Michigan STR Regulations
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State Legislation
Local Legislation
Definitions of what a short-term rental is, whether or not short-term rentals are allowed, and any regulations currently enacted in a locality are handled by the local government. Michigan has over 1700 defined localities; every township, city, and village may or may not have regulations. If regulations have been enacted, it’s not uncommon to have regulations to ensure safety as well as to have a process and fee to register as a short-term rental.
Some communities limit the number of short-term rentals or even the zoning areas where short-term renting is allowed. Some communities treat owner-occupied properties differently than non-owner-occupied properties. If you have questions about the legality of short-term renting your property in your municipality, call the local zoning administrator or other governing official for more information. Find links to local legislation for some of Michigan’s most populous short-term rental markets below:
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Saugatuck – currently under revision
Homeowners Associations (HOAs)
Homeowners associations can further limit or disallow short-term rentals, and can change their bylaws in accordance with their amendment process to institute bans or limitations at any time. Grandfathering in existing short-term rentals is not a legal requirement. It is recommended to review current bylaws and evaluate the likelihood of an HOA banning or limiting short-term rentals in the future.
Have permit questions? Chat with other Michigan hosts in MiSTRA’s member discussion forums.
All Michigan STRs are subject to 6% Use Tax
Under Michigan law, the state taxes short-term rental accommodations at 6%. At this time, Airbnb is the only platform that collects and remits the 6% use tax. Vrbo does not collect or remit use tax. The owner/operator is responsible for collecting and remitting use tax for all rental income for accommodations of less than a month from any other platform—currently including VRBO and direct bookings.
Any additional taxes charged by the locality would need to be collected and remitted by the owner/operator as well, in accordance with the locality regulations and requirements.
Helpful STR Tax Links
Have tax questions? Access helpful resources in MiSTRA’s member portal.
FREQUENTLY ASKED QUESTIONS
Michigan Short-Term Rental Regulations
My locality doesn’t appear to have any regulations on short-term rentals.
It’s not uncommon for a locality to not have regulations, although as issues crop up we are seeing them enacted more frequently in even our smallest towns. After confirming no regulations exist, we encourage any owner/operator interested in offering short-term rental accommodations to do so safely, in compliance with any local ordinances (i.e., noise, parking, etc.), and with provision of adequate information to guests to be a good neighbor while they are staying in our communities.
My township has banned short-term rentals, do I have any recourse?
Very few localities have banned short-term rentals outright; if you wish to proceed, it’s important to have legal counsel, and it is very helpful to connect with other STR owners, operators, and stakeholders in the area to have a coordinated plan.
My city disallows STR in specific zoning areas. Is this legal?
I share rooms in my home; is this subject to short-term rental regulations?
Every locality may define short-term renting differently; home-sharing may or may not be defined within your locality as subject to any local regulations. However, any rental income from stays of less than a month is subject to the 6% general use tax, regardless.
I short-term rent a camper in my backyard, is that subject to short-term rental regulations?
Every locality has different zoning and short-term rental regulations; we advise reviewing the local requirements and/or talking to local officials to assess if this is allowed.
My neighbor hates that we short-term rent, is there anything we can do?
Dealing with STR opponents means first ensuring you are running your STR compliantly and empowering your guests to be good neighbors while they stay. Having objective information, such as can be provided through a noise monitor or exterior cameras (all disclosed to the guest), can help debunk complaints. The best approach is to be upfront about your intentions to rent and to be available as the first line of defense should your neighbors have any complaints – give them your (or your operator’s) phone number and check in with them occasionally to see how it’s going and attempt to address reasonable concerns.
Have additional questions? For all queestions specific to your property, permit/registration, or taxes, consult the appropriate government authority.
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