Michigan’s short-term rental regulatory landscape continues to evolve — but not necessarily in the way many owners might expect.
While several bills involving short-term rentals remain in Lansing, the most consequential issue for Michigan STR owners today may not be any single piece of legislation. It is the growing body of court decisions shaping how local governments can regulate — and, in some cases, prohibit — short-term rentals.
At MiSTRA’s September legislative update, we walked through where things stand, what we are watching, and why engagement from Michigan’s STR community matters now.
No Comprehensive Statewide STR Law — Yet
Michigan still does not have a comprehensive statewide framework governing short-term rentals.
That means STRs continue to be regulated primarily through local zoning ordinances, local police-power ordinances, private deed restrictions and HOA rules — with the courts increasingly resolving disputes when those authorities conflict or when existing zoning language is unclear.
That patchwork creates significant differences from one community to another.
A short-term rental may be explicitly permitted in one township, heavily regulated several miles away, and effectively prohibited elsewhere based on how existing residential zoning language is interpreted.
For owners and prospective investors, understanding the local zoning ordinance — not simply whether STRs currently exist in a community — has become increasingly important.
The Courts Are Filling the Legislative Vacuum
One of MiSTRA’s primary concerns is the growing role of Michigan courts in determining whether short-term rentals are compatible with residential zoning.
Several court decisions have reinforced the ability of communities to interpret existing zoning language in ways that exclude STRs, even when an ordinance does not specifically mention short-term rentals. Other cases have reinforced the importance of deed restrictions and raised questions about whether an existing STR operation will necessarily receive nonconforming-use protections if a municipality later determines that the use was never legally permitted.
The takeaway is important:
Simply operating an STR today does not necessarily guarantee the right to operate one indefinitely.
This is why MiSTRA continues to believe Michigan needs greater clarity around the relationship between income-producing activity and residential land use.
Short-term renting is an economic activity. But so are many activities routinely conducted from residential properties — home offices, childcare businesses, cottage industries, home studios and other modern uses.
Our position is that zoning policy should focus primarily on the demonstrated impact of an activity on surrounding properties, rather than automatically determining that an activity is incompatible with residential zoning simply because income is generated.
Sniffspot – a platform that allows homeowners to rent out their backyard by the hour to dog owners, is one of many innovative opportunities homeowners may leverage for economic gain. Zoning laws must look at the impact of the activity – not the economics, or zoning laws will be too specific to be truly useful and achieve the goals of zoning.
Taxes Are Also Moving to the Forefront
Tax policy remains one of the more active areas of discussion in Lansing.
Michigan STRs currently pay the state’s 6% use tax. Depending on location, some properties may also be subject to county lodging assessments or other tourism-related taxes.
Legislation under consideration this session would potentially allow local communities to adopt an additional 3% accommodations tax. Importantly, the proposal discussed during our legislative update would allow those dollars to flow back to local communities rather than exclusively supporting tourism marketing efforts.
MiSTRA has supported the concept cautiously.
We recognize that tourism-dependent communities incur real infrastructure and service costs. Allowing communities to directly benefit from visitor activity may also help create a healthier relationship between tourism, STRs and local government.
At the same time, we remain focused on tax parity and simplicity. Layering multiple lodging taxes onto STR guests — particularly when those taxes differ depending on ownership structure, property management arrangements or geography — can quickly create inequities within the lodging marketplace.
Another important piece of proposed legislation would clarify requirements for booking platforms to collect and remit taxes on behalf of hosts. Many Michigan hosts are familiar with the inconsistency between platforms today, with Airbnb generally remitting taxes while Vrbo often requires hosts to handle some obligations themselves.
Greater consistency would be a meaningful administrative improvement for owners and managers.
What Happens After the Election Matters
Every Michigan House seat is on the ballot this fall.
After the election comes the lame-duck legislative session — a period when bills can sometimes move quickly. Any legislation that does not pass before the end of the current legislative session will expire, requiring lawmakers to start again when the new Legislature convenes in 2027.
MiSTRA will continue monitoring legislation closely through the end of the year.
But we are also looking beyond individual bills.
One of our priorities heading into the next legislative cycle is advancing a broader conversation about how Michigan zoning law should treat short-term rentals and other modern income-producing uses of residential property.
All 110 House seats are on Michigan’s ballot this Fall.
Local Advocacy Still Matters Most
One of the strongest ideas raised during our September discussion came directly from a participant: engage the local businesses that benefit from STR guests.
Restaurants. Retailers. Cleaners. Handymen. Landscapers. Property managers. Contractors. Tourism businesses.
Local officials often hear quickly from residents who are frustrated by a problem property. They hear far less frequently from businesses and residents who experience the economic benefits of responsible visitor activity.
That imbalance can shape policy.
Owners should also make a habit of monitoring their local government. Reviewing township, city or village agendas and minutes periodically can provide an early warning when STR regulations begin appearing in local discussions.
Advocacy is far easier before a proposed ordinance reaches a final vote.
Stay Engaged
Michigan has 1,770+ local governmental jurisdictions, and STR policy continues to develop community by community.
There will not be a single organization, lobbyist or bill that solves every issue.
What we can do is stay informed, participate early, advocate for reasonable and data-informed policy, and make sure responsible STR owners have a voice in the decisions affecting their properties and businesses.
That is exactly why MiSTRA exists.
If you own, operate or support short-term rentals in Michigan, we encourage you to join us, participate in our advocacy efforts, and help strengthen the voice of responsible short-term rentals across the state.