Overview: Are Short-Term Rentals Allowed in Waterford Township?

YES, short-term rentals are allowed in Waterford Township, Michigan, but only with special approval from the Planning Commission. This allowance was established through Ordinance 2023-Z-007, which amended the township zoning ordinance to permit "short-term dwellings" as a special approval use across all residential zoning districts.

Critical Note: Unlike traditional rentals, short-term rentals (stays under 30 days) require Planning Commission review and approval on a case-by-case basis, with public notification and opportunity for neighbor input. The township has maintained a cautious, measured approach to STR approvals since implementing the rules approximately 14 months ago.

How to Start a Short-Term Rental Business in Waterford Township

Step 1: Verify Zoning Compliance

Your property must be located in a residential zoning district that permits short-term rentals as a special approval use. According to the 2023 ordinance amendment, STRs are allowed as special approval uses in:

• R-1, R-1A, R-1B, R-1C Single-Family Residential Districts
• R-1D Duplex Residential District
• R-1E Single-Family Attached Residential District
• R-M1 Low Density Multiple-Family Residential District
• R-M2 Multiple-Family Residential District
• R-MH Mobile Home Park District

Step 2: Apply for Special Approval from Planning Commission

Submit your application for special approval to the Planning Commission. This process requires:

• Public notification to neighbors
• Public hearing where neighbors can voice support or concerns
• Case-by-case review considering compatibility with surrounding land uses
• Potential imposition of site-specific conditions (buffers, hours of operation, noise limits)

Important: The Planning Commission can set conditions based on neighborhood context and impact. Recent approvals have considered factors like owner proximity to the rental property.

Step 3: Register as Rental Property

After receiving special approval, register your property with Waterford Township Development Services using the official rental registration form.

Step 4: Complete Required Inspections

All rental properties must undergo safety inspections to obtain certification compliance with township building, fire prevention, and housing codes.

Required Documents, Permits, Licenses, and Guidelines

Essential Documentation:

1. Rental Property Registration Form (available from Development Services)

   • $12.00 per building + $2.00 per additional unit fee
   • Must designate local responsible agent
   • Required for both long-term and short-term rentals

2. Special Approval Application from Planning Commission

   • Requires public notification
   • Case-by-case review process
   • Potential conditions and restrictions

3. Safety Inspections and Certification

   • Building code compliance
   • Fire prevention compliance
   • Housing standards verification

Legal Requirements:

• Owner must register each building and unit with Township Building Official
• Must designate a legally responsible local agent for operations
• Property must comply with all applicable Waterford Codes and Ordinances
• Compliance with Michigan state requirements for hotels/motels (if applicable)

Specific Regulations for Short-Term Rentals

Operational Restrictions:

• Duration: Stays must be less than 30 days to qualify as short-term rental
• Non-Transferability: Special approval certificates cannot be transferred between property owners
• Certificate Duration: Valid for four years from issuance
• Owner Occupancy: Not required - properties can be entirely vacant during rental periods

Review Process:

• Special Approval Required: Each application reviewed individually by Planning Commission
• Public Participation: Neighbors notified and can provide input during public hearing
• Conditional Approval: Commission can impose design/site restrictions, buffers, operational hours, noise limits
• Grandfathering: Properties with standard rental certificates issued before rule updates can operate until renewal, then must obtain STR approval

Zoning Compliance:

• STRs classified as "sensitive commercial-like use" similar to motels/hotels
• Must be compatible with surrounding residential uses
• Subject to all standard residential zoning requirements (setbacks, height limits, etc.)

Contact Information

Primary Authority:

Waterford Township Development Services

• Address: 5200 Civic Center Drive, Waterford, MI 48329-3773
• Phone: (248) 674-6238 or 248-674-6250 (Building Division)
• Fax: (248) 674-4097
• Email: rentals@waterfordmi.gov
• Website: www.waterfordmi.gov

Key Personnel:

• Jeffrey M. Polkowski, AICP - Superintendent of Planning & Zoning Division
• Dave Hills - Superintendent of Building Division

Planning Commission:

• Meets regularly to review special approval applications
• Public hearings required for STR applications
• Decisions made on case-by-case basis

Source Links

1. Waterford Township Zoning Ordinance Amendment 2023-Z-007 - Official ordinance establishing STR regulations

2. Rental Property Registration Form - Required registration documentation

3. Oakland Press STR Article - News coverage of STR implementation and approval statistics

4. AirROI Market Analysis - Market data and performance metrics

Market Performance Summary: As of late 2024/early 2025, Waterford Township shows moderate STR market activity with 38 active listings, average daily rate of $236, 38.6% occupancy rate, and median annual revenue of $26,217. The "Low" regulation environment provides operational flexibility, but the special approval requirement creates a deliberate, controlled approval process that protects neighborhood character while allowing STR investment.