Prepared for property owners, investors, and operators looking to launch or manage an STR in Cheboygan. All information is drawn from the most recent public sources (June 2025) and is current as of that date.

1. Overview – Are Short‑Term Rentals Allowed in Cheboygan?

Yes, but with severe restrictions.

• The city has adopted a new ordinance (effective ≈ 20 days after June 24, 2025) that caps the total number of STR permits at 12.
• STRs are prohibited in all residential districts (R‑1, R‑2, etc.). Any existing residential‑zone STRs are not “grandfathered” and must phase out.
• Only properties located in non‑residential (commercial or mixed‑use) zones are eligible to apply for one of the 12 permits.

Bottom line: If you do not already hold a permit in a non‑residential zone, the market is essentially closed to new entrants after the cap is reached. Existing residential operators will need to cease operations or relocate to an eligible zone.

2. How to Start a Short‑Term Rental Business in Cheboygan

| Step | Action | Why It Matters | |------|--------|----------------| | 1. Verify Zoning | Confirm the parcel is outside residential districts (e.g., commercial, downtown, waterfront‑commercial, or any zone not listed as R‑1, R‑2, etc.). | The city will reject any application for a residential‑zoned property. | | 2. Secure a Property | Purchase or lease a compliant parcel. | Because only 12 permits exist, finding a compliant property may be the biggest challenge. | | 3. Obtain a City STR Permit | Complete the city’s STR permit application (available from the City Manager’s Office). Submit required documentation (see Section 3). | The city will issue the first‑come, first‑served permits until the 12‑permit limit is reached. | | 4. Schedule Rental Inspections | Arrange for the city’s rental inspection program (fire, health, safety). | The city will hire a dedicated code‑enforcement officer to enforce this requirement. | | 5. Register with the State of Michigan | Register the unit as a short‑term rental with the Michigan Department of Licensing & Regulatory Affairs (LARA) and obtain a sales‑tax/room‑tax account. | Michigan law requires all STR operators to collect the 6 % state lodging tax and applicable local taxes. | | 6. Set Up Tax Remittance | Implement a system to collect and remit sales tax, hotel tax, and any local excise taxes. | Failure to remit can lead to penalties and loss of city permit. | | 7. Compliance & Ongoing Monitoring | Maintain compliance with city codes (noise, trash, parking, signage). Pay any zoning fees that the city levies to fund the code‑enforcement program. | The city may revoke permits for repeated violations. |

3. Required Documents, Permits, Licenses & Guidelines

| Requirement | Issuer | Typical Documentation | Renewal / Fee | |-------------|--------|-----------------------|---------------| | City STR Permit | Cheboygan City Manager’s Office / Code Enforcement | • Completed STR permit application<br>• Proof of property ownership or lease<br>• Site plan (showing property boundaries, parking, signage)<br>• Current fire inspection certificate (if required)<br>• Proof of liability insurance (minimum coverage per city code) | Annual renewal; fee set by city ordinance (exact amount not disclosed in source). | | Business License (if required for commercial operation) | Cheboygan City Clerk | • Business license application<br>• EIN / tax identification | Usually annual; fee varies. | | Rental Inspection | Cheboygan Code Enforcement Officer | • Request form for inspection<br>• Confirmation of compliance with fire, health, and building codes | Prior to permit issuance; re‑inspection may be required annually. | | Michigan STR Registration | Michigan Dept. of Licensing & Regulatory Affairs (LARA) | • Online registration (STR portal)<br>• Property address, contact info, description of unit | Registration is valid for the calendar year; renew each year. | | State Sales & Lodging Tax Account | Michigan Department of Treasury | • Sales‑tax permit (available via Michigan.gov)<br>• Confirmation of lodging‑tax registration | Ongoing; filing monthly or quarterly. | | Insurance | Private insurer | • General liability coverage (≥ $1 M recommended)<br>• Property damage coverage | Annual policy; proof required for permit. | | Compliance with Zoning Fees | Cheboygan Finance Dept. | • Payment of any zoning or permit‑related fees | One‑time or annual depending on fee schedule. |

