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

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

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in Macomb County, Michigan. However, the regulations surrounding these rentals can vary depending on the specific municipality within the county. Here's what you need to know about short-term rental regulations in Macomb County:

Starting a Short-Term Rental Business in Macomb County

Before starting a short-term rental business in Macomb County, it's important to understand the local regulations. In general, short-term rentals are allowed in Macomb County, but the specific rules can vary by township or city.

For example, in Sterling Heights, a city within Macomb County, there have been concerns about the impact of short-term rentals on housing availability and affordability. City Council member Michael Radtke has advocated for local control of short-term rentals to preserve neighborhood character and stability.

During the COVID-19 pandemic, Michigan temporarily banned short-term rentals, except for certain limited circumstances, through a series of executive orders. These orders have since been lifted, but it's important to stay up-to-date on any potential future restrictions.

Currently, Michigan lawmakers are considering a bill package that would impose a 6% excise tax on short-term rentals, in addition to the existing 6% use tax. Proponents argue that this revenue could be used to fund public safety and infrastructure improvements in high-tourism areas, while opponents claim it infringes on property rights and could negatively impact the economy.

Before starting a short-term rental business in Macomb County, be sure to:

• Check with your local township or city for specific regulations and permit requirements
• Review your condominium or homeowners' association documents for any restrictions on short-term rentals
• Understand your tax obligations, including the potential for new taxes in the future
• Stay informed about any changes to state or local laws that could impact your business

By doing your due diligence and staying compliant with local regulations, you can successfully operate a short-term rental business in Macomb County, Michigan.

Short-Term Rental Licensing Requirements in Macomb County

While Macomb County itself does not have a specific short-term rental licensing requirement, some cities and townships within the county have implemented their own regulations.

For example, in Hazel Park, a city in southern Macomb County, short-term rental licenses are required and expire annually on December 31st. The city limits the number of licenses to 30 at any given time, with no more than two licenses per person or entity and no more than one license per city block. Licenses are non-transferable and non-assignable.

To apply for a short-term rental license in Hazel Park, property owners must submit a completed application along with the required fee to the City Clerk's Office. The application and enabling ordinance should be carefully reviewed before applying. Questions can be directed to the City Clerk's Office at (248) 546-4064 during normal business hours.

As of August 2022, Macomb Township did not have any specific restrictions on short-term rentals, largely because most homeowners' associations in the township's subdivisions already ban short- or long-term rentals. However, it's important to verify current regulations with the township directly by contacting them at (586) 992-0710 or visiting their website at macomb-mi.gov.

Penalties for operating a short-term rental without a required license can vary by municipality. In general, violating a local zoning ordinance or operating without a necessary permit can result in fines, legal action, and other consequences.

Before starting a short-term rental business in Macomb County, it's crucial to:

1. Check with your specific city or township for licensing requirements and regulations
2. Review your homeowners' association documents for any restrictions on short-term rentals
3. Obtain any necessary licenses or permits and pay associated fees
4. Understand the penalties for non-compliance with local ordinances

By staying informed and compliant with local regulations, short-term rental operators in Macomb County can avoid potential fines and legal issues while running a successful business.

Required Documents for Macomb County Short-Term Rentals

Based on the available information from official sources, Macomb County itself does not have a specific short-term rental licensing program or required documents at the county level. However, individual cities and townships within Macomb County may have their own regulations and required documents for short-term rentals.

For example, as mentioned earlier, the city of Hazel Park in southern Macomb County requires a short-term rental license. To obtain this license, property owners must submit a completed application along with the required fee to the City Clerk's Office.

It's important to note that while Macomb Township does not currently have any specific restrictions on short-term rentals, this is largely because most homeowners' associations in the township's subdivisions already ban short- or long-term rentals. Therefore, if you are considering operating a short-term rental in Macomb Township, it's crucial to review your HOA documents for any restrictions.

