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Royal Oak, MI Short-Term Rentals: Short-Term Rental Permits (2026)

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

Short-term rental permit rules in Royal Oak, MI, also called Airbnb permits, vacation rental licenses, or STR registration, list the application steps, fees, and operating requirements for hosting.

Key Facts

STR definition
Rental of 30 days or less, § 104.8(1)(g)
Insurance required
$1,000,000 liability certificate
Guest notice
Good Neighbor Policy given each rental
State certificate
Required copy if State mandates one
Excluded
Hotels, motels, and qualifying resort units

Summary

In the City of Royal Oak, a short-term rental is defined at Property Maintenance Code § 104.8 as a rental of 30 consecutive days or less. Before renting short-term, an owner must register the property and provide a $1,000,000 liability insurance certificate, a Good Neighbor Policy for guests, and, if the State requires one, a current Michigan short-term rental certificate.

104.8 Rental Property Registration: ... (g) "Short-term rental" means the rental of a single-family residence, a dwelling unit in a 1-to-4-family house, or any unit or group of units in a condominium unit for terms of not more than 30 consecutive days. Short-term rental does not include the rental of a hotel, motel, hotel condominium, home, or condominium unit that is located within a resort that offers amenities such as golf, a skiing restaurant facility, or group meeting accommodation. ... (e) If a short-term rental, a copy of a certificate of insurance evidencing that the owner has $1,000,000 or more liability insurance on the short-term rental property. ... (i) If a short-term rental, a copy of the current State of Michigan Certificate for short-term rentals, if required by the Michigan Department of licensing and regulatory affairs, or its successor.

Full Breakdown

City Code § 556-4 amends § 104.8 of the International Property Maintenance Code to add a rental-property registration system, and it singles out short-term rentals for extra conditions. Subsection 1(g) defines 'short-term rental' as the rental of a single-family residence, a unit in a one-to-four-family house, or a condominium unit for terms of not more than 30 consecutive days, while excluding hotels, motels, hotel condominiums, and units in resorts offering amenities like golf or ski facilities. An owner who wants to register a property as a short-term rental must, under Subsection 3, supply a certificate of insurance showing at least $1,000,000 in liability coverage on the property, and a sworn attestation that the owner or a local responsible party will hand renters a copy of the City's Good Neighbor Policy each time the unit is rented, along with information on trash pickup, property boundaries, on-site parking, visitor limits, common-area rules, and the City's noise and nuisance ordinances.

If the Michigan Department of Licensing and Regulatory Affairs requires a state short-term rental certificate for the property, the owner must also submit a copy of that current State certificate with the registration application. These short-term-specific conditions sit on top of the baseline registration duties that apply to every rental in the City.

Violations & Fines

Renting a short-term rental in Royal Oak without completing this registration, including the required $1,000,000 insurance certificate and any State certificate the Michigan Department of Licensing and Regulatory Affairs requires, is enforced under IPMC § 106.4 as amended by § 556-4(B), the same escalating civil-infraction and misdemeanor penalty structure that applies to any unregistered rental in the City, and can also result in suspension of the registration for cause.

Frequently Asked Questions

What counts as a short-term rental in Royal Oak?
Under Property Maintenance Code § 104.8(1)(g), a short-term rental is the rental of a single-family home, a unit in a one-to-four-family house, or a condominium unit for terms of 30 consecutive days or less; it excludes hotels, motels, and qualifying resort units.
How much liability insurance does a Royal Oak short-term rental need?
The owner must submit a certificate of insurance showing at least $1,000,000 in liability coverage on the short-term rental property as part of the registration application.
Does Royal Oak require a copy of the State's short-term rental certificate?
Yes, if one is required. If the Michigan Department of Licensing and Regulatory Affairs requires a state short-term rental certificate for the property, the owner must submit a copy of the current certificate with the City registration.
What must a short-term rental host give guests in Royal Oak?
A sworn attestation confirms the host will provide each renter a copy of the City's Good Neighbor Policy, along with trash pickup information, property boundaries, parking rules, visitor limits, and the City's noise and nuisance ordinances.

Sources & Official References

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How Royal Oak compares: Most Airbnb-Friendly Cities in America·Compare Royal Oak to another location·View the Michigan short-term rentals overview

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