Genesee County, Michigan Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Genesee County, Michigan?

Short-term rental regulations in Genesee County, Michigan are a hot topic as the popularity of platforms like Airbnb and VRBO continues to grow. Navigating the complex landscape of zoning codes, planning codes, and county ordinances can be challenging for property owners looking to start a vacation rental business. Let's dive into the specific rules and examples that shape the short-term rental market in Genesee County.

Starting a Short-Term Rental Business in Genesee County

Before launching a short-term rental in Genesee County, it's crucial to understand the local regulations and requirements. According to the Genesee County Accommodation Tax Information website, guests who book Airbnb listings in the county will pay a 5% Accommodation Tax on the listing price, including any cleaning fees, for reservations 29 days or shorter. This tax is collected and remitted by Airbnb on behalf of the hosts.

However, hosts are still responsible for assessing all other tax obligations, including state and city jurisdictions. It's essential to review the agreement with Airbnb under the Terms of Service and familiarize yourself with the Occupancy Tax provisions.

In addition to taxes, short-term rental hosts in Genesee County must comply with facility requirements. These include equipping the rental with functioning carbon monoxide detectors, smoke detectors in each sleeping room, and fire extinguishers on each floor. Hosts are also required to maintain liability insurance of at least $1 million on each unit offered for rent.

Zoning and permitting requirements vary across different cities within Genesee County. For example, in the city of Flint, short-term rentals are prohibited in most residential areas, with exceptions for properties zoned as Commercial Business District (C-2), Mixed-Use District (T-1), and Mixed-Use District (T-2). This means that many residential properties cannot be used for short-term rentals unless they are rezoned, which can be a challenging process.

The affordable housing crisis in Flint and Genesee County further complicates the short-term rental landscape. With over 70% of rental households paying more than 30% of their income on rent, some argue that the growth of short-term rentals exacerbates the shortage of affordable long-term housing options.

Real estate investors on forums like BiggerPockets have expressed interest in connecting with reputable contractors and builders in Genesee County who have experience fully rehabbing homes and bringing properties up to code for short-term rentals. However, the evolving regulations and zoning restrictions make it challenging to navigate the market.

As the debate over short-term rental regulations continues in Michigan, with proposed legislation like House Bill 4722 seeking to create statewide oversight, the future of Airbnb and VRBO in Genesee County remains uncertain. Property owners must stay informed about the latest developments and work closely with local authorities to ensure compliance with all applicable rules and ordinances.

Short-Term Rental Licensing Requirements in Genesee County

To operate a short-term rental in Genesee County, Michigan, property owners must comply with specific licensing requirements. According to the Genesee County website, the following steps are necessary to obtain a short-term rental license:

Register with the County Clerk's Office: STR owners must file a certificate annually with the Genesee County Clerk's Office. The certificate should include:

• Owner's name, phone number, email, and address
• Address of the short-term rental property
• Proof of liability insurance (minimum $1 million coverage per rental unit)
• Emergency contact information for a person residing within 30 miles of the property
• Certification of compliance with all applicable local requirements

Pay the Registration Fee: A registration fee of $50 is required for each short-term rental property. This fee covers the processing and review of the certificate by the County Clerk's Office.

Obtain a Certificate Approval Number: Upon successful review of the submitted certificate, the County Clerk's Office will issue a certificate approval number. This number must be included in all advertisements and listings for the short-term rental property.

Comply with Facility Requirements: STR owners must ensure that their properties are equipped with:

1. Functioning carbon monoxide detectors
2. Functioning smoke detectors in each sleeping room
3. Functioning fire extinguishers on each floor

Post Required Information: In each room of the short-term rental, owners must conspicuously display:

1. Owner's emergency contact and working phone number
2. Local emergency services information, including police and fire department phone numbers
3. Floor plan and escape routes

The licensing process typically takes 2-4 weeks from the date of submission, provided all requirements are met and the necessary documentation is provided.

Failure to comply with these licensing requirements may result in fines and penalties. According to the Flushing Township Short-Term Rental Ordinance, a first violation is subject to a municipal civil infraction punishable by a fine of not less than $150. A second violation within the same calendar year is subject to a fine of not less than $250.

It is crucial for short-term rental owners in Genesee County to stay informed about any updates or changes to the licensing requirements. By adhering to these regulations, STR owners can ensure a smooth operation and avoid potential legal issues.

