Ann Arbor's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Ann Arbor, Michigan, there are 6 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.

Noise Rules

Ann Arbor STRs must comply with general noise ordinance. Many cities impose stricter quiet hours for rental properties. Complaints can trigger permit review.

Key details: Quiet Hours: 10 PM to 8 AM typical. Parties: Generally prohibited. Response: Host must respond promptly. Summer: Increased enforcement.

Noise violation at STR: $100 to $500. Multiple complaints: permit suspension/revocation. Host responsible for guest behavior.

Permit Requirements

Ann Arbor may require STR registration or permitting. Michigan has no statewide STR preemption - full local control. Lakeshore and resort communities have active STR regulation.

Key details: Permit: Check Ann Arbor requirements. State Preemption: None - local control. Safety: Smoke/CO detectors, extinguisher. Resort Areas: Often heavily regulated.

Operating without permit: $250 to $1,000/day. Safety violations: immediate suspension. Tax non-remittance: back taxes + penalties.

Taxes & Fees

Ann Arbor collects Michigan use tax (6%) on short-term accommodations. County convention/tourism taxes may also apply. Platforms auto-collect state tax.

Key details: State Tax: 6% use tax. County Tax: Up to 5% (varies). Platforms: Auto-collect state tax. Filing: MI Dept of Treasury.

Non-remittance: back taxes + penalty + interest. Michigan Department of Treasury audit authority. County assessment non-payment: additional penalties.

Parking Rules

Ann Arbor may require designated parking for STR guests. On-street parking limits apply per local ordinance. Parking plan may be part of STR application.

Key details: Off-Street: May be required for STR. Street Limit: Per city ordinance. Resort Areas: Often per-bedroom requirements. Disclosure: Include in listing.

Parking plan non-compliance may affect STR permit renewal. Street parking violations: standard city fines.

Occupancy Limits

Ann Arbor limits the number of guests allowed in short-term rental properties. Occupancy caps are typically based on bedroom count or square footage to protect neighborhood quality of life.

Key details: Typical Limit: 2 per bedroom + 2. Listing: Must state max occupancy. Enforcement: Complaint-driven. Penalty: Permit revocation possible.

First offense: warning. Repeated overcrowding: fines of $250 to $1,000. Permit suspension or revocation for chronic violations.

Insurance Requirements

Ann Arbor may require hosts to carry liability insurance for short-term rental properties. Minimum coverage amounts vary by jurisdiction.

Key details: Coverage: $500K to $1M typical. Homeowner Policy: May not cover STR. Platform Insurance: May not satisfy local rules. Proof: May be required at renewal.

Operating without required insurance may result in permit denial or revocation. Hosts may face personal liability for uninsured claims.

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.