Short-Term Rentals in Ann Arbor, MI

Every city handles short-term rentals a little differently. In Ann Arbor, Michigan, there are 7 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Repeat Violator Strikes

Ann Arbor can suspend or revoke a short-term rental license after a single violation, false statement, or nuisance finding: there's no fixed strike count before enforcement starts.

Key details: Trigger: any single Ch.97 violation. Also revoked for: public nuisance finding. Also revoked for: false license application info. Penalty stacks with: $500/day fine.

License revocation is separate from, and additional to, civil-infraction fines of up to $500/day for chapter violations; each day of noncompliance counts as a separate offense.

Compared to other cities, Ann Arbor takes a harder line on repeat violator strikes. The enforcement and penalty structure reflects that.

Primary-Residence-Only Rule

Ann Arbor requires anyone licensing a principal-residence short-term rental, homestay or whole-house, to file a sworn statement that the dwelling is and will remain their principal residence.

Key details: Applies to: Homestay and whole-house STR types. Required filing: Sworn principal-residence statement. Renewal: Annually, within 30 days. Penalty: Revocation plus $500/day fine.

A false or lapsed sworn statement is grounds for license revocation and a civil infraction fine of up to $500 per day under section 7:655.

Ann Arbor's short-term rental code splits home-sharing into two license types: principal residence homestay, where the host stays on-site, and principal residence whole house, where the owner is away during the stay.

Key details: Homestay: resident lives on-site during stay. Whole house: owner absent during guest's stay. Inspection: none required for either type. License: same § 7:652 license and fee.

Both homestay and whole-house rentals face the same Chapter 97 penalties, a civil infraction of up to $500 per day, plus license suspension or revocation for false statements or nuisance complaints.

Host Presence Rule

Ann Arbor's homestay short-term rental license requires at least one permanent resident to remain on-site in the dwelling unit throughout the entire guest stay, not just before or after.

Key details: License type: Principal residence homestay. Presence rule: Resident on-site during entire stay. Enforced via: Sworn statement, license revocation. Max fine: $500 per day of violation. Effective date: March 1, 2021.

Misrepresenting homestay status on the license application is grounds for license revocation and a civil infraction fine of up to $500 per day under section 7:655.

Taxes & Fees

Ann Arbor charges every short-term rental a nonrefundable license fee set annually by City Council resolution rather than a fixed dollar amount written into the ordinance.

Key details: Fee type: Nonrefundable license fee. Amount set by: Annual City Council resolution. Charged at: Application and annual renewal. Separate lodging tax: None in Chapter 97.

Failing to pay the required fee at application or renewal blocks issuance of the license, and operating without a current license is a civil infraction fineable up to $500 per day.

Noise Rules

Ann Arbor holds every licensed short-term rental host personally responsible for nuisance and noise complaints at the property, under the city's Chapter 97 short-term rental ordinance in Washtenaw County.

Key details: Host liable for: all nuisance/noise complaints. License required: per dwelling unit. Max fine: $500/day civil infraction. Effective: March 1, 2021.

Any Chapter 97 violation is a civil infraction: up to $500/day, plus costs; repeated or unresolved nuisance complaints can also trigger license suspension or revocation.

Short-Term Rental Permits

Ann Arbor prohibits operating any short-term rental unit, Airbnb, VRBO, or similar, without a city-issued license, capped at one license per dwelling and issued only to the owner or permanent resident.

Key details: Licenses per unit: 1 license per dwelling unit. Licensee: owner or permanent resident only. Renewal: annual, within 30 days. Max fine: $500 per violation, per day.

Operating or advertising an unlicensed short-term rental is a civil infraction punishable by up to $500 per violation, with each day counted separately; the city can also suspend or revoke the license.

The Bottom Line

Ann Arbor's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Ann Arbor is broadly strict or permissive.

This guide is based on Ann Arbor's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.