Are Short Term Vacation Rentals Allowed in Michigan?

By Anna Duncan

Short term vacation rentals have become increasingly popular in recent years, allowing travelers to experience a home away from home while exploring new destinations. However, with the growing popularity of vacation rentals, many states have implemented regulations to ensure the safety and well-being of both renters and property owners. One such state is Michigan.

What are Short Term Vacation Rentals?

Short term vacation rentals are accommodations that are rented out for a short period of time, usually less than 30 days. These can include apartments, condos, cottages, and houses that are fully furnished and equipped with amenities such as kitchens and laundry facilities. The rise of online platforms like Airbnb and VRBO has made it easier than ever for property owners to list their homes for short-term rental.

The Legal Landscape in Michigan

In Michigan, short-term vacation rentals are allowed but may be subject to local regulations. The state does not have any statewide laws that specifically address vacation rentals, meaning that each city or municipality has its own rules and regulations.

City Regulations

Cities like Detroit have specific regulations in place for short term rentals. In Detroit, hosts must obtain a license from the city before renting out their property on a short-term basis. The license costs $50 per year and requires hosts to comply with certain safety regulations.

Lakefront Property Regulations

For those looking to rent out lakefront properties in Michigan, there are additional regulations to keep in mind. Properties located on inland lakes must adhere to zoning ordinances that dictate how many people can occupy a rental unit at one time.

Insurance Considerations

If you’re considering renting out your property as a short-term vacation rental, it’s important to consider insurance coverage. Many traditional homeowner’s insurance policies do not cover commercial activities like renting out your property. Hosts may need to purchase additional insurance coverage to protect their property and personal liability.

Conclusion

Short-term vacation rentals are allowed in Michigan, but it’s important to be aware of local regulations before listing your property. Hosts should also consider insurance coverage to protect themselves and their property. By following the rules and guidelines, both renters and property owners can enjoy a safe and enjoyable vacation experience in Michigan.