Overview: Are Short-Term Rentals Allowed?

YES — Short-term rentals are allowed in Higgins Lake, MI (Lyon Township), but only under a strict licensing framework.

Lyon Township (Roscommon County) explicitly permits short-term rentals through Ordinance #65, adopted to protect public health, safety, and neighborhood character. However, the township has implemented comprehensive regulations including licensing requirements, occupancy limits, separation distances between STRs, and mandatory septic system compliance. The ordinance requires property owners to obtain a non-transferable annual license and comply with numerous operational requirements.

How to Start a Short-Term Rental Business

Step 1: Verify Eligibility

• Ownership Requirement: Only property owners can obtain an STR license
• One License Per Person Rule: No individual or entity may hold more than one STR license at a time
• Compliance Check: Ensure your property meets all zoning and deed restrictions

Step 2: Prepare Documentation

Gather all required materials before applying:

• Property deed and ownership verification
• Current septic system inspection documentation
• Floor plans showing bedroom configurations
• Site plan with parking layout
• Compliance photos (junk/garbage ordinance)

Step 3: Designate Local Agent

Appoint a Local Agent who must:

• Reside within 60 minutes of the property
• Be available 24/7 to respond to issues
• Have access to the property and keys
• Provide a list of all properties they manage in Lyon Township

Step 4: Submit Application

Apply to Lyon Township with complete documentation and required fees

Step 5: Maintain Compliance

• Conduct at least one rental per year to maintain license
• Post required information in the rental unit
• Maintain septic system according to Township schedule
• Respond to violations within 2 hours

Required Documents, Permits, and Licenses

Essential Licensing Documents:

1. Short-Term Rental License Application (annual renewal required)
2. Ownership Affidavit (if applicant is not owner)
3. Local Agent Designation Form
4. Proof of Ownership (deed verification)
5. Septic System Documentation from Roscommon County Health Department or qualified inspector

Site Documentation:

6. Floor Plan Drawing showing bedroom locations and count
7. Premises Drawing showing all buildings and parking areas
8. Off-Street Parking Verification
9. Deed Restrictions/Covenants disclosure
10. Shared Access Consent (if on private road/easement)

Compliance Documentation:

11. Higgins Lake Utilities Authority compliance verification
12. Lyon Township Sewer Ordinance compliance
13. Photo Documentation of property compliance with Junk & Garbage Ordinance #22

Fees:

• Application Fee (amount set by Township Board resolution)
• Annual License Fee (amount set by Township Board resolution)
• Renewal Fee (due 30 days before expiration)

Specific Regulations

Occupancy Limits

• Maximum Occupancy: 2 occupants per bedroom + 4 additional occupants
• Absolute Maximum: 12 occupants (no exceptions)
• Visitors: Limited to total number of occupants
• No Temporary Dwellings: Campers, RVs, tents not permitted for additional occupancy

Physical Requirements

• 500-Foot Separation: No STR within 500 feet of another licensed STR
• Private Road Access: Requires written consent from all residents on same private road
• Address Compliance: Must follow House Number Display Ordinance #47
• Basement/Attic: Only permitted with full building, fire, and residential code compliance

Safety Requirements

• Smoke Detectors: Required in each bedroom, tested every 90 days
• Carbon Monoxide Detectors: Required on each floor (MCL 125.1504 compliant)
• Fire Escape Plan: Must be graphically displayed in each bedroom
• Fire Extinguishers: Minimum one per unit, visible location, regularly tested
• First Aid Kit: Required and regularly restocked

Operational Restrictions

• No Special Events: Outdoor parties, weddings, receptions exceeding occupancy limits prohibited
• Pet Management: Pets must be leashed or confined, noise restrictions apply
• Fireworks: Must comply with Lyon Township Fireworks Ordinance #61
• Parking: All vehicles must remain on property, not on roads or right-of-way
• Annual Rental Requirement: Must conduct at least one rental per year

