Harbor Springs, Michigan Short Term Rental Regulations Guide for Airbnb hosts

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

YES — Short-term rentals are explicitly allowed in Harbor Springs, Michigan, but only with proper licensing.

The City of Harbor Springs permits the rental of residential properties on a short-term basis (30 days or less) through a structured licensing program. The city has instituted this licensing process to ensure that short-term rentals can operate while maintaining the community's cherished values and neighborhood character. Operating a short-term rental without a license is prohibited and subject to fines and legal action.

What do Airbnb hosts actually earn in Harbor Springs?

Harbor Springs hosts earn a median $35,137/year with $341 ADR and 50% occupancy.

Top performers pull in $50,859+ per year.

See the full Harbor Springs market breakdown

How to Start a Short-Term Rental Business in Harbor Springs

Step 1: Verify Zoning Compliance

Before proceeding, confirm your property is located in an area where short-term rentals are permitted. The city has implemented different rules for different zoning districts:

Single-family housing districts: Limited to 61 licenses with a waitlist system
Multi-family and business districts: Unlimited licenses available

Step 2: Designate a Local Agent

Every short-term rental must have a designated Local Agent who:

Is available 24/7 during all rental periods
Can respond to the property within 60 minutes to address issues
Has a key to the dwelling unit
Is authorized to accept service of process on behalf of all property owners
Must be approved by the City Clerk prior to license issuance

Step 3: Complete Annual License Application

Submit a completed application for each dwelling unit you plan to rent short-term. Applications must be filed annually on a calendar-year basis.

Step 4: Pay Required Fees

Submit the annual administrative fee of $400 per license (as noted in the application form).

Step 5: Maintain Compliance

Once licensed, ongoing compliance with all city regulations, posting requirements, and annual renewals is mandatory.

Required Documents, Permits, Licenses, and Guidelines

Primary License

Short-Term Rental License (annual, expires December 31 each year)
Application available through City Hall or online
Must be renewed each calendar year

Required Documentation

Completed Application Form including:
- Property owner information (names, addresses, phone numbers)
- Local Agent information (name, address, phone, email)
- Property address and identification details
- Time periods when rental will be available
Local Agent Designation and Authorization
Signed Affirmations and Acknowledgments stating compliance with all applicable codes
Payment of Annual Administrative Fee ($400)

Post-License Requirements

Window/Door Notice (16-point type minimum) displaying:
- Local Agent name
- 24-hour contact number
Interior Acknowledgments confirming understanding of:
- No signage advertising the STR
- Building safety code compliance
- Trash/recycling management protocols
- Parking restrictions
- Insurance coverage disclosure
Posted Regulations inside the rental property for guest review

Specific Regulations for Short-Term Rentals in Harbor Springs

License Limits by Zoning

Single-Family Districts: Maximum 61 licenses with first-come, first-served waitlist
Multi-Family and Business Districts: Unlimited licenses

Operational Requirements

Local Agent Obligations

Must be designated and City Clerk-approved prior to license issuance
Available 24/7 during all rental periods
Must respond to property within 60 minutes
Authorized to accept service of process for all owners

Posting Requirements

Prominent first-floor window/door posting with Local Agent name and 24-hour phone number
Must use at least 16-point font
City-provided notice format required

Noise and Nuisance Control

Quiet Hours: 11:00 PM to 7:00 AM daily
Noise must not disturb reasonable persons of normal sensitivities
Must comply with City Code Sections 60.111(2), 60.400-60.411, and 90.101(23)-(24)
Residential district noise limit: 70 decibels measured at property boundary

Trash and Recycling Management

Containers may only be placed curbside on scheduled pickup days
All trash must be in enclosed containers
No littering permitted
Containers must be removed from curb and stored out of sight after emptying
Must use licensed commercial trash/recycling services

Pet Regulations

Guests must comply with pet waste pickup requirements
Must follow City leash laws (Section 60.110)
No specific pet restrictions beyond general city ordinances

Fireworks Restrictions

No fireworks allowed on rental property except as permitted under Section 90.101(4)
Consumer fireworks prohibited except on day before, day of, and day after federal holidays
Low-impact fireworks permitted with restrictions
Age restrictions apply (no persons under 18 may use fireworks)
No fireworks on public property without explicit permission

Parking Requirements

All guest vehicles must park on the rental property premises
No obstruction of public parking locations permitted

Building and Safety Compliance

Must meet all applicable residential building codes
Must comply with Emmet County Building Department requirements (smoke detectors, carbon monoxide detectors, fire suppressors, egresses)
Must meet health department regulations
Must comply with all nuisance and safety codes

Annual Renewal Process

All licenses expire December 31 annually
Must reapply each year regardless of previous approvals
License holders with multiple properties must apply separately for each unit
Death of license holder: successor must reapply and join waitlist

Violation Penalties and Enforcement

Civil Infractions

First offense: $250 fine
Second offense: $400 fine
Subject to Michigan Municipal Civil Infractions Act (MCL 600.8701 et seq.)