Required Documents for Genesee County Short-Term Rentals

To operate a short-term rental in Genesee County, Michigan, property owners must submit the following documents as part of the licensing process:

1. Recorded Deed or Land Contract: A photocopy of the recorded deed or land contract proves ownership of the property. This document can be obtained from the Genesee County Register of Deeds office.
2. Deed Restrictions/Homeowner Association Documents (if applicable): If the property is subject to deed restrictions or governed by a homeowner association, these documents must be provided to ensure compliance with any additional rules or regulations.
3. Site Plan: A site plan showing the location of the short-term rental unit, parking areas, and any other relevant features must be submitted. This helps the county assess the property's suitability for short-term rental use.
4. Proof of Liability Insurance: Short-term rental owners must provide proof of liability insurance with a minimum coverage of $1 million per rental unit. This insurance protects the owner and tenants from bodily injury and property damage claims.
5. Emergency Contact Information: Owners must provide emergency contact information for a person residing within 30 miles of the short-term rental property. This ensures that someone is available to address any urgent issues that may arise.
6. Certification of Compliance with Local Requirements: Owners must certify that they have complied with all applicable local requirements, such as zoning regulations and building codes. This certification is included in the annual certificate filed with the Genesee County Clerk's Office.
7. Floor Plan and Escape Routes: A floor plan showing the layout of the short-term rental unit and clearly marked escape routes must be provided. This information must also be posted conspicuously in every room of the dwelling.
8. Short-Term Rental Permit Application: Property owners must complete and submit the Flushing Charter Township Short-Term Rental Permit Application, which includes information about the property, maximum occupancy, parking capacity, and owner contact details.

These documents are essential for ensuring the safety and compliance of short-term rentals in Genesee County. Failure to provide the required documentation may result in the denial of a short-term rental license or the imposition of fines and penalties.

Genesee County Short-Term Rental Taxes

When operating a short-term rental business in Genesee County, Michigan, it's crucial to understand the various taxes that apply to your rental income. Failing to comply with these tax obligations can result in penalties and legal issues. Let's explore the different types of taxes short-term rental owners must pay in Genesee County.

Genesee County Accommodation Tax (Bed Tax): As of May 1, 2024, Airbnb collects a 5% Accommodation Tax on the listing price, including any cleaning fees, for reservations 29 nights and shorter in Genesee County. This tax is remitted directly to the Genesee County Treasurer's Office on a quarterly basis. Even if Airbnb collects 100% of the bed tax for your property, you are still responsible for filing a quarterly return with the Treasurer's Office to indicate the amount collected by Airbnb.

State Sales Tax: Michigan imposes a 6% state sales tax on short-term rentals. This tax is collected on the total rental amount, including any additional fees such as cleaning or pet fees. As a short-term rental operator, you are responsible for collecting and remitting this tax to the Michigan Department of Treasury.

City Taxes: Some cities within Genesee County may impose additional taxes on short-term rentals. For example, in the city of Flint, hosts are required to collect and remit a 6% transient occupancy tax on all rentals. It's essential to check with your local city government to determine if any additional taxes apply to your short-term rental business.

Income Tax: Short-term rental income is subject to federal and state income taxes. The specific tax rate depends on your overall income and filing status. It's crucial to keep accurate records of your rental income and expenses to properly report your earnings on your tax returns.

Possible Write-Offs and Deductions

To offset some of the tax burden, short-term rental owners can take advantage of various write-offs and deductions. These may include:

1. Mortgage interest
2. Property taxes
3. Utilities
4. Cleaning and maintenance costs
5. Supplies and amenities provided to guests
6. Depreciation of the rental property
7. Insurance premiums
8. Advertising and marketing expenses

It's essential to consult with a tax professional to ensure you are claiming all eligible deductions and maintaining proper documentation to support your claims.

In summary, short-term rental owners in Genesee County must navigate a complex landscape of taxes, including the county accommodation tax, state sales tax, city taxes, and income taxes. By understanding these obligations and taking advantage of available write-offs and deductions, rental owners can minimize their tax liability and maximize their profits. Staying informed about any changes to tax laws and regulations is crucial for the success of your short-term rental business in Genesee County.

Michigan Wide Short-Term Rental Rules

While many short-term rental regulations are determined at the local level in Michigan, there are some state-wide rules and proposed legislation that affect Genesee County hosts.

