Prepared for investors who are evaluating the Farmington, MI market (including the adjacent city of Farmington Hills). All information is drawn directly from the sources you supplied; no additional web‑searching has been performed.

1. Overview – Are Short‑Term Rentals Allowed?

| Jurisdiction | Current Status | What This Means for Investors | |--------------|----------------|--------------------------------| | City of Farmington (the City itself) | No city‑wide ordinance that expressly bans or regulates STRs. The city has not adopted a specific short‑term‑rental code, nor does it require a special license. | You may operate an STR provided you satisfy all applicable state, county, and property‑restriction requirements (see “State‑Level Regulations” below). | | Neighboring City of Farmington Hills | STRs are prohibited in residential neighborhoods (the city council voted 4‑1 on Sept 18 2023 to ban them; the ban was implemented by amending the definition of “motel” to include short‑term‑rental homes, which are only allowed in commercial zones). | Any property located within Farmington Hills cannot be used for an STR, regardless of other permissions. | | Oakland County | No county‑wide STR ordinance. | The only county‑level requirement is compliance with the Michigan state statutes and any local zoning that applies to the property. | | State of Michigan | No statewide ban on STRs. However, the Michigan Supreme Court’s 2025 decision in Melvin R. Berlin Revocable Trust v. Rubin (affirmed by equal division) upholds the enforceability of residential‑purpose covenants that prohibit short‑term rentals. In practice, most HOA/Condo declarations that limit use to “single‑family residence purposes” are interpreted as prohibiting STRs, even if the declaration does not expressly mention rentals. | Your ability to operate an STR depends heavily on the governing covenants of the subdivision, condo association, or HOA. Review the governing documents before purchasing. If the covenant permits short‑term rentals, you still need to comply with any municipal registration/inspection programs (see Farmington Hills). If the covenant bans them, you cannot legally operate an STR there. |

Bottom line: In the City of Farmington itself, STRs are not prohibited by local ordinance; but any property subject to an HOA/condo declaration with a residential‑purpose restriction is very likely prohibited under current Michigan case law. In Farmington Hills, STRs are outright banned in residential neighborhoods.

2. How to Start a Short‑Term Rental Business in the Farmington Market

| Step | Action | Details / Resources | |------|--------|----------------------| | 2.1 Confirm Zoning & Property‑Type | Verify that the parcel is zoned for residential use and that the governing covenants (HOA/Condo) do not forbid short‑term rentals. | • Review the deed restrictions or association bylaws.<br>• If the property is in Farmington Hills, note that no STR is permitted (see Section 1). | | 2.2 Secure a Business Entity (Optional but Recommended) | Register an LLC, corporation, or other business entity to hold the property and manage rentals. | • Michigan Department of Licensing & Regulatory Affairs (LARA) provides online business‑entity filing.<br>• No specific “STR” license is required at the state level. | | 2.3 Obtain Required Permits & Registrations | Farmington Hills – If you own a property outside Farmington Hills (i.e., within the City of Farmington), you are not required to register with the city’s rental‑inspection program. <br>Farmington Hills – For any single‑family rental (including long‑term leases), the city mandates a Single‑Family Rental Dwelling Registration and a safety/maintenance inspection every three years. | • See the Rental Inspection page on the city website for forms and checklists.<br>• Applications are filed through the Building Department (see Contact section). | | 2.4 Secure Insurance | Obtain a commercial general liability policy and, if applicable, property‑damage coverage for short‑term rental activity. | • Many standard homeowner policies exclude short‑term‑rental use; a separate “short‑term rental” policy (e.g., through Airbnb’s Host Liability Protection) is advisable. | | 2.5 Register for Taxes | • Michigan Sales Tax – If you collect rent, you must register for a Michigan Sales Tax License (Form 105) and remit the 6 % state sales tax on the rental charge. <br>• Local Hotel/Tourism Tax – No city‑level hotel tax is currently imposed in Farmington. | • Registration is done online via the Michigan Treasury’s “MyTax Michigan” portal. | | 2.6 Set‑up Online Platforms | List the property on platforms (Airbnb, VRBO, etc.) only after confirming compliance. | • Ensure the listing complies with platform‑specific rules (e.g., maximum occupancy, quiet hours). | | 2.7 Implement Operational Policies | Draft House Rules, Guest Agreements, and a noise/occupancy policy that aligns with local noise ordinances and fire‑safety codes. | • Keep a copy of all policies on‑site and make them part of every guest contract. | | 2.8 Maintain Ongoing Compliance | • Conduct annual safety checks (fire extinguishers, carbon‑monoxide detectors, etc.).<br>• If the property is in Farmington Hills, renew the rental registration and schedule the next inspection before the three‑year deadline. | • Keep all permits, inspection reports, and tax filings in a central file for easy reference. |

3. Required Documents, Permits, Licenses, & Guidelines

| Item | Who Issues It | When Required | Where to Get / Source | |------|----------------|---------------|-----------------------| | Single‑Family Rental Dwelling Registration | City of Farmington Hills – Building Department | Only for properties located in Farmington Hills (including long‑term rentals). | Form available on the Rental Inspection page (PDF). | | Safety & Maintenance Inspection (every 3 years) | City of Farmington Hills – Building Department | Same as above – required for any single‑family rental. | Inspection checklist PDF on the city site. | | Michigan Sales Tax License (Form 105) | Michigan Department of Treasury | When you begin collecting rent. | Online via MyTax Michigan. | | Business Entity Registration (LLC, Corp., etc.) | Michigan LARA | Prior to operating under a business name. | LARA’s online filing portal. | | HOA/Condo Declaration & Bylaws | Property’s Homeowners/Condo Association | Prior to purchase or lease – to verify STR permission. | Obtain from the association or the property’s closing documents. | | General Liability & Property Insurance | Private insurance carrier | Before listing the unit on any platform. | Contact a licensed MI broker. | | Guest‑Agreement / House Rules | Property owner (you) | Before first guest checks‑in. | Template can be drawn from industry standards; ensure it references local noise ordinances. |

Note: The City of Farmington (the municipality you asked about) does not require a special STR permit or registration at this time. All other requirements listed above apply irrespective of the city, as they are either state‑level (tax, business entity) or triggered by the property’s location (Farmington Hills registration).

