Overview and market readiness

• Short‑term rentals (STRs) are allowed in both key jurisdictions adjacent to Houghton Lake and Higgins Lake:
  • Lyon Township (Higgins Lake vicinity) allows STRs under a formal licensing ordinance (Ordinance #65). Licenses are non‑transferable, capped in total number by township resolution, and carry a defined set of occupancy, parking, septic, agent, posting, and separation rules. [See Lyon Township ordinance link below.]
  • Roscommon Township (Houghton Lake vicinity) allows STRs and is accepting applications under Ordinance #81 with a township application and fee process. [See Roscommon Township ordinance and application links below.]
• Investors should note that the two adjacent townships operate different regimes:
  • Lyon: a full, restrictive licensing ordinance with caps, separation buffers, septic documentation, local agent requirements, and detailed safety postings.
  • Roscommon: an allowance with registration requirements and an application; investors should consult Ordinance #81 for the full regulatory detail.
• Because Lyon explicitly regulates STRs while some Higgins Lake area communications historically suggested no formal regulation, investors should confirm the current status in Lyon Township before purchase or conversion; the ordinance provided here shows active, restrictive regulation.
• Immediate next steps for any investor: verify zoning compliance, secure an STR license/approval (Lyon) or register (Roscommon), confirm septic/wastewater compliance, designate a local agent (Lyon), and align operations with posted rules, occupancy limits, parking, and noise regulations.

Who regulates STRs in the market

• Lyon Township (Roscommon County) regulates STRs via Ordinance #65 (Short‑Term Rental Licensing). [Source: Lyon Township ordinance PDF.]
• Roscommon Township (Houghton Lake) allows STRs and administers registration under Ordinance #81 with an STR application. [Source: Roscommon Township permit information and ordinance links.]
• Higgins Lake Property Owners Association (HLPOA) is not a regulatory authority; it advocates on lake health and conducts outreach. [Source: HLPOA Spring 2021 newsletter.]

How to start a short‑term rental business in this market

• Step 1: Site selection and zoning validation
  • Confirm the property is in Lyon Township or Roscommon Township and that STR use is permitted under zoning.
  • In Lyon, STRs are allowed with a license; in Roscommon, STRs are allowed with an application/registration under Ordinance #81.
• Step 2: Determine jurisdiction and requirements
  • Lyon Township (Higgins Lake vicinity): license required; review Ordinance #65’s definitions, caps, agent rules, septic documentation, separation requirements, and posting rules.
  • Roscommon Township (Houghton Lake): submit the Short‑Term Rental Application and follow Ordinance #81 requirements; obtain an application from the township or download it from the township site.
• Step 3: Septic/wastewater compliance
  • In Lyon: provide documentation from the Roscommon County Health Department or a qualified inspector that the septic system is properly functioning and adequate for the maximum occupancy; ongoing pumping logs may be required on a schedule to be set by the township board. [Lyon ordinance details.]
• Step 4: Designate a Local Agent (Lyon)
  • The property must have a designated Local Agent who can respond 24/7 and is able to arrive within 60 minutes; the agent must live within 60 minutes of the property and maintain a key. Provide agent contact details in applications and postings. [Lyon ordinance details.]
• Step 5: Prepare the application/documentation
  • Lyon: compile owner details, proof of ownership, parcel ID, floor plans showing bedrooms, parking layout and count, maximum occupancy, typical rental length, photographs demonstrating compliance with junk/garbage ordinances, written consent from neighbors on any private road/shared easement (if applicable), septic documentation, application and annual license fees. [Lyon ordinance details.]
  • Roscommon: complete the Short‑Term Rental Application and submit with the required fee; you may apply in person at the township hall or mail to PO Box 610, Houghton Lake, MI 48629. [Roscommon Township permit information.]
• Step 6: Postings and guest communications
  • In Lyon, post in a prominent location near the front door: owner and local agent 24‑hour contact info; street address; maximum occupancy; parking instructions; a copy of the STR ordinance; and a notice that violations may result in fines and revocation. Also mail or deliver the ordinance, address, occupancy, and contacts to all “Immediate Neighbors.” [Lyon ordinance details.]
  • In Roscommon, follow posting/communication rules in Ordinance #81.
• Step 7: Safety and compliance equipment
  • In Lyon: install and maintain smoke detectors in each bedroom; install at least one carbon monoxide device on each floor; create and display a fire escape plan in each bedroom; provide a first‑aid kit; supply fire extinguishers (minimum one per unit, and one per stove/oven/flame source); test and log detector/extinguisher maintenance; ensure address numbers comply with local house number display ordinance. [Lyon ordinance details.]
  • In Roscommon, follow safety and code requirements specified by Ordinance #81.
• Step 8: Launch and ongoing operations
  • Keep occupancy within limits (Lyon: max 2 per bedroom plus 4 additional; never more than 12 total; no tents/RVs/campers).
  • Enforce parking on‑site only (no public/private road or right‑of‑way parking).
  • Manage noise and pets per local anti‑noise/junk and garbage ordinances; no special events exceeding occupancy.
  • Lyon requires the property to be rented at least once per year to retain the license; non‑use can be grounds for revocation. [Lyon ordinance details.]
• Step 9: Renewal and license management
  • Lyon licenses run for one year and renew upon timely application and fee; renew at least 30 days before expiration; any deficiencies must be cured within 30 days or the license is not renewed. [Lyon ordinance details.]
  • Roscommon renewals follow Ordinance #81 requirements.

