Lakeville staff propose annual short-term rental permit, limit of two properties per owner

Lakeville city staff presented a draft short-term rental ordinance at the Dec. 8 work session that would create an annual administrative permit, limit occupancy to two adults per bedroom (children excluded from that count), and restrict the number of short-term rental properties operated by the same owner to two units.

Katie, the staff presenter, said the draft is modeled on other nearby cities and would place the program outside the residential code into a distinct short-term rental registration. The proposal requires the owner or local manager to be Minnesota-based, allows an owner to operate up to two short-term rental properties (one homestead and one non‑homestead in the current draft), and defines short-term rental as stays of 31 days or less.

The draft would not set a numeric vehicle-per-property parking cap but would require off-street parking on-site (garage stalls and driveway spaces count). Staff proposed a $100 annual permit fee and a three-offense suspension/revocation process with an appeal mechanism. Background checks are not included beyond property inspections, and staff said platform partners such as Airbnb could be used to help notify and identify noncompliant hosts.

Councilmembers asked about renewal fees, enforcement responsibilities and whether a cap on the total number of short-term units is warranted; staff said some smaller cities cap units but Lakeville’s draft does not. The council also discussed how lodging tax collection is handled by platform providers and whether occupancy and parking rules will be easily enforced.

No formal decision was taken; staff said they would bring highlights and options back for additional direction. The draft remains subject to council direction and revision before any ordinance or code change would be adopted.