Overview: Are Short-Term Rentals Allowed in East Lansing?

Short-term rentals are allowed in East Lansing, but they are subject to the same licensing requirements as long-term rentals. The City of East Lansing requires all rental properties to obtain and maintain a rental license regardless of the length of stay for tenants. The city currently does not have a separate short-term rental-specific license category.

How to Start a Short-Term Rental Business in East Lansing

Starting a short-term rental business in East Lansing follows the same process as establishing any rental property, with the understanding that your short-term rental must comply with all applicable city ordinances and state/federal laws.

Step-by-Step Process:

1. Determine Property Eligibility

   • Verify your property is not located in a Residential Rental Restriction Overlay District
   • Check for deed restrictions that might prohibit rentals
   • Confirm the property meets zoning requirements

2. Obtain Initial Rental License

   • Submit rental housing license application for initial license
   • Complete required inspections
   • Pay applicable fees

3. Ensure Compliance

   • Meet annual inspection requirements
   • Maintain current license renewals
   • Comply with all property maintenance codes

4. Understand Additional Requirements

   • Register with city if owner does not reside in the property
   • Report rental income to IRS if property is rented more than 14 days per year
   • Consider potential loss of Principal Residence Exemption if rented extensively

Required Documents, Permits, Licenses, and Guidelines

Required Documents and Applications:

• Rental Housing License Application - Initial (PDF format available)
• Rental Housing License Application - Renewal (PDF format available)
• New Owner Rental Unit License Application (PDF format available)
• House Sitting Form (PDF format available)
• Lease Addendum (required with all leases in the City)

Inspection Requirements:

• Annual rental inspections are mandatory
• Inspectors follow specific Rental Inspection Guidelines (PDF available)
• Properties must comply with International Fire Code standards

Fee Schedule:

• Housing licensing and inspection fees apply
• Fee schedule available through the city website

Additional Considerations:

• Classification of Rental Licenses - different classes may apply based on property type
• Fair Housing requirements must be followed
• Property maintenance standards apply

Specific Regulations for Short-Term Rentals

City-Level Regulations:

Rental Licensing System:

• All rental properties, including short-term rentals, require a city rental license
• Licenses must be renewed annually
• Properties are subject to annual inspections

Rental Restriction Overlay Districts (RROs):

• Neighborhoods can establish overlay districts that restrict rental licenses
• 2/3 neighborhood signatures required to initiate overlay process
• Once established, these districts effectively ban new rental licenses
• Currently 21+ overlay districts exist in East Lansing

Current Overlay Districts:

• Brookfield Neighborhood
• West Brookfield Neighborhood
• Lantern Hill Neighborhood
• Old Whitehills Neighborhood
• Harrison Meadows North Neighborhood
• Central Bailey Neighborhood
• Chesterfield Hills Neighborhood
• Red Cedar and Ivanhoe Neighborhood
• Southeast Marble Neighborhood
• Walnut Heights Neighborhood
• Farwood Neighborhood
• South Glencairn Neighborhood
• East Whitehills Neighborhood
• South Pinecrest Neighborhood
• West Whitehills Neighborhood
• Southeast Glencairn Neighborhood
• North Central Glencairn
• Hawk Nest Neighborhood
• Hawthorn Subdivision
• Shaw Estates
• Northeast Glencairn

State-Level Regulations (Michigan):

Federal Tax Implications:

• Properties rented more than 14 days per year must report rental income
• Risk of losing Principal Residence Exemption (PRE) if rented extensively
• Properties may be reviewed by Michigan Department of Treasury

Proposed State Legislation:

• Eight-bill package under consideration would create statewide short-term rental registry
• Would allow local governments to revoke short-term rental licenses for ordinance violations
• Would not allow outright bans on short-term rentals
• City Council has expressed concerns about potential conflicts with local overlay system

Operational Requirements:

Maximum Occupancy:

• Generally follows zoning requirements
• Single-family homes: owner plus 2 additional adults if owner-resident
• Non-owner-occupied: maximum 3 adults

Parking Requirements:

• On-site parking required for all vehicles
• Parking not permitted on city streets between 2:00 AM and 5:00 AM
• Parking spaces must be paved with asphalt or concrete

Contact Information

Primary Contact for Rental Housing:

Rental Housing Division

• Administrator: Aleece Hodges - ahodges@cityofeastlansing.com - (517) 319-6878
• Administrative Secretary: Claire Healey - chealey@cityofeastlansing.com - (517) 319-6870

Planning & Zoning for Overlay Districts:

Principal Planner: Landon Bartley - lbartley@cityofeastlansing.com - (517) 319-6910

City Hall Main Contact:

Address: 410 Abbot Road, East Lansing, MI 48823

• Phone: (517) 337-1731
• After Hours Phone: (517) 351-4220
• Hours: Monday through Friday, 8 AM to 5 PM

Related Resources:

• Complaint Filing: Online complaint response form available through city website
• Legal Services: City provides legal services information for property owners and tenants
• Fair Housing Information: Available through city website

Links to Source Pages

1. Main Rental Housing Information: www.cityofeastlansing.com/702/Rental-Housing-Information
2. Initial Rental Licenses: www.cityofeastlansing.com/1079/Initial-Rental-Licenses
3. Renewing Rental Licenses: www.cityofeastlansing.com/756/Renewing-Rental-Licenses
4. Housing License & Inspection Fee Schedule: www.cityofeastlansing.com/718/Housing-License-Inspection-Fee-Schedule
5. Residential Rental Restriction Overlay Districts: www.cityofeastlansing.com/696/Residential-Rental-Restriction-Overlay-D
6. Rental Restriction Overlay Map: coel.maps.arcgis.com/apps/webappviewer/index.html?id=ce203a6e4b0e428f9e2aad4d6778b4be
7. Ordinances and Policy Resolutions: www.cityofeastlansing.com/727
8. File a Complaint: www.cityofeastlansing.com/FormCenter/Planning-Building-Development-8/Complaint-Response-Form-52

Important Note: Before investing in a short-term rental property in East Lansing, investors should verify whether their specific property is located within any of the Residential Rental Restriction Overlay Districts, as these areas prohibit new rental licenses regardless of the intended rental duration. The city provides interactive mapping tools and PDF maps to help identify overlay district boundaries.