How to Start a Short-Term Rental in West Fargo, North Dakota: The Chapter 10-16 License, $500,000 Liability Insurance and Two Off-Street Parking Spaces

If you want to rent a home or a room in West Fargo for stays of 29 days or less, you now need a city license. West Fargo Ordinance 1254 added Chapter 10-16 to the city code under Title 10. The City Commission approved it on November 3, 2025, applications opened May 1, 2026, and the rules took effect July 1, 2026. This guide walks through the West Fargo short-term rental license, what it costs, and the insurance, parking and operating rules that catch first-time hosts off guard.

Informational only: This article explains the West Fargo rules as we read them. It is not legal or tax advice. Ordinances get amended, and the West Fargo City Auditor's office decides how your application is handled. Talk with a qualified attorney or CPA before you buy or convert a property, especially if the property will be held in an LLC or carries a mortgage or HOA obligations.

What Counts as a Short-Term Rental in West Fargo

Under Chapter 10-16, a short-term rental is a dwelling, or part of one, rented for 29 or fewer consecutive days. Stays of 30 days or more fall outside the definition. The ordinance has no primary-residence requirement, so you do not have to live on the property. An owner who lives across town can apply the same way as a homeowner who rents a spare bedroom.

This guide covers West Fargo only. If your property is in Fargo, the West Fargo ordinance does not apply to it, and you should confirm the rules with the City of Fargo.

What You Need Before You Apply

Gather these items before you file. A missing document is the most common reason an application stalls.

• A dwelling in West Fargo that you will rent for 29 or fewer consecutive days
• A North Dakota sales and use tax permit, because proof of the permit is required with the application
• General liability insurance with coverage of at least $500,000
• Scaled floor plans that show each bedroom and its square footage
• The name and contact details of a local contact who can respond within 2 hours
• Two off-street parking spaces on the property
• Payment for the application fee and the inspection fee
• Documentation that the property has passed a fire, building and health inspection

Fees and Costs at a Glance

These are the 2026 city fees from the ordinance. The state and inspection costs that the ordinance does not list are marked so you can confirm them directly.

Item	Amount	Notes
West Fargo short-term rental application fee	$150 per year	Prorated by month for a mid-year start
Safety and Compliance Inspection fee	$65 per year	Annual. The city does not say whether this fee is prorated, so confirm with the City Auditor.
North Dakota sales and use tax permit	No fee set by the city	Issued by the Office of State Tax Commissioner through ND TAP. Confirm the current fee on the ND TAP application page.
Fire, building and health inspections	Not listed by the city	Confirm fees and scheduling with the City Auditor.
General liability insurance	Varies by insurer	Minimum coverage of $500,000. Get written quotes.

Once you are operating, your guests pay state sales tax at 5% plus city and county taxes. West Fargo also levies a lodging tax under Chapter 10-05, which is 2% plus 1%. Confirm how these apply to your bookings with the Office of State Tax Commissioner and the City.

Step 1: Confirm the Property Fits and Check Your Permissions

Start with the property itself. Confirm it is in West Fargo, that it is a dwelling or part of one, and that you plan to rent it for 29 or fewer consecutive days. Then check the paperwork that sits outside the city ordinance. If you rent the home, read your lease. If the property sits in an HOA, read the covenants. If you have a mortgage, ask your lender whether short-term rental use is permitted. None of these checks is a city license requirement, but a conflict here can undo a license you have already paid for.

If you will hold the property in an LLC, you file the Articles of Organization through the North Dakota Secretary of State's FirstStop portal at firststop.sos.nd.gov. The filing fee is $135. Remember that the LLC annual report, $50, is due November 15 each year.

Step 2: Calculate Your Occupancy Limit

The ordinance sets occupancy by bedroom size. Measure each bedroom, note its square footage on your floor plan, and apply this table:

Bedroom size	Occupants allowed
70 to 99.9 square feet	1
100 to 149.9 square feet	2
150 square feet or more	3

Your occupancy can never exceed the limit set by the Property Maintenance Code, even if the bedroom table would allow more. The property maximum is the sum of the allowable occupancy of all designated bedrooms, and the City Building Official makes the final determination. Your listing must show that total.

Step 3: Get Your Sales and Use Tax Permit

Any business making taxable sales in North Dakota needs a sales and use tax permit from the Office of State Tax Commissioner. You apply through ND TAP at tap.tax.nd.gov, and the state recommends applying about 30 days before you open. The permit is required for your West Fargo application, so the sequence matters. Apply early, receive the permit, and then file the city application with proof attached. More information is available at tax.nd.gov.

Step 4: Buy the Required Liability Insurance

The ordinance requires general liability insurance of at least $500,000. Call your insurance agent and ask in writing whether the policy covers paid short-term guest stays. Many standard homeowners policies exclude or limit business use of a home, so an ordinary policy may not satisfy the requirement. Request a certificate of insurance that shows the coverage amount and keep a copy ready for your application.

