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

Yes, short-term rentals are allowed in Grand Rapids, Michigan, but they are a regulated activity. The city licenses and regulates STRs through a specific "Home Occupation Class C License," which is required to operate businesses such as bed and breakfasts, rooming houses, and boarding houses. This implies that renting out parts of a residence for overnight stays is a permitted use, contingent upon obtaining the proper license and adhering to city ordinances. The city operates under a system that also requires a Special Land Use Permit from the Planning Department before the business license application can be processed.

How to Start a Short-Term Rental Business in Grand Rapids

Starting an STR in Grand Rapids is a multi-step process that involves both planning and licensing. The path can be navigated online, by paper, by phone, or in person. The key steps are as follows:

1. Determine Eligibility & Prepare:

   • Owner's Status: You must be the sole owner, joint tenant, or joint tenant by entireties of the property.
   • Debt Check: Ensure you do not owe any money to the City of Grand Rapids (e.g., property taxes, parking tickets). Contact the Treasurer's Office at 616-456-3020 to verify.
   • Zoning Verification: This is a critical first step. Call the Planning Department at 616-456-4100 to confirm the property is properly zoned for an STR. Submitting an application without the correct zoning will cause significant delays.
   • Insurance: While not explicitly stated in the city license process, it is a vital business practice to ensure your homeowner's or landlord's insurance policy covers short-term rentals. Consider seeking specialized "host protection insurance" from platforms like Airbnb, as standard policies often do not cover these activities.

2. Secure Land Use Authorization:

   • Apply for a Special Land Use Permit. This permit is a prerequisite for the business license. A completed application must be submitted to the Planning Department before starting the business license application. The city provides a PDF form for this.

3. Gather Required Information:

   • Floor Plan: A floor plan of the entire home, showing the rooms for rent, is mandatory.
   • Owner Information: For ALL owners, partners, or corporate officers, you must provide:
     • Name
     • Address
     • Last 4 digits of SSN
     • Driver's License or State ID Number
     • Date of Birth
     • Email Address

4. Complete the Business License Application:

   • Fees: New application fee is $598, renewal fee is $176. These are non-refundable.
   • Application Channels:
     • Online: The city uses the Citizen Access portal. First-time users may need to create an account. The link is provided in the city content.
     • Paper: Download the PDF application, complete it, and return it by mail or in person.
     • In Person or Phone: Visit the City Clerk's office (2nd floor, City Hall) or call 616-456-3016 for assistance.

5. Inspection & Final Review:

   • The Fire Department will contact you to schedule an inspection. This is a mandatory step to ensure safety standards are met.
   • The city reviews applications in 5-10 business days. You will be notified by phone or email when your license is ready. You can pick it up or have it mailed to you.
   • The license must be displayed openly on the property where all customers can see it.

6. License Renewal:

   • The license is valid for one year from the date of issuance. Mark your calendar for renewal.

Required Documents, Permits, Licenses, and Guidelines

The primary requirement is the Home Occupation Class C License from the City Clerk's Office. However, the foundational step is the Special Land Use Permit from the Planning Department. The city provides several helpful resources:

• Home Occupation Class C License Checklist (PDF)
• Home Occupation License Ordinance (City Code)
• Zoning Code (for Special Land Use Permit details)
• Special Land Use Permit Application (PDF)

Specific Regulations for Short-Term Rentals in Grand Rapids, MI

While the city does not publish a single "STR law" page, the regulations are embedded in the licensing process and referenced ordinances.

• Land Use & Zoning: The operation must be approved as a Special Land Use, and the property must be in a zoning district that allows for such a use.
• Owner-Occupancy: The licensing process requires the applicant to be the property owner, but it does not explicitly state a requirement for the owner to live on-site ("owner-occupancy") as a permanent condition of the license. However, the Special Land Use permit may impose conditions specific to the property. This is a critical point to verify with the Planning Department during zoning confirmation.
• Safety Inspection: A Fire Department inspection is a mandatory component of the license approval process to ensure the property meets safety standards.
• Display of License: Once issued, the license must be visibly displayed on the property.
• State-Level Tax Consideration: As per Michigan state law, hosts are generally required to collect a 6% use tax on short-term rentals. While some platforms like Airbnb may handle this collection, the host is ultimately responsible for compliance. You may need to register with the Michigan Department of Treasury.

Important Note on Conflicting Information: A third-party source (Sinas Dramis Law Firm) suggests that Grand Rapids "only allows approximately 200 [STRs] a year" and mandates that owners "live on and own the property" and can only rent to "two people at a time." This information is NOT corroborated by the official City of Grand Rapids website content provided. The city's official licensing guide, which is the authoritative source for the regulations, does not mention these specific caps or limits. Investors should rely on the official city process and regulations as outlined in the "Apply for a Home Occupation Class C License" page and its linked ordinances.

Contact Information for the Local Authority

For all questions and applications, the primary contact is the City Clerk's Office.

• Phone: 616-456-3016
• Fax: 616-456-4607
• Email: grbusinesslic@grcity.us
• Location: City Clerk's Office, 300 Monroe Ave NW, Second Floor, Grand Rapids, MI 49503
• Office Hours: 8 AM - 5 PM, Monday through Friday

For critical pre-application questions (like zoning), contact the Planning Department at 616-456-4100.

Links to Source Pages

The information in this guide is derived from the following official and reputable sources:

1. Primary Source - City of Grand Rapids: Apply for a Home Occupation Class C License
2. Legal Analysis: Short Term Rentals - What Landlords Should Know Before Listing Their Home (Sinas Dramis Law Firm)
3. Michigan STR Laws Overview: Michigan Airbnb and Short-Term Rental Regulations (RedAwning)

Disclaimer for Investors: This guide is based on the provided content and is for informational purposes. The City of Grand Rapids is the sole authority for licensing and regulations. It is strongly recommended to contact the City Clerk's Office and the Planning Department directly before starting the application process to confirm the current status of any regulations and to verify your specific property's eligibility. Regulatory landscapes can change, and your specific property circumstances are unique.