1. Overview and legality

Short-term rentals (STRs) are explicitly allowed in the City of Ferndale, Michigan, but they are regulated. The City requires an annual Short-Term Rental Unit license for any property advertised or operated as an STR. Both “Residential Short-Term Rental Units” (where the owner’s principal residence is used) and “Non-Residential Short-Term Rental Units” (investment properties) are permitted subject to zoning and licensing requirements. The City’s primary framework is set in Ferndale Code of Ordinances Division 7‑VII‑3 (Short Term Rental Licensing), supplemented by the City’s zoning code and citywide codes (e.g., noise and property maintenance).

At the state level, Michigan does not maintain a comprehensive statewide short‑term rental regime. State statutes (e.g., the Michigan Zoning Enabling Act) set the enabling authority for local zoning and licensing, but specific STR rules—such as occupancy, density, licensing, and enforcement—are set by the City of Ferndale and must be followed.

Source: Ferndale Short Term Rental Licensing Ordinance (Division 7‑VII‑3).

2. How to start a short‑term rental business in Ferndale

The City regulates STRs by annual licensing and inspections. The Building Department handles registration and inspection services. Use the following step-by-step process:

1. Prepare your property and documentation.

• Confirm your zoning district permits STRs (see Section 4).
• Verify all city debts (property taxes, water bills, other amounts owed) are current.
• Assemble required application items (see Section 3).

2. Submit the Short‑Term Rental Unit License Application.

• File in person or by mail with: Building Department
  City of Ferndale
  300 E. Nine Mile Rd.
  Ferndale, MI 48220
• You will receive the rules/regulations and the ordinance upon application.
• Fees are set by City Council resolution (Residential vs Non‑Residential tiers).

3. Schedule inspection.

• Call 248‑546‑2525, ext. 115 to arrange an inspection.
• The inspector confirms the number of safe, occupiable bedrooms and maximum occupancy per the 2015 Michigan Residential Code (MRC) and ensures life‑safety items per the International Property Maintenance Code (IPMC) and MRC (handrails, guardrails, smoke detectors, operable windows, etc.).

4. Await issuance (or denial) and keep the license posted.

• The City’s CED Department issues or denies the license within 60 days.
• If denied, you’ll receive a letter explaining the reasons; you may reapply after correcting conditions or appeal to the City Manager within 10 days (decision within 30 days).

5. Operate continuously and renew annually.

• Licenses must be renewed each year; submit renewal before any rental activity.
• Maintain posted license, 24/7 contact information, guest documentation, and compliance with all city codes (occupancy, noise, parking, trash, etc.).

Source: Ferndale Short Term Rental Resource page; Division 7‑VII‑3 (application and inspection sections).

3. Required documents, permits, licenses, and guidelines

Key documents and requirements:

• Completed Short‑Term Rental Unit License Application, including:
  • Owner name, mailing address, email, phone.
  • Property address and parcel ID.
  • Owner’s Authorized Agent (24/7 availability): name, address, phone, email.
  • Principal residence evidence for Residential STRs (principal residence exemption affidavit or similar).
  • Any other information requested on the application.
• Proof of no outstanding city debts (property taxes, water bills, or other amounts owed to the City).
• License fee (amounts established by City Council resolution).
• Annual inspection and license posting inside the STR unit.
• Guest recordkeeping: maintain the principal renter’s name, mailing address, email, and phone for one year.
• Compliance with city codes:
  • Septic/Solid Waste: City water and sanitary sewer connection required; proper trash storage/placement/retrieval consistent with city schedule.
  • Noise: Provide written information to occupants; owner/agent must inform guests of noise requirements and provide the city noise ordinance.
  • Parking: No restriction of emergency vehicle access; no encroachment on neighboring properties; no RV/tent parking at STRs.
  • Advertising: Do not advertise more bedrooms or guests than licensed.
  • Signage: Subject to the City’s sign ordinance.
  • Property Maintenance: Subject to the International Property Maintenance Code (IPMC).
  • Contact posting: License must be posted in a conspicuous place within the unit; 24/7 response to guest issues within one hour.

License transfer and utilization refund:

• Licenses are non‑transferable upon sale.
• If an STR is rented 14 days or fewer in a calendar year, the licensee may receive a partial fee refund upon proof to the City (amount set by resolution).

