Overview: Are Short‑Term Rentals Allowed in Bay City?

Short‑term rentals are not prohibited in Bay City, MI. However, Bay City does not publish city‑specific rules tailored to short‑term rentals (e.g., STR permits, hosting‑platform compliance, or local STR taxes). All residential rental properties—whether long‑term or short‑term—must register, pass inspection, and obtain certification before occupancy under Bay City’s Rental Registration and Inspection program. There is no evidence of a total ban on STRs in Bay City’s posted ordinances or guidance. In the absence of city‑specific STR controls, state‑level Michigan rules (notably proposed legislation that has not been enacted as of the latest analysis) would apply if they become law.

Source: City of Bay City—Rental Registration and Inspection page. www.baycitymi.gov/539/Rental-Registration-and-Inspection

How to Start an STR Business in Bay City

Short‑term rentals fall under Bay City’s general rental compliance regime until city leaders enact specific STR rules. The steps below outline a practical compliance path for investors planning to operate an STR in Bay City.

1. Confirm Zoning Eligibility

• Verify that your parcel is in a zoning district that allows rental housing. If your property is in a residential zone with covenants or deed restrictions, check whether STR use is permitted by those private restrictions.
• Because Bay City has not published city‑specific STR zoning language, treat STRs like other rental uses and proceed assuming rental housing is permissible unless an explicit prohibition applies.

2. Enroll in Bay City’s Rental Registration and Inspection Program

• All properties must be registered, inspected, and certified prior to tenant occupancy.
• Complete the appropriate registration form: “Rental Dwelling Registration Form—Individual” for a single‑property owner or “Rental Dwelling Registration Form—Business” if operating through an LLC or multiple‑property portfolio.
• Submit the application to Community Development (Code Enforcement). You will receive inspection scheduling instructions after registration.

3. Pass the Housing Inspection

• Properties must meet Bay City’s housing standards (see the Rental Housing Checklist). Expect inspection items such as functional smoke and CO detectors, safe egress, structural and sanitation conditions, and other habitability criteria.

4. Align Operations with STR Best Practices

• Maintain liability insurance with minimum $1,000,000 coverage (commonly expected in Michigan rental practice and recommended by state‑level STR proposals).
• Keep emergency contact information, local emergency services, and escape routes posted in each sleeping room (common STR safety standard and a feature in proposed state legislation).
• Consider adopting a neighbor‑friendly protocol: quiet hours, parking guidance, occupancy limits, and rapid response to issues. This helps avoid nuisance complaints.

5. Comply with State Tax and Reporting Expectations

• Michigan has not enacted a statewide STR registration or a 6% STR excise tax as of the latest legislative analysis. However, Bay County has a 5% lodging assessment under the Regional Convention and Tourism Promotion Act (1995 PA 254) for transient facilities in Bay County; Bay City properties could be subject to this countywide 5% lodging assessment.
• Hosts collecting this assessment must remit it through the Bay County Convention & Tourism Bureau.

6. Monitor State Legislation

• Several Michigan bills (HBs 5437–5446) would, if enacted, create a Short‑Term Rental Regulation Act (registration with LARA, safety standards, 6% excise tax, and hosting‑platform duties). As of the latest analysis, these bills had not been enacted into law. If they pass, registration and tax obligations could shift to state processes and platforms.

Sources: Bay City rental pages (forms, fees, checklist). Legislative analysis of proposed Michigan STR acts. www.baycitymi.gov/539/Rental-Registration-and-Inspection; www.legislature.mi.gov/documents/2023-2024/billanalysis/House/pdf/2023-HLA-5437-52D26EA3.pdf

Required Documents, Permits, Licenses, and Guidelines

Bay City requires the following for all rentals (no separate STR permit exists as of the latest guidance):

• Rental Housing Checklist (compliance standards for inspections)
• Rental Housing Fees (inspection/registration fees schedule)
• Rental Dwelling Registration Form—Individual (for single‑property owners)
• Rental Dwelling Registration Form—Business (for LLCs or multi‑property registrations)

Optional but recommended in Michigan rental practice:

• Liability insurance certificate ($1,000,000 minimum)
• Posted emergency information and escape routes in each sleeping room
• House rules and neighbor‑friendly policies

Sources: Bay City document links. www.baycitymi.gov/539/Rental-Registration-and-Inspection

Specific Regulations: City of Bay City, Bay County, and Michigan

City of Bay City

• Mandatory registration, inspection, and certification for all rental housing prior to occupancy.
• No city‑published STR‑specific rules or bans identified in Bay City’s materials (e.g., no STR permit categories or hosting‑platform compliance steps).
• Inspection criteria are defined in the city’s Rental Housing Checklist.

