Get Legal Advice Before Listing Your Lake House as a Short-Term Rental Since the short-term rentals violated the restrictive covenants within the lake house's deed, the neighbor could prevent the property owner from posting her lake house as a vacation rental. Similarly, the ban on commercial use included short-term rentals since the homeowner was making money from renting out her property. The lake house had a restrictive covenant in the deed limiting its use to "private occupancy" and prohibiting "commercial use." The judges in that case said that short-term rentals are not a residential purpose, since the people who visit never intend to be there permanently. In another Michigan case, Eager v Peasley, one neighbor sued another after she began renting her lake house on. Restrictive covenants are enforceable as long as they don't discriminate against specific categories of people. These restrictive covenants and the homeowners associations that enforce them could have rules against establishing short-term rentals on the property. Many properties that are sold as part of a homeowners' association have a " restrictive covenant" written into the deed, limiting the use of the property. Once you determine whether your city, township, or municipality allows short-term rentals, you need to look closer - at the deed to your property. Restrictive Covenants in Homeowners' Deeds The judges in that case said that the term single-family dwelling "unambiguously excludes transient or temporary rental occupation." That meant the property owner was already violating the zoning laws before the explicit ban on short-term rentals was passed. In at least one Michigan case, Reaume v Spring Lake Township, the court didn't even require the ordinance to be on the books before rentals began. If your property is zoned as residential, these local ordinances could make it illegal for you to list your home on VRBO or other short-term rental sites.
These new zoning laws may specifically ban or restrict the use of single-family dwellings as short-term rentals. Many Michigan municipalities have updated their zoning ordinances in the face of increasing use of AirBnB and similar websites. The first step in determining whether you can turn your lake house into a short-term rental is to look at where it is located. Local Ordinances Against Short-Term Rentals The answer depends on the local ordinances, and the language in your deed. That could lead you to wonder whether you can turn your Michigan lake house into a short-term rental through sites like AirBnB, VRBO, or. These homes away from home can provide a great get away, but they often sit empty for months of every year. Many Michigan families own property up north or on the lakeshore.
If 20 have taught us anything, it is how important it is to get away from home sometimes.
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