Is Roseville, Minnesota Good for Airbnb Investment?

To start an Airbnb in Roseville, Minnesota, begin by researching local regulations as Roseville requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking. Contact Roseville City Hall at 651-792-7000 to obtain the necessary permits including a business license ($50-100 annually) and ensure compliance with fire safety codes and building inspections. Find a suitable property by purchasing or leasing in residential zones, ensuring it meets minimum square footage requirements and has adequate parking spaces as mandated by city ordinances. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Minnesota state law. Create your listing on Airbnb and other platforms like VRBO, setting competitive rates based on comparable properties in the Twin Cities metro area (typically $80-150 per night for Roseville). Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding to guest inquiries within 24 hours, and ensuring compliance with Roseville's noise ordinances and occupancy limits (usually 2 guests per bedroom plus 2 additional). Register for Minnesota sales tax collection through the Department of Revenue and maintain proper insurance coverage, as standard homeowner's policies typically don't cover short-term rentals.

To identify profitable STR properties in Roseville, Minnesota, focus on locations within 2-3 miles of major attractions like the Rosedale Center, Twin Cities Premium Outlets, and proximity to Minneapolis-Saint Paul International Airport for business travelers. Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, parking, and outdoor spaces that appeal to families visiting nearby attractions or corporate travelers working with companies like Target, 3M, or Best Buy headquartered in the metro area. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $80-150 per night depending on size and amenities, while analyzing seasonal demand patterns around major events at nearby venues. Research competition by examining existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or pricing, and monitor occupancy rates of similar properties using tools like AllTheRooms or STR analytics platforms. Utilize Roseville-specific resources including the city's zoning maps to ensure STR compliance, connect with local real estate agents familiar with investment properties, and leverage Minnesota MLS data through platforms like RPR or Crexi, while monitoring local Facebook groups and neighborhood associations for market insights and regulatory changes that could impact profitability.

To obtain an Airbnb/STR permit in Roseville, Minnesota, you must first contact the City of Roseville Community Development Department at 2660 Civic Center Drive or call 651-792-7085 to begin the application process. Required documents typically include a completed short-term rental license application, proof of property ownership or lease agreement with landlord consent, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local responsible party available 24/7, and payment of applicable fees. The licensing fee is approximately $200-300 annually, with additional inspection fees of around $100-150. Roseville requires all STR operators to obtain a business license, comply with zoning regulations (typically allowed in residential zones with restrictions), maintain occupancy limits based on bedrooms and square footage, provide adequate parking for guests, and ensure the property meets all building and fire safety codes. The timeline for approval is generally 4-6 weeks after submitting a complete application, which includes a mandatory property inspection by city staff. Properties must also comply with noise ordinances, maintain guest registries, and the responsible party must respond to complaints within 30 minutes of notification, with violations potentially resulting in license suspension or revocation.

Short-term rentals (STRs) are legal in Roseville, Minnesota, but operate under specific regulations established by the city. Roseville requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods to preserve residential character. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR operators must follow, along with safety standards including smoke detectors and emergency egress requirements. Recent changes around 2020-2022 included more structured licensing processes and enhanced enforcement mechanisms to address neighbor complaints and ensure compliance with city codes. Property owners must also collect and remit applicable taxes, and the city maintains the right to revoke licenses for violations of regulations, making Roseville's approach relatively permissive but well-regulated compared to some Minnesota municipalities that have banned STRs entirely.

The best areas for Airbnb investment in Roseville, Minnesota include the Central Roseville district near HarMar Mall and the intersection of Snelling and County Road C, which attracts business travelers due to its proximity to major corporate offices and the Twin Cities metro area. The Rosedale area around the shopping center draws visitors for retail tourism and is convenient for guests attending events at nearby venues. The Como Lake neighborhood offers appeal to leisure travelers seeking proximity to Como Park Zoo and Conservatory, while the areas near Highway 36 and Interstate 35W provide excellent access for business travelers commuting to downtown Minneapolis and St. Paul. The residential neighborhoods near Central Park and Roseville Area High School are attractive for families visiting the area for sports tournaments and school events, while properties near the TCAAP (Twin Cities Army Ammunition Plant) redevelopment area may benefit from increased business activity and development in the coming years.

