Michigan bills aim to strip municipalities rights to regulate short-term rentals

The property previously being used as a short-term rental in Freedom Township is no longer listed on rental sites.

Michigan Rep. Sarah Lightner (R-Springport) introduced a bill in late April preventing municipal governments from regulating or banning short-term rentals in their communities—which would strip local municipalities like Freedom Township and Manchester Township from being able to ban rental properties, sometimes seen by neighbors as a disruption and safety hazard.

Short-term rentals are when a property owner rents out their house or room of their house to a vacationer staying in the town. Oftentimes properties are rented out on short-term rental websites like AirbnB and VRBO.

The bill, House Bill 4722, would establish local governments cannot “enforce zoning ordinance provisions that have the effect of prohibiting short-term rentals." The properties would still be considered residential, not commercial. The bill would allow municipalities to regulate the short term rentals for noise, traffic, fees, inspections, and taxes like those set in place for normal residential properties.

The bill’s introduction also comes after vacation rentals in Freedom Township and in Manchester Township have come under scrutiny for violating local ordinances in recent years.

In Freedom Township, a home on Pleasant Lake that was being listed on AirBnB was told by township lawyers in 2019 that they were violating local ordinances while renting out their property. The property was zoned residential but was being used as a commercial business, subsequently violating township ordinances.

In Manchester Township, a VRBO rental in 2017 on Iron Mill Pond was told they were violating township ordinances since the rental property was zoned as Rural Agricultural, but being used as commercial.

HB 4722 would establish that property owners have the right to use their homes how they wish whether or not they cause a disturbance to surrounding neighbors.

Valisa L. Bristle, Freedom Township Clerk, believes that decisions regarding short term rentals should not be made by state-wide leaders, but instead decisions should be made at the local level since local leaders will better understand the area where the air BnB is being rented.

“We have a better understanding at the local level than the state does,” Bristle said. “Freedom Township is unique in being a rural setting. The things that we're trying to preserve in this community, if it's being run from the state level, they're not going to understand what we're trying to achieve.”

The latest activity on HB 4722 indicates that the bill was referred to a second reading within the Committee on Commerce and Tourism.

Another house bill introduced June 10, House Bill 4985, would permit local governments to utilize special-use permits for short-term rentals used for 14 days or less a year to be zoned as residential. Many local officials across the state have urged lawmakers to support HB 4985 that was introduced by Rep. John Damoose (R-Harbor Springs) since it will allow local governments to have some authority in regulating short-term rentals.

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by Sara Swanson

Sara Swanson is an editor, writer and founder of the Manchester Mirror.