Septic System Requirements

• Proper Functioning: Must meet Roscommon County Health Department standards
• Higgins Lake Utilities Authority compliance required
• Lyon Township Sewer Ordinance compliance required
• Documentation Schedule: Township Board will establish inspection frequency
• Holding Tank Pumping: Regular documentation required

Local Agent Responsibilities

• 24/7 Availability: Must respond to calls from occupants, neighbors, and Township representatives
• Physical Presence: Capable of arriving at property within 60 minutes
• Property List: Must provide Township with all properties managed in Lyon Township

Required Postings (Inside Property)

• Local Agent name and 24-hour phone number
• Owner name and 24-hour phone number
• Property street address
• Maximum occupancy limit
• Parking instructions
• Copy of STR Ordinance
• Violation notification warning

Neighbor Notification Requirements

Mail or deliver to all immediate neighbors:

• Copy of STR Ordinance
• Property address and maximum occupancy
• Names and 24-hour phone numbers of Owner and Local Agent

Enforcement and Penalties

Violation Response

• Notification Method: Phone call or return receipt email
• Response Time: 2 hours to remedy violations
• Continued Violations: Each day constitutes separate violation

Penalties

• Civil Infraction: $500 per violation plus Township fees and costs
• Multiple Parties: Occupants, visitors, owners, and agents may all be fined
• License Revocation: Violations may result in license suspension or revocation

License Revocation Process

• Notice: Township Ordinance Enforcement Officer issues revocation notice
• Hearing Rights: Owner has 14 days to request hearing before Township Board
• Reinstatement Hearing: Owner may demonstrate error or extenuating circumstances
• One-Year Ban: After revocation, property cannot be re-licensed for one year

License Transfer Restrictions

• Non-Transferable: Licenses become void upon attempted transfer
• Ownership Change: New owner must obtain new license before resuming operations
• Defined Transfers: Includes property sale, corporate ownership changes, or trust modifications

Contact Information

Lyon Township

• Address: 7851 W. Higgins Lake Dr., Higgins Lake, MI 48653
• Website: www.lyontownship.org
• Township Supervisor: Larry Maduri
• Township Clerk: Doug Schnell

Local Authorities

• Roscommon County Health Department: For septic system inspections
• Higgins Lake Utilities Authority: For utilities compliance
• Higgins Lake Land Conservancy: Community oversight organization

Key Departments

• Ordinance Enforcement: Contact Township for violation reports
• Building Department: For code compliance questions
• Septic Inspector: Required for license applications

Important Considerations for Investors

License Availability

• Cap System: Township Board establishes maximum number of STR licenses
• First-Come-First-Served: Applications processed in order received
• Public Notice: Township will notify public when licenses become available
• Existing Non-Conforming: Properties operating as STRs may claim legal non-conforming use rights

Community Position

The Higgins Lake Land Conservancy actively advocates for:

• Lakefront STR Limitations: Restricting lake-front rentals to two weeks per season
• Local Ownership: Requiring Roscommon County residents to own/operate STRs
• Environmental Protection: Limiting total STR numbers to protect watershed ecosystem
• Enhanced Inspection Programs: Regular septic system and compliance inspections

Market Considerations

• High Demand: Higgins Lake is a premium tourism destination
• Seasonal Focus: Peak rental season primarily summer months
• Competition: Large existing inventory of STRs may constitute legal non-conforming uses
• Regulatory Evolution: Both Lyon and Gerrish Townships are developing STR ordinances

Source Links

• Lyon Township Short-Term Rental Ordinance #65: https://lyontwp-higginsmi.gov/wp-content/uploads/2024/06/2024.05.10-Short-Term-Rental-Ordinance-.pdf
• Higgins Lake Land Conservancy STR Position: https://www.higginslakelandconservancy.com/short-term-rentals.html
• Lyon Township Official Website: www.lyontownship.org

Note: This guide reflects regulations as of 2024-2025. STR regulations are evolving rapidly, and investors should verify current requirements with Township authorities before making investment decisions.