Maple Grove Approves Ordinance for Short-Term Rental Properties

The Maple Grove City Council approved a new ordinance at its July 15 meeting for short-term rental properties.

Short-term rentals are defined as properties used for stays of less than 30 days at one time.

Maple Grove estimates there are at least 50 properties trying to rent short term, often offered on sites like Airbnb and Vrbo.

Yet the city says only two have actually obtained a license, which is required.

“This is an opportunity to provide a more affordable, nimble and hopefully more appropriate policy to short-term rental owners than what we currently have in place,” said Joe Amerman, the city’s economic development manager.

Cost is believed to be one factor for the low number of licenses obtained through the city for short-term rentals. General knowledge of the requirement is another factor.

Under the current ordinance, all rental units must obtain a license regardless of duration. Rental property owners must pay a one-time $1,000 fee up front, plus pass safety inspections to obtain a license. There is also a $600 renewal fee every three years, which varies depending on the type of unit.

“What we found is that policy and those fees are sometimes overly onerous for residents looking to participate in short-term rentals in which they may be only seeking to rent out their property for a weekend here or there,” said Amerman.

New Ordinance Takes Effect in September

The new ordinance for short-term rental properties would lower the one-time fee to $400, plus an annual $200 renewal fee. Property owners also have to pass a safety inspection and receive training through the Maple Grove Police Department.

At least one resident raised concerns about the cost.

“In times of inflation and opportunity where families are trying to make ends meet, as well as if they’re moving and want to keep that home at a lower APR percentage, because we know it’s in the 7 percent or higher, think really wisely about what obstacles we are giving our residents,” said Brandy Logan at the July 15 meeting.

It’s important to note that the ordinance does not apply to owner-occupied properties.

Council members, which unanimously approved the ordinance, did not raise concerns about the fees.

“Fees are a way for the city to absorb the cost of inspections and all the work that comes with maintaining the rentals,” said Maple Grove City Council member Kristy Barnett.

Maple Grove follows other cities that have implemented a short-term rental ordinance. Last year, the city of Plymouth approved an ordinance following a neighborhood disruption in which a Brooklyn Center man was murdered during a party at a short-term rental home.

Maple Grove’s ordinance is similar to the one approved by Plymouth.

“We’re not really blazing any trails here,” said Maple Grove City Council Member Rachelle Johnson. “We really probably could have done something a little sooner with the rise in short-term rentals so we could just really better address the unique situations of short-term rentals instead of lumping it together with all of our long-term rentals.”

The Maple Grove ordinance includes a provision that says licenses will not be renewed for properties with two or more disorderly conduct citations until at least 365 days have passed from the most recent violation.

City officials define disorderly conduct as instances where police issue citations for problems such as noise violations or parties that carry out into the street.

The ordinance takes effect Sept. 1.

Maple Grove