Lakeville Short-Term Rental Rules | What Airbnb & VRBO Owners Need to Know | South Metro Scoop
If you've ever thought about renting out your Lakeville home on Airbnb or VRBO, listen up.
The city is overhauling how short-term rentals work.
Not because there's a problem — Lakeville doesn't have many short-term rentals right now.
But because the current rules are scattered and kind of a mess.
What's Happening
Right now, if you want to rent out your house (or a room in your house) for short stays, the rules are buried in the zoning code.
They're vague. They're incomplete. And they're hard to find.
The City Council wants to fix that.
At the February 5th Planning Commission meeting, staff presented a plan to create one comprehensive ordinance just for short-term rentals.
Think of it like what they did with rental registration a few years ago — everything in one spot, easy to understand.
The New Rules
Starting February 17th (if City Council approves), here's how short-term rentals will work:
You'll need a permit
- $100 for the initial permit
- $50 to renew each year
- City staff reviews applications (not a big formal process)
You can only rent your primary residence
- This has to be where you actually live
- You can rent the whole house while you're away, or just rent out a room
Maximum of 2 properties per person
- You can't turn this into a mini hotel empire
- Whether you own them yourself or through a business, max is 2
Other requirements
- Occupancy limits (how many people can stay)
- Parking requirements (so your neighbors don't get screwed)
- Enforcement rules (so the city can actually do something if problems come up)
Why The Change?
The old system just said you could "rent rooms" with an administrative permit. That's it.
No details. No standards. No real oversight.
The new ordinance creates actual guardrails.
It's not meant to encourage a ton of new short-term rentals. The Council was intentional about keeping it limited.
But for people who do want to rent their home occasionally? Now there's a clear process.
What This Means For You
If you currently have a short-term rental: You'll need to get the new permit once this passes. The city will help with the transition.
If you're thinking about starting one: Wait until after February 17th when City Council votes. Then check the city website for the application.
If you're not interested in short-term rentals: This doesn't affect you at all. But now you know the rules are getting tighter if your neighbor ever tries it.
What's Next
City Council meets on February 17th to vote on:
- The new short-term rental ordinance
- Removing the old "renting of rooms" language from zoning code
- Setting the permit fees ($100 initial, $50 renewal)
If approved, the city will roll out information on their website and social media.
They've also been in contact with Airbnb, who will help get the word out to hosts.
How This Compares To Other South Metro Cities
Lakeville isn't the first city in the area to tighten short-term rental rules.
Burnsville, Eagan, and Apple Valley have all created similar ordinances in recent years.
The trend across Dakota County and Scott County? Cities want short-term rentals regulated, but not banned.
It's about balance — letting homeowners earn extra income while protecting neighborhoods from turning into unofficial hotels.
The Bottom Line
This isn't a crackdown on short-term rentals.
It's housekeeping.
The city is taking messy, incomplete rules and turning them into one clear ordinance.
If you want to rent your house on Airbnb, you'll know exactly what's required.
If you're a neighbor, you'll know there are actual standards.
And if you don't care either way? Well, now you're informed.
