Go to shorttermrental.mml.org to learn more on this issue.

The Michigan Municipal League believes short-term rentals are an important and valuable part of the tourist economy for visitors and property owners.

Here are two good neighbor policy options that give property owners freedom to monetize their home while maintaining the residential environment that makes their neighborhood enjoyable and livable. These options also ensure communities cannot ban short-term rentals while they work to address local housing needs.

Option 1: Prohibit banning of short-term rentals; regulate based on the number of days a property is short-term rented during a calendar year.

• Clarify that short-term rentals cannot be prohibited.
• Allow every property owner the ability to short-term rent in residential zoning districts.
• Allow local units of government the ability to implement sensible regulations on properties that are rented short-term more than 30 days during the calendar year as a way to balance housing needs and neighborhood stability while accommodating visitors.

This option would be most effective if a zoning bill is accompanied by the creation of a Short-Term Rental Act, which would include a statewide registry for short-term rental platforms and a reporting mechanism.

Option 2: Prohibit banning of short-term rentals; allow local units of government to regulate based on the number of properties owned.

• Clarify that short-term rentals cannot be prohibited.
• Allow sensible, local regulations based on the number of properties owned and being used as short-term rentals.
• Owners who want to rent out their residence, or second home, when they aren’t using it would be allowed in all residential areas. Owners utilizing their property at least 50% of the time would not be considered a commercial use.
• Allow local units of government facing an influx of non-owner occupied short-term rentals the ability to balance residential uses with commercial uses in residential zoning districts.

This option would be most effective if a zoning bill is accompanied by the creation of a Short-Term Rental Act, which would include a statewide registry for short-term rental platforms and a reporting mechanism.

The League is encouraging our members to reach out to their state lawmakers today and encourage them to consider these good neighbor policy options.