Short-Term Rental Regulations Guide: Auburn, Michigan

Overview: Are Short-Term Rentals Allowed in Auburn, MI?

Yes, short-term rentals are allowed in Auburn, Michigan, but they are regulated under specific zoning provisions. The city treats short-term rentals primarily through the lens of "Bed and Breakfast" operations, which require special use permits and must comply with zoning regulations. While Auburn doesn't have a comprehensive short-term rental ordinance like some larger cities, the existing zoning code provides a framework for residential accommodations for transient guests.

How to Start a Short-Term Rental Business in Auburn, MI

1. Property Assessment: Ensure your property is in an appropriate zoning district
2. Permit Application: Apply for a Special Use Permit for Bed and Breakfast operations
3. Compliance Review: Meet all safety, health, and zoning requirements
4. Operational Setup: Establish business operations following local guidelines
5. Ongoing Compliance: Maintain compliance with all applicable regulations

Required Documents, Permits, Licenses, and Guidelines

Zoning Compliance

• Special Use Permit (required for Bed and Breakfast operations per §154.112)
• Site Plan Review (per §154.135) if significant changes are proposed
• Building Permit if any structural modifications are needed
• Certificate of Occupancy verifying compliance with building codes

Business Requirements

• Business License (contact city hall for specific requirements)
• Michigan Use Tax Registration (6% tax on rental income)
• Property Insurance (standard liability coverage for short-term rentals)

Health and Safety

• Fire Safety Inspection (if required by local fire department)
• Health Department Approval (if serving food as part of Bed and Breakfast)

Specific Regulations for Short-Term Rentals

Auburn City Regulations

Bed and Breakfast Definition (§154.005)

A Bed and Breakfast is defined as: "A use that is subordinate to the principal use of a dwelling unit as a single-family dwelling unit, in which transient guests are provided a sleeping room and breakfast in return for payment, and that does not provide separate cooking facilities for such guests."

Key Operational Requirements

• Must be subordinate to the principal single-family dwelling use
• No separate cooking facilities for guests
• Must serve breakfast as part of the accommodation
• Requires Special Use Permit approval
• Must maintain residential character of the dwelling

Zoning Districts

Short-term rentals (Bed and Breakfast operations) are subject to the zoning district where the property is located. Check the specific zoning of your property in the City's Zoning Map.

Home Occupation Compliance

If operating as a home-based business, must comply with §154.005 Home Occupation requirements:

• Must be clearly incidental and secondary to residential use
• No production of noise, odor, fumes, vibration, dust, smoke, heat, glare, or electrical disturbance beyond property lines
• Outside buildings must be free from storage of equipment/materials
• No signs beyond what is allowed in §154.090 through §154.098

Bay County Regulations

No specific county-level short-term rental regulations were found in the provided content.

Michigan State Regulations

Tax Requirements

• 6% Use Tax on total rental amount (including cleaning and service fees)
• Must register with Michigan Department of Revenue
• Regular tax filing and payment requirements

Insurance Considerations

Standard homeowners insurance typically doesn't cover short-term rental activities. Consider:

• Commercial Liability Coverage
• Property Damage Protection
• Loss of Income Coverage
• Guest Injury Protection

Contact Information for Local Authority

City of Auburn

City Hall

• Address: 113 Walnut Street, Auburn, MI 48611
• Phone: (989) 662-7311
• Website: auburnmi.gov

Planning & Zoning Department

• Contact: City Zoning Administrator
• Phone: (989) 662-7311
• Email: Contact through city hall for zoning inquiries

Building Department

• Contact: Building Official
• Phone: (989) 662-7311
• Building Permits: Required for structural modifications

State Contacts

Michigan Department of Revenue

• Phone: (517) 373-3200
• Website: michigan.gov/taxes
• Use Tax Registration: Required for STR operators

Links to Source Pages

• City of Auburn Zoning Ordinance (Primary regulatory document)
• Michigan Short-Term Rental Regulations Overview (State-level context)
• City of Auburn Official Website (Local government information)

Important Notes for Investors

1. Property Restrictions: Ensure your property is in a zoning district that allows Bed and Breakfast operations
2. Residential Character: The operation must not change the residential character of the dwelling or lot
3. Neighbor Relations: Consider potential impacts on surrounding residential properties
4. HOA Compliance: If in a planned community or subdivision, check for additional restrictions
5. Seasonal Considerations: Auburn's market may have seasonal variations affecting occupancy
6. Future Regulations: Monitor for any future municipal ordinance updates regarding short-term rentals

This regulatory framework provides a foundation for legitimate short-term rental operations in Auburn, Michigan, while maintaining the residential character of the community.