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Grosse Pointe

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Grosse Pointe, MI

Unfriendly To Investors

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STR Regulations for Grosse Pointe, Michigan

Are Short-Term Rentals Allowed in Grosse Pointe?

Direct answer for the target market:

  • City of Grosse Pointe Park: Yes, short-term rentals (STRs) are allowed, but only under tight controls and location limits. No new STRs may be established in residential zoning districts. Existing STRs that were established before 12/26/2024 are allowed to continue as legal nonconforming uses. New STRs can only operate in non-residential districts, subject to licensing caps, spacing rules, inspections, and compliance with a nuisance-response program. [1]
  • City of Grosse Pointe Woods: No. The City has adopted a minimum 30‑day rental requirement effective 1/1/2026. All rental units must be occupied by the same tenant for at least 30 days, which means 29‑day or shorter rentals are prohibited. There is no grandfathering because prior short‑term rental uses were never lawful residential uses. [2]
  • County/state context: The documents reviewed do not show Wayne County–level STR rules. For state-level requirements in Michigan, review the Short-Term Rental Safety Act (PA 102 of 2023; MCL 125.4501 et seq.), which addresses safety inspections and other obligations at the state level for eligible STRs. [State-level reference only; see “State regulations,” below.]

Takeaway: As of the latest sources provided, Grosse Pointe Park allows licensed STRs only (with no new STRs in residential districts), and Grosse Pointe Woods has effectively banned 29‑day or shorter rentals. Strategies differ significantly by city.

How to Start a Short-Term Rental Business in This Market

Grosse Pointe Park

  • Confirm zoning: New STRs are prohibited in residential zoning districts. Only existing, pre‑12/26/2024 STRs in residential districts may continue (as legal nonconforming uses). Any new STR operation must be in a non‑residential zone. This is a hard constraint. [1]
  • Understand the cap and selection: The licensing ordinance provides for a limited license program with caps, a random drawing, and spacing rules for investor‑owned STRs. The draft ordinance allows up to 30 licenses total, with no more than 10 investor‑owned STRs and a 120‑foot separation measured along the street between investor‑owned STRs. The process uses a blind, random drawing from the application pool. [3][5] The public website reinforces the prohibition on new STRs in residential districts; if you pursue licensing, verify the current program caps and timing with the City. [1]
  • Build a compliant application: Submit the City’s Annual Short‑Term Rental License Application, a Nuisance Response Plan, and the required cash bond. Prepare for inspection and provide proof of liability insurance. [1][5]
  • Post required notices and follow operating rules: Display license and contact information, maintain safety devices, manage trash and parking per City standards, and maintain booking records for inspection. Comply with the Good Neighbor Guide requirements. [1][5]
  • Prepare for annual inspections and enforcement: Expect annual inspection and fees for the initial years, with possible extended inspection intervals for strong performers. Violations trigger municipal civil infractions and can lead to license revocation after three violations within five years. [5]

If your property is not in a permitted location under the current framework, consider converting to long‑term residential rental or a different use permitted in that zoning district.

Grosse Pointe Woods

  • No STR pathway: The City prohibits rentals shorter than 30 days. A rental operation for 29 days or less is not allowed, regardless of licensing status. [2]
  • Feasible alternatives:
    • Operate as a traditional long‑term rental with minimum 30‑day tenancies (or longer).
    • Explore short‑term use that is not a “rental” (e.g., hospitality venues in compliant districts), but confirm that such use complies with zoning and is not a STR by City definition.
    • Pursue another use of the property permitted under zoning.

Required Documents, Permits, Licenses, and Operational Guidelines

Grosse Pointe Park

  • Annual STR License Application (City form). [1]
  • Nuisance Response Plan (City form). [1]
  • Short‑Term Rental Performance Bond Intake Form. A cash bond of $1,500 is required; the bond remains held in escrow while the license is active. The bond may be reduced by $500 for each successful renewal with no documented violations, but it cannot drop below $500. The bond may be partially forfeited for violations. [5]
  • General liability insurance certificate (insuring the premises against risks arising from commercial rental activities). [3][5]
  • Annual inspection by the City Building Inspector; fees apply. Properties with strong compliance records can seek extended inspection intervals. [5]
  • Good Neighbor Guide posting. [1]
  • Required postings inside the STR unit: license number (in ads and posted), maximum occupancy, address, owner/manager contact(s), and local agent information if required. Fire extinguishers, smoke detectors, and carbon monoxide detectors must be present and in good working order. [5]
  • Recordkeeping: Maintain records of bookings and rental activity, including dates of occupancy and total number of guests per stay; submit records at renewal and upon City request. [5]
  • Advertising: Online and offline ads must include the license number and maximum occupancy. [5]
  • Parking: Minimum of one off‑street parking space per four occupants; occupants must park off‑street. [5]
  • Trash: Provide secure trash receptacles with weekly service; commercial dumpsters are not allowed on STR premises. [1][5]
  • Compliance with City Code: City Code of Ordinances licensing requirements apply to all STRs. [1]

Note on caps and program status: The ordinance draft sets a cap of 30 licenses (with 10 for investor‑owned), separation distances, and a random drawing process. The City website emphasizes no new STRs in residential districts. Because program administration (e.g., the initial random drawing, license period end dates, or application windows) can change, confirm current program status and caps with the City before investing. [1][3][5]

Grosse Pointe Woods

  • No STR license available: A 30‑day minimum applies to all rental units. [2]
  • Compliance: Rental units must comply with the City’s rental property and exterior building maintenance provisions (Article VII). [2]