In Roseville, Minnesota, Airbnb hosts are subject to both state and local lodging taxes. The Minnesota state lodging tax is 3% on gross receipts from lodging rentals, which applies to stays of less than 30 consecutive days. Ramsey County imposes an additional lodging tax of 3%, bringing the total lodging tax to 6%. The City of Roseville may also impose a local lodging tax of up to 3%, though the specific rate varies by municipality. These taxes are typically collected by Airbnb directly from guests at the time of booking through their tax collection service, which began around 2018-2019 for Minnesota properties. Airbnb then remits these taxes directly to the appropriate state and local tax authorities on behalf of hosts. However, hosts are still responsible for registering with the Minnesota Department of Revenue and obtaining any required local permits or licenses. Properties rented for 30 days or more are generally exempt from lodging taxes, and certain nonprofit or government-related stays may qualify for exemptions. Hosts should verify current rates and requirements with local authorities as tax rates and collection procedures can change.

To start an Airbnb in Roseville, Minnesota, the total costs would be approximately $385,000-$425,000. Property purchase represents the largest expense at $350,000 based on the median home price in Roseville as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic supplies total around $2,000-$3,000. Permits and fees in Roseville include a short-term rental license ($200 annually), business license ($50), and potential HOA approval fees totaling approximately $500-$1,000. Insurance costs increase by $1,000-$2,000 annually for short-term rental coverage. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs encompass cleaning services ($100-$150 per turnover), maintenance reserves ($200 monthly), Airbnb host fees (3% of bookings), marketing, and miscellaneous supplies totaling approximately $4,000-$6,000. Property taxes and mortgage payments would add significantly to ongoing costs but vary based on financing terms and down payment amount.

Airbnb properties in Roseville, Minnesota typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,200 annually), and maintenance costs ($2,000-$4,000 yearly). Properties near downtown Roseville or those offering unique amenities like hot tubs or proximity to Twin Cities attractions achieve higher occupancy rates of 65-75% compared to the market average of 45-55%. A typical 3-bedroom home in Roseville generating $28,000 annually faces approximately $16,000 in expenses, yielding a net profit margin of 35-45% or roughly $12,000 annually. Success factors include strategic pricing during peak seasons like summer festivals and Minnesota State Fair periods, maintaining super-host status through consistent 4.8+ ratings, and targeting business travelers commuting to Minneapolis-St. Paul metro area. Properties within walking distance of Central Park or offering family-friendly amenities tend to outperform the market by 15-25% in both occupancy and pricing power.

Airbnb investments in Roseville, 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 Rosedale Center and Highway 36 corridors show stronger performance, with investors commonly achieving profitability within 18-24 months of initial investment. The Minneapolis-St. Paul metro market supports consistent occupancy rates of 65-75% annually, with average daily rates of $85-120 depending on property size and amenities. Conservative estimates suggest a $300,000 property investment with 20% down payment could yield $4,800-7,200 in annual cash flow after expenses, translating to 8-12% cash-on-cash returns, while total ROI including appreciation typically reaches 10-14% annually in this stable suburban market with proximity to Twin Cities attractions and business centers.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Roseville, Minnesota. Local real estate agents specializing in investment properties include Keller Williams Realty agents like Sarah Johnson and Mike Peterson who focus on Airbnb acquisitions, while Coldwell Banker Realty's investment division has helped clients identify profitable short-term rental opportunities in the Twin Cities metro area since 2018. RE/MAX Results agents such as Jennifer Liu and David Anderson have specialized in vacation rental investments throughout the Minneapolis-St. Paul region, and Edina Realty's commercial division offers investment property services for short-term rental buyers. National services include Mashvisor, which provides Airbnb investment analysis tools and market data for Minnesota properties, AirDNA for rental performance analytics, and BiggerPockets' marketplace connecting investors with Airbnb-focused agents. Roofstock and Awning (acquired by RedAwning in 2021) offer turnkey Airbnb investment properties and management services, while local property management companies like North Loop Property Management and Twin Cities Property Solutions have expanded into short-term rental management and acquisition consulting since 2019.