Documents, permits, licenses, and guidelines (by jurisdiction) Lyon Township (Higgins Lake vicinity)

• Short‑Term Rental License application (Lyon)
• Proof of ownership (deed or equivalent)
• Parcel identification number
• Floor plan drawing showing bedroom count
• Site/parking plan showing where vehicles, boats, campers, trailers will park and number of off‑street spaces
• Photographs documenting compliance with Lyon Township Junk and Garbage Ordinance
• Septic system documentation: Roscommon County Health Department letter or qualified inspector report confirming proper function and capacity for maximum occupancy; documentation of holding tank pumping per applicable schedule
• Neighbor consent (private road/shared easement): written consent from all residents on the same private road or shared access easement
• Agent designation: Local Agent name, address, phone(s), email; ability to respond 24/7 and arrive within 60 minutes
• Application fee and annual license fee (set by township board resolution)
• License term: one year; non‑transferable
• Postings and neighbor communications: required inside unit near front door and mailed/delivered to Immediate Neighbors
• Safety equipment and maintenance logs: smoke detectors (each bedroom), CO devices (each floor), first‑aid kit, fire extinguishers, fire escape plans, address number compliance, testing logs
• Requirement to conduct at least one rental per year to maintain the license

Roscommon Township (Houghton Lake)

• Short‑Term Rental Application (Roscommon Township)
• STR registration/approval under Ordinance #81
• Fees as established by the township board
• Submit in person at Township Hall or mail to PO Box 610, Houghton Lake, MI 48629
• Full operational requirements are detailed in Ordinance #81; investors should consult the ordinance for occupancy, parking, safety, and any other conditions

Specific regulations (by township) Lyon Township (Ordinance #65)

• Definition: STR is a dwelling unit offering overnight accommodations for compensation for 1–29 nights, typically booked via platforms; excludes hotels, motels, B&Bs, campgrounds, and long‑term rentals.
• Licensing:
  • Only the Owner may be the License Holder.
  • No person or entity may hold more than one STR license at a time (no stacking via trusts or corporate interests).
  • Licenses are non‑transferable; transfer of ownership voids the license; a new application is required by the new owner.
  • Total number of licenses is capped; capped licenses are processed first‑come, first‑served; policy governs public notice when caps open.
• Occupancy and parking:
  • Maximum occupancy: two occupants per bedroom plus four additional occupants, not to exceed twelve occupants total at any time.
  • Use of campers, RVs, tents, or temporary dwellings to add occupancy is prohibited.
  • All parking must be on the STR property; no parking on public or private roads or rights‑of‑way.
• Separation buffer:
  • STR units must be at least 500 feet from any other licensed STR, measured wall‑to‑wall; does not apply to STRs lawfully operating at adoption, but will apply upon license expiration/termination if re‑applied.
• Local Agent:
  • Required for every STR; must be reachable 24/7; must live within 60 minutes and be able to arrive on‑site within 60 minutes with a key; provide list of managed properties to the township.
• Septic and wastewater:
  • Septic must be properly functioning and meet Roscommon County Health Department, Higgins Lake Utilities Authority, and Lyon Township Sewer Ordinance minimums; provide documentation of adequate capacity for max occupancy and holding tank pumping on a schedule to be set by resolution.
• Prohibited uses:
  • No special events exceeding maximum occupancy; fireworks must follow the township fireworks ordinance; pets must be confined or leashed; noise is regulated by the township anti‑noise ordinance; compliance with all township ordinances required.
• Private road/shared access:
  • STRs on private roads or shared easements require written consent from all residents on that road/easement.
• Rent‑use requirement:
  • STR premises must be rented at least once per year; failure without good cause may result in revocation.
• Renewals:
  • One‑year licenses; submit renewal at least 30 days before expiration; cure deficiencies within 30 days or the license expires.
• Postings and neighbor notices:
  • Prominent posting at front door: owner and Local Agent 24‑hour contact numbers; street address; maximum occupancy; parking instructions; a copy of this ordinance; notice that occupants/visitors can be cited/fined.
  • Mail or deliver to Immediate Neighbors: the ordinance, address, maximum occupancy, and owner/agent contacts.
• Safety:
  • Smoke detectors in each bedroom; at least one CO device per floor; fire escape plan displayed in each bedroom; first‑aid kit; fire extinguisher(s); address numbers compliant with township ordinance; test/maintain devices and keep logs.
• Transfers:
  • Licenses are non‑transferable; transfer of ownership, membership interest in owning entity, or trustee/beneficiary changes in a trust will void the license; a new license must be obtained to resume STR operations.
• Penalties:
  • Municipal civil infractions with $500 per violation plus costs; each day of violation is a separate violation; occupancy, visitors, owners, and agents may be cited; violations may result in license suspension or revocation.