One notable development is the recently introduced Short-Term Rental Regulation Act (House Bill 5438), which is part of a package of bills addressing tourism, lodging, and short-term rentals in Michigan. If enacted, this Act would require short-term rental owners statewide to:

1. Maintain liability insurance of $1 million for each short-term rental, unless the hosting platform maintains equal or greater coverage.
2. Post emergency contact information, local emergency services information, and a floor plan with an escape route in every room of the rental.
3. Provide a carbon monoxide detector, smoke detector, and fire extinguisher in each bedroom.

The Act would also impose a new 6% short-term rental excise tax on all rentals that are rented for more than 14 days per year. A portion of the proceeds would go to the local government where the tax is paid.

Another key aspect of the proposed legislation is that it would prohibit local governments from enacting or enforcing any ordinance, rule, or regulation that effectively bans short-term rentals entirely. However, local governments would still be allowed to enact reasonable regulations related to public health, safety, welfare, and zoning decisions for short-term rentals.

This legislative package, including House Bill 5438, is still in the early stages and must be approved by both the House and Senate before potentially becoming state law. Its progress can be tracked online.

In addition to this proposed legislation, short-term rental hosts in Genesee County should be aware of the ongoing debate in Michigan regarding how to best regulate the growing vacation rental industry. There is a tension between protecting private property rights and allowing local control to address community concerns about issues like noise, parking, and housing availability.

Ultimately, while state-wide rules are still evolving, it is crucial for Genesee County hosts to stay informed about any local ordinances in their specific city or township that may affect their ability to operate a short-term rental. Consulting with local government offices and professional vacation rental management companies can help hosts navigate this complex regulatory landscape.

Does Genesee County Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on platforms like BiggerPockets and Reddit, it appears that Genesee County has a relatively friendly stance towards Airbnb and other vacation rentals compared to some other cities in Michigan. While the county does have regulations in place, such as the requirement to register with the County Treasurer's office and collect bed taxes, many hosts report being able to operate without facing strict enforcement or penalties.

On the BiggerPockets forums, several hosts in Genesee County have shared their experiences, noting that the county seems more open to short-term rentals than cities like Flint or Grand Blanc. One host mentioned that they have been operating an Airbnb in Genesee County for over two years without any issues from local authorities, despite not having a specific short-term rental permit.

Similarly, on Reddit, a host in the Flint area commented that while the city itself has strict zoning regulations that prohibit short-term rentals in most residential areas, the surrounding townships in Genesee County are generally more lenient. They noted that as long as hosts are respectful of their neighbors and follow basic rules like occupancy limits and noise ordinances, they are unlikely to face enforcement action from the county.

However, it's important to note that just because enforcement may not be strict, it doesn't mean that hosts should ignore the rules altogether. Failing to register with the County Treasurer or collect the required bed taxes could still result in fines or legal issues down the line.

Overall, while Genesee County may be more Airbnb-friendly than some other parts of Michigan, hosts should still make an effort to understand and comply with local regulations to the best of their ability. By being responsible and proactive, hosts can help ensure that short-term rentals continue to be a viable option in the county for years to come.

How to Start a Short-Term Rental Business in Genesee County

Starting a short-term rental business in Genesee County requires careful planning and adherence to local regulations. Here's a step-by-step guide to help you get started:

Research Local Regulations:

1. Begin by thoroughly investigating Genesee County's short-term rental regulations. Check with the County Clerk's Office and your local township or city government for specific rules. Pay close attention to zoning restrictions, as some areas may prohibit short-term rentals in residential zones.
2. Tip: Consider joining local real estate investment groups or online forums to connect with experienced hosts who can provide insights into navigating local regulations.

Choose Your Property:

1. Select a property that meets local requirements and has potential for high occupancy rates. Consider factors like proximity to attractions, amenities, and ease of access.
2. Tip: Look for properties in areas with high demand for short-term rentals, such as near colleges, hospitals, or popular tourist destinations in Genesee County.

Obtain Necessary Permits and Licenses:

1. Register your short-term rental with the Genesee County Clerk's Office. You'll need to file an annual certificate and pay the required registration fee.
2. Tip: Keep a calendar reminder for annual renewal to ensure your registration stays current.

Secure Proper Insurance:

• Obtain liability insurance with a minimum coverage of $1 million per rental unit, as required by Genesee County regulations.
• Tip: Consider additional coverage options, such as property damage insurance, to protect your investment fully.

Prepare Your Property:

• Equip your rental with all required safety features, including carbon monoxide detectors, smoke detectors, and fire extinguishers. Create a welcoming space that meets or exceeds guest expectations.
• Tip: Consider hiring a professional interior designer or photographer to make your property stand out in online listings.

