State Regulation

Ever curious about the bustling world of short-term rentals (STR) in the picturesque state of Michigan? Get ready for an exciting ride, as we navigate the diverse terrain of vacation rentals across this beautiful state!

In this exploration, we'll demystify the world of short-term rentals in Michigan, covering all angles from legal frameworks to detailed insights that will enhance your hosting experience. As we delve deeper, we'll tackle essential questions every potential host should ponder before jumping into this venture in the Great Lakes State.

Join us on this journey as we unveil the secrets to mastering the art of short-term rentals in Michigan, providing you with the knowledge and tools to become a successful host in this vibrant rental market!

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Is there a statewide definition of STR?

Michigan does not have a statewide definition for short-term rentals. Instead, most local ordinances in Michigan typically define short-term rentals as accommodations offered for 30 days or less. The regulations, including those related to permitting, taxes, and zoning, are set at the local level and can vary significantly from one city or township to another. For instance, in Grand Haven, short-term rentals are defined as those lasting less than 28 days. Therefore, it's important for hosts to research the specific regulations applicable in their locality.

statewide registration requirement
Statewide Registration Requirement

Michigan does not have a statewide registration requirement for short-term rentals. Instead, the rules and regulations for short-term rentals, including those regarding permits, taxes, zoning, occupancy limits, and more, are determined at the local level. Each municipality in Michigan may have its own specific regulations, so hosts must thoroughly research the rules for their specific location. The requirements for operating a short-term rental, such as obtaining permits or licenses, collecting and remitting taxes, and adhering to safety and inspection standards, vary from one city or township to another. Hosts are advised to review all applicable local rules to ensure compliance and avoid penalties.

What is the length of stay of STR in the state?

In Michigan, the length of stay for short-term rentals is typically defined as rentals of 30 days or less. This definition is used by most local ordinances in the state. However, the specific threshold can vary slightly in different cities and townships. For example, in Grand Haven, short-term rentals are defined as those lasting less than 28 days. It's important to note that Michigan does not have a statewide definition or regulation for short-term rentals, and rules are set at the local level.

Statewide Tax Requirement

In Michigan, short-term rental operators are required to comply with state tax regulations, which include collecting a 6% state use tax on rentals that last one month or less. This use tax applies to short-term lodging, including Airbnb and other vacation rental services. Additionally, local lodging taxes may apply depending on the rental's location, with rates ranging from 5-10%. For instance, Grand Haven charges a 5% Convention and Visitors Bureau Assessment Fee, while Detroit imposes a 10.62% occupancy tax on top of the state sales tax. Operators must register with the Michigan Department of Treasury and, in some cases, local tax authorities, to collect and remit these taxes. Keeping up-to-date with specific tax rates and rules in their jurisdiction is essential for hosts to ensure compliance and avoid penalties.

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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