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

​

• 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

​

• 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

​

• 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.