Maple Grove passes new rules for homeowners listing property on Airbnb or VRBO

In Maple Grove, it’s no longer one license size fits all for homeowners renting out their properties.

The City Council on Monday approved an ordinance establishing a new short-term license option geared mainly for homeowners who list their dwellings on platforms such as Airbnb or VRBO and provide weekend accommodations to vacationers or those who may need to stay just a little longer.

City ordinance requires anybody renting out property to obtain a rental license, but a city study found that most homeowners providing short-term rentals don’t get one. In February, city leaders scoured online listings and found only two of more than 50 homeowners offering rooms on online travel sites held a rental license.

“We are not looking to punish. We are trying to make an easier path to compliance,” said Joe Amerman, the city’s economic development manager.

The new license will allow property owners to pay a one-time $400 home-to-rental property conversion fee and a $200 license fee. The license would last for a year and must be renewed annually. The city ordinance governing rentals currently on the books requires property owners renting their dwellings to pay a $1,000 conversion fee and $600 for a license that is good for three years. The properties also must pass inspections.

“The current policy was not flexible for people who use their home for short-term rental,” Amerman said. “Often homeowners want to make a few bucks, and asking for them to do a three-year rental program is a lot of money and time investment to go through the traditional licensing process.”

Resident Brandy Logan said she learned about the ordinance after she received a citation for renting out her backyard pool. She called the city about that when she learned about the resolution being considered by the City Council on Monday. She created a petition on Change.org to draw attention to the ordinance.

“Nobody knew,” she told the Star Tribune. “If you have rental property, be aware.”

She spoke at Monday’s meeting, telling the City Council the ordinance would be “an obstacle” in times of inflation for “families trying to make ends meet.”

The ordinance, which needs final City Council approval, would go into effect Sept. 1. Residents with rental properties will be notified by mail and information printed in the city’s newsletter and posted online, Amerman said.

Short-term is defined as stays of 30 days or fewer at one time, the ordinance states.

Holders of short-term licenses will have to pass inspection and complete safety training from the police department covering how to spot and stop criminal activity at the residence. The city can revoke a license if there are two or more “disorderly conduct” calls that require police to show up to address issues such as noise or parties during the licensing period. A copy of the license would also have to be prominently displayed near the front entrance of a home, the ordinance said.

Owner-occupied properties would not be subjected to the licensing ordinance, Amerman said.

Will that increase compliance?

“That is our goal and hope,” Amerman said.