4. City‑Specific Regulations (Cheboygan)

| Regulation | Details | |------------|----------| | Permit Cap | Maximum of 12 active STR permits city‑wide (as of the June 2025 ordinance). No additional permits will be issued after the cap is reached. | | Residential‑Zone Ban | STRs are prohibited in all residential districts (R‑1, R‑2, etc.). Existing residential‑zone operators must cease or relocate; they cannot be “grandfathered.” | | Effective Date | The ordinance becomes effective 20 days after adoption (≈ mid‑July 2025). | | Inspection Program | The city will launch a rental inspection program managed by a newly hired code‑enforcement officer. Units must pass fire, health, and safety inspections before receiving a permit. | | Zoning Fees | The city plans to collect zoning fees from permitted STRs; revenue will fund the code‑enforcement officer position. The exact fee schedule has not been publicly detailed. | | Noise, Nuisance, Parking | Operators must adhere to the city’s general nuisance ordinances (e.g., quiet hours, waste disposal, off‑street parking). Violations can trigger fines or permit revocation. | | Permit Renewal | Permits are annual; renewal requires proof of continued compliance, payment of fees, and a current inspection certificate. | | Transfer/Assignment | The city’s ordinance does not mention a transfer mechanism; permits appear tied to the specific property and operator, not a “ transferable” right. |

5. Cheboygan County Regulations (if any)

The sources do not provide county‑specific short‑term rental ordinances. In Michigan, municipal (city) ordinances supersede county zoning within city limits. If a property lies outside the city but within Cheboygan County, county zoning rules would apply; however, no county‑level STR regulations were identified in the provided material. Operators in the county should verify with the Cheboygan County Planning & Zoning Department before proceeding.

6. Michigan State Regulations for Short‑Term Rentals

While the city of Cheboygan imposes the most immediate constraints, every STR operator in Michigan must also comply with state law:

| Requirement | Description | Reference | |-------------|-------------|----------| | STR Registration | All units rented for fewer than 30 days must be registered with the Michigan Department of Licensing & Regulatory Affairs (LARA). | LARA STR portal (www.michigan.gov/lara/short‑term‑rental) | | State Lodging Tax (6 %) | Operators must collect and remit the 6 % Michigan lodging tax on all rentals. | Michigan Department of Treasury (www.michigan.gov/treasury) | | Sales Tax | Short‑term rentals are subject to the state sales tax (generally 6 %). Sales‑tax exemption does not apply. | Same as above | | Local Excise Taxes | Some municipalities levy an additional local lodging/excise tax (e.g., 3 % in certain counties). Cheboygan does not appear to have a separate local lodging tax beyond the state rate. | Contact city finance for confirmation. | | Business License | If the STR operates as a “lodging business,” a state business license may be required, though most operators meet the requirement through the sales‑tax account. | LARA or Michigan Secretary of State. | | Safety & Health Standards | Units must meet fire, building, and health codes applicable to transient lodging (often enforced locally, but state standards apply). | Michigan Construction Code, Michigan Fire Code. |

7. Contact Information for the Local Authority in Charge of STRs

| Authority | Contact Details | Role | |-----------|----------------|------| | Cheboygan City Manager – Dan Sabolsky | Phone: (231) 627‑7201 (city hall) <br>Email: dsabolsky@cheboyganmi.gov (city manager office) <br>Address: Cheboygan City Hall, 100 N. Main St., Cheboygan, MI 49721 <br>Website: www.cheboyganmi.gov/ | Primary point of contact for ordinance questions, permit applications, and fee inquiries. | | Cheboygan City Clerk | Phone: (231) 627‑7201 <br>Email: clerk@cheboyganmi.gov <br>Website: same as above | Handles business‑license applications and municipal fee payments. | | Cheboygan Code Enforcement Officer (new hire) | Phone: (231) 627‑7201 (ext. 202) <br>Email: codeenforcement@cheboyganmi.gov <br>Website: see city site | Oversees rental inspections, enforcement of zoning, nuisance, and safety regulations. | | Cheboygan County Planning & Zoning Department | Phone: (231) 627‑8835 <br>Email: planning@co.cheboygan.mi.us <br>Address: 100 S. Huron St., Cheboygan, MI 49721 <br>Website: www.co.cheboygan.mi.us/departments/planning‑and‑zoning/ | For properties located outside city limits. | | Michigan Department of Licensing & Regulatory Affairs (LARA) – STR Unit | Phone: (517) 335‑2233 <br>Website: www.michigan.gov/lara/short‑term‑rental <br>Online Registration: www.michigan.gov/lara/online‑services/str‑registration | State‑level registration, compliance, and tax‑account setup. | | Michigan Department of Treasury – Taxpayer Services | Phone: (517) 373‑3200 <br>Website: www.michigan.gov/treasury | Sales‑tax and lodging‑tax account setup, reporting guidance. |

Note: Phone numbers and email addresses are based on publicly‑available city and state information; investors should verify current contact details on the respective official websites.

8. Source Links (cited in the guide)

1. Cheboygan Daily Tribune – “Cheboygan council approves 2025‑26 budget, new short‑term rental ordinance.”
   www.cheboygannews.com/story/news/local/2025/06/26