Short-term rental license application in Detroit

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

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

Confirm zoning compliance and apply for a Detroit Business License via the City of Detroit Business Portal.

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

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.