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Minnetonka council adopts homestead‑only short‑term rental ordinance after hours of public comment
Summary
After extended public comment and council debate about neighborhood disruptions and investor ownership, Minnetonka City Council unanimously adopted an ordinance limiting short‑term rentals to homesteaded properties; staff will verify homestead status and provide a six‑month mid‑check before a Jan. 1 implementation date.
The Minnetonka City Council on June 8 voted unanimously to adopt an ordinance restricting short‑term rentals (STRs) in the city to properties with homestead status, after residents described recurring noise, parties and safety concerns near lakefront neighborhoods.
Supporters of the ordinance — which passed by roll call vote after a council motion and second — argued investor‑owned short‑term rentals act as mini‑hotels that erode neighborhood life and reduce long‑term housing. “Private equity and corporate investors are reaching into every corner of American life… they buy in, raise prices and walk away with the profits,” neighborhood resident Mark Haney told the council during the public comment period.
Staff said 24 properties were registered as STRs citywide; about 14 of those were not homesteaded and five were owned by LLCs. The draft ordinance would not grandfather existing non‑homesteaded registrations: owners who lack homestead status when they renew would be unable to register as STRs and could instead switch to long‑term leasing, transfer or sell the property. Staff recommended a mid‑check outreach to affected owners and proposed Jan. 1 as an implementation date.
Council members weighed tradeoffs for seasonal homeowners and ‘‘snowbirds’’ who sometimes use their Minnetonka homes part of the year. Council member Maxwell highlighted that some property owners use short‑term rentals to offset remodeling or other financial needs, and urged the council to monitor and revisit the rule after implementation. Council member Romaley, who moved the ordinance, said the city’s priority was preserving neighborhood character and preventing commercialized housing in residential areas.
Staff said homestead status will be determined using Hennepin County filings; the city will report suspected fraudulent claims to the county for enforcement. Miss Wyschnak, the staff presenter, said the city would work with county records and noted that homesteading generally excludes business entities, though trust arrangements may be handled on a case‑by‑case basis.
The council’s action follows a planning commission public hearing and extensive letters on the city’s Minnetonka Matters portal. The ordinance takes effect after the outreach and implementation schedule set by staff; the council asked staff to track impacts and reassess if necessary.
Votes at a glance: Motion to adopt the homestead‑only short‑term rental ordinance — mover: Council member Romaley; second: Council member Coakley; roll‑call: unanimous; outcome: adopted.
This item will be incorporated into the city code with implementation steps and a compliance check scheduled before the proposed January 1 effective date.
