Richfield City Council approves short-term rental ordinance with five-day minimum stay

RICHFIELD, Minn. — The Richfield City Council on May 27 approved the second reading of an ordinance restricting short-term rentals (STRs) in the city and authorized summary publication after amending the proposal to require a five-day minimum stay.

The ordinance had been presented by staff recommending a one-week minimum stay unless the operator lives on-site and is present during the rental term; staff also recommended treating STRs as a business license, requiring inspections and remittance of lodging tax, and an implementation date of Jan. 1, 2026. Council members debated whether a three-, five- or seven-day minimum would best balance neighborhood concerns and hosts’ business needs.

Councilmember Burke, who led discussion of the ordinance, said residents worried about housing availability and neighborhood disruption. “Those are the voices that are not being heard,” Burke said, urging caution about reducing long-term housing stock. Several residents and STR hosts addressed the council during public comment opposing a blanket ban and urging a shorter minimum.

Short-term rental operator John Lucas Ericsson told the council, “A 1 week minimum is certainly an improvement from 1 month,” and urged a three-day minimum, saying the average STR stay in Richfield is about 3.3 days and a one-week rule would force many cancellations and long, unfillable gaps on hosts’ calendars.

Other public commenters and written submissions said STRs support local businesses and provide affordable short-term lodging for families; one emailed commenter wrote that Minnesota allows a 3% lodging tax on stays under 30 days and recommended a licensing model used in cities such as Plymouth and New Brighton.

Council members amended the staff proposal in stages. An initial amendment to reduce the minimum to three days was proposed and discussed; council later negotiated a compromise and the motion to set a five-day minimum passed 3–2. The full motion to approve the second reading as amended then passed 4–1. The council separately voted to authorize summary publication of the ordinance; acting City Attorney Ketchum advised the publication vote be recorded as a separate resolution, and council approved that resolution as well.

Council directed staff to develop the business-licensing procedures and standards referenced in the ordinance and to return with details, including options for limits on the number of licenses. Staff and council members noted that a licensing program will determine enforcement, inspections and tax remittance steps; the city manager said staff recommend a Jan. 1, 2026, implementation but that timeline depends on the licensing program development.

The ordinance changes and next steps mean that existing and prospective hosts should expect the city to require business licensing, inspections, proof of lodging-tax remittance and a five-day minimum stay once the program is implemented. Council members and commenters flagged an outstanding question about whether the city should cap the total number of STR licenses; staff said the licensing work will include that analysis.

The council’s vote modified the ordinance text presented by staff and did not adopt additional numerical caps or final licensing rules at this meeting. The ordinance was approved as amended, summary publication was authorized, and staff will return with the detailed business-license program for council review.