License Suspension/Revocation

First violation (within 12-month period): Up to 30-day suspension
Second violation (within 12-month period): 60-day suspension
Third violation (within 12-month period): License revocation proceedings

Enforcement Process

Written notice of charges
21-day notice before hearing
Opportunity to be heard
Suspension or revocation based on findings

Unlicensed Operation

City monitors online platforms for unlicensed rentals
Relies on resident reporting for word-of-mouth rentals
One warning issued before legal action
Sufficient evidence required before court proceedings

State-Level Requirements (Michigan)

Use Tax Obligations

6% state use tax required on all accommodations under 30 days
Airbnb collects and remits this tax automatically
Vrbo does not collect use tax — owners must remit directly
Owner responsible for collecting/remitting taxes from all non-Airbnb platforms

State Fireworks Safety Act Compliance

Must comply with Michigan Fireworks Safety Act (Act 256 of 2011)
City regulations are more restrictive than state minimums
State law allows consumer fireworks on federal holidays and day before/after

Contact Information for Local STR Authorities

Primary Contact

Jeff Grimm, City Assessor/Zoning Administrator

Phone: (231) 526-2104
Email: assessor@cityofharborsprings.com
Responsible for: License applications, renewals, compliance questions

City Hall (General Information)

Address: 160 Zoll Street, Harbor Springs, MI 49740
Phone: (231) 526-2104
Hours: 8:30 AM to 4:30 PM, Monday-Friday

Other Relevant City Departments

Billing Questions: (231) 526-0602
Electric Department: (231) 526-2122
Water Department: (231) 526-0604
Police Department: (231) 526-6211
Harbormaster: (231) 526-5355

Online Resources

City Website: www.cityofharborsprings.com
STR Program Page: Harbor Springs Short Term Rental Program

Source Links

Official City Documents

Additional Resources

Important Note for Investors: Harbor Springs has implemented a comprehensive regulatory framework that balances rental opportunities with community preservation. The city actively monitors compliance through online platform monitoring and resident reporting. Success in this market requires careful attention to all regulations, strong local agent relationships, and proactive neighbor relations.

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Ask the AI Advisor about Harbor Springs

Harbor Springs is a small resort city in Emmet County in the northwestern Lower Peninsula of Michigan, with a population of approximately 1,200 residents. It sits on the sheltered harbor of Little Traverse Bay, an arm of Lake Michigan, and is best known as a refined summer getaway and the northern gateway to the Tunnel of Trees, a scenic byway often cited among the most beautiful drives in the Midwest. The town lies about 15 miles north of Petoskey, with Traverse City roughly 100 miles to the south and Grand Rapids approximately 200 miles to the south-southwest.

One of the region's signature attractions begins right at the edge of town. M-119, known as the Tunnel of Trees, is a roughly 20-mile scenic byway that winds south from Harbor Springs along bluffs overlooking Lake Michigan, passing through a dense canopy of hardwoods and cedars before reaching the tiny community of Cross Village. The route is dotted with lake overlooks, small art studios, and the well-known Legs Inn, a stone-and-timber restaurant at the southern end of the drive.

Just south of Harbor Springs along Little Traverse Bay, Petoskey State Park offers a broad sandy beach, forested campgrounds, and the rocky Lake Michigan shoreline that draws visitors hunting for the Petoskey stone, the state stone and a fossilized coral found along the local beaches. The park lies about a 10-minute drive from the city center and is a popular summer destination for swimming, picnicking, and trail walking.

Harbor Springs is also home to Boyne Highlands, one of Michigan's largest ski and golf resorts, located a few miles inland from the city. The resort offers downhill and cross-country skiing in winter and championship golf in spring and summer, along with dining and spa facilities that draw visitors year-round. The nearby Nub's Nob ski area, a family-run operation, complements the winter scene and adds to the town's appeal as a four-season destination.

Downtown Harbor Springs retains much of its 19th-century character, with brick storefronts, locally owned shops, and restaurants lining a short main street that descends toward the working harbor. The marina, sandy beaches, and walking paths along the waterfront give the town a relaxed, walkable feel that contrasts with the more developed resort areas nearby. The Andrew J. Blackbird Museum, located in a small downtown building, preserves the history of the Odawa people of the region.

Harbor Springs offers a compelling combination of natural beauty, four-season recreation, and small-town charm that translates well to the short-term rental market. Its position on Lake Michigan, easy access to Petoskey and the Tunnel of Trees, and a strong winter ski season mean that demand spans all four seasons. For owners, the mix of historic architecture, lakefront settings, and a steady flow of visitors seeking an upscale Up North experience makes the area a particularly attractive place to invest.