Based on provided documents from the City of Royal Oak and relevant sources, here is a detailed guide for potential STR investors:

Overview: Are Short-Term Rentals Allowed in Royal Oak?

Yes, short-term rentals are allowed in Royal Oak, Michigan. The City of Royal Oak treats short-term rentals (like those listed on Airbnb, VRBO) as a subset of its general residential rental registration requirements. There are no separate permits or licenses specifically for "Short-Term Rentals" under a distinct city ordinance category at the time of the latest provided documents. All rental properties, including STRs, must be registered and comply with the city's rental regulations outlined in the Code of Ordinances (primarily Chapter 556 - Property Maintenance Code).

Key Takeaway: Royal Oak allows STRs but heavily regulates them under its mandatory rental registration process, which includes specific rules and penalties for all rental properties, including those operated short-term.

How to Start a Short-Term Rental Business in Royal Oak

1. Verify Property Eligibility: Ensure your property is located within Royal Oak city limits and is zoned for residential rental use (e.g., single-family, multi-family). Confirm with the Building Division if needed.
2. Complete Mandatory Rental Registration: This is the primary legal step for operating ANY residential rental, including STRs.
   • Application: Use the official "Rental Registration Application" provided by the City. This form requires owner details, property information, number of units, parking, etc.
   • Content & Information: Accurately fill out all required sections on the application.
   • Insurance: Short-term rentals must provide proof of insurance as part of the registration process. This is explicitly mentioned in the city's guide (see "Rental Registration Guide").
   • Responsible Party: Designate a responsible party living within 30 miles of the rental property to manage issues.
3. Post Required Information: Post the property address inside the rental unit for emergency purposes.
4. Ensure Safety & Code Compliance:
   • Safety Features: Install and maintain required working smoke detectors, carbon monoxide detectors, and fire extinguishers. Ensure bedrooms meet safety standards.
   • Occupancy Limits: Adhere strictly to maximum occupancy limits for the property and individual units/rooms.
   • Maintenance: Maintain the property according to the Property Maintenance Code (Chapter 556). Keep it in a safe and sanitary condition.
5. Facilitate Inspections: The City of Royal Oak "inspects all residential rental units" as part of the registration process. You must be prepared for and cooperate with these inspections.
6. Provide Guest Information: For short-term rentals, provide renters with the City's "Good Neighbor Policy" and any other relevant information, as specified in the registration guide.
7. Pay Fees: Pay the applicable registration and inspection fees on time. Fees cover the inspection costs.
   • Known Fee: The city report mentions a $125 single-family permit fee. Fees for other property types may differ. Consult the Building Division for current fee schedules.
8. Track STR Status: While not explicitly required by the guest, be aware that the Building Division added a field to the rental license application to indicate if the rental is "short-term or long-term use." Accurate reporting is crucial.

Required Documents, Permits, Licenses, and Guidelines

1. Primary Requirement: Rental Registration Application (Form): This is the mandatory permit/license for operating any rental.
   • Rental Registration Application
2. Supporting Documentation: Proof of insurance (specifically required for short-term rentals).
3. Designation: Name and contact details of the "Responsible Party" (within 30 miles).
4. Inspection: Cooperation with city inspections (inspectors verify compliance with codes).
5. Guest Information Provision: City's Good Neighbor Policy document must be provided to STR guests.
6. Code Compliance: Compliance with all relevant city ordinances:
   • Property Maintenance Code: Chapter 556 (specifically Section 104.8)
   • City Code of Ordinances (romi.gov/code)
   • Good Neighbor Policy
   • Good Neighbor Policy
7. Reference Guides (Official City Documents):
   • Rental Registration Guide
   • Good Neighbor Guide
   • Rental Information Page: Rental Information

Specific Regulations in Royal Oak, MI (City, County, State)

City of Royal Oak Regulations (Applying to STRs):

• Mandatory Registration: All rental properties, including STRs, must be registered with the city before renting.
• Inspection Requirement: Properties are subject to inspection to ensure safety and code compliance.
• Designated Responsible Party: Required within 30 miles of the property.
• Occupancy Limits: Must be strictly observed.
• Safety Standards: Working smoke/CO detectors and fire extinguishers are mandatory and must be functional.
• Insurance Required: Specifically required for short-term rentals.
• Maintenance: Properties must meet Property Maintenance Code standards and be kept safe/sanitary.
• Guest Information: Good Neighbor Policy and other city info must be provided to STR guests.
• Posting Address: Property address must be posted inside the unit for emergencies.
• No zoning restrictions specific to STRs: While the city report mentions other Michigan cities restricting STRs to certain zones (like Saugatuck, Grand Haven, Traverse City), Royal Oak does not appear to have such zoning restrictions for STRs at the time of the report. They operate under the general rental registration.
• Penalties for Violations:
  • 1st Violation: Civil fine of at least $200 + costs.
  • 2nd Violation: Civil fine of at least $350 + costs.
  • 3rd Violation: Misdemeanor offense - fine up to $500, jail up to 90 days, or both. Rental registration may also be revoked.

Oakland County Regulations: No specific county-level short-term rental regulations are provided or referenced in the documents. County regulations likely do not supersede city rules for STRs within city limits.

Michigan State Regulations: No specific state-level short-term rental licensing or regulatory requirements are provided or referenced in the documents. The state primarily leaves STR regulation to local municipalities like Royal Oak. General state landlord-tenant laws and business regulations (like tax collection) would still apply, but are outside the scope of these provided city documents.

Contact Information (Local Authority for STRs - City of Royal Oak)

Department: Building Division (oversees rental registration)

• Phone: 248-246-3210
• Email: building@romi.gov
• Website: Rental Information Page and related links
• Forms: Rental Registration Application and Spreadsheet for Multi-Family available on the website.

General City Contact:

• Phone: 248-246-3000
• Address: 203 S Troy Street, Royal Oak, MI 48067
• Website: romi.gov

Links to Source Pages

1. Primary Source - Police Report (Context & STR Status): www.romi.gov/DocumentCenter/View/21383/Short-Term-Rentals-Report-July-23-2018
2. Rental Registration Application: www.romi.gov/DocumentCenter/View/39242
3. Rental Registration Guide (Official Rules & Penalties): romi.gov/DocumentCenter/View/39175/Rental-Registration-Guide-
4. Good Neighbor Policy: romi.gov/DocumentCenter/View/39093
5. Good Neighbor Guide (Brochure): romi.gov/DocumentCenter/View/39099/Good-Neighbor-Guide-
6. Property Maintenance Code (Chapter 556, Section 104.8): ecode360.com/8261826
7. City of Royal Oak Code of Ordinances: romi.gov/code
8. Rental Information (General): ropl.org/1727/Rental-Information

Disclaimer: Information provided is based solely on the documents shared. City regulations can change. Always consult the Building Division directly (248-246-3210, building@romi.gov) or the city's official website (romi.gov) for the most current regulations and requirements before operating an STR in Royal Oak.