Can Your Michigan HOA Ban Airbnb? Short-Term Rental Rules for Michigan Condo and HOA Boards

The Short Answer

Michigan HOAs and condo associations can restrict or prohibit short-term rentals (Airbnb, VRBO, and similar platforms) if your governing documents give you the authority to do so — but that authority must be clearly written into your CC&Rs or bylaws, enforced consistently, and compliant with fair housing law. If your documents are silent on rentals, or only address long-term rentals, your ability to restrict Airbnb is much weaker than many boards assume.

Why This Is a Growing Issue for Michigan Boards

Short-term rental listings in Michigan have grown sharply since 2020, particularly in communities near university towns (East Lansing, Ann Arbor), lakefront communities in northern and western Michigan, and urban neighborhoods with high tourism or conference traffic.

For HOA and condo boards, short-term rentals create several specific problems:

• Frequent turnover of unfamiliar guests who don't know community rules
• Parking and noise complaints from short-term guests
• Security concerns in buildings with controlled access
• Unequal use of common amenities (pools, fitness rooms) by guests who pay no HOA dues
• Insurance complications when commercial rental activity occurs in a residential-designated community
• Long-term threat to the community's residential character, which can affect property values and mortgage eligibility

What Michigan Law Currently Says

Michigan does not have a state law that either explicitly grants homeowners in HOAs the right to operate short-term rentals or explicitly authorizes HOAs to ban them. This places Michigan in the middle ground — unlike California (which limits HOA restrictions on long-term rentals) or Florida (which has a more specific framework), Michigan's rules emerge primarily from:

**Your governing documents.** The CC&Rs and bylaws of your specific association are the primary source of authority. If they restrict rentals, that restriction is generally enforceable if it was adopted properly.

**The Michigan Condominium Act (PA 59 of 1978).** For condo associations, the Act gives associations broad authority to adopt rules governing use of units and common elements. Rental restrictions adopted by rule are generally valid if adopted through the proper amendment process.

**Municipal short-term rental ordinances.** Many Michigan cities and townships have enacted local ordinances requiring short-term rental permits, limiting the number of permitted rental days, or restricting STRs in certain zoning districts. These municipal rules apply independently of HOA rules — and a homeowner who complies with local ordinances is not automatically exempt from more restrictive HOA rules.

**Michigan Courts.** Michigan case law generally upholds reasonable use restrictions in governing documents, including rental restrictions, as long as they were adopted properly and are enforced consistently. Courts have been less receptive to selective enforcement — an HOA that has tolerated long-term rentals for years while suddenly trying to crack down on short-term rentals may face challenges.

What Your Governing Documents Can Say

**Outright prohibition.** A CC&R or rule provision that says "no unit may be leased for a period of less than 30 days" is generally enforceable in Michigan if properly adopted. This is the cleanest approach.

**Registration and disclosure requirement.** Some associations require owners to register any rental (short or long term), provide tenant contact information, and acknowledge that tenants are bound by community rules. This gives the association visibility without an outright ban.

**Guest limits.** Rules limiting the number of non-owner guests, or requiring guests to be accompanied by the owner, can effectively limit short-term rental operations even without a direct prohibition.

**Commercial use prohibition.** Many older documents include a "residential use only" or "no commercial activity" provision. Whether this covers Airbnb rentals has been argued in courts across the country — some courts say yes, others say it is ambiguous. Michigan courts have not definitively ruled on this specific question, making it a less reliable basis for enforcement than an explicit rental restriction.

If Your Documents Don't Restrict Short-Term Rentals: Your Options

**Option 1: Adopt a rule amendment.** For condo associations under the Michigan Condominium Act, the board can often adopt rental restriction rules without a membership vote, depending on how your documents allocate rule-making authority. Consult your HOA attorney before proceeding.

**Option 2: Amend your CC&Rs.** For HOAs and for more permanent restrictions, amending the CC&Rs requires a membership vote (typically 2/3 or 3/4 of members depending on your documents). This is a more involved process but creates a restriction that is harder to challenge.

**Option 3: Adopt a short-term rental policy.** Even if you cannot quickly ban STRs outright, you can adopt a policy that establishes registration requirements, guest conduct rules, liability requirements, and minimum lease term expectations. This may deter some short-term rental activity while you pursue a governing document amendment.

What Boards Should Not Do

**Don't enforce inconsistently.** If you have tolerated short-term rentals for some owners while trying to restrict others, you face a selective enforcement defense. Document your enforcement history and apply any new rules prospectively and consistently.

**Don't discriminate.** Fair housing law applies to HOA rental policies. A short-term rental restriction must be applied equally to all units regardless of the owner's race, religion, national origin, or familial status. Policies that on their face restrict only certain types of units or owners may create fair housing exposure.

**Don't ignore the problem hoping it goes away.** Short-term rental platforms are aggressively growing their Michigan market. A proactive policy adopted before your community has a problem is far easier to enforce than one adopted in reaction to a dispute.

Crafting a Michigan HOA Short-Term Rental Policy

A practical Michigan HOA short-term rental policy should include:

• A clear definition of "short-term rental" (typically rental for fewer than 30 consecutive days)
• Whether such rentals are permitted, prohibited, or permitted with registration
• If permitted with registration: what information the owner must provide, what documentation guests must receive, and what conduct rules apply
• Minimum standards for any short-term rental listing (accurate description of unit, HOA rules provided to guests, owner contact information)
• Enforcement mechanism and schedule of fines
• What happens to an owner who has an active listing in violation of the policy

Association Property Managers helps Michigan HOA and condo boards evaluate their governing documents, draft rental restriction policies, and navigate enforcement procedures. Contact us to discuss your community's situation.

Frequently Asked Questions

We have an owner who has been running an Airbnb for two years and we just found out. Can we make them stop?

Possibly — it depends on what your governing documents say. If your documents restrict rentals and the owner has been violating them, you can begin enforcement prospectively. Document the violation, send a formal notice, and follow your violation procedure. Be prepared for the owner to argue that your two-year delay in enforcement constitutes a waiver — which is why consistent enforcement matters.

Can we require an owner to provide us with a copy of their Airbnb listing?

If your rules require rental registration and disclosure, yes. Even without such a rule, you can request information about rental activity if you have a reasonable basis to believe community rules are being violated.

Our municipality requires Airbnb permits. Does that mean we can't restrict them at the HOA level?

No. Local licensing and HOA rules operate independently. An owner who obtains a city short-term rental permit still must comply with HOA rules. The municipality's decision to permit short-term rentals does not override more restrictive HOA governing documents.

If we adopt a 30-day minimum lease term, does that apply to long-term renters we currently have?

Typically a new rule applies prospectively — existing long-term leases would not be affected, but any new rental must meet the minimum term requirement.