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Could new legislation impact short term rental restrictions?

On Behalf of | Feb 22, 2023 | Firm News

Many community associations have restrictions on short-term rentals in their governing documents. However, some people have concerns that proposed Michigan legislation could nullify those restrictions.

Is HB 4722 a threat to restrictions on short-term rentals?

HB 4722

HB 4722 is a bill that specifically defines short-term rentals as a permitted residential use of property in all residential zones. It further specifies that short-term rentals do not need a conditional or special use permit that is not required for other dwellings in the same zone.

Potential impact of the bill

If the bill passes, it could prevent cities from classifying short-term rentals as a commercial use of property. However, the bill would not prevent community associations from restricting members from using their units as short-term rentals. Instead, it would simply prevent zoning officials from excluding short-term rentals from residential zones.

Restricting short-term rentals

Community associations must be able to justify any restrictions they place on how homeowners can use their property. The justification for restrictions on short-term rentals is usually to protect members of the association and preserve the community.

When community members use their units as short-term rentals, other unit owners may dislike the noise, increased traffic and unfamiliar people coming and going from the property. Additionally, short-term renters may monopolize common areas, destroy common property or not follow community rules.

While this legislation could impact the ability of non-members of your association to run short-term rentals in the area around your units, it should not prevent you from restricting your members from using their units as short-term rentals.