Is Edina, Minnesota Good for Airbnb Investment?

To start an Airbnb in Edina, Minnesota, begin by researching local regulations as Edina requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically restrict rentals to owner-occupied properties or specific residential zones. Contact Edina City Hall at 4801 West 50th Street to obtain the necessary permits, which include a short-term rental license (approximately $100-200 annually) and ensure your property meets fire safety and building code requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Find a suitable property in approved residential zones, keeping in mind Edina's median home prices around $500,000-800,000 as of 2023, or consider renting a property with landlord permission for subletting. Furnish the space with quality furniture, linens, and amenities targeting business travelers and families visiting the Twin Cities area, focusing on modern, comfortable furnishings from retailers like IKEA, Target, or local Minnesota furniture stores. Create your Airbnb listing with professional photos highlighting proximity to Minneapolis (15 minutes), Southdale Center shopping, and local parks like Centennial Lakes, setting competitive rates around $80-150 per night based on local market analysis. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with Edina's noise ordinances and parking regulations while potentially hiring local cleaning services like Molly Maid or independent cleaners for turnover efficiency.

To identify profitable short-term rental properties in Edina, Minnesota, focus on locations within walking distance of Southdale Center, near the Minneapolis Chain of Lakes, or close to major corporate headquarters like Optum and HealthPartners. Target 3-4 bedroom single-family homes or upscale condos built after 1990 with modern amenities, full kitchens, parking, and outdoor spaces, as business travelers and families visiting the University of Minnesota or Mayo Clinic often seek these features. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates of $150-250 depending on size and location, while monitoring seasonal demand patterns around university events and corporate travel cycles. Research competition by studying existing Airbnb and VRBO listings within 2-3 miles, identifying gaps in luxury amenities or family-friendly features, and examine occupancy rates of similar properties using tools like AllTheRooms or STR analytics platforms. Leverage local resources including the Edina Chamber of Commerce for market insights, Hennepin County property records for investment analysis, and consult with Edina-based real estate agents familiar with STR regulations, as the city has specific licensing requirements and zoning restrictions that can impact profitability in certain neighborhoods.

To obtain an Airbnb/STR permit in Edina, Minnesota, you must first contact the City of Edina Planning Department at City Hall located at 4801 West 50th Street to begin the application process, as Edina requires a conditional use permit for short-term rentals. You'll need to submit a completed application form along with a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating the rental areas, contact information for a local property manager if you're not local, and evidence of adequate parking availability. The application fee is typically around $500-800, with additional fees for public hearings if required. Required documents also include proof of liability insurance (minimum $1 million coverage), a business license from the state of Minnesota, and compliance with all building and fire safety codes. Edina specifically requires that short-term rentals be owner-occupied or have a designated local contact person available 24/7, maintain adequate off-street parking (typically 2 spaces minimum), and comply with noise ordinances and occupancy limits based on bedroom count. The approval timeline generally takes 60-90 days due to the conditional use permit process, which may include neighbor notification periods and potential Planning Commission review. Once approved, you must renew the permit annually and maintain compliance with all city regulations including regular safety inspections.

Short-term rentals (STRs) are currently prohibited in Edina, Minnesota, as the city has maintained a ban on these types of accommodations since around 2016-2017. The city's zoning ordinance specifically prohibits the use of residential properties for transient lodging or short-term rental purposes, effectively banning platforms like Airbnb and VRBO throughout all residential areas of the city. This prohibition applies citywide with no designated areas where STRs are permitted, and there are no licensing or registration processes available since the activity is entirely banned. The restriction stems from concerns about neighborhood character, parking, noise, and maintaining residential integrity in this affluent Minneapolis suburb. Unlike some neighboring communities that have created regulatory frameworks to allow STRs with restrictions, Edina has maintained its complete prohibition, and there have been no recent legal changes to suggest the city is moving toward allowing or regulating short-term rentals rather than banning them outright.

