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

Yes—short-term rentals are permitted within the Village of Thompsonville and in the surrounding townships (Colfax Township and Weldon Township), subject to standard zoning and building code compliance. In the Village and these townships, there is no city-specific STR licensing ordinance. STRs are treated as residential uses and must meet zoning and safety requirements under the Greater Thompsonville Area Zoning Ordinance and Michigan’s construction and safety codes.

Within Benzie County, Lake Township—the neighboring township to the north of the Village—has enacted a comprehensive STR ordinance. If your property is within Lake Township’s boundaries, a Lake Township short‑term rental license is required, and you must comply with Lake’s STR-specific rules (e.g., occupancy caps, local contact availability, parking, safety features, waste/sewage systems, inspections, and enforcement).

To determine your property’s jurisdiction, verify parcel location with the Benzie County equalization/tax maps or the official zoning map and contact the appropriate local authority listed in the Contact Information section.

How to Start a Short-Term Rental Business in This Market

1. Confirm Zoning Compliance

• Verify that STR use is permissible for your dwelling unit under the Greater Thompsonville Area Zoning Ordinance (single-family and multifamily dwellings are typically allowed in most residential districts; commercial lodging uses like hotels/motels and bed & breakfasts are governed separately).
• Ensure the property is not subject to deed restrictions, homeowners’ association rules, or other private covenants that prohibit short-term rentals.
• Maintain the dwelling’s exterior residential character to avoid nuisance conditions.

2. Secure Required Permits and Licenses

• Village of Thompsonville/Colfax/Weldon: No STR-specific license is required. Ensure zoning and building permits/occupancy compliance where applicable, and meet all Michigan building and safety code requirements (see Safety section below).
• Lake Township: Obtain a Lake Township STR license (see “Required documents, permits, licenses” section), including inspection and insurance before you can advertise or rent.

3. Maintain Ongoing Compliance

• Post/make available the local Good Neighbor Guide (for Lake Township properties).
• Maintain accurate advertising (e.g., maximum occupancy).
• Keep proof of insurance current and renew annual licenses before expiration (Lake Township).
• Track municipal civil infraction filings and corrective actions to avoid license revocation (Lake Township).
• Collect and remit Michigan’s 6% use tax on short-term rentals and any applicable local taxes; confirm current county/local tax requirements with the Michigan Department of Treasury and local authorities.

Required Documents, Permits, Licenses, and Guidelines

Lake Township (if your parcel lies within Lake Township)

• Short-Term Rental License (annual)
  • License required for each STR unit.
  • License is tied to the Owner/Operator/Agent and the specified unit; not transferable to another unit or parcel.
  • New application required upon sale; license may transfer to new owner if application is filed within 30 days.
• Application contents:
  • Owner name, mailing address, and phone.
  • Applicant name (if different), mailing address, and phone.
  • Local Contact Person (24/7 availability; must respond onsite or within one hour).
  • Site plan/sketch, bedrooms, bathrooms, maximum occupancy, tax parcel ID.
  • List of advertising platforms/agents.
  • Certifications of accuracy and ownership interest limits.
  • Disclosure of prior violations or license revocations.
• Fees and Insurance:
  • License fee set by Township Board by resolution.
  • Certificate of general liability insurance (Michigan-licensed carrier) for commercial rental activities; proof maintained for license duration.
• Inspection:
  • Pre-licensing inspection (commonly conducted by the Frankfort Fire Chief/designee).
  • Additional inspections allowed if safety hazards are suspected.
• License Duration and Renewal:
  • Annual license valid for calendar year (Jan 1–Dec 31).
  • Renewal applications received by Nov 1 are protected from denial due to total STR cap (provided no violations in last year and requirements met).
  • Late renewals after Nov 1 are treated as new applications and subject to the cap and selection criteria.
• Advertising:
  • All listings must include the maximum occupancy permitted by the license.
• License Display:
  • Display license on the front door or conspicuous facade location within five feet of the door.