Roscommon Township (Ordinance #81)

• STRs are allowed; applications are accepted; refer to Ordinance #81 for full requirements.
• Occupancy, parking, safety, and other operating conditions are set by Ordinance #81; consult the ordinance prior to operation.
• Applications may be submitted in person or mailed to PO Box 610, Houghton Lake, MI 48629; application link is provided by the township.

Penalty and enforcement (illustrative)

• Lyon Township: violations are municipal civil infractions with $500 per violation plus enforcement costs; each day a violation continues is a separate violation; occupancy, visitors, owners, and agents can be cited; violations may trigger license suspension or revocation.
• Revocation process (Lyon): the Ordinance Enforcement Officer may revoke a license upon violation determination; the owner may request a hearing before the Township Board within 14 days; after revocation, the unit cannot be re‑licensed for one year.
• Roscommon Township: enforcement and penalties are established in Ordinance #81; consult the ordinance for details.

Contact information Lyon Township (Higgins Lake vicinity)

• Address: 7851 W. Higgins Lake Dr., Higgins Lake, MI 48653
• Website: lyontwp‑higginsmi.gov
• Clerk: Doug Schnell (ATTESTED on the ordinance)
• Ordinance: Short‑Term Rental Ordinance #65 (PDF available via the township site; see link below)

Roscommon Township (Houghton Lake)

• Address: 8555 Knapp Road, P.O. Box 610, Houghton Lake, MI 48629
• Phone: (989) 422‑4116
• Email: ordinance@roscommontownship.com
• STR Application: see link below
• Ordinance: Short‑Term Rental Ordinance #81 (PDF available via township link)

Important note on Higgins Lake regulation context

• HLPOA’s Spring 2021 newsletter indicated that Gerrish and Lyon Townships had not chosen to regulate STRs at that time, and that Gerrish Township favored outreach to STR owners rather than formal regulation. The Lyon Township STR Ordinance #65 provided here reflects a later adoption of a formal licensing and regulation regime. Investors should rely on the current township ordinances for compliance and consult Lyon Township directly to confirm the status prior to acquisition or operation.

Source links and documents

• Lyon Township Short‑Term Rental Ordinance #65 (PDF): lyontwp-higginsmi.gov/wp-content/uploads/2024/06/2024.05.10-Short-Term-Rental-Ordinance-.pdf
• Roscommon Township Permit Information (STR overview and application link): roscommontownshipmi.gov/permit-information/
• Roscommon Township Short‑Term Rental Application (PDF): roscommontownshipmi.gov/wp-content/uploads/2025/04/STR-Application.pdf
• Roscommon Township Short‑Term Rental Ordinance #81 (PDF): roscommontownship.com/wp-content/uploads/2021/05/STR-Ordinance-81.pdf
• Higgins Lake Property Owners Association Spring 2021 Newsletter (informational only, not regulatory): hlpoa.org/wp-content/uploads/2021/04/Spring-2021-Newsletter-Final-1.pdf
• HLPOA Contact Information (organizational, not regulatory): Email: hlpoa0@gmail.com; Phone: (989) 275‑9181; Website: www.hlpoa.org

Action checklist for investors

• Confirm township jurisdiction and that STRs are permitted (Lyon: license; Roscommon: registration under Ordinance #81).
• Validate zoning and parcel ID; gather deed and proof of ownership.
• Prepare septic/wastewater documentation (Lyon requires health department or qualified inspector verification).
• Designate a Local Agent meeting Lyon’s 24/7 and 60‑minute response standards; collect agent contact details and property key access.
• Compile floor plans (bedrooms), parking layout and count, photographs for junk/garbage compliance.
• Obtain neighbor consent if the STR is on a private road/shared easement (Lyon).
• Submit applications with fees (Lyon licensing; Roscommon registration).
• Install and test safety equipment; display fire escape plans; post required notices; mail/hand‑deliver ordinance and occupancy info to Immediate Neighbors (Lyon).
• Implement operational controls: occupancy caps, on‑site parking only, pet/noise compliance, no special events over occupancy, maintain septic documentation and logs.
• Schedule annual renewal (Lyon at least