Planning

Short-Term Rentals

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​​​​​​​​​​​​​​​​​​​February 2021 Up​​​​date

On September 8, 2020, the City of Ann Arbor adopted an ordinance establishing a licensing process and regulations for short-term rentals in the City, (Ann Arbor City Code Chapter 97). This ordinance requires any short term rental in the City of Ann Arbor to register on an annual basis and provide specific information to ensure compliance with the City Code.

In addition to requiring registration, Chapter 97 also defined three types of Short-Term (i.e. 30 day period or less) Rentals:

  1. Non-Principal Residence Short-Term Rental – A short-term rental that is not the primary residence of the property owner.  These short- term rentals are only eligible in the City's mixed-use​​ zoning districts.
  2. Principal Residence Homestay – A short-term rental where the permanent resident of that dwelling hosts visitors in their home for compensation, while the permanent resident remains home.
  3. Principal Residence Whole House – A short-term rental where the permanent resident of that dwelling hosts visitors in their home for compensation, without remaining home during the period of rental.

While this ordinance takes effect on March 1, 2021, the City Council of Ann Arbor has subsequently directed the investigation of ordinance amendments that would make any locational requirements described in Chapter 97 prospective only.  In response, City staff has prepared a series of proposed amendments that are currently under evaluation:

Proposed Amendments to Chapter 55 – Unified Development Code (PDF)  These proposed amendments would define Short-Term Rentals, prescribe their use based on zoning district, and establish non-conforming status protections for Non-Principal Residence Short Term Rentals in residential zoning districts, if established prior to March 1, 2021. 

Proposed Amendments to Chapter 97 – Short Term Rentals (PDF)  These proposed amendments would enable the issuance of Short-Term Rental Licenses, without specific locational restrictions.  

Existing Non-Principal Residence Short-Term Rentals:Final STR PC notice 2-17-21_Page_1.png

If adopted, the proposed amendments described above would enable continued operation of short-term rental properties that were registered with the City as rental units at the time the new regulation took effect. While this consideration is in process, the City will delay enforcement of the current prohibitions in Chapter 97 Short-Term Rentals for those units that have submitted evidence to the City of Ann Arbor prior to March 31, 2021.

In order to continue operating a short-term rental you​ m​​ust submit evidence demonstrating that the rental address was leased for a period of less than 30 days prior to March 1, 2021.  Submissions will be accepted until March 31, 2021.

To submit evidence: Email a completed Short Term Rental Qualification Form (PDF) and include your evidence demonstrating that the rental address was leased for a period of less than 30 days prior to March 1, 2021 to [email protected].

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Short-Term Rental Licen​se

In order for a property to be eligible for a license, the property must be compliant with the current  provisions of Chapter 97 (PDF).  The short-term rental licensing process will begin at a later date.  

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Frequently​ Asked Questions:

What does Chapter 97 Short Term Rentals regulation do?

  • It requires all rental properties that lease for a period of less than 30 days to receive a license from the City.
  • It prohibits rental of property in certain residential zoning districts for a period of less than 30 days.
  • Goes into effect March 1, 2021

What are the areas in which Non-Principal Residence Short-Term Rentals can receive licenses?

  • O – Office
  • C1 – Local Business
  • C1A – Campus Business
  • C1B –Community Convenience Center
  • C1A/R – Campus Business Residential
  • D1 – Downtown Core
  • D2 – Downtown Interface
  • C2B – Business Service
  • C3 – Fringe Commercial
To determine the zoning of a property, visit the mapAnnAr​​bor​​ online mapping webpage, then enter the parcel address in the "Search​" box at the top of the screen. ​

Are existing properties in identified residential zoning districts allowed to continue operation after the ordinance takes effect?

That is still under consideration by the City. City Council directed staff and the Planning Commission to review potential options to allow the operation of properties operating prior to the adoption of the ordinance and bring those back for Council consideration

What does the City mean by “operating prior" to the adoption of the ordinance?

To be considered as operating prior, shall meet the following criteria, at minimum:

  • Be a certified rental property by the City of Ann Arbor prior to March 1, 2021.
  • Provide the City of Ann Arbor a past, executed rental contract demonstrating that the property was leased for a period of less than 30 days prior to March 1, 2021.​
  • Other information demonstrating lawful operation of a short-term rental as approved by the City's Community Services Administrator.

Properties providing satisfactory information, meeting the above stated criteria, prior to March 31, 2021 are allowed to continue operation until a final determination is made by the City. 

 



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