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

Yes, short-term rentals are allowed in Cadillac, Michigan, but with specific restrictions and requirements. The city has developed a regulatory framework for short-term rentals, commonly known as STRs, which include rentals through platforms like Airbnb, VRBO, and similar services. Currently, STRs are permitted in certain commercial districts (B-2 and proposed for B-3) with appropriate permits and compliance with city regulations.

How to Start a Short-Term Rental Business in Cadillac

Step 1: Verify Zoning Compliance

First, confirm that your property is located in an approved zoning district. Short-term rentals are currently permitted in:

• B-2 District: Limited commercial operations (currently allowed)
• B-3 District: General business/heavy commercial (requires special use permit as of 2025)

Step 2: Obtain Required Permits and Approvals

1. Site Plan Approval: Required for all STR properties in approved zones
2. Special Use Permit: Required for B-3 district operations
3. Registration and Inspection: Must comply with Cadillac City Code Article IV, Section 8
4. Building/Fire/Safety Compliance: All units must meet rental housing standards

Step 3: Prepare for Inspection

All units must be registered and inspected every two years to ensure compliance with building, fire, and safety codes as outlined in Cadillac City Code Article IV, Section 8.

Required Documents, Permits, Licenses, and Guidelines

Essential Permits and Licenses

1. Short-Term Rental Use Permit
2. Site Plan Approval
3. Special Use Permit (for B-3 districts)
4. Rental Housing Registration (Article IV, Section 8)

Required Documentation

1. Site Plan: Detailed plan showing parking locations and property layout
2. House Rules: Written rules for guests covering noise, parking, pet policies, and emergency contacts
3. Management Information: Name, address, phone, and email of responsible party
4. Guest Registration Log: Ongoing record of rental dates and guest information

Inspection Requirements

• Frequency: Every two years
• Scope: Building, fire, and safety code compliance
• Focus Areas: Egress windows, smoke detectors, fire safety equipment

Specific Regulations for Short-Term Rentals

Zoning Districts

• C-T, C-DT, C-DTC & C-G Districts: Permitted with site plan approval
• B-2 District: Currently allowed (more restrictive)
• B-3 District: Allowed with special use permit (recently approved 2025)

Occupancy and Use Limits

• Maximum Occupancy: 2 guests per bedroom
• Maximum Days: 365 days per year, but no single rental period may exceed 89 continuous days
• Bedroom Restrictions: All bedrooms must have windows capable of emergency egress
• Special Events: Not permitted at STR properties

Parking Requirements

• 1-2 Bedrooms: 2 off-street parking spaces required
• 3-4 Bedrooms: 3 off-street parking spaces required
• 5+ Bedrooms: 4 off-street parking spaces required
• Parking Location: Must be confined to designated areas on approved site plan

Management Requirements

• 24-Hour Availability: Owner or management agent must be reachable by phone at all times
• Response Time: Management must be able to respond within 60 minutes
• Key Access: Management must have keys and access to the property
• Responsible Party: Property owner or management company contact information must be provided

Property Standards

• Barrier-Free Access: Required for all STR properties
• Exterior Signage: Not permitted
• Pets: Permitted if allowed by property owner (maximum 1 pet per unit)
• Property Owner Residence: Not required to reside on premises

Posting Requirements

The following must be posted conspicuously:

1. Copy of Cadillac Noise Ordinance
2. Copy of Cadillac Fireworks Ordinance
3. Other postings required by Article IV, Section 8 of Cadillac City Code

Permit Revocation

STR permits may be revoked for:

• Building, fire, or safety code non-compliance
• Physical alterations to habitable space
• Changes in ownership/management without proper notification
• Failure to comply with ordinance standards

Contact Information

Primary Authority

City of Cadillac Community Development Department

• Address: 200 North Lake Street, Cadillac, MI 49601
• Phone: 231-775-0181
• Department: Community Development (oversees zoning and STR permits)

Planning Commission

• Meeting Location: Cadillac Municipal Complex, 200 North Lake St.
• Public Hearings: For special use permits and zoning matters

Code Enforcement

• Contact: Through city general number 231-775-0181
• Purpose: Reporting violations and compliance issues

Source Links

1. City of Cadillac STR Memo and Map: www.cadillac-mi.net/CivicAlerts.asp?AID=702&ARC=1208
2. Preliminary Draft Zoning Ordinance: www.cadillac-mi.net/DocumentCenter/View/2816
3. Planning Commission STR Proposal: www.cadillacnews.com/news/planning-commission-to-consider-allowing-short-term-rentals-in-b-3/article_7fb00c3c-22c7-4c8c-8d32-c3074e8ac288.html
4. City Council STR Discussion: www.9and10news.com/2025/09/02/cadillac-city-council-to-discuss-short-term-rental-ordinance/

Important Note: Cadillac's STR regulations continue to evolve. The city is actively updating its zoning ordinance to better accommodate modern short-term rental operations. Prospective operators should verify current requirements with the Community Development Department before investing, as recent changes to B-3 district regulations took effect in 2025.