Township Ordinance - Eliminating STRs

Anita399
Level 2
Michigan, United States

Township Ordinance - Eliminating STRs

We live in a small community near Ann Arbor, MI and in order to afford/keep our cozy lake cottage..we have been renting it out on a short term basis. All our neighbors are aware and supportive of this situation. Recently, our township sent a letter basically telling us we were breaking the law and that we had to stop any rentals under 30 days. Can they enforce this? If so, what have been your experience and any advice is appreciated.

12 Replies 12
Michelle1648
Level 4
Nova Scotia, Canada

I did a search of your dilemma and according to the township, this isn't set in stone, or, they just havent updated the site.  Here is the link https://www.a2gov.org/departments/planning/Pages/Short-Term-Rentals.aspx

 

If you have a cottage out of the city and it is more of a vacation spot, I think you should apply to have it grandfathered.  If you can prove a history of renting and your neighbours do not mind, I cannot see them not granting you the right to rent it.  I know I had to apply for a rental permit in my home province this year, first time ever.   It sounds like the town of Ann Arbor has an issue with people renting out their primary residences and creating a hotel like atmosphere in neighbourhoods.    I would contact the planning department and discuss.   Good luck! https://www.a2gov.org/departments/planning/Pages/Short-Term-Rentals.aspx

Make sure you cite that fact you bring "tourist dollars" to the area since you are renting a recreational property and not your home.   Elaborate on how tourism improves the lives of locals (creates more wealth through spending at local shops).    I can understand them not wanting people to rent residential homes but to blanket all properties with the same strict policy isn't wise, its literally throwing away incoming money. 

Thank you! We are actually in a township about 15 minutes west of Ann Arbor but I agree that the grandfather route may be feasible.

It astounds me that AirBnB doesn't provide some sort of guidance or a template we can use to help address these issues no matter the size of the community/city, maybe I missed it somewhere?

I am also seeing more of these regulations.  I really would like for Airbnb to help with these.

Helen3
Level 10
Bristol, United Kingdom

Airbnb will not be able to help you @Yiwei3  - this is between you and your local government 

@Helen3  There is a lot that Airbnb could do, in theory.  Their public affairs/government relations teams should have a system to alert them about all STR legislation that is proposed.  In the US it would monitored by state teams who would be responsible for ID any city/town/county ordinances.  They should have a set of basic talking points and data that they can give out to hosts on how much $$ Airbnb brings to the city/county/state, basic information that refutes the common negative ideas about Airbnb; they should have the contact information for elected officials handy for hosts, that is the bare minimum, assuming that Airbnb can't be bothered to protect its market anywhere but the largest cities, which in itself is a very strange attitude toward the one thing that can and is killing the business model.  

Unfortunately, there are just short of 20,000 municipalities split among 50 states in the U.S., all doing their own thing. A guide would be helpful true, but that is a lot of fronts to battle.

Anita399
Level 2
Michigan, United States

Yes, yes, yes!! From what I have read, many of these ordinances seem to be taking a similar route so a basic guide on how to move forward when confronted with a shut down order, when and if to de-list your property (what risks you are willing to take), zoning/planning commission, etc. talking points and if/when to engage legal help would be amazing.

ACTUALLY, AIRBNB is working very hard out of self-interest to keep its lucrative billion dollar industry afloat against the recent backlash.  They are not just a "platform."  Your outsourced $4 an hour "ambassador"  you reach by phone has zero knowledge of the subject, however, except what was scripted for them.  That being said, have you noticed how much more pro-active the ambassadors are in general?  I no longer abhor having to call them knowing, at the time, I would be send around the block fifteen times before honestly being listened to, understood, action taken, reasonable advice given, and assurances made that are actually credible.

We recently received the same letter from our township in Ann Arbor that it sounds like you have received. We are also trying to figure out the steps to take. AirBNB support was of no help, they basically said to switch the rental to 30 days minimum to be compliant. 

Helen3
Level 10
Bristol, United Kingdom

It's always important when you set up an STR business to check with your local government before starting up to see if you'll be able to comply with any local STR restrictions.

 

airbnb is a marketing platform for your STR business so can't help or advise on local STR restrictions 

Cherie54
Level 3
Indianapolis, IN

There is some conversation in the legal world that what is happening is unconstitutional.  The STR's have greatly improved many, many areas of urban blight and drug houses that have been turned around to be safe, fun neighborhoods and the metropolitan cities like Indianapolis (which has one of the highest hotel taxes in the country) will tax the hell out of us after we took their s**t and turned it into something awesome.  I now have a house in another city with the same thing happening.  Even the staff in the city departments see it and think their city leaders are on crack for restricting STRs.  (Maybe the drug traffickers moved into town hall!).  Seriously, this is no different than homeowner associations that tried to keep rentals out of their communities altogether.  HOA's are particularly heinous villains when it comes to fair housing laws.    And yes the  original home swapping thing has had its culture "cancelled" in some ways and has been coopted to some degree by opportunistic big business vulnerable communities that get hurt because it exacerbates an already acute housing shortage.  So fine tune the restrictive laws to keep the bastards out!  Then let homeowners do what they want with their homes to survive, for some of us, and hey, for others, even thrive!  What's wrong with that?  We are not gazzillionaires doing this, we are trying to do our best with the cards handed us.  I just did my taxes last night,  Holy Crap!  The utilities, property taxes and cleaning fees make this a money-maker for everyone but the owner in the metro areas with low room prices.  Our prices have to be - the taxes and airbnb fees which, if you haven't noticed, parallel the taxes from city to city, make the room price so high we have to keep our rent down in the motel-in-the-desert price.  (Seriously, airbnb charges guests 4% in a nearby city but it's 13 to 14% in Indy, and add the 17% hotel tax, 30% of what the guest pays goes to the vultures, not you, not us, working so hard to provide a beautiful and safe place for travelers and people in transition.). The answer is and always has been, neighborhoods need to have mixed use and density, and lots of green to look out onto and the cities need to be supportive, not GREEDY.