Overview: Are Short-Term Rentals Allowed?

Yes. Short-term rentals (STRs) are allowed in the City of Manistique and throughout Schoolcraft County, subject to local licensing, inspections, and operation rules. In Manistique, STRs are permitted in all zoning districts except industrial zones. The city has adopted a licensing and regulation framework that explicitly states its intent is not to restrict or eliminate STRs but to ensure safe operation and protect consumers, neighbors, property owners, and emergency responders. In R1 and R2 residential districts, there is a cap of 53 STR units allowed on a first‑come, first‑served basis once an application, inspection, and STR permit are issued. STRs are permitted in other zoned districts (except industrial). County-level rules also apply across Schoolcraft County.

How to Start a Short-Term Rental Business in Manistique

1. Confirm zoning and HOA constraints:
   • STRs are permitted citywide except in industrial districts. In R1/R2, the city cap of 53 units may limit availability; check with the City Clerk on current availability. Confirm HOA restrictions; if prohibited, provide the city with a letter and CCRs showing STRs are not allowed.
2. Decide on the local contact and management:
   • Designate a local contact living within 15 minutes of the property who can be reached 24/7, or retain a property management company with 24/7 contact information.
3. Obtain required insurance:
   • County requires at least $500,000 in liability insurance covering vacation rentals. City requires proof of valid liability insurance for the owner and any property management company or contact person.
4. Apply for the City of Manistique Short-Term Rental License:
   • Submit the full application package (see required documents below) to the City Clerk; include site and floor plans; provide tax numbers; set up 24/7 contact details.
5. Schedule and pass inspection:
   • First inspection fee is $150; a second is free; third and subsequent inspections are $150 each.
6. Display the STR License:
   • License must be displayed within six feet inside the front entrance door before renting.
7. Apply for the Schoolcraft County STR permit:
   • Submit the county Short-Term Vacation Rental Annual Application and the required supporting documents; pay the application fee and any per‑block fees.
8. Register for taxes and collect required taxes:
   • Obtain Michigan Sales Tax numbers and collect/remit Sales, Resort, and Transient Rental Taxes as required.
9. Ongoing compliance:
   • Maintain updated registration, pay renewal fees on time, observe occupancy and parking limits, display required notices inside the unit, manage trash and noise, and keep the property free of blight.

Required Documents, Permits, Licenses, and Guidelines

City of Manistique Short-Term Rental License:

• Completed application signed by the owner and, if applicable, the property management company or agent.
• Proof of ownership for each unit.
• Site plan (drawn to scale) for each unit, including mapped parking spaces.
• Floor plan (drawn to scale with dimensions).
• Proof of valid liability insurance for the owner and property management company or contact person.
• Zone designation and street address for each unit.
• Temporary Access Easement (if vehicular access to a public street is not shown on the site plan); must be signed and notarized, and renewed upon transfer.
• Copies of currently valid Michigan Sales Tax collection and accounting numbers (in the name of the owner or property management company).
• Name, address, and 24-hour contact info of the property management company or local contact (must live within 15 minutes).
• Passed inspection by the city’s rental building inspector (first inspection $150; second free; subsequent $150).
• Signed acknowledgement that the owner and agent have read all STR regulations.
• License must be displayed within six feet inside the front entrance door; the license is valid for up to one year and must be renewed by January 1.
• Annual renewal fees set by resolution; failure to renew by January 1 results in suspension; renewals before May 1 pay the renewal fee plus a penalty equal to the renewal fee; after May 1, pay $500.
• Random annual inspections may occur during checkout or unoccupied periods.
• Amend the application whenever circumstances change (e.g., ownership, floor or site plan modifications, management changes, contact updates).

Schoolcraft County Short-Term Vacation Rental Annual Permit:

• Application with property owner or agent details.
• Proof of ownership or legal right to rent.
• Proof of liability insurance for vacation rentals of at least $500,000.
• Copy of anticipated booking dates for the registration term.
• Local contact person’s address, phone number, and email for 24/7 availability.
• Initial application fee: $250 plus $50 per seven‑week block; subsequent years: $50 per seven‑week block.
• Permit must be posted in a visible area at the rental location upon approval.
• Permits expire annually on January 14; automatic renewal available with updated form and fee.
• “Blocks of intended use” must be designated in the application.

Tax compliance:

• City requires Sales Tax numbers; you must collect and remit Michigan Sales and Use Tax and applicable Resort and Transient Rental Taxes.

Management and compliance documents to display in the unit:

• Name and 24/7 contact of owner/manager or local contact.
• Maximum number of occupants permitted by the license.
• Maximum number of vehicles permitted and parking rules, including seasonal snow removal.
• Trash pickup day and rules; animal-proof containers required.
• Short-Term Rental rules and regulations (prominently displayed on the property).
• Notice that violations may result in fines under city ordinance.

