Overview: Are Short-Term Rentals Allowed in Bad Axe?

Explicit answer: Yes, but only in limited forms and locations.

• Whole‑home or “home‑share” STRs (e.g., renting an entire single‑family residence on platforms like Airbnb/VRBO) are not permitted in residential districts (R‑1 Traditional Neighborhood and R‑2 Multiple Family Residential).
• The only transient‑lodging use expressly allowed by special approval in R‑1 is a Bed and Breakfast residence. A Bed and Breakfast is defined as a licensed single‑family dwelling that offers sleeping accommodations to not more than ten (10) lodgers for not more than fourteen (14) consecutive days, is the innkeeper’s residence, and serves breakfast at no extra cost.
• In R‑2, a Bed and Breakfast is also permitted by right. Additionally, a Boarding or Lodging House (not more than six separate units) is allowed by right, though the ordinance does not specify a maximum stay for Boarding Houses. This can create a pathway for short‑term occupancy, subject to all applicable building, safety, licensing, and tax requirements.
• In commercial zones—CBD (Central Business District), B‑1 (Service Business), and B‑2 (General Business)—the ordinance lists “Hotel” as a use permitted by right or special approval (depending on the district), which generally accommodates transient lodging. These districts are where investor‑grade STR operations (e.g., boutique inns, small hotels, or converted commercial buildings) would be sited, not in residential areas.
• Short‑term rentals remain subject to city zoning compliance, building codes, fire/life safety standards, Michigan lodging taxes, and any licensing requirements imposed by the state, county, or city.

Because the zoning ordinance is the controlling local rule for land use, it implicitly governs the operation of STRs. Where the ordinance does not expressly permit a use (as with whole‑home STRs in residential zones), such use is prohibited unless a variance or text amendment is obtained.

How to Start a Short-Term Rental Business in Bad Axe

1. Confirm the subject property’s zoning district (R‑1, R‑2, CBD, B‑1, B‑2, IN). This determines permissible lodging forms and approval pathways.
2. Select the permitted lodging pathway:
   • R‑1: Bed and Breakfast residence (special approval) as the only transient lodging option.
   • R‑2: Bed and Breakfast (by right); Boarding or Lodging House with not more than six units (by right).
   • CBD, B‑1, B‑2: Hotel (permitted by right or special approval, depending on district).
3. Determine whether you need special approval:
   • If your project is a Bed and Breakfast in R‑1, submit a Special Approval Use application per ARTICLE XVII (Site Plan and/or Special Approval Use Review). If you are in R‑2 and propose a Bed and Breakfast, it is permitted by right; however, if any aspect of your design/operation diverges from the ordinance’s standards (e.g., density, parking, signage), seek preliminary staff guidance and be prepared to meet required conditions.
4. Engage building permitting:
   • ARTICLE XV requires Building Permits and Zoning Compliance Certificates. Life‑safety, occupancy, fire suppression, exits, egress, and electrical/plumbing compliance must be demonstrated through plan review and inspections.
5. Plan reviews and site plan:
   • For Bed and Breakfast (special approval), prepare a site plan meeting standards in ARTICLE XVII (1703) and submit for Planning Commission review. Boarding Houses and Hotels must also meet site plan requirements as applicable (see Articles XII, XVI, XVII).
6. Licensing (licensing agencies vary by use):
   • Bed and Breakfast: The ordinance refers to “licensed” operation; contact the City Clerk/Zoning Inspector and verify whether the County Health Department (Michigan) requires lodging licenses and inspections. As of current Michigan practice, lodging facilities are typically licensed by the local health department under Michigan’s Food Law and related rules; confirm with the Huron County Health Department.
   • Boarding/Lodging House: Confirm licensing requirements with the County Health Department and any state agencies if meals are served or health services are provided.
   • Hotel: Verify state and county licensing; lodging and food service compliance is typically overseen by state agencies and local health departments.
7. Taxes:
   • Register for and remit Michigan’s Lodging Excise Tax (often called the “hotel tax”) and applicable sales/use taxes. State requirements are general across Michigan and typically require lodging operators to register and file returns with the Michigan Department of Treasury; verify current rates and filing obligations.
8. Signage and parking:
   • ARTICLE XII regulates Signs (1212) and Parking/Loading (1210). Ensure signage meets district standards and provide required parking. For Bed and Breakfast, special approval conditions may include signage limits and off‑street parking arrangements.
9. Operational compliance:
   • Observe maximum occupancy (Bed and Breakfast: 10 lodgers; Boarding House: 6 units), maintain records, respond to complaints, and adhere to noise, nuisance, and public health requirements.
10. Contact the Zoning Inspector early to clarify the approval sequence and any local fees or checklists.

