Vacation Home Rentals May See Solution

Over the past several years, the practice of renting out ones cabin to bring in revenue and offset property taxes and general maintenance expenses has become common. We call this vacation home rentals. In addition, websites have sprung up in significant numbers making it very easy for vacation homeowners to rent out their units (and many vacation homeowners have built their own sites.

For a good example, check out www.vrbo.com (vacation rental by owner). So why does our industry care? Because these vacation homes are now in the marketplace competing against private resorts and lodging properties, yet they do not have to meet the same regulatory requirements. They often do not collect sales tax, lodging tax, get inspected by the Department of  Health or meet DNR Shoreland Management standards.

The Minnesota Department of Health has the authority under current statute to inspect these properties, but has only recently begun to do so. In part it’s a manpower issue – they simply don’t have enough folks to chase down every private homeowner.  And in part, it’s because the problem has only become evident as the Internet has grown and the cost of entry into the marketplace has declined.

The Minnesota Resort and Campground Association and Minnesota Lodging Association care a great deal about this issue. Level playing field and public safety are key elements of the discussion. The Department of Health is preparing to move forward with some technical corrections to existing statute that will clarify their existing authority to inspect. It’s a great first step in ensuring that Minnesota’s vacationers are in safe facilities.

We’ll keep you posted as the initiative progresses.

David Siegel, CAE, IOM
Minnesota Restaurant, Lodging and Resort & Campground Associations and Hospitality Minnesota