Airbnb has changed how people use their homes. A spare room in Detroit or a cottage in Traverse City can turn into quick income. But in Michigan, the law hasn’t rolled out a welcome mat for short-term rentals.

Zoning Rules
Michigan courts see zoning as a local matter. In Reaume v. Township of Spring Lake (2019), the Court of Appeals upheld a township’s decision to shut down short-term rentals in single-family districts. The court said a revolving door of weekend guests doesn’t fit the definition of a “dwelling.” That case makes clear: if the ordinance bans it, the courts will back the town.

Deed Restrictions

The same story plays out in subdivisions. In Eager v. Peasley (2017), covenants that required “private occupancy” and “residential use only” were enough to bar Airbnb rentals. The court called them commercial in nature.

The Court of Appeals doubled down in Aldrich v. Sugar Springs (2023), ruling that “residential purposes only” language kept short-term rentals out. And most recently, in Berlin v. Rubin (2023), the court said a covenant limiting property to “single-family residence purposes” did the same thing. The Michigan Supreme Court affirmed that result this summer by an equal division—so the Court of Appeals ruling still stands.

Nuisance Law
Courts haven’t branded short-term rentals as nuisances across the board. But neighbors still have remedies. Excessive noise, late-night traffic, or parking headaches can all trigger traditional nuisance claims or local code enforcement.

The Legislature
Lawmakers tried to smooth things out with House Bill 4722 in 2021. That bill would have called short-term rentals “residential” by default and stripped local governments of the power to ban them outright. It passed the House but died in the Senate. For now, municipalities still hold the
reins.

The Takeaway
In Michigan, the law is simple but strict: Airbnb rentals can be blocked by zoning ordinances or by covenants in the deed. Courts have been consistent—short-term rentals aren’t “residential use” in the way the law intends. Until Lansing changes course, homeowners who want to list on Airbnb need to check their local ordinances and restrictions before handing over the keys.

Like what you read? Want to see more SBL YLS content? Subscribe below!

Kayla Toma is an SBM YLS Council Member and an attorney with Wood Kull Herschfus Obee & Kull, PC