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

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 came in 2021. In residential neighborhoods, you generally can’t run a dedicated whole-home short-term rental that you don’t live in. 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. That currently runs about $500 per unit, per year. The unit also has to meet safety rules — smoke and carbon-monoxide alarms, occupancy limits. Non-owner-occupied units need a Certificate of Compliance too. So if you’re buying in Ann Arbor just to run an Airbnb, check the zoning for that exact address first. A house in a regular residential neighborhood usually can’t be a full-time short-term rental. (There’s still no statewide Michigan law that overrides these local rules. The city’s ordinance is what governs.)