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

Yes, short-term rentals are allowed in Grayling, MI. However, the regulatory framework operates at both the city and township levels, with distinct requirements for each jurisdiction. The Grayling Township has a specific "Short Term Rental Ordinance" in place, while the City of Grayling follows its comprehensive zoning regulations.

How to Start a Short-Term Rental Business in Grayling, MI

Step 1: Determine Your Jurisdiction

First, identify whether your property is within the City of Grayling or Grayling Township boundaries, as each has different regulatory requirements.

Step 2: Zoning Compliance

Verify that your property is zoned appropriately for short-term rental use:

• City of Grayling: Review the zoning district (R-1A, R-1B, R-2, C-1, C-2, C-3A, C-3B, CBD, I, or G)
• Township: Check zoning allowances under township ordinances

Step 3: License and Permit Acquisition

Obtain all required permits and licenses before operating.

Step 4: Tax Registration

Register for Michigan use tax collection and remittance.

Step 5: Insurance and Safety

Secure appropriate insurance coverage and ensure property safety compliance.

Required Documents, Permits, Licenses, and Guidelines

City of Grayling Requirements

Zoning Compliance

• Plot Plan or Site Plan (depending on use type)
• Special Land Use Permit (if required for your specific use)
• Zoning Compliance Certificate

Building and Safety

• Building Permit (for any construction or renovation)
• Certificate of Occupancy
• Fire Safety Inspection (if applicable)

Business Registration

• Michigan Sales Tax License (for tax collection)

Township Requirements

Based on the presence of a Short Term Rental Ordinance, expect:

• STR Operating License
• Annual Registration/Renewal
• Compliance Inspections
• Fee Payments

State Requirements

• Michigan Use Tax Registration (6% use tax on rental charges)
• Michigan Business Registration (if operating as a business entity)

Specific Regulations by Jurisdiction

City of Grayling (Based on Zoning Ordinance)

Permitted Uses in Residential Districts:

• Bed & Breakfast Establishments are specifically regulated (Section 7.15)
• Must be owner-occupied or have resident manager
• Subject to special use permit requirements
• Limited to short-term guest accommodation with breakfast service

Commercial Districts:

• Short-term rentals generally permitted in commercial districts (C-1, C-2, C-3A, C-3B, CBD)
• Must comply with district-specific requirements

Performance Standards:

• Maximum occupancy limitations
• Noise and disturbance regulations
• Parking requirements
• Signage restrictions

Grayling Township

Short-Term Rental Ordinance: The township has implemented a specific STR ordinance, which likely includes:

• Operating license requirements
• Safety and inspection standards
• Occupancy limits
• Noise and behavior regulations
• Fee structure for licenses and renewals

State of Michigan Requirements

Tax Obligations:

• 6% Use Tax on total rental charges
• Collection and remittance requirements
• Possible local accommodation taxes

General Compliance:

• General landlord and tenant law compliance
• Property maintenance standards
• Safety requirements

Contact Information

City of Grayling

Contact Person: Building/Zoning Department
Phone: 989-348-2131
Address: 1020 City Boulevard, PO Box 549, Grayling, MI 49738
Website: cityofgrayling.org
Hours: Monday-Friday (specific hours not provided)

Grayling Township

Contact Person: Zoning/Planning Department
Phone: (989) 348-4361
Address: 2090 Viking Way, PO Box 521, Grayling, MI 49738
Email: info@twp.grayling.mi.us
Website: twp.grayling.mi.us
Hours: Monday-Friday, 8:30 AM-12:00 PM and 1:00 PM-4:30 PM

State of Michigan

Michigan Department of Treasury (for tax registration)
Website: michigan.gov/taxes

Important Source Links

Zoning and Ordinances

• City of Grayling Zoning Ordinance: www.cityofgrayling.org/downloads/city_of_grayling_zoning_ordinance_effective_81817_final_2_1.pdf
• Grayling Township Zoning Ordinances: www.twp.grayling.mi.us/zoning-ordinances
• Township Short Term Rental Ordinance: www.twp.grayling.mi.us/go.php?id=969&table=page_uploads

Additional Resources

• Grayling Township Noise Ordinance: www.twp.grayling.mi.us/go.php?id=961&table=page_uploads
• Emergency Services Cost Recovery Ordinance: www.twp.grayling.mi.us/go.php?id=862&table=page_uploads

Key Considerations for Investors

Regulatory Compliance

1. Dual Jurisdiction: Ensure compliance with both city/township regulations
2. Ordinance Updates: Monitor for changes to STR regulations
3. HOA Restrictions: Check for additional homeowner association rules

Operational Requirements

1. Tax Collection: Implement 6% use tax collection and remittance
2. Insurance: Secure comprehensive STR insurance coverage
3. Safety Standards: Maintain property safety and accessibility standards

Market Considerations

• Seasonal demand patterns (summer peak season)
• Property type preferences (cabins, cottages)
• Location advantages (proximity to Au Sable River, state parks)

Note: This guide is based on the available information. STR regulations can change frequently, and investors should verify current requirements with local authorities before making investment decisions.