Rental Restrictions

December 4, 2017

Michigan Court of Appeals Affirms Short-Term Rental Ban in Restrictive Covenant

As we previously discussed on September 21, 2017, in Michigan Court of Appeals Rules in Favor of HOA on Short-Term Rental Ban, Michigan courts have consistently held that short-term rentals violate “residential use” and “non-commercial use” restrictions contained in restrictive covenants. On November 30, 2017, in Eager v Peasley, et. al., published opinion of the Court of Appeals, issued November 30,…
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September 21, 2017

Michigan Court of Appeals Rules in Favor of HOA on Short-Term Rental Ban

Short-term rental websites such as AirBNB, Booking.com, FlipKey, HomeAway, Homestay, House Trip, Roomorama, Tripping.com, Trivago, VBRO and VayStays have become an increasing concern for Michigan condominium and homeowner’s associations that are populated by full time residents. The rise of short-term rental websites has led owners and investors to seek out extra income by renting their property on a nightly basis.…
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July 13, 2017

HB 4503 and SB 329: Recent Skirmishes Regarding Short-Term Rentals and Their Effect on Community Associations

Tourism is a major part of the Michigan economy and its significance continues to grow.  From 2010 through 2014 tourism employment growth even outpaced overall state employment growth.  Further, for each month between 2015 and 2017, Michigan’s visitor occupancy rate has increased over the prior year’s occupancy rate for every month, except for two.  This growth has seen an increase…
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June 23, 2016

MCL 559.212: How to Handle Unruly Renters in a Michigan Condominium

Co-owners desire to rent units for a variety of reasons. By way of example, many co-owners desire to rent condominium units as they are underwater on the mortgage and cannot sell the unit, they inherited the unit, their job was relocated, the co-owner was required to move for health reasons, or the unit was purchased with the intent that it…
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June 9, 2016

Allegan County Trial Court Rules that Short-Term Vacation Rentals Violate Deed Restrictions

Technological advancements have increased the ability of individuals to do short-term leasing, as opposed to the traditional long term, six month or greater, leasing arrangement, in particular looking at the new phenomenon of Airbnb.  Websites such as Airbnb, VRBO and Homeaway are often used by short-term lessors and lessees alike to both list and locate short-term rentals. The blog article…
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