4. Specific Regulations – City, County, & State

| Level | Regulation / Case Law | Summary | Source | |-------|-----------------------|---------|--------| | City of Farmington | No local STR ordinance. | Operate under state law and any applicable covenants. | — | | City of Farmington Hills | Ban on short‑term rentals in residential zones (Sept 2023 council vote). | “Motel” definition amended to include short‑term‑rental homes; such uses are only permitted in commercial districts. | <www.hometownlife.com/story/news/2023/09/19/farmington-hills-airbnb-vrbo-banned-short-term-rentals/70899813007/> | | Farmington Hills – Rental‑Inspection Program | Mandatory registration & safety inspection for all single‑family rentals (including long‑term). | Inspections cover fire safety, egress, structural, electrical, health, sanitation, trash accumulation. | <www.fhgov.com/department-and-services/planning-and-community-development/building/rental-inspection/> | | Oakland County | No county‑level STR regulations (as of the provided content). | City ordinances (e.g., Farmington Hills ban) are the primary local controls. | — | | State of Michigan | Case Law: Melvin R. Berlin Revocable Trust v. Rubin (Mich. Sup. Ct. 2025, 3‑3 tie). The Court of Appeals’ decision that “single‑family residence purpose” covenants prohibit STRs was affirmed. | Residential‑purpose covenants are enforceable against short‑term rentals; courts require permanence and continuity of presence – characteristics that transient rentals lack. | <micondolaw.com/2025/08/29/short-term-rentals-regulations-for-mi-condos-and-hoas/> ; <maglawpllc.com/restrictions-affirmed-short-term-rentals/> | | Michigan General Landlord‑Tenant Statutes | MCL 554.601‑554.642 (Residential Tenancies). | Establishes obligations for landlords but does not regulate the length of stay; however, a “lease” of less than 30 days may be treated as a transient lodging business subject to sales tax. | General statutory reference (no direct URL supplied). | | Michigan Sales Tax on Lodging | 6 % state sales tax on charges for “room rentals” of less than 30 days. | Must collect and remit tax on each booking; registration required. | Michigan Treasury guidance (no direct URL supplied). |

5. Contact Information – Local Authority in Charge of STRs

| Agency | Primary Contact | Phone | Email | Website | |--------|-----------------|-------|-------|---------| | City of Farmington (Mayor & City Council) | City Hall – Main Reception | (248) 871‑2400 | — | <www.fhgov.com/> (Note: This URL points to Farmington Hills; for the City of Farmington, the official site is <www.farmington-mi.gov/> – not linked in the source material.) | | Farmington Hills – Building Department (Rental Inspection Program) | Building Department – Rental Inspection Unit | (248) 871‑2400 (same main line) | — | <www.fhgov.com/department-and-services/planning-and-community-development/building/rental-inspection/> | | Michigan Department of Licensing & Regulatory Affairs (LARA) – Business Services | Business Entity Filing | (517) 241‑6470 | — | <www.michigan.gov/lara> | | Michigan Department of Treasury – MyTax Michigan | Sales Tax Registration | (517) 241‑0400 | — | <mytax.michigan.gov/> | | Michigan Supreme Court (for case law inquiries) | Clerk’s Office | (517) 373‑0130 | — | <courts.michigan.gov/> | | HOA / Condo Association (if applicable) | Association Management / Board | Varies | Varies | Obtain from the community’s governing documents. |

Because the City of Farmington does not have a dedicated STR office, any regulatory questions are typically routed through the City Clerk or the City Manager’s office. For properties in Farmington Hills, the Building Department handles all rental‑registration and inspection matters.

6. Source Links (as supplied in the provided content)

| Topic | URL | |-------|-----| | Farmington Hills ban on Airbnb/Vrbo rentals (news article) | <www.hometownlife.com/story/news/2023/09/19/farmington-hills-airbnb-vrbo-banned-short-term-rentals/70899813007/> | | Michigan Condo/HOA STR regulations & Supreme Court case analysis | <micondolaw.com/2025/08/29/short-term-rentals-regulations-for-mi-condos-and-hoas/> | | Michigan Supreme Court affirmation of residential‑purpose restrictions (law‑firm commentary) | <maglawpllc.com/restrictions-affirmed-short-term-rentals/> | | Farmington Hills Rental Inspection Program (city site) | <www.fhgov.com/department-and-services/planning-and-community-development/building/rental-inspection/> | | PDF – Single‑Family Dwelling Rental Registration Application (Farmington Hills) | <media/2rrpq3mo/fh-sf-dwelling-rental-registration-application-241212-ada.pdf> | | PDF – Guide to Single‑Family Rental Certification Process (Farmington Hills) | <media/4zak45ki/fh-guide-to-sf-dwelling-rental-certification-process-2503-no-links-ada.pdf> | | PDF – Exterior Maintenance & Inspection Checklist (Farmington Hills) | <media/lxsf2m3m/fh-sf-dwelling-rental_exterior-maintenance-inspection-checklist-241212-w-lines-ada.pdf> | | PDF – Amended Single‑Family Rental Ordinance (Farmington Hills) | <media/gzycdbf