Village of Thompsonville/Colfax Township/Weldon Township (Greater Thompsonville Area Zoning Ordinance)

• Zoning Permit (if doing construction, change of use, or structural alterations); confirm with Zoning Administrator.
• Building Permit and Occupancy Permit (as required under the Michigan Construction Code).
• No STR-specific license is required; STR use must comply with residential use standards and code.

State of Michigan (all Michigan STRs)

• Michigan Use Tax: 6% on short-term rentals (hosts must collect and remit).
• Building/Safety Code: Compliance with Michigan Residential Code and National Fire Protection Association standards for smoke/CO alarms, fire extinguishers, emergency egress windows (see Safety section below).
• Consider a Sales Tax Exemption Certificate for necessary purchases (e.g., cleaning supplies, amenities) if you’re engaged in transient rentals; consult Michigan Department of Treasury.

Specific Regulations for Short-Term Rentals (City/County/State)

City of Thompsonville (Village)

• No STR-specific ordinance; STRs are governed by residential zoning and state construction/safety codes.

Colfax Township and Weldon Township

• No STR-specific ordinance; governed by the Greater Thompsonville Area Zoning Ordinance and state construction/safety codes.

County (Benzie County)

• STRs in Lake Township must comply with County Health Department requirements for sanitary waste/sewage systems.
• The Township may coordinate health inspections and can require rental cessation if imminent threats to drinking water or serious water quality degradation are found.

Lake Township (Benzie County) – Key STR Requirements (if property is in Lake Township)

• Cap and Ownership Limits:
  • Annual cap: 75 STR licenses in Lake Township (Township Board may raise/lower via resolution).
  • Ownership interest limit: No more than two STR licenses per owner or entity.
  • Grandfathering: Properties with more than two STRs under common ownership before Jan 1, 2024, may continue as licensed STRs unless ownership changes and the property converts to conventional residential occupancy for 30+ days.
• Occupancy and Use:
  • Maximum overnight occupancy: 2 per legal bedroom plus 2 additional individuals; absolute cap of 12 (children and infants count).
  • Daytime guests: Permitted 8:00 a.m.–11:00 p.m.
  • No subletting.
  • STRs are for temporary dwelling use only; no commercial activities on the parcel.
• Parking:
  • At least 2 off-street spaces for first 6 occupants; 1 additional space per 3 additional occupants; all on the same parcel.
  • No parking on or blocking the paved portion of any public right-of-way.
• Safety (minimum standards):
  • Smoke alarms: UL-approved; in each bedroom and on each story (per Michigan Residential Code/NFPA 72A).
  • Carbon monoxide alarms: At least one on every habitable level and outside (within 15 feet of) each bedroom entrance.
  • Bedroom emergency egress: Windows meeting current fire/building code egress standards; no basement bedrooms unless egress door or egress-compliant window exists.
  • Fire extinguishers: Operable unit mounted on each floor level (including basement), at exit doors or near stairways to an exit.
• Waste and Sewage:
  • Sufficient waste receptacles on premises (no commercial dumpsters; max 100-gallon containers).
  • Sewage/waste system: Must be in working order and of sufficient capacity; must comply with County Health Dept. requirements.
  • Health inspections: Allowed; immediate cessation of rentals required if imminent threats to drinking water wells or serious water degradation are found.
• Advertising and Display:
  • List maximum occupancy; display license on door/facade.
• Good Neighbor Guide:
  • Provide and post locally; must include occupancy limit and local contact details.
• Nuisance Controls:
  • No noise exceeding 60 decibels; no vibration, radiation, odor, glare, smoke, steam, electrical interference, or conditions atypical for residential use.
  • Comply with applicable zoning sections (lake access lot use, boat dockage, outdoor lighting) and fireworks/nuisance ordinances.
• Penalties and Enforcement:
  • Violations are municipal civil infractions; fines escalate: $50 (first), $250 (second within same calendar year), $500 (third within same calendar year, plus possible license revocation).
  • Each day is a separate violation; the Township can pursue abatement in Circuit Court.
• License Revocation:
  • After a third violation, Township may revoke license after notice and appeal hearing; no license may be issued to the same Owner/Operator for 24 months following revocation.