Step 5: Set Up Parking and Signage

The property must have two off-street parking spaces. These are spaces on your own lot, such as a driveway or garage pad, not spaces on the street. Measure your lot before you buy or convert. If you are short a space, you cannot license the property as the ordinance is written.

The ordinance also bans exterior signage. Do not place a rental sign on the building or in the yard. Your online listing is the right place to advertise.

Step 6: Name a Local Contact

The ordinance requires a contact who can respond within 2 hours. This person does not have to be you. Many owners use a property manager or a trusted neighbor. Whoever you choose must be reachable during guest stays, and their name and contact information belong on your application. If the contact changes, update the city so that complaints reach the right person.

Step 7: Pass the Fire, Building and Health Inspections

The license cannot be issued until the property passes a fire, building and health inspection. Plan for these inspections early, because they can take time to schedule and may require repairs. Ask the City Auditor which offices conduct each inspection, how to book them, and whether re-inspection fees apply. Separately, the $65 Safety and Compliance Inspection fee applies each year. Fix known problems before you book the inspections, since a failed inspection delays the license.

Step 8: Submit the Application to the City Auditor

The West Fargo City Auditor issues the short-term rental license. Applications opened May 1, 2026. The license runs from July 1 to June 30, and it is not transferable, so a buyer of the property must apply in their own name. The application fee is $150 per year, prorated by one-twelfth for each month when you start mid-year. For example, if your license would cover 8 of the 12 months, the prorated application fee is 8/12 of $150, or $100. The city does not say whether the $65 inspection fee is prorated, so confirm that figure before you pay.

If you have already been renting without a license, the ordinance may allow a 30-day compliance period. Eligibility is a question for the City Auditor, so ask before you assume you qualify.

Step 9: Run the Property Under the Rules

Once licensed, the operating rules apply to every booking:

• Post your license and the Good Neighbor Guidelines where they are visible at the property.
• Include your license number and maximum occupancy in every listing, on every platform.
• Do not allow parties.
• Keep guest records for 12 months.
• Collect the state sales tax and West Fargo lodging tax, then report and remit them on schedule.

Step 10: Renew Within the Window

You must renew between 30 and 90 days before your license expires. For a license that expires June 30, that window runs roughly from April 1 through May 31. Confirm the exact dates with the City Auditor, and calendar them as soon as you are licensed. Renewal is the point where a host who missed an inspection or lost insurance coverage is most likely to discover the problem.

Common Mistakes to Avoid

• Applying under the Fargo rules. The West Fargo ordinance covers West Fargo only. Confirm your city before you file.
• Buying a policy below $500,000. A standard homeowners policy may not cover paid guest stays at all.
• Counting occupancy by feel. Measure each bedroom. The bedroom table, not your guest list, sets the limit.
• Taking bookings before the permit and license are in hand. Listing the property early can create compliance problems.
• Relying on street parking. Two off-street spaces are required, and guests parking on the street does not satisfy the rule.
• Omitting the license number or occupancy from listings. Both must appear in every listing.
• Putting up a sign. Exterior signage is prohibited.
• Assuming the license transfers with the property. The license is not transferable.
• Missing the renewal window. Calendar the 30 to 90 day period the moment you are licensed.
• Discarding guest records early. Keep them for 12 months.

What to Expect After You Are Licensed

A license may help you operate with fewer surprises, because the rules are clear about parking, occupancy, listings and contacts. Hosts who prepare the paperwork in order, keep their insurance current and track the renewal window are generally better positioned to avoid delays. The city does not publish a processing time that we could find for West Fargo licenses, so ask the City Auditor for the current timeline before you plan a launch date.

Frequently Asked Questions

Do I need to live in the home to get a West Fargo short-term rental license?

No. The ordinance has no primary-residence requirement. The property must still meet the occupancy, parking, insurance and inspection rules.

Does West Fargo have a general business license I also need?

North Dakota has no general statewide business license, and major cities generally license by activity rather than by a general business permit. Registering an LLC or trade name is a filing with the Secretary of State, not a license. Confirm with the City Auditor whether any other city licensing applies to your situation.

Who do I call with questions?

Start with the West Fargo City Auditor for the license, fees, inspections and compliance period. Use the North Dakota Office of State Tax Commissioner at tax.nd.gov for the sales tax permit. For business entity filings, use the North Dakota Secretary of State at sos.nd.gov.

Next Steps

Start with the two items that take the longest: the sales and use tax permit through ND TAP and the insurance quote. Then measure your bedrooms, confirm your two parking spaces, and schedule your inspections. Once those are in hand, file with the City Auditor. This article is informational, not legal or tax advice. For a property with complex ownership, financing or tax questions, consult a qualified attorney or CPA before you file.