To ensure compliance with local regulations, it's recommended to:

1. Contact your specific city or township offices to inquire about any required documents, permits, or licenses for short-term rentals.
2. Review your homeowners' association or condominium association documents for any restrictions or requirements related to short-term rentals.
3. Obtain any necessary business licenses, tax registrations, or other documents required for operating a business in your locality.

By gathering the necessary documents and adhering to local regulations, short-term rental operators in Macomb County can avoid potential legal issues and run a successful, compliant business.

Macomb County Short-Term Rental Taxes

When operating a short-term rental business in Macomb County, Michigan, it's important to understand the various taxes that may apply to your rental income. Here's a breakdown of the potential taxes you should be aware of:

Michigan State Income Tax: Short-term rental income is subject to Michigan's state income tax, which has a flat rate of 4.25% as of 2024. This tax applies to the net income generated from your rental business after deducting allowable expenses.

Michigan Sales and Use Tax: As of 2024, Michigan imposes a 6% sales tax on short-term rentals, which includes rentals through booking platforms like Airbnb and VRBO. This tax is typically collected by the rental platform and remitted to the state on your behalf.

Macomb County Property Tax: As a property owner in Macomb County, you will be subject to property taxes based on the assessed value of your rental property. The specific property tax rate can vary depending on the township or city where your property is located. Property tax bills are typically sent out in December and July, with payment due by February 14th and September 14th, respectively.

Local Taxes and Fees: Some cities or townships within Macomb County may impose additional taxes or fees on short-term rentals. It's important to check with your local municipality for any specific requirements or taxes that may apply to your rental business.

Possible Write-Offs and Deductions:

As a short-term rental business owner, you may be able to deduct certain expenses from your rental income to reduce your tax liability. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Rental platform fees (e.g., Airbnb or VRBO service fees)
4. Cleaning and maintenance costs
5. Utilities (if included in the rental price)
6. Depreciation of the rental property and furnishings
7. Insurance premiums
8. Advertising and marketing expenses

It's important to keep accurate records of your rental income and expenses to ensure you can take advantage of all available deductions. Consulting with a tax professional who specializes in short-term rentals can help you navigate the tax implications of your rental business and maximize your deductions.

By understanding the various taxes and potential deductions associated with short-term rentals in Macomb County, you can better plan for your business's financial obligations and optimize your profitability.

Michigan Wide Short-Term Rental Rules

While many short-term rental regulations are determined at the local level in Michigan, there are some statewide rules and proposed legislation that could impact Macomb County hosts.

Currently, Michigan lawmakers are considering a bill package that would impose a 6% excise tax on short-term rentals, in addition to the existing 6% use tax. Proponents argue that this revenue could be used to fund public safety and infrastructure improvements in high-tourism areas, while opponents claim it infringes on property rights and could negatively impact the economy.

Another significant piece of proposed legislation is House Bill 4722, which would classify short-term renting as a permissible residential use in all zoning districts statewide. This bill aims to ease restrictions on short-term rentals and limit local governments' ability to ban or severely restrict them. However, the bill has faced opposition from those who argue that it undermines local control and could negatively impact neighborhood character and housing availability.

During the COVID-19 pandemic, Michigan temporarily banned short-term rentals, except for certain limited circumstances, through a series of executive orders. These orders have since been lifted, but they demonstrate the state's ability to impose restrictions on short-term rentals in emergency situations.

It's important for Macomb County hosts to stay informed about any changes to state laws or regulations that could affect their short-term rental businesses. While many rules are set at the local level, statewide legislation and executive orders can have a significant impact on the short-term rental industry.

To ensure compliance with all applicable rules and regulations, Macomb County hosts should:

1. Monitor proposed state legislation and advocate for their interests as needed
2. Stay up-to-date on any changes to state tax requirements for short-term rentals
3. Comply with any statewide emergency orders or restrictions that may be implemented in the future
4. Work with local officials to ensure their rentals are operating in accordance with county and municipal regulations

By staying informed and engaged at both the state and local levels, Macomb County short-term rental hosts can navigate the evolving regulatory landscape and run successful, compliant businesses.

