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Royal Oak, MI Short-Term Rentals: Occupancy Limits (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Occupancy formula
2 per bedroom plus 2 per finished story
Applies to
All registered rentals, short or long term
Attic/basement bedrooms
Barred unless permitted and code-compliant
First offense fine
$200 civil infraction minimum
Standard cited
Michigan Residential Code egress rules

Summary

In the City of Royal Oak, no rental unit, short-term or long-term, may house more people than two occupants per bedroom plus two more per finished story that meets egress rules under the Michigan Residential Code. The cap stated on the registration application must match what the owner actually advertises and lists in the rental agreement.

(d) The maximum number of occupants to which the applicant intends to rent the dwelling unit in any given rental period, which will be the same as the maximum number advertised and maximum number listed in the rental agreement, not to exceed two occupants per bedroom plus two additional occupants per finished story meeting the applicable egress requirements for occupancy as established by the Michigan Residential Code. ... (c) Not permit occupancy of the residential dwelling in excess of two occupants per bedroom plus two additional occupants per finished story meeting the applicable egress requirements for occupancy as established by the Michigan Residential Code.

Full Breakdown

Section 104.8 of the Property Maintenance Code, added and amended at § 556-4.A of the Royal Oak City Code, sets the same occupancy formula twice: once as a registration disclosure and once as an ongoing operating rule. At the application stage, § 556-4.A(3)(d) requires the owner to state the maximum number of occupants the unit will be rented to, capped at two occupants per bedroom plus two additional occupants per finished story meeting the egress requirements of the Michigan Residential Code, and that stated maximum must equal the number advertised and listed in the rental agreement.

Section 556-4.A(4)(c) repeats the identical cap as a continuing duty for all residential rentals in the City of Royal Oak, so a host cannot advertise a higher headcount than the registration allows once a booking is underway. Bedrooms and finished stories are measured against the square-footage and bedroom-count data the owner already had to submit under § 556-4.A(3)(b), giving the Code Official a paper basis for checking a listing against the physical unit. The same section also bars occupancy of any attic or basement bedroom unless it was built under a recorded City permit and meets the Michigan Residential Code and Fire Code, at § 556-4.A(4)(d), closing off unpermitted bonus bedrooms as a way to inflate a short-term rental's advertised capacity.

Violations & Fines

Exceeding the registered occupancy cap is a violation of Chapter 556 under § 556-4.B (IPMC § 106.4): a $200 minimum civil fine for a first offense, $350 for a second, and a misdemeanor carrying up to $500 or 90 days in jail for a third, which the ordinance also treats as a nuisance per se supporting revocation of the rental registration.

Frequently Asked Questions

How many people can legally stay in a Royal Oak short-term rental?
The cap is two occupants per bedroom plus two more per finished story that meets Michigan Residential Code egress rules, and that number cannot exceed what the owner advertised and put in the registration application under IPMC § 104.8(3)(d) and (4)(c).
Can a finished basement bedroom count toward the occupancy cap?
Only if it was built with a recorded City permit and meets the Michigan Residential Code and Fire Code. Section 556-4.A(4)(d) of the Royal Oak City Code bars occupancy of any unpermitted attic or basement bedroom regardless of the general occupancy formula.
What happens if a rental is advertised for more guests than registered?
It exposes the owner to Chapter 556 civil fines starting at $200 for a first offense and up to a misdemeanor charge for a third, and repeated overbooking can be treated as cause to suspend or revoke the rental registration under § 556-4.A(7).

Sources & Official References

Other rules in Royal Oak

All Royal Oak rules

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