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

Yes, short-term rentals are currently allowed in Ypsilanti, Michigan. However, the city is in the process of developing comprehensive regulations, with the City Council establishing a Short-Term Rental Subcommittee that held its first meeting on March 20, 2025. As of early 2025, approximately 50 Airbnb properties were operating within city limits, indicating an active market despite the absence of formal licensing frameworks.

The city's approach appears to be evolving toward a structured regulatory environment, similar to neighboring Ann Arbor's stringent requirements. Property owners should expect formal regulations to be enacted in the near future, potentially including licensing requirements, zoning restrictions, and compliance standards similar to those in surrounding communities.

How to Start a Short-Term Rental Business in Ypsilanti

Current Market Entry Process

1. Property Verification: Confirm your property is suitable for short-term rental use and meets basic safety requirements
2. Municipal Registration: Register your property as a rental unit with Ypsilanti Township (if applicable to your location) or the City of Ypsilanti
3. Safety Inspections: Complete required rental housing inspections and obtain a Certificate of Compliance
4. Tax Registration: Register for Michigan use tax collection (6% on short-term rentals)
5. Insurance: Secure appropriate liability insurance coverage
6. Listing Preparation: Prepare property for listing on platforms like Airbnb, VRBO, or similar services

Anticipated Future Requirements (Based on Subcommittee Work)

The Short-Term Rental Subcommittee is currently researching and drafting regulations that will likely include:

• Formal licensing requirements
• Zoning compliance verification
• Occupancy limits and safety standards
• Operating guidelines and guest management protocols
• Complaint and enforcement procedures

Required Documents, Permits, and Licenses

Current Requirements

Rental Registration and Certification:

• Single-Family & Duplex Rental Property Registration Form
• Rental Inspection Program compliance
• Certificate of Compliance (valid for 2 years)
• Property Maintenance Ordinance compliance

State-Level Requirements:

• Michigan use tax registration (6% on short-term accommodations)
• Income tax reporting for rental income

Anticipated Licensing Requirements (In Development)

Based on similar municipalities and subcommittee discussions, future requirements will likely include:

• Short-term rental operating license
• Annual licensing fees
• Principal residence verification
• Proof of liability insurance ($1 million minimum expected)
• Fire safety inspection certificates
• Floor plans and site plans
• Contact information for 24/7 guest management

Specific Regulations by Jurisdiction

City of Ypsilanti (In Development)

The city is actively developing STR regulations through their Short-Term Rental Subcommittee. Based on the March 2025 meeting agenda and neighboring city comparisons, expected regulations include:

Definitions Under Consideration:

• Short-term rental defined as rental of residential dwelling for less than 30 consecutive days
• Distinction between short-term and long-term rental classifications
• Coverage of platforms like Airbnb, VRBO, and similar services

Zoning and Use Restrictions:

• Verification of zoning compliance for STR use
• Potential restrictions on non-principal residence rentals
• Principal residence rental allowances in residential zones
• Possible prohibitions on Accessory Dwelling Units (ADUs) for STR use

Ypsilanti Township (Current Requirements)

For properties within Ypsilanti Township jurisdiction:

Rental Housing Requirements:

• Registration and inspection for all rental properties
• Compliance with Township Property Maintenance Ordinance
• Certificate of Compliance required before leasing
• Biennial certification for single-family, duplex, and multi-family units

Safety and Maintenance Standards:

• Compliance with International Property Maintenance Code
• Utility condition verification
• Blight prevention measures
• Re-inspection fees for code violations ($30 per return visit)

Vacant Property Registration:

• All vacant structures unoccupied for 30+ days must be registered
• Includes properties listed for sale that remain unoccupied
• Failure to register results in fines and potential legal action

State of Michigan Regulations

Use Tax Requirements:

• 6% use tax on short-term accommodation rentals (under 30 days)
• Tax applies to total rental price including cleaning and service fees
• Hosts responsible for collection and remittance
• Airbnb and similar platforms may collect automatically, but direct bookings require self-collection

Legislative Developments:

• Michigan House Bills 5138, 5139, and 5140 (October 2025) would enable local governments to impose additional voter-approved STR taxes
• Bills address cost management for municipalities dealing with STR proliferation
• Revenue potentially directed to tourism promotion and municipal services

County-Level (Washtenaw County)

No specific county-level STR regulations identified. County regulations would typically focus on health department requirements for septic systems in rural areas, but these are generally addressed through municipal licensing processes.

Contact Information for Local Authorities

City of Ypsilanti

Planning and Zoning Department

• Phone: (734) 483-9660
• Email: planning@ypsilanti.gov
• Website: cityofypsilanti.com
• Address: One South Huron Street, Ypsilanti, MI 48197

Short-Term Rental Subcommittee

• Contact through City Clerk's Office: (734) 483-1100
• Meeting schedules available at cityofypsilanti.com/AgendaCenter

Ypsilanti Township

Ordinance Department

• Phone: (734) 544-4000
• Website: ypsitownship.org
• Address: 7200 S. Huron River Dr., Ypsilanti, MI 48197
• Hours: Monday-Friday, 8:30am-4:30pm (closed 12pm-1pm)

Building and Safety Department

• Phone: (734) 544-3600
• Email: building@ypsitownship.org

State of Michigan

Michigan Department of Treasury (Use Tax)

• Phone: (517) 373-3190
• Website: michigan.gov/taxes
• Online filing: treasury.michigan.gov

Source Links and Resources

• City of Ypsilanti STR Subcommittee Agenda - March 20, 2025
• Ypsilanti Township Rentals & Vacant Buildings
• Ypsilanti Township Code of Ordinances
• Ypsilanti Township Property Maintenance Ordinance
• WEMU News: Michigan STR Legislation
• Piper Partners: Ann Arbor STR Regulations (Regional Reference)

Important Note: This guide is based on available information as of early 2025. Ypsilanti's STR regulations are actively being developed and may change significantly. Property investors should verify current requirements with local authorities before making investment decisions. The city is expected to adopt comprehensive STR ordinances following their subcommittee's research and recommendations, which may include more restrictive requirements than current practices.