Does Macomb County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that Macomb County is relatively Airbnb-friendly compared to some other cities and counties. While there are no countywide short-term rental regulations, hosts still need to be aware of and comply with any rules set by the specific city or township where their property is located, as well as their homeowners' association (HOA) if applicable.

Many hosts report successfully operating short-term rentals in Macomb County, particularly in areas where city and HOA restrictions are minimal. However, some cities like Hazel Park have implemented stricter regulations, such as limiting the total number of STR licenses available and prohibiting more than one license per city block.

Despite the lack of countywide rules, it's clear that Macomb County officials expect short-term rental operators to follow all relevant local regulations. Cities and townships have the authority to issue fines and take legal action against hosts who violate zoning ordinances or operate without necessary permits.

That being said, enforcement of STR rules varies depending on the municipality. Some cities, like Hazel Park, appear to be more proactive in monitoring and regulating short-term rentals, while others may take a more hands-off approach unless complaints are filed.

Overall, while Macomb County may be more Airbnb-friendly than some other areas, hosts should not assume they can operate under the radar without consequences. Doing thorough research on local regulations, obtaining all required licenses and permits, and maintaining open communication with neighbors and local officials are key to running a successful and compliant short-term rental business in Macomb County.

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

Starting a short-term rental business in Macomb County can be a lucrative venture, but it requires careful planning and execution. Here's a step-by-step guide to help you get started:

1. Conduct market research: Analyze the short-term rental market in Macomb County to identify your target audience, assess the competition, and determine the demand for your property type and location. This will help you make informed decisions about pricing, amenities, and marketing strategies.
2. Choose a suitable property: Select a property that aligns with your target market's preferences and is located in a desirable area. Consider factors such as property size, layout, condition, and proximity to attractions or business centers. Ensure the property is in good condition and can meet guests' expectations for comfort and amenities.
3. Understand local regulations: Research the specific short-term rental regulations in the city or township where your property is located. Familiarize yourself with zoning laws, occupancy limits, permit requirements, and any other local rules that may impact your business. Failure to comply with these regulations can result in fines or legal issues.
4. Obtain necessary licenses and permits: Apply for and obtain all required licenses and permits before operating your short-term rental. This may include a general business license and a short-term rental license, which demonstrates that your property meets health and safety standards. Some cities also require a home inspection and an annual fee.
5. Ensure proper insurance coverage: Protect your short-term rental business by obtaining sufficient insurance coverage. Purchase a rental-specific policy that includes liability, property damage, and income loss protection. Review your policy regularly to ensure it remains consistent with any changes in your business or local regulations.
6. Furnish and decorate your property: Create an inviting and comfortable space for your guests by thoughtfully furnishing and decorating your rental property. Choose furniture and decor that align with your target market's preferences and the intended use of the space. Invest in quality amenities and consider adding unique features to make your property stand out.
7. Establish a pricing strategy: Determine a competitive and profitable pricing strategy for your short-term rental. Research market trends, analyze competitor rates, and consider factors such as property size, amenities, and seasonality. Implement dynamic pricing to adapt to changes in demand and maximize revenue.
8. Create a strong online presence: Develop a professional website and list your property on popular short-term rental platforms like Airbnb and VRBO. Craft compelling listings with high-quality photos, detailed descriptions, and a list of amenities. Encourage satisfied guests to leave positive reviews to build trust and attract new bookings.
9. Implement a guest communication and management system: Establish clear communication channels with your guests, from the initial booking process to post-stay follow-up. Use a property management software or platform to streamline tasks such as booking management, payment processing, and guest communication. Provide excellent customer service to ensure a positive guest experience and encourage repeat business.
10. Stay informed and adaptable: Keep up-to-date with changes in local regulations, market trends, and guest preferences. Be prepared to adapt your business strategy as needed to remain competitive and compliant. Regularly review and optimize your pricing, marketing, and property management approaches to maximize the success of your short-term rental business in Macomb County.