State of Michigan

• Use Tax: 6% on short-term rentals; required to register, collect, and remit via Michigan Treasury.
• Building and Safety Code: Smoke and CO alarms, fire extinguishers, emergency egress windows, and other residential code safety features must be installed and maintained.
• Zoning Enabling Act: Municipalities may regulate land use; zoning permits and construction code compliance apply where required.

STR Licensing Workflow (Lake Township)

• Pre-application: Confirm parcel is within Lake Township; assemble application materials (Owner/Agent info, Local Contact Person, site plan, occupancy details, listing platforms).
• Submit Application: File with Lake Township; pay fee; provide insurance certificate.
• Inspection: Schedule pre-licensing inspection (commonly Frankfort Fire Chief/designee).
• Issuance: License issued within 45 days of complete application if compliant and cap not exceeded.
• Renewal: Apply by Nov 1 for the following year to avoid cap-related denial; maintain insurance and compliance.
• Operations: Maintain local contact availability; adhere to occupancy, parking, safety, waste/sewage, nuisance, and advertising rules.
• Enforcement: Address violations promptly to avoid civil infractions and potential revocation.

Key Contacts (Phone, Email, Website)

• Village of Thompsonville

  • Phone: (231) 378-2250
  • Website: villageofthompsonville.org/
  • Address: Village Manager/Clerk, 14718 McCoy Road, Thompsonville, MI 49683

• Colfax Township (Village fiduciary municipality)

  • Phone: (231) 378-4200
  • Website: www.colfaxtownship.org/
  • Address: Colfax Township, P.O. Box 155, Thompsonville, MI 49683
  • Zoning Ordinance (Greater Thompsonville Area): www.colfaxtownship.org/PDF/zoning/Grtr_Thmpsnvl_Zoning_Ord.pdf

• Weldon Township

  • Phone: (231) 378-2131
  • Website: Not specified in provided content
  • Address: Weldon Township, P.O. Box 90, Thompsonville, MI 49683

• Lake Township (STR Ordinance Administrator)

  • Phone: (231) 378-4400
  • Website: www.laketwp.org/
  • Address: Lake Township, 3733 Lee Road, Lake, MI 48632
  • STR Ordinance (Draft/Adopted): www.laketwp.org/PDF/Short-term_Rental_Ord_DRAFT.pdf

• Benzie County Health Department (Sanitary Waste/Sewage Inspections)

  • Phone: (231) 882-4409
  • Website: www.bchdmi.org/
  • Address: 6051 Frankfort Highway, Benzonia, MI 49616

• Michigan Department of Treasury (Use Tax/Sales Tax)

  • Website: www.michigan.gov/taxes
  • Guidance: Transient rentals are subject to 6% use tax; register and file via Treasury online systems.

• Michigan Department of Licensing and Regulatory Affairs (Construction Code)

  • Website: www.michigan.gov/lara

Source Pages (Links)

• Lake Township Short-Term Rental Ordinance (Draft/Adopted)
  • www.laketwp.org/PDF/Short-term_Rental_Ord_DRAFT.pdf
• Greater Thompsonville Area Zoning Ordinance (Colfax/Weldon/Village)
  • www.colfaxtownship.org/PDF/zoning/Grtr_Thmpsnvl_Zoning_Ord.pdf

Notes:

• Verify parcel jurisdiction (Village/Colfax/Weldon vs. Lake Township) before applying.
• Lake Township’s annual STR cap and ownership interest limits may be adjusted by Township Board resolution.
• State and local tax requirements can change; confirm current obligations with the Michigan Department of Treasury and your local municipality.