Royal Oak, MI Short-Term Rentals: Insurance Requirements (2026)

Section 104.8 of the Property Maintenance Code, added at § 556-4.A of the Royal Oak City Code and last amended 4-22-2024 by Ordinance No. 2024-06, defines 'short-term rental' as the rental of a single-family residence, a dwelling unit in a 1-to-4-family house, or a condominium unit for terms of 30 consecutive days or fewer, excluding hotels, motels and resort-amenity properties. Any owner registering a unit that meets that definition must include, under § 556-4.A(3)(e), a copy of a certificate of insurance evidencing $1,000,000 or more in liability insurance on the short-term rental property, submitted alongside the rest of the registration application: owner name and address, unit and bedroom count, off-street parking count, a local responsible party who lives within 30 miles of the property, and a current State of Michigan short-term rental certificate if the Michigan Department of Licensing and Regulatory Affairs requires one under § 556-4.A(3)(i).

The insurance certificate is a condition of registering the unit at all, not an optional disclosure, so the City can decline or suspend a registration under § 556-4.A(6) for cause if the coverage lapses or the certificate is missing. Because the requirement is tied to the 30-day definition, a unit rented for longer stretches does not need the $1,000,000 policy, but it still owes the general rental registration and occupant-safety attestations that apply to every registered rental in the City of Royal Oak.