By following these steps and implementing the provided tips, you can establish a thriving short-term rental business in Macomb County. Remember to prioritize guest satisfaction, maintain compliance with local regulations, and continually assess and improve your business practices to ensure long-term success.

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

When starting a short-term rental business in Macomb County, it's essential to understand the local regulations and zoning requirements. Here are some key contacts and resources to help you navigate the process:

1. Macomb Township Planning Department: Contact the Planning Department for information on zoning ordinances, site development reviews, and any specific short-term rental regulations in Macomb Township.

1. Phone: 586-992-0710
2. Website: macomb-mi.gov/206/Planning-Zoning

2. City or Township Offices: For properties located in other cities or townships within Macomb County, contact the respective local government offices for information on short-term rental regulations and zoning requirements. You can find contact information for each municipality on their official websites.

3. Macomb County Department of Planning & Economic Development: While this department primarily focuses on long-term housing and community development programs, they may be able to provide guidance on countywide policies that could impact short-term rentals.

Website: macombgov.org/departments/planning-and-economic-development

4. BiggerPockets Forums: Connect with other short-term rental hosts and real estate investors on the BiggerPockets forums to discuss experiences, strategies, and local regulations in Macomb County.

Short-Term & Vacation Rental Discussions: biggerpockets.com/forums/697

5. Airbnb Host Community: Join the Airbnb Host Community to connect with other hosts in the Macomb County area, share experiences, and stay informed about local regulations and best practices.

Website: community.withairbnb.com

By reaching out to these contacts and engaging with local host communities, you can gather the necessary information to ensure your short-term rental business in Macomb County operates in compliance with all relevant regulations and zoning requirements. Building relationships with local officials and fellow hosts can also provide valuable support and insights as you navigate the short-term rental landscape in Macomb County.

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

To gain insight into the experiences and opinions of Airbnb hosts in Macomb County regarding local regulations, we searched through relevant threads and forums on platforms like Reddit, Bigger Pockets, and Airbnb. Here are a few notable examples:

Reddit - r/airbnb_hosts: In a thread titled "Considering doing Airbnb in Detroit," a user expressed interest in starting an Airbnb in the Corktown/Woodbridge area of Detroit, which is located in Wayne County, just south of Macomb County. While not specifically about Macomb County, the discussion provides some insight into the short-term rental market in the greater Detroit area. The original poster mentioned that their goal was to maintain a 10-25% occupancy rate throughout the year, and other users provided data on occupancy rates and nightly prices in the area.

Bigger Pockets Forum: While no specific threads were found discussing Macomb County regulations, there was a post about a Bigger Pockets podcast episode featuring a host who successfully operates three short-term rentals in Cleveland, Ohio, earning $50,000 per year. Although not directly related to Macomb County, this example demonstrates the potential for profitable short-term rentals in Midwestern cities.

Reddit - r/airbnb_hosts: In a thread titled "Has anyone done Robuilt's host camp?" users discussed the value of a specific Airbnb host training program. While not directly related to Macomb County regulations, the thread highlights the importance of education and community for Airbnb hosts. One user mentioned that the program provides access to a network of fellow STR investors, realtors, and lenders, as well as discounts on furniture from major retailers.

Although there were limited discussions specifically addressing Macomb County regulations, these examples provide some context on the experiences and concerns of Airbnb hosts in the greater Detroit area and the Midwest. Hosts appear to be interested in maintaining profitable occupancy rates, learning from successful examples in similar markets, and connecting with fellow hosts for support and resources.

As the short-term rental market continues to evolve, it will be important for hosts in Macomb County to stay informed about local regulations and engage with their community to share experiences and best practices.

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.