Short-Term Rental Regulations

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The Planning Division is conducting a study on short-term rental regulations in Bloomington. Short-term rentals (rentals less than 30 consecutive days) are currently prohibited in the city under §14.577(b). In the Code, short-term rentals are called "transient lodging" as listed in §14.568, Definitions.

Short-term rentals, often facilitated through platforms like Airbnb and VRBO, have become increasingly popular in recent years. While they offer numerous benefits to both hosts and guests, they also have significant impact on:

Housing Availability

  • Short-term rentals can reduce the supply of long-term rental housing in popular tourist destinations. Property owners may prefer renting to tourists at higher rates, potentially leading to a shortage of affordable housing for residents.
  • This scarcity can drive up rents and home prices, making it more challenging for individuals and families to find affordable housing.

Housing Affordability & Equity

  • Advocates for housing affordability argue that stricter regulation of short-term rentals is necessary to ensure that residents can find affordable housing.
  • The impact of short-term rentals varies across income levels, with higher-income hosts benefiting while lower-income renters may face housing challenges.

Housing Markets

  • The short-term rental market can lead to increased competition for properties, driving up home prices and making it harder for first-time homebuyers to enter the market.
  • In some areas, the presence of short-term rentals can create a real estate investment boom, as investors purchase properties specifically for rental purposes, potentially inflating property values.
Economics
  • Short-term rentals can boost the local economy by bringing in tourists who spend money on accommodations, dining, and entertainment.
  • Hosts can generate income by renting out their properties, potentially helping homeowners offset their housing costs.

Communities and Neighborhoods

  • Frequent turnover of short-term rental guests can disrupt the sense of community in residential neighborhoods. Neighbors may be uncomfortable with strangers constantly coming and going.
  • Noise, parking, and safety concerns associated with short-term rentals can affect the quality of life for residents.

Regulation & Monitoring

  • Tracking the impact of short-term rentals on housing and neighborhoods requires access to data, which can be challenging due to the decentralized nature of platforms like Airbnb.

With these considerations, careful and deliberate regulation will be necessary to facilitate the positive impacts for residents and visitors and mitigate the negative impacts on housing and equity. To assist decision-making, the study results and recommendations will be presented to Planning Commission and City Council to solicit their feedback and direction, which could lead to amendments to the City Code regarding short-term rentals. As the process progresses, any amendments would require public hearings at the Planning Commission and the City Council meetings.


The Planning Division is conducting a study on short-term rental regulations in Bloomington. Short-term rentals (rentals less than 30 consecutive days) are currently prohibited in the city under §14.577(b). In the Code, short-term rentals are called "transient lodging" as listed in §14.568, Definitions.

Short-term rentals, often facilitated through platforms like Airbnb and VRBO, have become increasingly popular in recent years. While they offer numerous benefits to both hosts and guests, they also have significant impact on:

Housing Availability

  • Short-term rentals can reduce the supply of long-term rental housing in popular tourist destinations. Property owners may prefer renting to tourists at higher rates, potentially leading to a shortage of affordable housing for residents.
  • This scarcity can drive up rents and home prices, making it more challenging for individuals and families to find affordable housing.

Housing Affordability & Equity

  • Advocates for housing affordability argue that stricter regulation of short-term rentals is necessary to ensure that residents can find affordable housing.
  • The impact of short-term rentals varies across income levels, with higher-income hosts benefiting while lower-income renters may face housing challenges.

Housing Markets

  • The short-term rental market can lead to increased competition for properties, driving up home prices and making it harder for first-time homebuyers to enter the market.
  • In some areas, the presence of short-term rentals can create a real estate investment boom, as investors purchase properties specifically for rental purposes, potentially inflating property values.
Economics
  • Short-term rentals can boost the local economy by bringing in tourists who spend money on accommodations, dining, and entertainment.
  • Hosts can generate income by renting out their properties, potentially helping homeowners offset their housing costs.

Communities and Neighborhoods

  • Frequent turnover of short-term rental guests can disrupt the sense of community in residential neighborhoods. Neighbors may be uncomfortable with strangers constantly coming and going.
  • Noise, parking, and safety concerns associated with short-term rentals can affect the quality of life for residents.

Regulation & Monitoring

  • Tracking the impact of short-term rentals on housing and neighborhoods requires access to data, which can be challenging due to the decentralized nature of platforms like Airbnb.

With these considerations, careful and deliberate regulation will be necessary to facilitate the positive impacts for residents and visitors and mitigate the negative impacts on housing and equity. To assist decision-making, the study results and recommendations will be presented to Planning Commission and City Council to solicit their feedback and direction, which could lead to amendments to the City Code regarding short-term rentals. As the process progresses, any amendments would require public hearings at the Planning Commission and the City Council meetings.


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  • Share Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations? on Facebook Share Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations? on Twitter Share Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations? on Linkedin Email Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations? link

    Do you have a time frame on which a decision will be made on whether to keep or amend the current regulations?

    Jeff Ferber asked 4 months ago

    Thank you for your question! The study of short-term rentals is currently in progress and specific dates for when it will be presented to Planning Commission and City Council have not been determined. The direction of the project and whether a policy or Code amendments will be implemented (and the exact content of the possible amendments) will be developed after the study item presentation. To stay updated on the project and when presentations will be held, please sign up for updates or email alerts through this project page; meeting dates and engagement opportunities will be posted as they are confirmed.

    code-amendments,stay-informed,project-schedule
    code-amendments stay-informed project-schedule
  • Share I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota. on Facebook Share I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota. on Twitter Share I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota. on Linkedin Email I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota. link

    I strongly believe that Bloomington needs to adopt a policy allowing short-term vacation rentals. The city is perfectly located by the Mall of America and airport which aids in attracting more tourist, which ultimately increases the long term economic viability of all of Minnesota.

    Raj Bahl asked 4 months ago

    Thank you for your comment! We will include economic factors into the study item.

    economic-impact,tourism
    economic-impact tourism
Page last updated: 29 Jan 2024, 11:44 AM