The Republican-led House passed legislation early Wednesday morning prohibiting local governments from regulating short-term rental properties.
Airbnb and Vrbo are popular websites for locating short-term rental properties in some of Michigan’s most popular destinations. More often than not, homes located in residential neighborhoods.
“You might want to rent it out to somebody and take some extra income.”
State Representative Tommy Brann, a Grandville Republican says House Bill 4722 protects property owner’s rights allowing for short-term rentals. By definition, a single-family home or unit leased out for less than 30 consecutive days.
“But the property rights are still under the same ordinances and laws that the cities have and they should be.”
“I think that is a very oversimplification of property rights.”
Jennifer Rigterink is legislative advocate with the Michigan Municipal League. She explains every property owner has rights.
“We think that the way this needs to be handled is one, we need to make a distinction between the property owner who’s renting their home or cottage out a few times a year, to the individual or business that is buying up multiple properties just to run a vacation rental business out of them. That’s a commercial activity. That is not a residential use of that property.”
The bill allows local governments to limit the number of short-term rentals to 30 percent of all residential units and commercially owned short-term rentals to as little as two. The Michigan Municipal League argues the bill puts a strain on a housing shortage and local governments should have the ability to regulate as they see fit. The bill now goes to the Michigan Senate.