The most attractive Airbnb investment areas in Edina, Minnesota include the Country Club District near Interlachen Country Club and Edina Country Club, which draws affluent business travelers and visitors attending events at these prestigious venues. The 50th & France area is highly desirable due to its upscale shopping district, fine dining establishments, and proximity to major corporate headquarters like Optum and UnitedHealth Group, generating consistent business travel demand. The Cahill Road corridor offers excellent investment potential with its proximity to the Minneapolis-St. Paul International Airport (15-20 minutes) and major business centers, making it ideal for corporate travelers and consultants working with Fortune 500 companies headquartered in the Twin Cities metro. The Southdale area near the original enclosed shopping mall provides strong rental demand from medical professionals visiting nearby Fairview Southdale Hospital and business travelers attending conferences at the Marriott Minneapolis Southwest. Finally, the residential areas near Braemar Golf Course and Centennial Lakes Park attract leisure travelers seeking upscale accommodations for golf tournaments, family gatherings, and visitors to the University of Minnesota who prefer staying in Edina's safer, more affluent environment rather than Minneapolis proper.

In Edina, Minnesota, Airbnb hosts are subject to multiple lodging and occupancy taxes including the Minnesota state lodging tax of 3%, Hennepin County lodging tax of 3%, and the City of Edina lodging tax of 3%, totaling approximately 9% in combined taxes on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with local authorities. The state tax applies to stays of less than 30 consecutive days, while county and city taxes generally follow similar guidelines for short-term accommodations. Hosts must register with the Minnesota Department of Revenue for state tax purposes and may need separate registrations with Hennepin County and the City of Edina depending on local requirements. Exemptions may apply for stays exceeding 30 days, certain government or nonprofit travelers, and in some cases for properties rented fewer than a specified number of days per year, though specific exemption criteria vary by jurisdiction. Hosts should maintain detailed records of all bookings and tax collections, and while Airbnb's collection service simplifies compliance, hosts remain ultimately responsible for ensuring proper tax registration and remittance to all applicable authorities.

Starting an Airbnb in Edina, Minnesota requires approximately $650,000-750,000 in total initial investment. Property purchase costs around $550,000-650,000 based on median home prices in this affluent Minneapolis suburb as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $15,000-25,000 including furniture, bedding, kitchenware, and decor from retailers like IKEA, Target, and West Elm. Initial setup expenses including professional photography, listing creation, and marketing materials run $2,000-3,000. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance costs approximately $2,000-3,000 annually for landlord and short-term rental coverage through companies like Proper Insurance or CBIZ. Monthly utilities including electricity, gas, water, internet, and cable average $300-400 monthly. First six months operating costs including cleaning services ($100-150 per turnover), supplies, maintenance, property management software subscriptions, and marketing total approximately $8,000-12,000. Additional considerations include potential HOA fees, property taxes, and a 3-6 month cash reserve for vacancies and unexpected repairs.

Airbnb properties in Edina, Minnesota typically generate annual revenues of $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on proximity to Minneapolis and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within 2 miles of Southdale Center or with easy highway access to Minneapolis typically achieve 65-75% occupancy rates and profit margins of 25-35%, while those further from commercial areas see 45-55% occupancy and 15-25% margins. Success factors include professional photography, consistent 4.8+ star ratings, proximity to business districts like the Edina Corporate Center, and targeting both leisure travelers visiting the Twin Cities and business travelers, with properties near Interstates 494 and 62 commanding premium rates due to accessibility to Minneapolis-St. Paul International Airport and downtown Minneapolis.

Airbnb investments in Edina, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near Southdale Center and the Country Club District command average daily rates of $120-180, with occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months, assuming a 20-25% down payment on properties valued between $400,000-650,000. The market benefits from proximity to Minneapolis-St. Paul International Airport, corporate travelers visiting companies like Best Buy and Target headquarters, and seasonal demand from visitors to the Chain of Lakes area, with peak summer months generating 15-20% higher returns than winter periods.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Edina, Minnesota. Local real estate agents specializing in Airbnb investments in Edina include Coldwell Banker Realty agents who focus on investment properties, RE/MAX Results agents with vacation rental expertise, and Edgewater Real Estate professionals who understand the Minneapolis-St. Paul metro market dynamics. National services include Mashvisor for property analysis and market data, BiggerPockets for investor networking and deal sourcing, AirDNA for short-term rental market analytics, and Awning for turnkey Airbnb investment properties. Local property management companies like RedAwning Property Management and Vacasa provide full-service Airbnb management for investors. Additional services include RentSpree for rental market analysis, Roofstock for online real estate investing, and local mortgage brokers like Edina Realty Mortgage who understand investment property financing in the Minnesota market.