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

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

Short-term rentals like Airbnb and VRBO have become increasingly popular in Kent County, Michigan. However, hosts need to be aware of the various regulations at the county and local levels. These rules are often found in zoning codes, planning codes, county ordinances, and discussed on real estate forums. Here's an overview of the key STR regulations in Kent County.

Starting a Short-Term Rental Business in Kent County

To legally operate a short-term rental in Kent County, hosts must comply with the Housing Regulations for Kent County, Michigan. These apply to any person or entity owning, controlling, managing, or occupying a dwelling unit offered for short-term rental.

Hosts are also subject to the Kent County Hotel-Motel Tax Ordinance, which imposes a 5% excise tax on accommodations rented for less than 30 days. This tax must be collected from guests and remitted to the county on a monthly basis.

Some cities within Kent County have additional STR ordinances. For example, Grattan Township requires STRs to obtain a permit and comply with occupancy limits, parking requirements, and other standards. Grand Rapids limits STRs to owner-occupied single-family homes in certain zoning districts.

Short-Term Rental Licensing Requirements in Kent County

To legally operate a short-term rental in Kent County, Michigan, hosts must obtain a license and comply with various regulations. The licensing process is handled by the local city or township, so requirements vary depending on the property's location.

For example, in Grattan Township, hosts need a Short-Term Rental Permit, which is not transferable upon the sale of the property. The application requires:

• Completed application form
• Site plan showing parking and trash storage areas
• Proof of ownership or lease agreement
• Local agent contact within 45 miles if owner lives outside township
• Inspection from building/assessing/zoning officials
• Permit fee of $200 for first year, $150 for renewal

The initial permit is valid for one year. Renewal applications are due 30 days before expiration, along with the $150 fee. Advertising an STR without a permit risks a municipal civil infraction and a $500 fine per day.

In the City of Grand Rapids, STRs are only allowed in owner-occupied single-family homes in certain zoning districts. Hosts must obtain a Home Occupation Class B business license from the City Clerk's Office. The process involves:

1. Zoning check to confirm STRs are permitted
2. Completed application with $291 fee
3. Proof of ownership and principal residence exemption
4. Passing fire safety inspection
5. Neighbor notification

Licenses are valid for two years. Operating an unlicensed STR in Grand Rapids is punishable by fines starting at $500.

Other Kent County municipalities like Kentwood and Wyoming are still developing their STR ordinances. But in general, hosts should expect to:

1. Confirm their property is zoned for STRs
2. Complete a license/permit application with fee
3. Provide documentation like proof of ownership and floor plans
4. Pass safety inspections
5. Notify neighbors of intent to operate STR
6. Renew license periodically and pay applicable accommodation taxes

Processing times vary but can take several weeks to a few months, depending on the jurisdiction. Starting to rent on Airbnb or VRBO without the proper approvals risks citations, fines, and having your license revoked.

The wisest approach is to contact your city or township zoning and permitting departments before listing your property. They can walk you through the exact steps, forms, and fees required to get your Kent County short-term rental properly licensed and compliant.

Required Documents for Kent County Short-Term Rentals

To obtain a short-term rental permit or license in Kent County, hosts typically need to submit the following documents:

Completed Application Form: This is the official form to request approval to operate an STR. It collects key information about the property owner, local agent, number of rooms to be rented, etc. Available from the city/township offices or websites.

Proof of Ownership: Documents like a deed or property tax statement are required to show the applicant owns the property to be used as an STR. If the rental is leased, a copy of the lease agreement must be provided.

Site Plan: A drawing or sketch showing the layout of the property, including parking spaces, trash storage areas, and any outdoor amenities for guest use. Existing floor plans may suffice for single-family homes.

Local Agent Designation: If the STR owner lives outside a certain radius (often 45-60 miles) from the property, they must designate a local contact person to respond to any issues. This requires a signed statement from the agent agreeing to this role.

Neighbor Notification: Some jurisdictions require notifying adjacent property owners of intent to operate an STR. This can be done via certified mail or by obtaining neighbors' signatures on a form provided by the city/township.