Bay County

• Lodging assessment: a 5% transient facility room charge is authorized under the Regional Convention and Tourism Promotion Act (1995 PA 254; MCL 141.1431–141.1437) and collected by the Bay County Convention & Tourism Bureau for facilities in Bay County.
• If the state acts, the related companion bill (HB 5439) would explicitly bring STRs into the scope of the 5% assessment and related tourism marketing programs. As of the latest analysis, the bills had not been enacted.

State of Michigan (Proposed)

• HBs 5437–5446 would establish a Short‑Term Rental Regulation Act (HB 5438) and apply various lodging assessments to STRs. If enacted:
  • Registration with the Michigan Department of Licensing and Regulatory Affairs (LARA), a statewide STR database, and hosting‑platform registrations.
  • Safety and insurance requirements: CO and smoke detectors, fire extinguisher, $1,000,000 liability coverage (unless the hosting platform provides equal or greater coverage).
  • A 6% STR excise tax for units rented 15+ days/year (collected alongside use tax, with net proceeds distributed to local units).
  • Hosting‑platform duties: registration ($100/listing up to $50,000), data reporting, and removal of non‑compliant listings.
• None of the above is law yet, but investors should monitor closely.

Sources: Bay City rental registration page; Michigan House Fiscal Agency analysis of HBs 5437–5446. www.baycitymi.gov/539/Rental-Registration-and-Inspection; www.legislature.mi.gov/documents/2023-2024/billanalysis/House/pdf/2023-HLA-5437-52D26EA3.pdf

Contact Information (Local Authority in Charge of STRs)

Because Bay City has not designated a separate STR office, investors should use the city’s Community Development/Code Enforcement team for rental registration, inspections, and compliance questions.

Community Development – Code Enforcement

• Phone: 989‑894‑8156
• General Contact/Department Directory: See Directory link on Bay City site (for general inquiry submission).
• Physical Address: 301 Washington Avenue, Suite 207, Bay City, MI 48708

Key Contacts (per directory)

• Debbie Kiesel, Community Development Director
• Amy MacDonald, Community Development Specialist

Bay County Convention & Tourism Bureau (for lodging tax/assessment)

• Organization: Bay County Convention & Tourism Bureau
• Address: 1010 S. Euclid Ave., Bay City, MI 48706
• Phone: 989‑895‑4070
• Website: To be verified (not listed in provided sources). If you have the organization’s official site link, add it here.

Source: Bay City Directory and Contact pages. www.baycitymi.gov/539/Rental-Registration-and-Inspection

Source Pages

• Bay City—Rental Registration and Inspection (overview, forms, checklist, fees, contacts): www.baycitymi.gov/539/Rental-Registration-and-Inspection
• Michigan House Fiscal Agency—Analysis of HBs 5437–5446 (proposed STR regulation and taxes): www.legislature.mi.gov/documents/2023-2024/billanalysis/House/pdf/2023-HLA-5437-52D26EA3.pdf

Practical Compliance Checklist for Bay City STRs

• Confirm zoning allows rental use and that private covenants do not prohibit STRs.
• Register the property using the appropriate Bay City form (Individual or Business).
• Pass the housing inspection using the city checklist.
• Carry at least $1,000,000 liability insurance and post emergency and escape‑route information in each sleeping room.
• Collect and remit the Bay County 5% lodging assessment through the Bay County Convention & Tourism Bureau (if applicable to your operations).
• Monitor Michigan legislation; be prepared to register with LARA and meet safety/information posting requirements if HBs 5437–5446 are enacted.
• Keep a neighbor‑friendly playbook (quiet hours, parking, occupancy, trash, and noise protocols).
• Use the city’s complaint‑reporting and inspection contacts for any compliance issues.

If Bay City later adopts city‑specific STR ordinances, you will likely need to add platform‑level compliance steps, local permit numbers, and possibly additional taxes. Until then, operate within the city’s general rental registration/inspection framework and the county’s lodging assessment regime.