Executive Summary

Short-term rentals are allowed in Hamtramck, Michigan. The city operates under a landlord registration system that encompasses both traditional long-term rentals and short-term rentals. Properties offering short-term accommodations must comply with the city's Non-Owner Occupied Certificate Program and meet all applicable building, health, and safety codes.

Starting a Short-Term Rental Business in Hamtramck

Step-by-Step Process

1. Property Acquisition and Zoning Verification

   • Ensure the property is properly zoned for rental use
   • Verify that short-term rentals are permitted under local zoning ordinances
   • Check for any Homeowners Association restrictions if applicable

2. Register as a Landlord

   • Complete the Non-Owner Occupied Certificate application through the Building Department
   • Submit separate applications for each rental address
   • Provide a valid email address for all correspondence

3. Schedule and Complete Property Inspection

   • Coordinate inspection scheduling with the Building Department
   • Ensure a responsible adult (Michigan resident within 50 miles) is present
   • Address any violations within specified timeframes
   • Obtain required permits for repairs if needed

4. Obtain Non-Owner Occupied Certificate

   • Certificate is valid for two years from application date
   • Plan for renewals well in advance to avoid late fees

5. Tax Registration and Compliance

   • Register for Michigan Use Tax collection
   • Collect and remit 6% use tax on all rental income

Required Documents, Permits, and Licenses

City-Level Requirements

Non-Owner Occupied Certificate Program:

• Completed application for each address
• Application fee (amount varies, see fee worksheet)
• Proof of valid email address for correspondence
• Valid Michigan driver's license or state ID for responsible party

Property Inspection Requirements:

• Property must meet all Building and Property Maintenance Code standards
• Heating systems require certified contractor inspection within 90 days of certificate expiration
• All work requiring permits must be completed by certificated contractors
• Original signed inspection forms must be submitted (no copies or faxes)

State-Level Requirements

Michigan Use Tax:

• 6% use tax on total rental amount including cleaning fees
• Registration with Michigan Department of Revenue required
• Regular filing and remittance obligations

Pending State Legislation (House Bills 5437-5446):

• Additional 6% excise tax on short-term rentals
• $1 million liability insurance requirement
• Registration with Michigan Department of Licensing and Regulatory Affairs (LARA)
• Annual registration fee for hosting platforms ($100 per listing, capped at $50,000)
• Mandatory safety measures including escape plans and fire safety equipment

Specific Regulations

Hamtramck City Requirements

Property Standards:

• Premises identification with 4-inch Arabic numerals
• Maintain property free from weeds (mowed to less than 5 inches)
• Rodent control and pest management
• All exterior and interior surfaces must be maintained in sanitary condition
• Proper structural integrity of all components
• Working heating systems capable of maintaining 68°F in habitable rooms

Safety Equipment:

• Smoke alarms:
  • Pre-November 1974: One in hallway outside sleeping areas, one per floor
  • Post-November 1974: One in each bedroom, hallway outside sleeping areas, one per floor
  • All detectors must be line voltage or 5-year battery life
• Carbon monoxide detectors in all dwelling units
• GFCI protection for outlets within 6 feet of sinks, outside, in garages
• Emergency escape openings operational without keys or tools
• Double key deadbolts prohibited

Building Systems:

• Electrical systems must meet Hamtramck Property Maintenance Code standards
• Type S fuses required (no screw-in fuses)
• Proper ventilation in bathrooms (fan vented outside or operable window)
• Dryer vents must be smooth metal, less than 25 feet total length

Wayne County Considerations

No additional county-level regulations specific to short-term rentals were identified in the provided materials.

Michigan State Regulations

Current Requirements:

• 6% Michigan Use Tax on short-term rental income
• Compliance with Michigan Building Code safety standards
• Property maintenance and habitability standards

Proposed Legislation Impact:

• Enhanced registration and reporting requirements
• Increased insurance obligations
• Additional tax burden
• Centralized database for STR properties

Local Authority Contact Information

City of Hamtramck Building Department

Primary Contact:

• Phone: (313) 800-5233 Ext. 814 or (313) 800-5233 x296
• Address: 3401 Evaline, Hamtramck, MI 48212
• Inspection Scheduling: (313) 800-5233 x296
• Email: Contact via phone for specific inquiries

Inspection Hours:

• Monday through Friday, 9:00 AM to 2:30 PM
• Responsible adult must be present for entire inspection
• 24-48 hour advance notice typically required for scheduling

Key Personnel:

• Building Inspector: Contact through main department line
• Code Enforcement: Available during regular business hours

Michigan Department of Licensing and Regulatory Affairs (LARA)

For Future STR Registration (when legislation passes):

• Website: www.michigan.gov/lara
• Phone: Contact for registration and compliance inquiries

Michigan Department of Revenue

For Use Tax Registration and Filing:

• Website: www.michigan.gov/revenue
• Phone: Contact for tax registration and filing requirements

Source References

1. City of Hamtramck Building Department - Non-Owner Occupied Certificate Program

   • hamtramckcity.gov/wp-content/uploads/2024/06/Rental-info.pdf

2. RedAwning Market Analysis - Hamtramck, Michigan STR Regulations

   • www.redawning.com/pm/market-overview/hamtramck-michigan

3. Checkmate Rentals - Hamtramck STR Law Analysis

   • www.checkmaterentals.com/airbnb-management/hamtramck-michigan

4. Hamtramck Review - City Landlord Registration Enforcement Article

   • www.thehamtramckreview.com/city-to-do-the-tighten-up/

Important Considerations for Investors

Enforcement Status

The city has acknowledged weaknesses in landlord law enforcement, with no current mechanism for fining non-registered landlords. However, city management has indicated plans to implement enforcement measures, including potential fines for non-compliance.

Property Type Restrictions

No specific restrictions on STR property types were identified, but properties must meet all safety and habitability standards outlined in the inspection checklist.

Neighbor Relations

Given Hamtramck's dense population, maintaining positive neighbor relations is crucial. The city has historically emphasized property standards and landlord responsibility to maintain community quality of life.

Future Regulatory Changes

Michigan's proposed STR legislation represents significant potential changes to the regulatory landscape. Investors should monitor legislative developments and prepare for enhanced compliance requirements.

This guide provides current regulatory requirements based on available documentation. Given the evolving nature of short-term rental regulations at both local and state levels, investors should verify current requirements with city officials before proceeding with property acquisition or operation.