Operating a short-term rental (STR) in Detroit requires compliance with city regulations to ensure neighborhood safety and tourism growth. This guide outlines the essential steps to apply for a short-term rental license in Detroit.
Types of Short-Term Rental Licenses in Detroit
1. Owner-Occupied Short-Term Rental License
- For properties where the owner resides on-site.
- Allows rental of individual rooms or the entire home when the owner is temporarily absent.
- Must be the owner’s primary residence.
2. Non-Owner-Occupied Short-Term Rental License
- For entire properties where the owner does not live on-site.
- Subject to specific zoning and operational rules.
Key Requirements for STR Licensing in Detroit
1. Zoning Compliance
- Verify that your property is located in a zone that permits STRs using the Detroit Zoning Map.
2. Certificate of Compliance (COC)
- Obtain a Certificate of Compliance by passing a property inspection to ensure compliance with safety and health codes.
3. Business License Registration
- Apply for a Detroit Business License through the city’s online portal.
4. Hotel Occupancy Tax Registration
- Register to collect and remit the Hotel Occupancy Tax (9%) for stays under 30 days.
5. Safety and Health Compliance
- Install smoke and carbon monoxide detectors.
- Provide fire extinguishers and adhere to local safety codes.
6. Neighbor Notification
- Notify neighboring property owners of your intent to operate a short-term rental.
- Provide your contact details for concerns or complaints.
Application Process for a Short-Term Rental License in Detroit
Step 1: Verify Zoning and Apply for a Business License
Step 2: Obtain a Certificate of Compliance (COC)
- Schedule a property inspection and secure a Certificate of Compliance.
Step 3: Register for Hotel Occupancy Tax
- Register to collect and remit the Hotel Occupancy Tax to the city.
Step 4: Submit Required Documentation
- Proof of ownership or lease.
- Certificate of Compliance.
- Neighbor notification documentation.
Step 5: Pay Licensing Fees
- Owner-Occupied License: $150 annually
- Non-Owner-Occupied License: $300 annually
Step 6: Display License Number
- Display your license number on all booking platforms (Airbnb, Vrbo, etc.).
Penalties for Non-Compliance
Non-compliance with Detroit's STR regulations can lead to:
- Fines: Starting at $500 per violation.
- License Suspension or Revocation: For repeated violations.
- Legal Action: Potential legal proceedings for ongoing non-compliance.
How Lodge Compliance Can Help
Lodge Compliance simplifies the short-term rental licensing process in Detroit by offering:
- Permit Application Assistance: Step-by-step guidance through the licensing process.
- Compliance Monitoring: Stay informed of local regulatory changes.
- Operational Support: Implement health and safety standards for full compliance.
Ready to operate your Airbnb legally in Detroit? Request a Demo to learn how Lodge Compliance can help you secure your license and stay compliant.
Operate Legally and Maximize Your Earnings
Detroit's short-term rental market presents significant income potential. By following the city’s regulations and maintaining high operational standards, you can build a successful and legally compliant Airbnb business.
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