Overview: STR Status in Frankfort, MI

Short-term rentals ARE ALLOWED in Frankfort, Michigan with specific regulations and permit requirements. The City of Frankfort has enacted a comprehensive Short-Term Rental Ordinance that permits STR operations while maintaining residential community character and ensuring public safety. The city regulates STRs through a permit system, with specific standards for occupancy, safety, parking, and compliance. Properties must comply with all applicable zoning, building, fire, and safety codes in addition to the STR-specific requirements.

How to Start a Short-Term Rental Business in Frankfort

Step 1: Property Verification and Zoning Compliance

Before acquiring or converting a property for STR use, verify that the property is located in a zoning district where STRs are permitted. According to the ordinance, STRs apply to all Zoning Districts, excluding hotels, motels, and units rented for less than 2 weeks per calendar year. Confirm that the property meets all applicable zoning requirements for density, parking, and land use.

Step 2: Understanding the Regulatory Framework

Review the City of Frankfort Short-Term Rental Ordinance (D-1 Ordinance STR - SIGNED.pdf), the Administration of STR Policy (Administration of STR Policy_Final 4-2023.pdf), and the Good Neighbor Guide (Good Neighbor Guide with Map 1-2023.pdf). These documents outline all requirements, standards, and expectations for STR operations.

Step 3: Insurance and Safety Preparation

Secure comprehensive liability insurance for STR operations. The ordinance requires proof of current STR insurance for the duration of the STR period. Prepare the property to meet all safety standards including smoke detectors, carbon monoxide detectors, fire extinguishers, and building capacity compliance as required by State of Michigan, Benzie County, and City of Frankfort safety standards.

Step 4: Permit Application Process

Complete the Short-Term Rental Registration form (STR Registration form 3-2024 FINAL.pdf) and submit it to the City of Frankfort. A separate permit is required for each STR dwelling unit. The Frankfort Fire Chief or designee is empowered to inspect any Short-Term Rental unit prior to the granting of an active Short-Term Rental Permit.

Step 5: Local Contact Person Designation

Designate a Local Contact Person who has access and authority to assume management of the unit and take remedial measures. The Local Contact Person must be available twenty-four (24) hours a day during the rental period and must be able to respond to tenant and neighborhood questions or concerns within one hour.

Step 6: Compliance Setup

Establish systems to ensure ongoing compliance with all ordinance requirements including occupancy limits, parking regulations, noise control, and waste management. Create a permanent binder of information materials including the "Good Neighbor Guide" to be displayed in the dwelling unit.

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Registration

• Short-Term Rental Permit: Required for each STR dwelling unit, issued annually with expiration at the end of each calendar year
• STR Registration Form: Complete registration form (STR Registration form 3-2024 FINAL.pdf) with all required supplemental documents
• Fire Inspection Approval: Fire Chief inspection approval required prior to permit issuance and every 3 years thereafter

Required Documentation

• Proof of Current STR Insurance: Liability coverage for the duration of STR period
• Local Contact Information: 24/7 availability contact details
• Maximum Occupancy Documentation: Based on legal bedrooms plus four additional individuals
• Property Safety Compliance Documentation: Smoke detectors, carbon monoxide detectors, fire extinguisher placement
• Parking Plan: Evidence of adequate off-street parking or designated municipal parking use

Safety Equipment Requirements

• Smoke detectors in each bedroom and common areas
• Carbon monoxide detectors on each level
• Fire extinguisher accessible to guests
• Emergency contact information posted
• Adequate lighting for safe egress
• Address clearly visible from the street

Reference Documents

• City of Frankfort Short-Term Rental Ordinance (D-1 Ordinance STR - SIGNED.pdf)
• Administration of STR Policy (Administration of STR Policy_Final 4-2023.pdf)
• Good Neighbor Guide (Good Neighbor Guide with Map 1-2023.pdf)
• City of Frankfort Municipal Code and Zoning Ordinance

Specific Regulations for Short-Term Rentals in Frankfort, MI

City-Level Regulations (Frankfort)

Core STR Standards

• Applicability: All STRs must comply with this ordinance in addition to other applicable city and county zoning ordinances
• Lodging Restrictions: All lodging must be exclusively within the dwelling unit; no lodging in recreational vehicles, campers, or tents
• Permit Requirement: Separate permit required for each STR dwelling unit
• Owner Limitations: Number of STR units operated by a single owner limited to three
• Zoning Coverage: Applies to all Zoning Districts, excluding hotels, motels, and units rented for less than 2 weeks per calendar year

Occupancy and Capacity Limits

• Sleeping Occupancy: Limited to two people per the number of legal bedrooms (as defined by State of Michigan/Benzie County/City of Frankfort Building Codes), plus four additional individuals
• Venue Restrictions: STRs shall not be marketed as special event venues (weddings, showers, parties exceeding building/room capacity)

Parking Requirements

• Primary Parking: Renters should utilize STR's off-street parking and/or off-site municipal parking before parking on the street
• Overnight Parking: Only allowed between April 1 and October 31 for on-street parking
• Designated Areas: Use designated municipal parking areas as shown on Good Neighbor Guide Map