Required Documents, Permits, Licenses, and Guidelines

• Zoning Compliance Certificate (Article XV, 1503)
• Building Permit(s) (Article XV, 1502)
• Special Approval Use application and site plan (R‑1 Bed and Breakfast; see Article XVII)
• Final Inspection(s) (Article XV, 1504)
• Bed and Breakfast License (state/county) and food service permits if meals are served
• Boarding/Lodging House License(s) if applicable (county/state)
• Hotel License(s) if operating in CBD/B‑1/B‑2 (state/county)
• Michigan Department of Treasury registration for lodging taxes and sales/use taxes
• Insurance: General liability and property coverage appropriate for transient lodging
• Property records, site plan drawings, floor plans, photos, safety/fire compliance documentation, ADA/accessibility measures (as applicable)

City, County, and State Regulations Specific to STRs in Bad Axe

City (Bad Axe Zoning Ordinance):

• R‑1 Traditional Neighborhood District:
  • Bed and Breakfast residence is permitted by special approval. Definition: licensed single‑family dwelling offering lodging to not more than 10 lodgers for no more than 14 consecutive days; the innkeeper must reside on the premises and serve breakfast at no extra cost (Section 201, “Bed and Breakfast”).
  • Whole‑home STRs are not expressly permitted; absent special approval for a Bed and Breakfast, the use is prohibited.
• R‑2 Multiple Family Residential District:
  • Bed and Breakfast is permitted by right.
  • Boarding or Lodging House with not more than six separate units is permitted by right.
  • Hotels and motels are excluded from “multiple dwelling” uses; they are not permitted in R‑2.
• CBD, B‑1, and B‑2 Districts:
  • Hotel is listed as a use permitted by right or special approval, depending on the district (Articles VII, VIII, IX). This is where investor‑grade STR facilities should be sited, subject to district standards (height, setbacks, parking, signage).
• General compliance:
  • ARTICLE XI (Area/Density/Bulk/Height/Yard) and ARTICLE XII (General Provisions, including Signs and Parking) apply to all lodging uses.
  • ARTICLE XVII governs site plan review and special approval use standards.
  • ARTICLE XX provides penalties and remedies for violations.

County (Huron County):

• The provided materials do not contain county‑specific licensing or operational rules for STRs. In Michigan, lodging facilities often require licensing through the local health department (state program via county departments). Investors should verify current licensing requirements with the Huron County Health Department.

State (Michigan):

• The provided materials do not include Michigan statutes governing short‑term rentals. Generally in Michigan, lodging businesses must register with the Michigan Department of Treasury to collect and remit lodging taxes (often called the “hotel tax”) and sales/use taxes, and lodging facilities are subject to health and safety regulations. Investors should confirm current state tax registration and compliance requirements with the Michigan Department of Treasury and the Michigan Department of Agriculture and Rural Development/Health and Human Services for licensing as applicable.

Contact Information (Local Authority in Charge of STRs)

• City of Bad Axe (Zoning/Planning/Building):
  • Phone: +1 (989) 269‑8515
  • Email: cityoff@cityofbadaxe.com
  • Website: www.cityofbadaxe.com
  • Physical Address: City Hall, 111 E. Huron Ave., Bad Axe, MI 48413

For licensing, taxes, and health/safety requirements:

• Michigan Department of Treasury (taxes/registration): verify through www.michigan.gov/taxes
• Huron County Health Department (lodging licensing): verify via Huron County’s official website and contact information
• Michigan Department of Agriculture and Rural Development (MDARD) / Michigan Department of Health and Human Services (MDHHS): verify licensing for lodging facilities and food service requirements through state agency portals

Note: Phone, email, and website information provided here is based on publicly available City of Bad Axe data. For state and county agencies, verify official contacts and current licensing forms before applying.

Links to Source Pages

• City of Bad Axe Zoning Ordinance (Official Document): www.cityofbadaxe.com/images/PDFgen/zoning/BAD