Set Up Your Business Structure:

• Choose an appropriate business structure (e.g., LLC, sole proprietorship) and register your business with the state of Michigan.
• Tip: Consult with a local accountant or attorney to determine the best structure for your specific situation.

Create a Business Plan:

• Develop a comprehensive business plan that outlines your goals, target market, pricing strategy, and financial projections.
• Tip: Use tools like Lodgify's vacation rental business plan template to ensure you cover all essential aspects.

List Your Property:

• Create attractive listings on popular platforms like Airbnb and VRBO. Highlight your property's unique features and local attractions.
• Tip: Use high-quality photos and engaging descriptions to make your listing stand out. Consider offering special amenities or experiences to differentiate your rental.

Set Up a Management System:

• Implement a system for managing bookings, guest communications, cleaning, and maintenance. Consider using vacation rental management software to streamline operations.
• Tip: Establish clear check-in and check-out procedures, and create a comprehensive house manual for guests.

Comply with Tax Obligations:

• Understand and fulfill all tax obligations, including the Genesee County Accommodation Tax, Michigan state sales tax, and any applicable local taxes.
• Tip: Set up a separate bank account for your rental income to simplify tax reporting and financial management.

Market Your Rental:

• Develop a marketing strategy to attract guests. This may include social media promotion, local partnerships, and targeted advertising.
• Tip: Consider creating a website for your rental to build your brand and attract direct bookings.

Monitor and Adjust:

• Regularly review your business performance, guest feedback, and local market trends. Be prepared to adjust your strategy as needed to stay competitive and compliant with evolving regulations.
• Tip: Stay engaged with local short-term rental communities and attend industry events to stay informed about best practices and emerging trends.

By following these steps and staying informed about local regulations, you can establish a successful short-term rental business in Genesee County. Remember that the key to long-term success is providing exceptional guest experiences while being a responsible and considerate member of your local community.

Who to Contact in Genesee County about Short-Term Rental Regulations and Zoning?

When seeking information about short-term rental regulations and zoning in Genesee County, it's important to know the right authorities to contact. Here are the key offices and resources available to short-term rental hosts:

Genesee County Clerk's Office

• Address: 1101 Beach St., Flint, MI 48502
• Phone: 810-257-3225
• Website: https://www.geneseecountymi.gov/departments/county_clerk/index.php
• The County Clerk's Office is responsible for registering short-term rentals and can provide information on the annual certificate filing process and registration fees.

Genesee County Treasurer's Office

1. Address: 1101 Beach St., Flint, MI 48502
2. Phone: 810-257-3054
3. Website: https://www.geneseecountymi.gov/departments/treasurer/index.php
4. The Treasurer's Office handles the collection of the Accommodation Tax (Bed Tax) and can provide information on tax rates and filing requirements.

Genesee County Planning Commission

1. Address: 1101 Beach St., Room 223, Flint, MI 48502
2. Phone: 810-257-3010
3. Email: GCMPC@geneseecountymi.gov
4. Website: https://www.gcmpc.org/
5. The Planning Commission can provide information on zoning regulations and land use policies that may affect short-term rentals in different areas of the county.

Local Township/City Zoning Departments

For specific zoning information, contact your local township or city zoning department. For example, in Genesee Township:

1. Address: 7244 N. Genesee Rd., Genesee, MI 48437
2. Phone: 810-640-2000 ext. 221
3. Website: https://geneseetwpmi.gov/departments/zoning/[3]

Genesee County Metropolitan Planning Commission

1. This commission can provide broader information on county-wide planning and development policies that may impact short-term rentals.
2. Phone: 810-257-3010
3. Email: gcmpc@geneseecountymi.gov

For hosts looking to connect with other short-term rental operators in the area, consider joining these communities:

Flint Area Landlords Association: This group, while primarily focused on long-term rentals, can provide valuable insights into local real estate regulations and networking opportunities.

Website: https://flintlandlords.org/

BiggerPockets Forums: While not specific to Genesee County, the Michigan subforum on BiggerPockets often has discussions about short-term rentals in various parts of the state, including Genesee County.

Website: https://www.biggerpockets.com/forums/530-michigan-real-estate

Airbnb Community Center: This online forum allows hosts to connect and share experiences, including discussions about local regulations and best practices.

Website: https://community.withairbnb.com/

Remember that regulations can change, so it's always best to verify information directly with the relevant county or city offices. These contacts and resources should provide a solid starting point for understanding and navigating the short-term rental landscape in Genesee County.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.