Proposed Legislation to Restrict Local Regulation of Short-Term Rentals

short term rental

Many cities and townships in Michigan have enacted ordinances to restrict short-term rentals of real estate. The use of Airbnb, VRBO, and other services have raised concerns about whether these short-term rentals will alter the character of a neighborhood.

Property owners seeking relief from local ordinances will likely need to hold their breath a while longer. The sponsor of House Bill 4722, State Representative Sarah Lightner, spoke at a recent meeting, where she provided insights on the Bill and answered questions regarding the Bill’s contents. The proposed legislation, which was approved by the House in October 2021, will likely be voted on in the Senate after the mid-term elections in November 2022.

HB 4722 is a proposed amendment to the Zoning Enabling Act. The proposal, which was introduced in 2021, would effectively prohibit local governments from enforcing zoning ordinances aimed at preventing short-term rentals. However, the Bill would not restrict local government’s ability to limit the number short-term rentals in its jurisdiction or regulate sources of nuisance such as noise, pollution, and traffic.

Proponents of HB 4722 argue that the Bill aims to protect the rights of individual property owners. Support for the bill is largely rooted in the notion that an individual’s property is a private domain, and property owners should be permitted to dictate how their own property is used. Additionally, supporters of the Bill argue that short-term rentals (less than 30 days) constitute a residential use of the home and should thus be shielded from the reach of local ordinances.

Opponents of the Bill argue that the members of a locality should not be stripped of the ability to regulate their community, since the local government is able to best serve the wishes of its residents. Furthermore, individuals against the proposal argue that allowing short-term rentals will violate the reasonable expectation of local residents and erode the well-being of communities.

In an effort to facilitate compromise between supporters and opponents of the Bill, the language of HB 4722 is expected to be revised ahead of the Senate vote in November 2022. 

Access to HB 4722 can be found at the link below:

https://www.legislature.mi.gov/(S(3d3epiwlxdaitofmee002vbl))/mileg.aspx?page=GetObject&objectname=2021-HB-4722

About Muhannad Al-Ujayli

Muhannad is a law clerk with Demorest Law Firm at our Royal Oak location.

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