Inspection Reports: Before issuing a permit, the city/township may require building, fire safety, and/or health department inspections to ensure the property meets all applicable codes. Inspection fees are typically the applicant's responsibility.

Liability Insurance:Proof of insurance coverage (often at least $1 million) may be required to cover potential damages or injuries arising from STR use.

Excise Tax License: STRs in Kent County are subject to the Hotel-Motel Tax of 5% on rentals under 30 days. Hosts must register with the Kent County Treasurer's Office to obtain a license to collect and remit these taxes.

The exact documents required will vary based on the property's location and type. For example, Grand Rapids only allows STRs in owner-occupied single-family homes, so proof of principal residence exemption is mandatory.

Failing to provide all required documents will delay approval and could result in the STR application being rejected. Hosts should carefully review their jurisdiction's STR ordinance and application instructions to ensure they submit a complete and accurate permit package.

Kent County Short-Term Rental Taxes

Short-term rental hosts in Kent County, Michigan, are subject to several types of taxes on their rental income:

State Use Tax: Michigan levies a 6% use tax on the total amount paid for accommodations of 30 nights or less. This tax applies to the listing price plus any cleaning fees. Airbnb collects and remits this tax on behalf of its Kent County hosts.

Kent County Hotel-Motel Tax: The county imposes a 5% lodging excise tax on accommodations rented for less than 30 consecutive days. This tax is based on the rental amount, including any mandatory fees. As with the state use tax, Airbnb handles the collection and payment of the county hotel-motel tax for rentals booked through its platform.

City Taxes: Depending on the zoning district, some cities in Kent County may charge additional taxes on short-term rentals. For example, Grand Rapids requires STRs to obtain a business license and may have other applicable city taxes. Hosts should check with their local city treasurer's office for details.

Income Taxes: Short-term rental income is also subject to federal and state income taxes. Hosts must report their rental profits on their tax returns. The good news is that many expenses related to running an STR business are tax deductible.

Some potential write-offs include:

1. Mortgage interest and property taxes
2. Utilities, insurance, and maintenance costs for the rental
3. Depreciation of the rental property and furnishings
4. Advertising and host service fees
5. Cleaning, restocking, and repair costs between guests

Keeping detailed records of rental income and expenses is essential for claiming these deductions. Hosts should maintain separate bank and credit card accounts for their STR business to avoid mixing rental and personal funds.

It's important for Kent County short-term rental operators to understand their tax obligations and stay compliant. Failing to properly collect and pay the required taxes can lead to audits, fines, and legal issues. Consulting a tax professional is recommended to ensure all federal, state, and local tax laws are being followed.

Michigan-Wide Short-Term Rental Rules

In addition to Kent County's local regulations, short-term rental hosts must also comply with state-level rules in Michigan. While cities and townships have primary authority over STR zoning and permitting, some key requirements apply statewide:

A package of bills currently under consideration in the Michigan House would establish the Short-Term Rental Regulation Act. Key provisions include:

1. Requiring STR platforms like Airbnb and VRBO to pay a $100 annual fee per Michigan listing
2. Imposing a 6% excise tax on STRs rented for more than 14 days per year, on top of the existing state use tax
3. Mandating safety features in STRs, including smoke alarms, carbon monoxide detectors, and fire extinguishers
4. Requiring at least $1 million in liability insurance coverage per STR listing
5. Limiting the ability of cities and townships to ban or overly restrict STRs

These bills have drawn opposition from some municipalities who want to retain local control over STRs. But supporters argue the regulations are needed to level the playing field and protect the rights of Michigan property owners to use their homes as STRs.

Aside from the proposed legislation, the Michigan Department of Agriculture and Rural Development (MDARD) requires STRs to follow the same rules as bed and breakfasts if they provide food service. Hosts must complete food safety training and obtain a MDARD license in those cases.

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) also regulates septic systems for properties not connected to municipal sewer. STRs must ensure their septic tanks are properly sized and maintained to handle increased usage from guests.

As the short-term rental market continues to grow in Michigan, hosts should expect additional statewide rules and oversight. But for now, the most stringent requirements are found at the county and local levels. Kent County STR operators must carefully review and comply with all applicable regulations to avoid penalties and keep their rentals running smoothly.

