Short-term rental license application in Detroit

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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.