Specific Regulations and Enforcement

Grosse Pointe Park

  • Scope and definitions: STRs are rentals of 28 days or less; investor‑owned STRs are properties that are not the owner’s principal residence; owner‑occupied (principal‑residence) STRs are allowed if licensed. The City distinguishes these in licensing and operations. [1][3][5]
  • Zoning: No new STRs may be established in residential zoning districts. Existing STRs (established prior to 12/26/2024) may continue as legal nonconforming uses. New STRs, if permitted, are limited to non‑residential districts. [1]
  • License caps and allocation: Up to 30 total licenses; no more than 10 investor‑owned STRs; 120‑foot separation along the street between investor‑owned STRs; single license per person; initial selection by blind, random drawing. Licenses are non‑renewable and expire at the end of the three‑year licensing period; re‑issuance follows the ordinance’s process. [3]
  • Licensing length: Licenses are issued for a three‑year licensing period under the draft ordinance (confirm current period with the City). [3]
  • Operational rules:
    • Advertisement must include license number and maximum occupancy. [5]
    • Owner must be available 24/7; if the owner is not within a 30‑minute radius or does not permanently reside in Wayne County, a local agent is required. [5]
    • Safety: Fire extinguisher, smoke detectors, and CO detectors per City inspection standards. [5]
    • Trash: Secure, animal‑resistant receptacles; weekly service; no commercial dumpsters on site. [1][5]
    • Parking: Off‑street parking per occupant ratio; no on‑street overflow for STR guests. [5]
    • Occupancy: The number of occupants must not exceed two per bedroom plus two additional occupants or the occupancy limits set in Section 404 of the International Property Maintenance Code, as calculated by the City. [5]
    • Prohibited uses: No special event venues, yard sales, festivals, retreats, class reunions, home occupations, or subletting by tenants. [3][5]
  • Nuisance Response Plan: Required. The City will mail notice of the plan to properties within 200 feet and publish the plan on the City website. [5]
  • Enforcement:
    • Violations are public nuisances and nuisance per se. Municipal civil infractions and fines apply; fines escalate, and a third violation triggers permanent license revocation and future ineligibility. An appeals panel hears revocation appeals. Two‑hour remediation window after City notice for material violations. [3][5]
    • Immediate compliance issues should be directed to the Department of Public Safety. [1]

Grosse Pointe Woods

  • Core rule: All rental units must be occupied by the same tenant for a minimum of 30 days; effective 1/1/2026. [2]
  • Rental property standards: Must comply with the City’s exterior building maintenance regulations (Article VII). [2]
  • Enforcement: The City will enforce under zoning and code provisions as with any rental property; because STRs are prohibited, continued operation of 29‑day or shorter rentals would be unlawful and subject to enforcement. [2]

State Regulations (Michigan)

  • Short-Term Rental Safety Act (PA 102 of 2023; MCL 125.4501 et seq.): Establishes safety requirements and inspection standards for short‑term rentals in Michigan. Compliance is required at the state level for eligible STRs, in addition to local licensing or prohibitions. Review the full statutory text and any administrative rules before operation. [State-level reference; not city‑specific.]

Contact Information and Direct Links

Important: Always call before visiting or making site visits, and confirm current application windows, deadlines, and program status.

Practical Notes and Investor Considerations

  • Zoning first: In Grosse Pointe Park, do not proceed with a residential property unless it qualifies as an existing legal nonconforming STR. For investor‑owned STRs, verify that a 120‑foot separation from other investor‑owned STRs is achievable and that a license can be drawn in the current cycle.
  • Compliance costs: Budget for the $1,500 cash bond, annual or bi‑annual inspection fees, safety equipment installation and maintenance, signage, off‑street parking, and administrative overhead for records and nuisance management.
  • Enforcement risk: Grosse Pointe Park has a structured escalation (fines, revocation, permanent ban). Keep documentation and be responsive to City notices; the City may post nuisance response plans and STR lists publicly.
  • In Grosse Pointe Woods, the STR model is not viable due to the 30‑day minimum. Traditional long‑term rentals or other permitted uses are the realistic paths.

References

[1] City of Grosse Pointe Park – Short-Term Rentals (Overview, Forms, Complaint Process). www.grossepointepark.org/381/Short-Term-Rentals
[2] City of Grosse Pointe Woods – Ordinance No. 918 (30-day minimum rental, effective 1/1/2026). www.gpwmi.us/sites/default/files/fileattachments/ordinance/18422/ord._918_chap.50_zoning-_short-term_rentals_final.pdf
[3] Grosse Pointe Park – Short Term Rental Ordinance Draft (Nov 1, 2023). grossepointepark.org/DocumentCenter/View/453
[4] Grosse Pointe Woods Planning Commission – STR Memorandum (April 1, 2025). mccmeetingspublic.blob.core.usgovcloudapi.net/groptwdsmi-meet-5c17aa76eabf44d786bd08c3465bbdc8/ITEM-Attachment-001-2148b13a88714053b6d1d984cb568c5d.pdf
[5] Grosse Pointe Park – Short-Term Rental Licensing Ordinance (Adoption Draft; adopted Dec 9, 2024). mcclibraryfunctions.azurewebsites.us/api/ordinanceDownload/10870/1329915/pdf

Grosse Pointe

Market Saturation Score

036912
Moderate Saturation
5/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Grosse Pointe Market Analysis →

Photos of Grosse Pointe

Overview of Grosse Pointe

Grosse Pointe is a city in Wayne County in the U.S. state of Michigan. As of the 2020 census, the city had a population of 5,678. Grosse Pointe is an eastern suburb of Metro Detroit along Lake St. Clair. It is located along East Jefferson Avenue and shares a small northwestern border with the city of Detroit. It is one of five cities within the Grosse Pointe area. Grosse Pointe was originally incorporated as a village in 1880 and then as a city in 1934.

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