonka City Council recently discussed the need for an ordinance to specifically regulate Short-Term Rentals in the community. A short-term rental is a property that an owner rents – either all or part of a home – to guests for less than 30 days.

On April 27, 2026, the council reviewed the first draft of the ordinance and requested changes, including:

  • Continue to require short-term rentals to register with the city; and
  • Require that to be eligible for the registry, short-term rentals must be homesteaded. This means only property owners who occupy their homes as their primary residence may rent that property (wholly or partially) as a short-term rental.


Provide feedback

The city welcomes your feedback on the proposed ordinance. Comments can be submitted through June 7.

CLOSED: This discussion has concluded.

Thank you for the opportunity to provide public input on the proposed short term rental ordinance. I appreciate the City’s efforts to balance neighborhood character, safety, and responsible housing use.

My family and I own a single-family home in Minnetonka that we inherited in 2021 following the passing of my brother. Prior to that experience, we had no plans to leave Fargo, North Dakota. However, while spending significant time at the home caring for him, we fell in love with Minnetonka and the surrounding area. That experience ultimately shaped our long-term plan to move into this home permanently as we prepare for retirement, currently targeted for October 2028.

Since inheriting the property, we have invested heavily in the home—both inside and out—through extensive remodeling and ongoing professional maintenance. We take meticulous care of the property by hiring local services and vendors, and the home is maintained to a standard consistent with owner occupancy. The short-term rental income is what enables us to do this.

Even with rental income, the home currently costs us approximately $10,000 per year out of pocket after expenses. Without the ability to rent the property short term, the property would no longer be financially feasible for us to retain. In that case, we would be forced to sell the home, eliminating the possibility of our planned relocation to Minnetonka.

Today, we personally use the home approximately one week per month, host family members visiting from other states, and regularly contribute to the local economy—attending Twins, Timberwolves, and Vikings games with visiting guests, dining locally, and supporting area businesses. Our son now attends the University of Minnesota, further strengthening our family’s ties to the community.

We have built a positive and respectful relationship with our neighbors, one of whom is a distant relative. Since beginning short term rentals in 2022, we have had a single disturbance complaint, which occurred during the very first weekend the home was rented. There have been no subsequent issues.

I am concerned that a requirement limiting short term rentals exclusively to homesteaded primary residences would unintentionally penalize responsible owners like us—owners who are committed to Minnetonka, maintain their properties at a high level, and plan to become full time residents in the near future.

If we are required to give up short term rental use and can no longer afford to keep the home, there is no guarantee that we would ultimately retire in Minnetonka. Instead, we may be forced to delay retirement decisions and relocate based on where our children ultimately settle.
I respectfully encourage the City to consider:
• Allowing an exception or transitional accommodation for future owner occupants
• Grandfathering existing, compliant short-term rentals with a proven track record
• Creating a pathway that preserves community stability without forcing responsible owners to sell
Thank you again for considering this perspective and for your thoughtful work on this issue.

JD_Fargo About 2 months ago

I think it is needed to charge a fair tax or fees to any business that is use City services to operate a business, like inspections, safety/ enforcement of laws, or infrastructure. This assures renters and neighbors a base of representation before needing any legal intervention. I have owned rental property and having requirements and inspections help me provide housing knowing my property was safe, and knowing that tenants are represented.
I do have concerns that the spread of short term rental can shrink the availability of long term rental and buyable homes in any area, and change the nature of neighborhoods.

mtkaresident42 About 2 months ago

I support reasonable regulation of short-term rentals, including registration, safety standards, and enforcement of nuisance behavior. However, I have concerns about the proposed requirement limiting short-term rentals to homesteaded (owner-occupied) properties.

This is a very small issue in Minnetonka.
There are approximately 25 short-term rentals citywide, representing a negligible share of housing. A broad restriction like a homestead-only requirement is disproportionate to the scale of the issue.

At the same time, these homes serve a clear and important need: they provide space for families.

Minnetonka has limited hotel options, and hotels are not designed for:

Families with children
Multi-generational visits
Longer stays for caregiving or life events

Short-term rentals allow families to stay together in one home—with bedrooms, kitchens, and space to gather—rather than being split across multiple hotel rooms. Guest feedback consistently shows these are family-oriented stays, not disruptive uses.

If the goal is to address potential impacts, more targeted solutions would be more effective:

Enforce occupancy, parking, and quiet hour rules
Require a 24/7 local contact
Penalize or remove non-compliant operators

There are also reasonable alternatives to consider:

Grandfather existing, compliant properties
Cap the total number of licenses
Apply stricter standards to new permits

With only ~25 properties, this is not a large-scale issue—but it provides a valuable service for visiting families.

I respectfully urge the City to reconsider the homestead-only requirement and pursue a more balanced, proportionate approach.

aga About 2 months ago

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LeavingSoon About 2 months ago

First off, we need short term (AirBnB) rentals in Minnetonka. There is huge demand for grandmas and grandpas (and other relatives) coming to stay and visit family. They want to come for a few weeks. You can't stay in a hotel for 2 weeks.

We have relatives coming to visit in the fall. We don't have space in our house. We of course would rent an AirBnB for them.

We have rented an AirBnB near a relative to help them out when having medical issues. It was a godsend.

Some claim there are issues with AirBnB guests. Well, I have neighbors that are worse - and live here year round. If it was a short term rental, at least they could be kicked out in a heart beat.

If there are noise or nuisance issues with any property - owner, renter, or short term renter - existing regulations can handle it. This regulation does not stop someone from renting out their place for a mass gathering.

*** This effectively kills AirBnB. Why? It requires the property to be homesteaded. It was a sly way of banning AirBnB without saying they are banning AirBnB. ***

I moved to Minnetonka to get away from insane regulations.

Unfortunately, no one serious ran for mayor or city council. I hope some more sensible people run so I have someone to vote for.

LeavingSoon About 2 months ago

I have no issue with Minnetonka requiring registration for short-term rentals, as long as it does not introduce additional fees or taxes. Residents are already burdened with far too many taxes and fees, and adding another layer would be unnecessary and unfair.

While I understand that some people have concerns about noise or large gatherings, those issues are not unique to short-term rentals. An unruly homeowner can create the same problems. Existing laws and ordinances already address noise, disturbances, and public safety. As long as property owners are following these rules, there is no clear justification for imposing additional regulations.

Creating more rules simply for the sake of regulation does not solve the underlying issues—it only adds complexity and cost. Enforcement of current laws should be the priority, rather than expanding government oversight where it isn’t needed.

With the amount of taxes we are already paying in Minnetonka, some owners have no other option but to allow short-term rentals in order to stay in their homes!

StanMN About 2 months ago

Hello. I have experience living next door to an AirB&B. I previously lived in Richfield. When my elderly next door neighbor moved to a care facility, her three bedroom home was purchased by a couple that turned it into an AirB&B. They added two bedrooms downstairs and the AirB&B accommodates up to fifteen people. It often hosts large parties, big groups of people that were constantly coming and going. It was noisy and unsettling. Our once quiet backyard felt like it had been invaded by people that we didn't know. We sold our house and now we live here in Minnetonka. I urge the city to do everything that they legally can to discourage short term rentals. Homes that aren't owner occupied leave neighborhoods feeling disconnected.

PattyB About 2 months ago
Page last updated: 09 Jun 2026, 02:15 PM