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

Yes, short-term rentals are allowed in Milford, Michigan, but with significant regulatory requirements. Milford consists of two separate jurisdictions: Milford Township and the Village of Milford, both of which have established rental registration programs. However, it's important to note that Michigan state law has some restrictions - the Michigan Court of Appeals has consistently ruled that short-term rentals often violate residential, business, and commercial restrictions by treating them as commercial activities inconsistent with residential use. Therefore, compliance with local regulations is essential.

How to Start a Short-Term Rental Business in Milford

Starting a short-term rental business in Milford requires following specific processes depending on your location within either Milford Township or the Village of Milford jurisdiction:

For Milford Township Properties:

1. Complete the rental registration application (available from Milford Township)
2. Submit payment made payable to "Milford Township"
3. Schedule inspection with the designated inspector
4. Address any violations identified during inspection
5. Obtain Certificate of Compliance before operating

For Village of Milford Properties:

1. Register annually by March 31st - this deadline is mandatory regardless of inspection year
2. Determine your inspection cycle:
   • Properties north of Commerce Road: inspections in odd-numbered years
   • Properties south of Commerce Road: inspections in even-numbered years
3. Schedule inspection once required in your cycle
4. Address violations within reasonable timeframes
5. Obtain Certificate of Compliance
6. Maintain ongoing compliance through biennial re-inspections

Required Documents, Permits, Licenses, and Guidelines

Milford Township Requirements:

Documents Needed:

• Rental Registration Application
• Payment for registration fees
• Proof of property ownership or legal authorization

Process:

• Application submission to Milford Township offices
• Inspection scheduling with Jason Eastman (Eastman Home Inspections)
• Correction of any violations identified
• Final Certificate of Compliance issuance

Village of Milford Requirements:

Documents Needed:

• Rental Registration Application (different forms for 2 or fewer units vs. 3+ units)
• Annual registration fee
• Compliance with inspection requirements

Key Documents Available:

• Residential Property Rentals Ordinance (Ordinance No. 231-181)
• Rental Housing Pre-Inspection Checklist
• Residential Rental Registration Fees schedule
• Separate application forms based on number of units

Inspection Requirements:

• Biennial inspections as described above
• Temporary Certificate of Compliance assumed until actual inspection occurs
• Re-inspection required after violations are corrected

Specific Regulations for Short-Term Rentals

City/Local Level Regulations:

Milford Township:

• Governed by Ordinance 233 (Residential Rental Amendment)
• Requires registration and inspection before operation
• Inspections conducted by certified third-party inspector
• Certificate of Compliance required before renting

Village of Milford:

• Governed by Residential Rental Ordinance adopted August 18, 2014
• Annual registration deadline (March 31st)
• Geographic-based inspection cycles (odd/even years based on Commerce Road location)
• Temporary Certificate of Compliance policy until inspection completion
• Appeal process available through Zoning Board of Appeals for Certificate revocations

State of Michigan Regulations:

Definition and Legal Status:

• No statewide definition for short-term rentals
• Most local ordinances define STRs as accommodations for 30 days or less
• Court precedent suggests STRs may violate residential zoning restrictions
• Compliance with local ordinances is essential for legal operation

Statewide Tax Requirements:

• 6% state use tax on rentals lasting one month or less
• Registration with Michigan Department of Treasury required
• Local lodging taxes may also apply (typically 5-10% additional)
• Quarterly filing requirements for tax remittance

Zoning Considerations:

• Zoning restrictions vary by specific location within Milford
• STRs must comply with residential zoning requirements
• Some residential areas may have restrictions on commercial rental activity

County Level Regulations:

Oakland County:

• No specific county-wide STR regulations identified
• County zoning and building codes may apply to rental properties
• Coordinate with local jurisdiction for all requirements

Contact Information for Local Authority

Milford Township:

Mailing Address: Milford Township 1100 Atlantic Street Milford, MI 48381

Phone: 248.685.8731 Fax: 248.685.9236

Inspector Contact: Jason Eastman Eastman Home Inspections (designated rental inspector for township)

Office Hours: Monday-Thursday: 7:30 AM - 5:30 PM Friday: Closed

Village of Milford:

Mailing Address: Village of Milford 1100 Atlantic Street Milford, MI 48381

Building Official: 248.684.1515

Email: info@villageofmilford.org

Office Hours: Monday-Thursday: 7:30 AM - 5:00 PM Friday: 7:30 AM - 11:30 AM

For Appeals: Zoning Board of Appeals (for Certificate of Compliance revocations)

Source Links

Official Government Sources:

• Milford Township Rental Registration
• Village of Milford Residential Property Rentals
• Village of Milford Code of Ordinances
• Milford Township Code of Ordinances

State Level Resources:

• Michigan Department of Treasury (Tax Registration)
• Lodge Compliance Michigan STR Overview

Additional Resources:

• Oakland County Website
• Milford Fire Department
• Milford Police Department

Important Considerations for STR Operators

Compliance Timeline:

• Plan for annual registration (Village) or as-needed registration (Township)
• Budget for inspection fees and potential correction costs
• Maintain documentation for tax reporting and compliance verification

Ongoing Obligations:

• Monitor local ordinance updates and changes
• Maintain insurance coverage appropriate for short-term rentals
• Keep current with state tax filing requirements
• Respond promptly to any violation notices or compliance issues

Best Practices:

• Establish relationships with local officials and inspectors
• Maintain detailed records of all rental activities and compliance measures
• Consider professional property management services familiar with local regulations
• Stay informed about changes in state and local short-term rental laws

This guide provides a comprehensive framework for operating short-term rentals in Milford, Michigan, but investors should regularly verify current requirements with local authorities as regulations may change.