Join the Michigan Chapter of Alliance for Stronger Communities

The Situation

Michigan boasts a strong economy, the great outdoors and top-notch colleges and universities. It’s an attractive place for visitors and long-term residents alike, where you can come to find seasonal work, start a business, invest in your education or raise a family. Today, there are a variety of lodging options for seasonal workers or out-of-town visitors – including short-term rentals, which have grown considerably in popularity. As more and more short-term rentals are proliferating throughout the state, however, it’s important that lawmakers create thoughtful regulations to oversee these properties. Unfortunately, short-term rentals – which are often highly unregulated – are prone to causing nuisance behavior and are also taking options for available, affordable housing off the market. That’s why lawmakers must strike the right balance in legislation addressing the short-term rental industry. 

Legislative Initiatives

We’ve actively participated in Michigan’s legislative landscape, focusing on short-term rental bills in recent years. Currently, HB 5438 is under consideration in the Michigan legislature, a bill that would improve regulations and accountability surrounding short-term rentals.

Government Responsibilities

• Create a short-term rental database through the Department of Licensing and Regulatory Affairs.
• Enforce a statewide 6% excise tax on each short-term rental.
• Share database with local governments, including any filed complaints.
• Ensure local governments can enact and enforce reasonable regulations and uphold zoning decisions.
• Prevent local governments from banning short-term rentals outright.

Short-Term Rental Owner Responsibilities

• Maintain liability insurance unless the hosting platform offers greater coverage.
• File a yearly certificate that includes the name and address of the owner, rental address and certification of their liability insurance.

Hosting Platform Responsibilities

• Register with the Department of Licensing and Regulatory Affairs before facilitating any bookings on the platform.
• Pay an annual registration fee equal to $100 per listing, but no more than $50,000 a year.
• Develop and share a report of transactions hosted by the platform in the state of Michigan.

Penalties

• Short-term rental owner: up to $1,000 per violation
• Hosting platform: up to $5,000 per violation

Short-Term Rental Hotspots in Michigan
(Source: AirDNA.co)

Detroit: 1,397 Short-Term Rentals

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Traverse City: 1,120 Short-Term Rentals

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South Haven: 661 Short-Term Rentals

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Grand Rapids: 457 Short-Term Rentals

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In The News

California Woman Rented Michigan Airbnb For A Month To Meet With 14-Year-Old, Police Say

4 Shot During Bachelor Party At Airbnb Rental On Detroit’s West Side

Homeowner Rents Out House On Airbnb Only To Discover Unthinkable; Her Message To Renters

Missing Michigan Teen Found Dead In Detroit Basement After Dad Receives Anonymous Tip

Man Dead After 5 People Shot During Gathering At Daily Rental House In Saginaw

Neighbors Complain About Short-Term Rentals In Clarkston

Safety, Income Concerns Clash In Detroit Plan To Regulate Short-Term Rentals

Swarming Bats Attack Women, Turning Airbnb Into ‘House Of Horror’, Michigan Lawsuit Says

Teen Rents House, Throws Illegal Party In Macomb County, Police Say