Sauk Rapids Council Looking to Curb Short-Term Rentals

(KNSI)—Sauk Rapids is considering revising its rental density ordinance to cap the number of Airbnb or VRBO properties in the city.

Five other communities already have a law on the books, and they have been upheld as legal by the court system. Currently, Sauk Rapids has limits that mirror what Winona allows. Their ordinance permits up to 30% of homes to be used as short-term rentals. In Anoka, it is only 10%. Sauk Rapids City Council will debate a new measure Monday that would let 15% of homes on any given block be rental properties.

City staff say studies show that Airbnbs or similar arrangements are typically kept up less than a traditional single-family home that is owner-occupied. The study also found that repairs on rental properties are done as cheaply as possible, something the city hopes to avoid.

Other problems that crop up when there is a high density of rental properties are increased nuisance complaints and lower property values. The city notes that some newer developments were designed with the idea that there would be more rental units than the typical neighborhood. They operate under a planned unit development, or PUD, and are exempt from the new ordinance if it passes.

If a block already has a 15% rental density, it would be grandfathered in. However, no new rental licenses would be allowed until the ratio drops to the city’s target, and licenses would not be able to be transferred upon sale in those neighborhoods.

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