Specific Regulations: City of Manistique

• Zoning and caps: STRs permitted in all zones except industrial; maximum of 53 units in R1 and R2 districts, first‑come, first‑served.
• License issuance: License issued by the City Clerk when application is complete, inspection passed, and all conditions are met; display within six feet inside the front entrance door.
• Renewal: License is valid for up to one year; must be renewed by January 1. Late renewals incur penalties; licenses are subject to suspension if not renewed on time.
• Inspections: First inspection $150; second free; third and subsequent $150. Random annual inspections may occur during checkout or unoccupied periods.
• 24/7 local contact: Required either via a property management company or a person living within 15 minutes.
• Insurance: Proof of valid liability insurance for owner and any property management company or contact person.
• Parking: Minimum of one parking space for every five occupants; spaces must be 8 feet by 18 feet; all overnight occupants’ vehicles must park on-site; no parking on adjacent properties or public right-of-way.
• Occupancy: Maximum of two persons per 100 square feet of sleeping area; children under age three not counted.
• Notices inside the unit: Required near/on the front door, with contact info, occupancy limit, vehicle limits, parking rules, and notification of potential fines.
• Trash and maintenance: Weekly trash pickup, no curb storage beyond 24 hours, animal-proof containers, proper maintenance, and neighborhood appearance standards.
• Recreational activities and fires: Limited to rented premises; campfires only in designated pits away from water, trees, and property lines; must be attended and extinguished.
• Signage: No signs advertising STR availability to the public.
• Tax collection: Owner or management must collect applicable Sales, Resort, and Transient Rental Taxes.
• Immediate hazards: City may suspend the STR license until hazards are remedied and the property re-inspected.
• Prohibited activities and penalties:
  • Municipal civil infraction; $500 per violation; each day is a separate violation.
  • Additional penalties: first violation—written warning; second within 12 months—$500; third within 12 months—$500 and revocation for one year; unpaid fines after 30 days result in revocation.
  • Operating without a license—civil fine and ineligibility for a license for 24 months.
  • Penalty section also allows a misdemeanor with fines up to $500 and/or up to 90 days in jail.

Specific Regulations: Schoolcraft County

• Permit requirement: All short‑term rentals in the county require a Short-Term Vacation Rental Annual Permit.
• Insurance: Minimum $500,000 liability coverage for vacation rentals.
• Booking periods: Permit covers up to four seven‑week blocks; list of anticipated booking dates must be provided with the application.
• Fees: Initial $250 plus $50 per seven‑week block; subsequent years $50 per seven‑week block.
• Posting and renewal: Permit must be posted in a visible area at the rental location; permits expire on January 14; automatic renewal available with updated form and fee.
• Enforcement and penalties: Violations can trigger fines escalating by notice (first notice $250 plus application fees; second $500 plus fees; third $750 plus fees), and additional fines up to $1,000 per day per violation. The zoning department has stated full enforcement intent.

State-Level Requirements (Michigan)

• Michigan Sales Tax: STR operators must register and collect Michigan Sales and Use Tax on transient rentals as applicable.
• Transient Rental Taxes: Resorts and transient rental taxes may apply depending on the nature of the property and services; operators must collect and remit these taxes in addition to sales tax.
• Business entity compliance: If the owner is a business entity, maintain current registration with the Michigan Department of Licensing and Regulatory Affairs—Corporation Division.

Contacts for Short-Term Rentals

City of Manistique

• City Clerk (Licensing):
  • Phone: Not specified in the provided sources.
  • Email: Not specified in the provided sources.
  • Website: City administration listed under County website “Other County Boards and Committees.”
• Rental Building Inspector (Inspections and compliance):
  • Phone: Not specified in the provided sources.
  • Email: Not specified in the provided sources.

Schoolcraft County Zoning Department

• Address: Courthouse, Room 207, 300 Walnut Street, Manistique, MI 49854
• Phone: 906‑341‑3674
• Zoning Administrator: Austin Clark
• Email: zoning@schoolcraftcounty.us
• Short-Term Rental Application (County): www.schoolcraftcounty.net/media/usercontent/Short%20Term%20Rental%20Application%202022.pdf
• Zoning Ordinance Administration page: www.schoolcraftcounty.net/departments/zoning-ordinance-administration

Source Links

• City of Manistique Short-Term Rental Ordinance (Ordinance ___ of 2022): mcclibraryfunctions.azurewebsites.us/api/ordinanceDownload/15408/1193285/pdf
• Schoolcraft County Zoning Department page (forms and contacts): www.schoolcraftcounty.net/departments/zoning-ordinance-administration
• Schoolcraft County Short-Term Rental Application (PDF): www.schoolcraftcounty.net/media/usercontent/Short%20Term%20Rental%20Application%202022.pdf
• “Zoning administrator: Short-term rentals must register” (Pioneer Tribune article): www.pioneertribune.com/articles/zoning-administrator-short-term-rentals-must-register/

Notes:

• City phone/email for the Clerk and Rental Building Inspector are not present in the provided materials; use the county zoning department page and Manistique administration listings to reach city offices.
• All STR operations must comply with both city and county requirements. In R1/R2 districts, the 53‑unit cap may affect availability; confirm with the City Clerk before investing.