Michigan Zoning Ordinances

[Casey342]

Hi community!

I've been hosting an home in Michigan successfully for two years, and love it. I have attempted, however, to expand into other cities and been blocked by the various cities and villages throughout Michigan that simply do not allow short term rentals at all of any sort. More common are those that only allow rentals for 30 days or more, which is not financially viable. 

Now, the city that I currently host in has hired an attorney to send me a cease and desist letter personally, informing me that my short term rental is no longer allowed, and I must close up shop. I immediately contacted my own attorney, who told me there's nothing I can do. 

Is this true? Are more and more cities locking out short term rentals? Are there any better attorneys more equipped with this to help us sort this out? I am not okay with shrugging my shoulders and allowing these cities to force my doors to close just for fun. 

Thanks for any insight you have!

[Helen3]

Are you saying your city is banning short term rentals outright @Casey342 . This would be highly unusual . 

Or are you being told your STR business is not complying with local STR restrictions? 

Cities are not intro STR regulations 'for fun' as you state but quite rightly because of the adverse impact unrestricted STR growth is having on local communities.  STRs have pushed up LTR and housing price cling meaning key workers are unable to live in a community leading to shortages of key workers . Some STR owners do not keep their property in a decent standard as they are not regulated and some investor STR owners don't care absolutely yet the impact noisy and unsocial guests have on communities . 

so introducing STR regulations in oversaturated markets is for me a good thing @Casey342 

[Casey342]

Hi Helen, 

They are restricting STR's outright, for any property zoned as residential and is rented out for less than 30 days. Since these homes cannot be re-zoned to commercial and we would never have a 30 day minimum, it's an outright ban. Below is an example. 

"With the exception of a few areas in The Village — specifically, those zoned Commercial Business District, or C-2; Mixed-Use District, or T-1; and Mixed-Use District, or T-2 — short-term rentals are prohibited in the City."

[Helen3]

Thanks for replying.  

So, based on what you have stated,  I was correct there is no outright ban.

There is like many locations in the US a restriction for a minimum 30 day stay in certain parts of your city @Casey342 

The 30 day limit obviously works in your city in terms of demand or there wouldn't be any hosts on STR offering this.

[Casey342]

Neither of your assumptions are correct.

There is an outright ban, as stated in the ordinance. 

Secondly, the 30 day limit doesn't work in the city. Many of the other hosts I've spoken to have either removed their listings, or seen a dramatic drop in bookings, forcing them to search other methods to rent their space out, like corporate and insurance - sourced leads. 

So, not correct at all @Helen3 

[Tim3075]

What county is the rental in @Casey342 ?  I'm having the same issues in Alcona.  They actually changed the zoning ordinance to ban STRs, and they are only targeting a select few homes. 

[Casey342]

Hi @Tim3075 ! It's in Oregon Township specifically. I continue to get threatening letters from neighbors and attorneys, but no fines yet. It looks like I'll most likely have to sell the home. 

[Tim3075]

There is legislation that could change all this - bill 4722 which has been passed by the house. 

[Tamara847]

@Tim3075 This is happening to me right now in the city of Wayne, MI. Only my third booking, no complaints no issues from the guest. I never got a warning or letter at all. Someone came to my door and taped a citation with a $1200 fine / misdemeanor on my window. I’m very shocked. There are other air bnb around my neighborhood and they have been flourishing. 

[Jason2452]

Hi Casey, I am experiencing identical circumstances. Do you have any news or updates on your situation. I think this article is a warning sign for this situation if interested - https://www.msn.com/en-us/travel/other/palm-springs-capped-airbnb-rentals-now-some-home-prices-are-i...