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

Yes, short-term rentals are explicitly allowed in East Tawas, Michigan. The City of East Tawas adopted Ordinance No. 359 on December 5, 2022, which became effective December 26, 2022, to begin regulating and permitting short-term rental operations within city limits. This ordinance explicitly defines short-term rentals as the commercial use of renting a dwelling unit, or portion thereof, for a period less than thirty-one (31) consecutive days, and establishes a comprehensive regulatory framework to govern these operations.

How to Start a Short-Term Rental Business in East Tawas

Step 1: Zoning Compliance Assessment

Before proceeding with any investment, investors must first determine whether their intended property location allows short-term rentals:

Permitted Use Districts (No Special Permit Required):

• Highway Service Commercial District (HSC)
• Waterfront District (WF)
• Central Business District (CBD)

Special Use Districts (Special Permit Required):

• High-Density Residential District (HDR)
• Medium Density Residential District (MDR)
• Multifamily Residential District (MFR)
• Office Service Commercial District (OSC)
• Tawas Lake Waterfront Residential District (TLWFR)

Prohibited Districts:

• Low Density Residential (LDR)
• Industrial (I)
• Light Industrial (LI)

Step 2: Permit Availability Check

As of the most recent update, East Tawas has reached its maximum capacity of 30 short-term rental permits in special use districts. The city maintains a webpage that tracks permit availability, and new applications will only be accepted when permits become available.

Step 3: Application Submission Process

1. Complete Application Form: Submit the official short-term rental application form
2. Site Inspection: City Zoning Administrator will conduct a site visit to verify parking, waste collection, signage, and exterior conditions
3. Document Review: All required documentation will be reviewed
4. Permit Issuance: Upon approval, receive certificate of registration

Step 4: Annual Renewal Process

• Permits expire one year from issuance date
• Renewals can be submitted 30 days prior to expiration
• Permit holders in good standing receive priority for renewals

Required Documents, Permits, Licenses, and Guidelines

Required Permits and Fees

Application Fees:

• Application Fee: $50.00 (non-refundable) per property
• Registration Fee: $500.00 per unit
• Complaint/Non-compliance Inspection Fee: $50.00 per inspection

Permit Characteristics:

• Valid for one year from issuance
• Required for each short-term rental unit
• Must be obtained before advertising the property
• Not transferable with property sale
• Must be displayed prominently within 5 feet of front door

Required Documentation

Application Form Requirements:

• Complete property information including address and number of rental units
• Type of dwelling (single-family, duplex, multiple-family, mixed-use)
• Property tax ID number
• Number of bedrooms and maximum occupancy
• Floor plan and parking plan

Owner Information:

• Name of all owners of record
• Driver's license number or corporate ID number
• Permanent address and contact information
• Owner's signature

Local Agent Authorization:

• Designation of local agent if owner resides more than 30 miles outside city limits
• Agent must live within 30-mile radius of East Tawas
• Agent contact information and authorization forms
• Agent signature accepting responsibility

Required Affidavits:

• Owner acknowledgment of ordinance provisions
• Compliance with local, state, and federal laws
• Responsible local agent authorization/appointment

Health and Safety Requirements

Fire Safety Standards:

• Smoke detectors in accordance with state construction code
• Carbon monoxide detectors as required
• Fire extinguishers properly installed and maintained
• Compliance with City of East Tawas and State Construction Code

Waste Management:

• Proper refuse disposal using commercial waste hauler (additional to residential service)
• Storage in tight-fitting lid containers
• Placement for pickup only on designated collection days

Specific Regulations for Short-Term Rentals

Occupancy Limits

Maximum occupancy is determined by the lesser of:

• Two occupants per bedroom plus two additional occupants
• 12 occupants for parcels under one acre
• 16 occupants for parcels over one acre

Operational Restrictions

Prohibited Activities:

• Signage advertising the short-term rental
• Special events (outdoor parties, weddings, family reunions)
• Use of recreational vehicles for housing occupants
• Fireworks (regulated by Michigan Fireworks Safety Act)

Local Agent Requirements:

• Must live within 30 miles of the property
• Available 24 hours while property is occupied
• Must respond to issues within 60 minutes
• Authorized to take remedial measures

Waste Disposal:

• Commercial waste service required beyond residential collection
• Proper container storage with tight-fitting lids
• Designated pickup day compliance only

Noise and Nuisance Regulations

Prohibited Noise Activities:

• Sound reproduction devices at unreasonable volumes
• Animal noise that disturbs comfort and repose
• Vehicle noise including screeching tires or inadequate mufflers
• Shouting or raucous behavior for unreasonable periods

Good Visitor Guidelines:

• Must be provided to all occupants
• Summary of city ordinances and penalties
• Reminder about residential neighborhood context
• Contact information for local agent and police

Parking Requirements

• Only designated parking spaces may be used
• Includes garages, carports, parking bays, and driveways
• Does not include yards or street right-of-way
• Maximum vehicle count must be specified in application

Pets Policy

• All pets must be confined on property or leashed
• Prohibited if causing frequent or continued noise disturbances
• Subject to noise ordinance enforcement

State-Level Regulations (Michigan)

Use Tax Requirement:

• 6% use tax on total rental amount including cleaning and service fees
• Required to be paid to Michigan Department of Treasury

Fireworks Regulations:

• Governed by Michigan Fireworks Safety Act (PA 256 of 2011, as amended)
• Prohibited fireworks activities within city limits

Construction Code Compliance:

• Must meet State Construction Code requirements
• Includes building, residential, and fire code standards
• Egress requirements for basement and attic bedrooms

Enforcement and Penalties

Violation Penalties

Operating Without a Permit:

• First violation: Notice of Violation via certified mail
• Second violation: $750 municipal civil infraction
• Third violation: $1,500 municipal civil infraction
• Subsequent violations: $5,000 municipal civil infraction

Other Violations:

• First violation: Notice of Violation via certified mail
• Second violation: $500 municipal civil infraction
• Subsequent violations: $1,000 municipal civil infraction

Permit Revocation Process

Revocation Triggers:

• Three separate violation incidents on three separate days within one calendar year
• Process includes written notice, 14-day response period, and City Council hearing

Revocation Consequences:

• 36-month waiting period before reapplication
• Permanent prohibition after two revocations for same property
• Existing permits in good standing may continue

Enforcement Costs

All violators are liable for enforcement costs including attorney fees and court costs, which may constitute a lien against the property.

Contact Information for Local Authority

City of East Tawas

• Address: 760 Newman Street, East Tawas, MI 48730
• Phone: 989-362-6161
• Fax: 989-362-6736
• Website: www.easttawas.com

Zoning Administrator

• Responsible for permit issuance and enforcement
• Located within City Hall
• Contact through main city phone number

Iosco County Building Department

• Building permits and inspections
• Website: www.iosco.net/departments/clerk/

Source Links

City of East Tawas Official Resources:

• Short-Term Rentals Main Page
• Code of Ordinances
• Ordinance No. 359 - Short-Term Rental Ordinance
• Short-Term Rental Application Form
• Application Checklist
• Good Visitor Guidelines

Additional Resources:

• Ordinance No. 360 - Zoning Amendments
• City of East Tawas Zoning Map
• Fee Schedule

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Important Note for Investors: East Tawas maintains a competitive permitting system with only 30 permits available in special use districts. As of the latest information, no permits are currently available. Investors should regularly check the city's webpage for availability updates and consider properties in permitted districts (HSC, WF, CBD) for immediate investment opportunities.