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Minnetonka council introduces short-term rental ordinance, narrows scope to homesteaded properties

Minnetonka City Council · April 28, 2026
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Summary

After hours of debate, council directed staff to revise a draft short-term rental ordinance to allow STRs only on homesteaded properties and to enroll approved units in the city’s existing rental registry for public review; the revised draft will go to the Planning Commission for public comment.

Mayor Schack opened a long discussion after staff presented a proposed short-term rental ordinance and several regulatory options. Director Wishnack laid out choices including homestead-only rules, caps, location restrictions and an “owner-plus-one” model; she also described a licensing approach with inspections, management plans and revocation for repeated violations.

Council members pressed staff and the city attorney on enforcement, platform cooperation and ownership verification. City Attorney Mr. Nelson said the city could pursue administrative citations, criminal misdemeanor prosecution under charter authority, or license revocation, and that platforms can be engaged during implementation. Ward and lakeshore concerns were prominent in the exchange.

Councilmember Romilly and others raised the regional context: “Ten out of 12 other cities that border Lake Minnetonka … have all banned either all short-term rentals or investor short-term rentals,” and urged caution about investor properties and neighborhood impacts. Several council members expressed concern about staff capacity for a full licensing-and-inspection program.

By consensus the council directed staff to change the draft so that short-term rentals are allowed only on homesteaded properties and to require those properties be enrolled in the city’s rental registry (rather than immediately implementing a more resource-intensive licensing program). The council then voted to introduce the ordinance with that direction and begin outreach; staff will post the revised materials to Minnetonka Matters and schedule Planning Commission hearings and additional public outreach before final action.

What happens next: staff will redraft the ordinance to reflect the homestead-only plus registry approach, post the notice on the Minnetonka Matters page, meet with current short-term rental owners and hosting platforms during the implementation phase, and return the measure to the Planning Commission and then the council for final votes.

Why it matters: the council’s decision narrows who may operate STRs in Minnetonka, responding to resident concerns about investor-owned rentals, neighborhood nuisance and housing availability while preserving a path for residents who live on-site to occasionally host visitors. The planning-commission review and public outreach will determine final permit language and enforcement details.