Does Kent County Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on Reddit and Bigger Pockets, it appears that Kent County has not been strictly enforcing its short-term rental regulations to date. Many STRs seem to be operating without full compliance with licensing, zoning, and tax requirements.

One Grand Rapids host on Reddit noted they obtained a license and complained to the city clerk about unlicensed rentals. The clerk responded they were unaware of any unlicensed STRs and unsure who enforces the rules. This suggests enforcement has been lax so far.

Compared to other Michigan cities like Traverse City that are cracking down hard on illegal rentals, Kent County seems to be more Airbnb-friendly or at least hands-off in its approach. Hosts on Bigger Pockets have stated they operate STRs in Grand Rapids without much fear of penalties.

However, this may be changing. Grand Rapids is considering stronger regulations and stepped-up enforcement of existing rules like only allowing STRs in owner-occupied homes in certain zones. Some hosts worry a crackdown is coming as the city grapples with affordable housing issues.

At the county level, the 5% hotel-motel tax does appear to be collected consistently by platforms like Airbnb. But, requirements for local agent contacts, building inspections, and other license conditions are routinely ignored based on host discussions.

The bottom line is that while Kent County has STR regulations on the books, actual enforcement has been spotty to date. This has created a "wild west" environment where many hosts operate illegally with few repercussions. But as local governments face pressure to rein in STRs, the free ride may be ending soon. Hosts are well-advised to get licensed and compliant before any crackdowns take effect.

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

Starting a short-term rental business in Kent County, Michigan, requires careful planning and compliance with various regulations. Here are the key steps to legally operate an STR:

Confirm Zoning and Local Ordinances: Contact your city or township planning department to verify if STRs are permitted in your property's zoning district. Some jurisdictions, like Grand Rapids, only allow STRs in owner-occupied single-family homes. Others may have additional restrictions on occupancy, parking, etc. Review your area's STR ordinance closely and consult with local officials to fully understand the rules before proceeding.

Obtain Required Licenses and Permits: Apply for any mandatory STR licenses or permits from your city/township. This typically involves submitting an application, proof of ownership, site plans, local agent contact, and fees. For example, Grand Rapids requires a Home Occupation Class B business license for STRs. Begin the licensing process early, as it can take several weeks to a few months. Incomplete applications can cause delays.

Register with Kent County: STRs in Kent County must register with the County Treasurer's Office to collect and remit the 5% hotel-motel tax. This involves completing an excise tax form and making monthly payments. Maintain organized records of your rental income and tax payments. Consider setting up separate bank accounts for your STR business.

Prepare the Property: Ensure your rental unit is safe, clean, and well-maintained. Install required safety features like smoke alarms, carbon monoxide detectors, and fire extinguishers. Create a welcome book with house rules, local attractions, and emergency contacts. Provide ample amenities and thoughtful touches to make your STR stand out. Gather input from experienced hosts on what guests appreciate.

Create a Listing: Take high-quality photos of your property and write an engaging description. List your STR on popular platforms like Airbnb and VRBO. Be transparent about your rental's unique features, amenities, and any quirks. Use dynamic pricing tools to automatically adjust your nightly rates based on demand. Conduct market research to competitively price your STR.

Manage Bookings and Guests: Respond promptly to booking inquiries and guest questions. Use a reputable key exchange method for check-ins. Be available to address any issues that arise during stays. Hire a cleaning service to thoroughly clean and restock between guests. Automate as much of the booking and check-in process as possible. Establish clear communication with guests via the STR platform and house rules.

Comply with Ongoing Regulations: Stay up-to-date on any changes to Kent County's STR regulations. Renew your licenses and permits on time. Collect and remit the appropriate taxes monthly. Maintain your property to all applicable building, health, and safety codes. Join local host clubs or online forums to network with other STR operators and share best practices for compliance and success.

While the STR market is competitive in Kent County, hosts who take the time to understand the regulations, obtain proper approvals, and deliver exceptional guest experiences can build profitable rental businesses. The key is to treat your STR as a true hospitality enterprise, always prioritizing guest comfort and regulatory compliance.