Owner Responsibilities

• Safety Compliance: Owners must comply with all State of Michigan, Benzie County, and City of Frankfort safety standards
• Information Provision: Provide permanent binder with "Good Neighbor Guide" displayed in dwelling unit
• Conduct Management: Ensure occupants/guests do not create unreasonable noise, disturbances, or violate ordinance provisions
• Action Requirements: Take appropriate action to abate violative conduct when notified

Municipal Code Compliance Requirements

Owners must ensure renters comply with City of Frankfort Municipal Code standards including:

• Fires (Chapter 5, Article 2)
• Fireworks (Chapter 5, Article 13)
• Trash (Chapter 5, Article 6)
• Animals (Chapter 5, Article 11)
• Noise and Disturbances (Chapter 5, Article 4)

County-Level Regulations (Benzie County)

• County-level safety standards and building codes apply in conjunction with city requirements
• Benzie County regulations must be followed for all safety equipment and building compliance matters
• County zoning ordinances may have additional requirements that complement city STR regulations

State-Level Regulations (Michigan)

• Michigan Use Tax: 6% of gross rental receipts for stays under 30 days must be collected and remitted
• State Safety Standards: All State of Michigan safety standards related to smoke detectors, carbon monoxide detectors, fire extinguishers, and building capacity must be met
• Building Code Compliance: Properties must comply with Michigan Building Codes as adopted by local jurisdictions

Tax Obligations

• Michigan Use Tax (6% of gross receipts for stays under 30 days)
• Benzie County Accommodations Tax (2% of gross rental receipts)
• Any additional local taxes that may apply

State Safety Requirements

• Smoke detector requirements per Michigan Uniform Building Code
• Carbon monoxide detector requirements under Michigan law
• Fire extinguisher placement and maintenance standards
• Building capacity limits as defined by Michigan Building Codes

Enforcement and Violations

Violation Categories

The following conduct constitutes violations of the STR ordinance:

1. Advertising or leasing an STR without first obtaining an STR permit
2. Failure to comply with standard conditions specified in STR Standards section
3. Failure to comply with Owner Responsibilities provisions
4. Violation of any ordinance provisions
5. False or misleading information supplied in application process
6. Failure of owner/designated local contact person to be available 24/7 to respond to complaints within 60 minutes

Penalty Structure

• First Violation: Written notice and $50 fine
• Second Violation: Municipal civil infraction with $250 fine
• Third Violation: Municipal civil infraction with $500 fine and permit revocation
• Consecutive Violations: Permit revocation if violations occur during any three consecutive year period

Inspection Authority

• Fire Chief or designee empowered to inspect any STR prior to permit issuance
• Fire Chief or designee empowered to inspect active permitted STRs every 3 years
• Fire Chief or designee empowered to inspect any STR at any time when reasonable belief exists that a safety hazard exists

Contact Information for Local STR Authorities

City of Frankfort - Primary Contact

• Address: City Hall, 412 Main St., P.O. Box 351, Frankfort, MI 49635
• Phone: (231) 352-7117
• Email: sspencley@cofrankfort.net
• Hours: Monday - Friday: 8:00 a.m. until 5:00 p.m.
• Website: frankfortmich.com

Frankfort Fire Department

• Fire Chief: Designated official for STR inspections
• Contact: Through City Hall at (231) 352-7117

Zoning Administrator

• Authority: Authorized to issue all permits under STR ordinance
• Authority: Authorized to issue civil infraction violation notices and citations
• Contact: Through City Hall at (231) 352-7117

City Clerk/Treasurer Department

• Phone: (231) 352-7117
• Email: sspencley@cofrankfort.net
• Responsibility: STR permit applications and renewals

Benzie County Government

• Website: benzieco.net
• Contact: For county-level safety standards and building code compliance

Michigan Department of Treasury

• Phone: (517) 636-4486
• Website: michigan.gov/treasury
• Responsibility: State tax obligations and use tax compliance

Source Links and Document Access

City of Frankfort STR Document Center

• Main STR Information Page: www.frankfortmich.com/how_do_i/learn_about/short_term_rentals.php
• STR Ordinance (Final): www.frankfortmich.com/D-1 Ordinance STR - SIGNED.pdf
• STR Registration Form: www.frankfortmich.com/STR Registration form 3-2024_FINAL.pdf
• STR Administration Policy: www.frankfortmich.com/Administration of STR Policy_Final 4-2023.pdf
• Good Neighbor Guide: www.frankfortmich.com/Good Neighbor Guide with Map 1-2023.pdf

Supporting Documentation

• City Charter: Available at frankfortmich.com
• Municipal Code: Available at frankfortmich.com/government/municipal_code.php
• Zoning Ordinance: Available at frankfortmich.com/government/zoning.php
• Forms and Applications: www.frankfortmich.com/government/forms_and_applications.php

Additional Resources

• Frankfort-Elberta Area Chamber of Commerce: frankfort-elberta.com/
• Benzie County Government: www.benzieco.net/
• Benzie County Chamber of Commerce: www.benzie.org/

This comprehensive guide provides all necessary information for investors considering short-term rental operations in Frankfort, Michigan. The city maintains a balanced approach that allows STR investment while preserving neighborhood character and ensuring public safety through reasonable regulations and enforcement measures.