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

YES — Short-term rentals are explicitly allowed in Harbor Springs, Michigan, but only with proper licensing.

The City of Harbor Springs permits the rental of residential properties on a short-term basis (30 days or less) through a structured licensing program. The city has instituted this licensing process to ensure that short-term rentals can operate while maintaining the community's cherished values and neighborhood character. Operating a short-term rental without a license is prohibited and subject to fines and legal action.

How to Start a Short-Term Rental Business in Harbor Springs

Step 1: Verify Zoning Compliance

Before proceeding, confirm your property is located in an area where short-term rentals are permitted. The city has implemented different rules for different zoning districts:

• Single-family housing districts: Limited to 61 licenses with a waitlist system
• Multi-family and business districts: Unlimited licenses available

Step 2: Designate a Local Agent

Every short-term rental must have a designated Local Agent who:

• Is available 24/7 during all rental periods
• Can respond to the property within 60 minutes to address issues
• Has a key to the dwelling unit
• Is authorized to accept service of process on behalf of all property owners
• Must be approved by the City Clerk prior to license issuance

Step 3: Complete Annual License Application

Submit a completed application for each dwelling unit you plan to rent short-term. Applications must be filed annually on a calendar-year basis.

Step 4: Pay Required Fees

Submit the annual administrative fee of $400 per license (as noted in the application form).

Step 5: Maintain Compliance

Once licensed, ongoing compliance with all city regulations, posting requirements, and annual renewals is mandatory.

Required Documents, Permits, Licenses, and Guidelines

Primary License

• Short-Term Rental License (annual, expires December 31 each year)
• Application available through City Hall or online
• Must be renewed each calendar year

Required Documentation

1. Completed Application Form including:

   • Property owner information (names, addresses, phone numbers)
   • Local Agent information (name, address, phone, email)
   • Property address and identification details
   • Time periods when rental will be available

2. Local Agent Designation and Authorization

3. Signed Affirmations and Acknowledgments stating compliance with all applicable codes

4. Payment of Annual Administrative Fee ($400)

Post-License Requirements

1. Window/Door Notice (16-point type minimum) displaying:

   • Local Agent name
   • 24-hour contact number

2. Interior Acknowledgments confirming understanding of:

   • No signage advertising the STR
   • Building safety code compliance
   • Trash/recycling management protocols
   • Parking restrictions
   • Insurance coverage disclosure

3. Posted Regulations inside the rental property for guest review

Specific Regulations for Short-Term Rentals in Harbor Springs

License Limits by Zoning

• Single-Family Districts: Maximum 61 licenses with first-come, first-served waitlist
• Multi-Family and Business Districts: Unlimited licenses

Operational Requirements

Local Agent Obligations

• Must be designated and City Clerk-approved prior to license issuance
• Available 24/7 during all rental periods
• Must respond to property within 60 minutes
• Authorized to accept service of process for all owners

Posting Requirements

• Prominent first-floor window/door posting with Local Agent name and 24-hour phone number
• Must use at least 16-point font
• City-provided notice format required

Noise and Nuisance Control

• Quiet Hours: 11:00 PM to 7:00 AM daily
• Noise must not disturb reasonable persons of normal sensitivities
• Must comply with City Code Sections 60.111(2), 60.400-60.411, and 90.101(23)-(24)
• Residential district noise limit: 70 decibels measured at property boundary

Trash and Recycling Management

• Containers may only be placed curbside on scheduled pickup days
• All trash must be in enclosed containers
• No littering permitted
• Containers must be removed from curb and stored out of sight after emptying
• Must use licensed commercial trash/recycling services

Pet Regulations

• Guests must comply with pet waste pickup requirements
• Must follow City leash laws (Section 60.110)
• No specific pet restrictions beyond general city ordinances

Fireworks Restrictions

• No fireworks allowed on rental property except as permitted under Section 90.101(4)
• Consumer fireworks prohibited except on day before, day of, and day after federal holidays
• Low-impact fireworks permitted with restrictions
• Age restrictions apply (no persons under 18 may use fireworks)
• No fireworks on public property without explicit permission

Parking Requirements

• All guest vehicles must park on the rental property premises
• No obstruction of public parking locations permitted

Building and Safety Compliance

• Must meet all applicable residential building codes
• Must comply with Emmet County Building Department requirements (smoke detectors, carbon monoxide detectors, fire suppressors, egresses)
• Must meet health department regulations
• Must comply with all nuisance and safety codes

Annual Renewal Process

• All licenses expire December 31 annually
• Must reapply each year regardless of previous approvals
• License holders with multiple properties must apply separately for each unit
• Death of license holder: successor must reapply and join waitlist

Violation Penalties and Enforcement

Civil Infractions

• First offense: $250 fine
• Second offense: $400 fine
• Subject to Michigan Municipal Civil Infractions Act (MCL 600.8701 et seq.)

License Suspension/Revocation

• First violation (within 12-month period): Up to 30-day suspension
• Second violation (within 12-month period): 60-day suspension
• Third violation (within 12-month period): License revocation proceedings

Enforcement Process

1. Written notice of charges
2. 21-day notice before hearing
3. Opportunity to be heard
4. Suspension or revocation based on findings

Unlicensed Operation

• City monitors online platforms for unlicensed rentals
• Relies on resident reporting for word-of-mouth rentals
• One warning issued before legal action
• Sufficient evidence required before court proceedings

State-Level Requirements (Michigan)

Use Tax Obligations

• 6% state use tax required on all accommodations under 30 days
• Airbnb collects and remits this tax automatically
• Vrbo does not collect use tax — owners must remit directly
• Owner responsible for collecting/remitting taxes from all non-Airbnb platforms

State Fireworks Safety Act Compliance

• Must comply with Michigan Fireworks Safety Act (Act 256 of 2011)
• City regulations are more restrictive than state minimums
• State law allows consumer fireworks on federal holidays and day before/after

Contact Information for Local STR Authorities

Primary Contact

Jeff Grimm, City Assessor/Zoning Administrator

• Phone: (231) 526-2104
• Email: assessor@cityofharborsprings.com
• Responsible for: License applications, renewals, compliance questions

City Hall (General Information)

• Address: 160 Zoll Street, Harbor Springs, MI 49740
• Phone: (231) 526-2104
• Hours: 8:30 AM to 4:30 PM, Monday-Friday

Other Relevant City Departments

• Billing Questions: (231) 526-0602
• Electric Department: (231) 526-2122
• Water Department: (231) 526-0604
• Police Department: (231) 526-6211
• Harbormaster: (231) 526-5355

Online Resources

• City Website: www.cityofharborsprings.com
• STR Program Page: Harbor Springs Short Term Rental Program

Source Links

Official City Documents

• STR Licensing Program Overview
• Fillable STR Application (2024)
• STR Pamphlet - Be A Good Neighbor
• STR Section in City Code
• Ordinance No. 437 (Adopted May 2023)
• STR Rules (Approved May 2023)
• Ordinance No. 439 (Modified Rules)
• Original Ordinance No. 415 (2019)

Additional Resources

• Petoskey News Article - STR Licensing Waitlist
• Michigan STR Association Regulations Overview
• Zoning & Permits Information

Important Note for Investors: Harbor Springs has implemented a comprehensive regulatory framework that balances rental opportunities with community preservation. The city actively monitors compliance through online platform monitoring and resident reporting. Success in this market requires careful attention to all regulations, strong local agent relationships, and proactive neighbor relations.