Rental & Leasing Restrictions

The Michigan courts have consistently held that short-term rentals are neither residential nor commercial uses when interpreting restrictive covenants.  While numerous cases from the Michigan Court of Appeals hold that short-term rentals violate residential and commercial use deed restrictions, these cases have not addressed whether long-term rentals also violate a residential or commercial use restriction if the restrictive covenants do…

Since 2004, the Michigan Court of Appeals has repeatedly determined that short-term rentals within Michigan communities that are subject to residential, business, and commercial restrictions are prohibited because they are commercial activities that are inconsistent with residential use. Notwithstanding this clear and consistent judicial record, property owners in communities with residential, business, and commercial restrictions who want to engage in…

HOA short-term rental restrictions continue to remain a hot button issue for municipalities, property owners, and homeowners associations in Michigan.  During the 2021-2022 legislative session, numerous short-term rental bills, specifically HB 4722, HB 4985, HB 5465, HB 5466, HB 5605, SB 446, and SB 547, were introduced in the Michigan legislature that attempted to define short-term rentals for zoning purposes,…

The Michigan court of appeals held the Leelanau County Circuit Court's ruling that the short-term rentals violated the HOA residential restrictions.