Source: Division 7‑VII‑3, Secs. 7‑155, 7‑156, 7‑157; Ferndale STR resource page.

4. Specific regulations (City of Ferndale and State context)

• Allowed use and zoning:
  • Short‑Term Rentals are a permitted use in R‑1 and R‑2 districts (residential), MXD‑1 and MXD‑2 (mixed‑use), and CBD (central business district) per Article 5, Section 5.23 of the Zoning Code.
• Density limit (Non‑Residential STRs):
  • Non‑Residential STRs may not exceed five percent (5%) of the total single‑family, duplex, and multi‑family units on a city block in residential zoned districts.
  • Existing Non‑Residential STRs that obtain a license within 90 days of the ordinance’s effective date retain non‑conforming rights provided they remain licensed.
• Occupancy and advertising:
  • Overnight occupancy is limited to two adults per bedroom; total overnight occupancy may not exceed eight people.
  • Do not advertise more bedrooms or occupancy than licensed.
  • Occupancy must never exceed limits in the Residential Building Code adopted by the City.
• Septic/solid waste:
  • STRs must be connected to City water and sanitary sewer; solid waste must be disposed per city ordinance; sufficient trash containers and service required.
• Noise:
  • Owner/agent must inform guests in writing of the City’s noise ordinance and ensure compliance.
• Parking:
  • No RV/tent parking; parking must not restrict emergency access or ingress/egress and may not encroach on neighboring properties.
• Contact and posting:
  • Provide 24/7 contact info to guests and the City; respond within one hour to guest inquiries or complaints; post the license inside the STR.
• Guest records:
  • Maintain principal renter contact details for one year.
• Signage and maintenance:
  • Comply with the City’s sign ordinance; subject to IPMC and all city codes.
• Enforcement and sanctions:
  • The City investigates complaints and can pursue enforcement for violations. After three substantiated complaints in a calendar year, the license is subject to revocation by the City Manager under the City’s administrative hearings ordinance.
  • Penalties: $100 first offense; $200 second offense; third or subsequent offense within one calendar year is a misdemeanor (fine up to $500 and/or up to 90 days imprisonment); each day of violation is a separate offense. Intentional false reporting is a separate violation ($100 first offense).
  • A revoked license may not be reissued for one year.

Michigan state‑level STR regulations:

• Michigan does not have a statewide, comprehensive short‑term rental licensing or taxation regime; it relies on local governments to regulate STRs through zoning and local ordinances. Compliance with state residential building codes and fire/life‑safety codes applies through local adoption.

Sources: Division 7‑VII‑3 (Purpose, Definitions, Density, General Requirements, Enforcement); Zoning Code Article 5 Section 5.23 (permitted uses).

5. Contact information

• City of Ferndale – City Hall

  • Phone: 248‑546‑2525
  • Email: information@ferndalemi.gov
  • Address: 300 East Nine Mile Road, Ferndale, MI 48220
  • Hours: Monday–Thursday, 8:00 a.m. to 5:30 p.m.

• Ferndale Building Department (registration/inspection)

  • Phone: 248‑546‑2525, ext. 115
  • Location: 300 East Nine Mile Road, Ferndale, MI 48220 (for in‑person filing; mail also accepted at this address)

Source: Ferndale STR resource page and city contact page (referenced on the resource page).

6. Source links

• City of Ferndale – Short‑Term Rentals (resource page): www.ferndalemi.gov/resources/short-term-rentals
• Ferndale Code of Ordinances – Division 7‑VII‑3 Short Term Rental Licensing: ferndale.municipalcodeonline.com/book/print?type=ordinances&name=DIVISION_7-VII-3_Short_Term_Rental_Licensing
• City of Ferndale Zoning Code (Adopted Dec 16, 2024; Amended June 23, 2025): www.ferndalemi.gov/PDFs/Zoning%20Code%2006232025.pdf

Notes:

• Fee amounts are set by City Council resolution; verify current fees with the Building Department or the City Clerk when applying.
• For assistance with zoning use eligibility (e.g., confirming district or special land use processes), consult the Zoning Code and/or the Community & Economic Development (CED) Department.