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

For questions about short-term rental regulations and zoning in Kent County, Michigan, here are the key contacts:

Kent County Health Department, Environmental Health Division: 700 Fuller Avenue NE, Grand Rapids, MI 49503. Phone: (616) 632-6900. Contact for questions about the county's Housing Regulations that apply to short-term rentals.

Grand Rapids Planning Department: 1120 Monroe Avenue NW, Grand Rapids, MI 49503. Phone: (616) 456-4100. Contact to confirm property zoning allows short-term rentals before applying for a license.

Grand Rapids City Clerk's Office: 300 Monroe Avenue NW, Grand Rapids, MI 49503. Phone: (616) 456-3010. Contact for questions about the Home Occupation Class C license application process and requirements for short-term rentals.

Grattan Township Zoning Department: 12050 Old Belding Rd, Belding, MI 48809. Contact Zoning Administrator Ryan Carrigan at (616) 691-8450 or zoningadmin@grattantownship.org for questions about short-term rental permits and regulations in Grattan Township.

Most county and city offices are open Monday-Friday from 8:00am-5:00pm. Township hours may vary. It's best to call ahead or check online for current hours and appointment policies.

In addition to contacting local officials, Kent County short-term rental hosts may find these groups and online communities helpful:

Real Property Owners Association (RPOA) of Kent County: A non-profit organization providing education and advocacy for rental property owners. Hosts regular networking events for landlords and short-term rental operators. See their event calendar at https://rpoaonline.org/events for upcoming meetings.

Bigger Pockets Kent County, Michigan Forums: An online community of real estate investors, including short-term rental owners. Users post questions and share advice about STR regulations, property management, and more. Check out the Kent County discussion at https://www.biggerpockets.com/forums/899/topics/1190256-recommendations-for-property-management-company-in-kent-county-michigan.

Kent County Travel Forum on TripAdvisor: While geared toward travelers, this forum sometimes includes posts from local STR hosts about regulations and best practices. Browse the discussions at https://www.tripadvisor.com/ShowForum-g1950914-i39452-Kent_County_Michigan.html.

Connecting with experienced short-term rental operators is a great way for new hosts to get questions answered and learn the ropes. Local government contacts can provide the regulatory details, while host communities offer valuable real-world insights and support. Tapping into both sets of resources gives Kent County hosts the full picture of what it takes to run a successful and compliant STR business.

What Do Airbnb Hosts in Kent County on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions in local Reddit and Bigger Pockets forums, short-term rental hosts in Kent County have mixed feelings about the regulations:

On the r/grandrapids subreddit, some hosts expressed frustration with the city's proposed crackdown on non-owner-occupied STRs. One commenter said "Seems like the city is finally starting to care about all the illegal Airbnbs. I know several people renting out entire homes in residential areas." Others argued STRs provide needed income for homeowners and alternative lodging options for visitors.

In a Bigger Pockets thread on investing in Grand Rapids, a prospective host asked about the Airbnb market. The top reply noted, "The city only allows STRs in owner-occupied homes in certain zoning districts. Basically, you must be an owner/occupier renting out a room in your home to do it here legally." This suggests many hosts are aware of the rules but see them as overly restrictive.

Another Bigger Pockets discussion on tiny home STRs touched on zoning challenges. A commenter advised, "So many jurisdictions are passing Airbnb regulations that place restrictions on the type of homes you can rent out short-term." While not specific to Kent County, this highlights the regulatory hurdles hosts face.

Overall, the sentiment seems to be that Kent County's STR regulations, while well-intentioned, make it difficult for many hosts to operate legally. Owner-occupancy requirements and zoning restrictions are seen as the biggest pain points. Some feel the rules unfairly punish responsible hosts and deprive the area of tourism dollars.

At the same time, there is an acknowledgment that unchecked STR growth can negatively impact neighborhoods and housing affordability. Striking the right balance between allowing STRs and protecting community interests remains an ongoing challenge in Kent County and beyond. Hosts will need to stay engaged with local officials to help shape sensible policies going forward.

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.