Thinking about an Airbnb in Ann Arbor? The rules are strict

If you’re eyeing an Ann Arbor property as a short-term rental (Airbnb, Vrbo), know that the city has one of the tighter sets of rules in Michigan. The big one: since 2021, you generally can’t run a dedicated, non-owner-occupied whole-home short-term rental in a residential neighborhood. Renting out your own home — or part of it — while you live there is allowed in residential areas, but a whole house you don’t live in is only allowed in mixed-use or commercial zones. Either way, every short-term rental needs a city license — currently about $500 per unit, per year — and the unit has to meet safety rules (smoke and carbon-monoxide alarms, occupancy limits), with non-owner-occupied units also needing a Certificate of Compliance. So if you’re buying in Ann Arbor specifically to run an Airbnb, check the zoning for that exact address before you count on it — a house in a regular residential neighborhood usually can’t be a full-time short-term rental. (There’s still no statewide Michigan law overriding these local rules, so the city’s ordinance is what governs.)