Grand Rapids, MI Accessory Structures: ADU Rental Restrictions (2026)

Grand Rapids treats long-term and short-term rental of an ADU as two distinct tracks. Long-term (30 days or more): the property owner must obtain a rental certificate under Chapter 173 (Rental Property Maintenance and Inspection) from the Code Compliance Division. Certification requires periodic interior and exterior inspections against the International Property Maintenance Code as locally adopted, payment of certification fees, and supply of owner and emergency-contact information. Tenancies are governed by the Michigan Landlord-Tenant Relationships Act (MCL 554.601 et seq.) and the Truth in Renting Act (MCL 554.631 et seq.). Security deposits are capped at 1.5 months' rent under MCL 554.602, must be held in a regulated financial institution under MCL 554.604, and must be itemized and refunded (less lawful deductions) within 30 days of move-out under MCL 554.609. Michigan Public Act 226 of 1988 (MCL 123.411) expressly prohibits local units of government from enacting rent control or rent stabilization on private residential rental property — Grand Rapids cannot cap rent increases. Just-cause eviction is similarly preempted; landlords proceed through Michigan summary proceedings under MCL 600.5701 et seq. in Kent County District Court (61st District). Short-term rentals (under 30 days): Grand Rapids regulates STRs under Chapter 138 (Short-Term Rentals) requiring registration, life-safety standards (smoke and CO alarms, egress, occupancy limits), liability insurance, and an annual fee. Lodging taxes include the Michigan 6% use tax (MCL 205.91 et seq.) and Kent County's 5% accommodations excise tax administered by the Kent County Treasurer. Fair housing: federal Fair Housing Act, Elliott-Larsen Civil Rights Act (MCL 37.2101 et seq.), and Grand Rapids Chapter 9 Human Relations.