Welcome to the exciting world of short-term rentals (STRs) in Michigan! Whether you’re drawn to the pristine lakeshores, bustling cities, or tranquil rural landscapes, Michigan offers a unique array of attractions that can make your rental property a thriving success. This guide is designed to help you navigate the initial steps, legal considerations, and day-to-day management of your STR to ensure you not only comply with local laws but also provide an exceptional experience for your guests.
Navigating Michigan’s Legal Landscape
Understanding Regulations: Before diving into the STR business, it’s crucial to understand the specific legal requirements in Michigan. Each city may have its zoning laws, permits, and STR regulations. For example, some areas might restrict the number of days you can rent out your property annually, while others might require a special license. Staying abreast of regulatory changes is important in our current STR landscape in Michigan; joining a group like MiSTRA can help keep you informed.
Insurance and Compliance: Ensuring that you have the appropriate insurance coverage is critical. Short-term rental insurance policies should cover liability, property damage, and income loss. Additionally, staying compliant with fire safety and health regulations will not only keep your guests safe but also protect you from potential legal issues.
Taxes. Paying the required State of Michigan General Use Tax is only automated if a booking is made through Airbnb; VRBO nor any other platforms currently remit taxes on your behalf. Further, some localities have additional taxes assessed that the owner will be responsible for collecting and remitting.
Preparing Your Michigan Property
Furnishing Your Rental: Guests often look for comfort and local charm. Furnish your property with durable and comfortable furniture, and consider adding local touches, such as artwork from Michigan artists, Petosky stones, or guidebooks highlighting local attractions. Amenities like Wi-Fi, a fully equipped kitchen, and laundry facilities can make your property stand out.
Photography and Descriptions: Invest in professional photography to showcase your property’s best features. Bright, clear images that highlight spacious rooms, cozy corners, or a scenic view can significantly attract more bookings. When writing your property description, emphasize unique attributes that appeal to travelers, such as a fireplace for winter visits or a deck perfect for summer evenings.
Listing Your Property in Michigan Markets
Marketing: While platforms like Airbnb and VRBO are popular across the US, promoting it organically to your acquaintances and on social media will help with your marketing efforts! Tailor your listing to showcase proximity to popular Michigan destinations like the Sleeping Bear Dunes, Mackinac Island, or Detroit’s cultural sites.
Crafting Your Listing: Your listing should communicate not just the features of your property but also the experiences guests can enjoy during their stay. Highlight nearby attractions, activities, and the convenience of your location. Ensure your pricing is competitive by researching other STRs in your area and adjusting based on seasonality and local events.
Managing Bookings and Operations in Michigan
Seasonal Considerations: Michigan’s STR market can fluctuate with the seasons. Properties near the Great Lakes might see a surge in summer, while homes near ski resorts in the Upper Peninsula could be more popular in winter. Adjust your availability and pricing accordingly, and make sure your property is equipped for all seasons—such as providing kayaks or bicycles in summer and snowshoes in winter.
Operational Tools: If you are interested in self-managing, utilize property management software to streamline bookings, communications, and maintenance schedules. Digital tools can help you manage multiple bookings, synchronize calendars across platforms, and automate guest communication, making the process smoother and more professional.
Delivering a Great Guest Experience in Michigan
Guest Amenities: Consider the needs of your typical guest. Families might appreciate board games and sports equipment, while business travelers might need a working area with a strong internet connection. Stocking your rental with thoughtful amenities can significantly enhance guest satisfaction and lead to positive reviews.
Local Guidebooks: Create a guidebook for your property that includes your favorite local restaurants, unique shops, and lesser-known attractions in Michigan. Personal recommendations can make guests feel more connected to the area and enhance their overall experience.
Conclusion
Owning a Michigan STR can be a rewarding venture if approached with careful planning and enthusiasm. By understanding the legal requirements, setting up your property to meet guest expectations, and managing operations efficiently, you can create a successful and sustainable business. Remember, the key to success in the short-term rental market is not just about providing a place to stay but creating memorable experiences that leave your guests longing to return.
Just getting started? MiSTRA offers support to new STR owners and investors. Join MiSTRA today to gain access to resources, including STR101 training and regular virtual and in-person meetups – some specifically for those new to the industry, as well as an online forum to stay connected and seek support from others in the industry in our state.
MiSTRA is a 501(c)6 nonprofit, member-led organization supporting the short-term rental industry in Michigan. We bring together owners, operators, management companies, and other industry stakeholders to network, learn, and elevate the industry in Michigan.