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

YES, short-term rentals are allowed in Oscoda, Michigan, but with significant restrictions and requirements. Oscoda Township has implemented a cap of 40 short-term rentals, and all STRs must be registered with the township and comply with both township and county regulations. As of 2024, only 3 short-term rentals were registered with the township, indicating significant available capacity under the current cap.

How to Start a Short-Term Rental Business in Oscoda

Step 1: Confirm Capacity Availability

• Check with Oscoda Township to verify that the 40-unit cap has not been reached
• Confirm your property is eligible for STR operation under township zoning

Step 2: Register with Oscoda Township

• Complete the short-term rental registration application (recently created by Planning Director Rick Buckner)
• Pay the annual registration fee of $165
• Registration must be renewed annually

Step 3: Comply with County Rental Housing Inspection Requirements

All residential rental units in Oscoda County, including STRs, must:

• Register with the County Building Department
• Obtain a Certificate of Compliance through inspection
• Meet HUD Housing Quality Standards
• Renew Certificate of Compliance every 3 years

Step 4: Designate Local Agent (if applicable)

If you reside outside Oscoda County or more than 20 miles from the county, or if you spend more than 90 days per year outside the county, you must:

• Designate a local agent who resides within 20 miles of Oscoda County
• Provide agent contact information to authorities
• Ensure agent can respond to compliance issues

Required Documents, Permits, Licenses, and Guidelines

Township-Level Requirements

1. STR Registration Application - Available from Oscoda Township Planning Department
2. Annual Registration Fee - $165 per unit
3. Proof of Property Ownership - Recorded deed or land contract
4. Local Agent Documentation (if applicable)
5. Compliance with STR Ordinance (enacted 2019)

County-Level Requirements

1. Rental Registration - Free if registered within 6 months of ordinance effective date; fees apply for late registration
2. Certificate of Compliance - Valid for 3 years, requires inspection
3. Inspection by County Building Department - Based on HUD Housing Quality Standards
4. Proof of Exemption (if applicable) - HUD/FHA inspection records, bed & breakfast classification, etc.

State-Level Requirements

• Michigan Sales Tax registration (for collecting/remitting lodging taxes)
• Potential transient registration taxes depending on jurisdiction

Specific Regulations by Jurisdiction

Oscoda Township (Local Level)

• Cap on STRs: Maximum of 40 registered short-term rentals
• Registration Required: Annual registration with $165 fee
• Enforcement: Code enforcement officer and citation authority ($500 tickets mentioned)
• Public Safety Concerns: Road access requirements for emergency vehicles
• Registration Process: Recently formalized with applications now available
• Current Status: Only 3 STRs registered as of July 2024, significant capacity remaining

Oscoda County (County Level)

Rental Housing Inspection Program (Ordinance 2006-1204):

Application Requirements:

• Applies to all single, duplex, and multi-family rental units
• Includes boarding/rooming houses
• Exemptions: Hotels/motels/bed & breakfasts, HUD/FHA properties, homeless shelters

Inspection Standards (HUD Housing Quality Standards):

• Living room requirements
• Electrical safety (GFCI outlets required in kitchen/bathroom/laundry)
• Security (locks on all doors/windows, security bars not acceptable as primary locking)
• Window condition (no broken panes, functional screens)
• Structural integrity (ceiling, wall, floor conditions)
• Kitchen requirements (sink with hot/cold water, stove, refrigerator, waste disposal)
• Bathroom requirements (toilet, washbasin, hot/cold water, adequate pressure)
• Smoke detectors (pre-1974 construction requirements specified)
• Heating equipment (properly working, vented)
• Plumbing (no major leaks/corrosion)
• Sewer/septic connection (approved disposal system)
• Access (direct unit access without going through another unit)
• Alternate fire exit
• Pest-free environment

Inspection Timeline:

• 30-day advance notice provided for scheduled inspections
• 30-day correction period for violations (extensions possible)
• 10-day grace period for missed violations before additional action
• Re-inspections required after violation corrections

Certificate of Compliance:

• Valid for 3 years
• Must be renewed before expiration (45-day advance notice provided)
• Can be revoked for non-compliance or removal from registration

Fee Structure:

• Initial/Renewal Inspection: $50/unit every 3 years
• Re-Inspections: $55/unit per re-inspection
• Missed Appointments: $50/unit
• Late Payment: Base fee + $5/unit (up to 10 days post-inspection)
• Failure to Pay: Base fee + $10/unit, may be added to tax rolls
• Appeals: $25/unit

Enforcement:

• Misdemeanor charges for non-compliance
• Fines up to $500 per violation
• Up to 90 days imprisonment
• Citations authorized for multiple violations
• Access requirements enforced (citations, search warrants, unit posting as uninhabitable)

Michigan State Level

No specific state-wide STR regulations identified in the provided materials. Standard state requirements for:

• Business registration and taxation
• Building codes (adopted locally)
• Safety regulations

Contact Information for Local Authorities

Oscoda Township

Planning and Zoning Department

• Director: Rick Buckner
• Phone: (989) 739-2054 (township general number)
• Address: Township offices (specific address not provided in documents)
• Website: Available through township official website
• Meetings: First Monday of each month at 6:00 PM at Robert J. Parks Library, Skeel Avenue
• Note: Attorney review process for STR limit enforcement ongoing

Oscoda County

Building Department/Rental Housing Inspector

• Address: County Building Department office (specific contact details not provided in ordinance)
• Office Hours: Not specified in provided materials
• Responsible for: Inspections, certificates of compliance, registration

Source Pages

1. Oscoda County Rental Code Ordinance 2006-1204: www.oscodacountymi.com/wp-content/uploads/Oscoda-County-Rental-Code-Ordinance.pdf
2. Oscoda Township Planning Commission Article: www.iosconews.com/oscoda_press/news/article_90d7f0e2-3ed5-11ef-88be-77667c8e5e9d.html
3. Michigan Condo Law Article (State Context): micondolaw.com/2020/05/18/executive-order-2020-92-michigan-maintains-ban-on-short-term-rentals-and-areas-of-public-accommodation/
4. Oscoda Charter Township Code of Ordinances: library.municode.com/mi/oscoda_charter_township/codes/code_of_ordinances

Investment Considerations

Market Opportunity

• High Demand Potential: With only 3 registered STRs and a 40-unit cap, significant room exists in the market
• Tourism Appeal: Oscoda area attractions (Oscoda area has lakes, outdoor recreation)
• Limited Competition: Low current STR inventory presents opportunities

Regulatory Risks

• Cap Limitation: Hard limit of 40 units means limited expansion opportunity
• Changing Regulations: STR ordinance relatively recent (2019), likely to evolve
• Enforcement Uncertainty: Questions raised about enforcement effectiveness ("What if they don't register?")

Operational Considerations

• Dual Compliance: Must satisfy both township registration and county inspection requirements
• Inspection Costs: Regular inspection fees and potential re-inspection costs
• Local Agent Requirement: May need designated local agent depending on residence
• Zoning Compliance: Ensure property zoning allows STR use

Financial Planning

• Registration Costs: $165 annual township registration
• Inspection Costs: $50 per 3-year inspection cycle + potential re-inspection fees
• Compliance Costs: Potential renovation costs to meet HUD standards
• Late Registration Penalties: Additional fees for delayed registration

This guide provides a comprehensive foundation for STR investment in Oscoda, but investors should verify current requirements and consult with local authorities before proceeding with any STR operations.