OVERVIEW: STRs ARE ALLOWED IN LEXINGTON, MI

Short-term rentals are permitted in Lexington, Michigan, but with specific restrictions and requirements. The Village of Lexington has adopted comprehensive regulations that balance the need for short-term lodging with maintaining the character of residential neighborhoods. STRs are allowed in commercial districts without additional requirements, while residential districts require conditional use approval and registration.

How to Start a Short-Term Rental Business in Lexington, MI

Step 1: Determine Your Property's Zoning District

• Permitted without restrictions: Central Business District (CBD) and General Commercial District (GC)
• Permitted as conditional use with registration required: Single Family Residential District (R-1A), Single Family Residential District (R-1B), Corridor Mixed Use (C-MU), and Gateway Mixed Use (G-MU)
• Prohibited: All other districts

Step 2: Verify Zoning Compliance

• Confirm your property is in an approved district
• If in a residential district (R-1A, R-1B, C-MU, G-MU), prepare for conditional use approval process
• Review Zoning Ordinance Section 5.25 for specific requirements

Step 3: Apply for Registration (if in residential districts)

• Complete the STR registration application
• Submit required documentation
• Pay applicable fees

Step 4: Maintain Compliance

• Renew registration annually
• Adhere to operational requirements
• Keep records of STR activity

Required Documents, Permits, Licenses, and Guidelines

For Properties in Residential Districts (R-1A, R-1B, C-MU, G-MU):

Required Registration Documents:

1. STR Registration Application - Available from Village office and website
2. Proof of STR Activity - Documentation showing the dwelling was used as a short-term rental within the previous 18 months, such as:
   • Income reported on tax returns
   • Advertisements on platforms like VRBO or Airbnb
3. Secondary Contact Information - Name and phone number
4. Designated Agent Information (if owner doesn't reside within 100 miles):
   • Agent must live or work within 30 miles of village
   • Name, phone number, address, and email required
5. Registration Fee - $200 (cash or check payable to Village of Lexington)
6. Annual Renewal - $25 fee (due in November)

For Properties in Commercial Districts (CBD, GC):

• No specific registration or permits required under current STR regulations
• Must still comply with general zoning and business requirements

Key Guidelines:

• Maximum number: 20 short-term rentals total village-wide
• Spacing requirement: Minimum 250 feet between STR properties
• Activity threshold: Must rent for less than 30 days at least 3 times per year
• Operational requirements governed by Zoning Ordinance Section 5.25

Specific Regulations for Short-Term Rentals

Village of Lexington (City-Level) Regulations:

Zoning Districts:

• CBD and GC Districts: Permitted without additional STR requirements
• R-1A, R-1B, C-MU, G-MU Districts: Conditional use permit required plus registration
• All other districts: Prohibited

Operational Limits:

• Maximum of 20 STR properties village-wide
• Minimum 250 feet between properties
• Must operate for less than 30-day terms
• Must rent at least 3 times per year to qualify as STR

Registration Requirements:

• Initial registration: $200
• Annual renewal: $25 (due in November)
• Proof of use: Must demonstrate STR activity within previous 18 months
• Grace period: Properties operating between 2017-July 2018 that registered by July 31, 2018, were considered "established" until sold or registration lapses

Penalties:

• First violation: $750 fine
• Subsequent violations: $1,000 fine each

County-Level Regulations:

No specific county-level STR regulations identified in provided content

State-Level Regulations:

No specific state-level STR regulations identified in provided content

Contact Information for Local Authority

Village of Lexington Department: Zoning & Development Phone: [Contact village office for specific number] Email: [Contact village office for specific email] Website: villageoflexington.com

Key Documents Available:

• Short-term rental registration applications
• Zoning Ordinance Section 5.25
• Annual renewal forms
• Permit applications

Office Location: Village Hall, Lexington, MI Business Hours: Contact village office for current hours

Links to Source Pages

1. STR Owner Information Document: villageoflexington.com/wp-content/uploads/2021/11/Short-term-information.pdf

2. STR Information for New Rentals (2021): villageoflexington.com/wp-content/uploads/2021/11/Information-on-new-short-term-rentals-2021.pdf

3. Village Website - STR Section: villageoflexington.com/residents/

4. STR Registration Application: villageoflexington.com/wp-content/uploads/2021/11/Application-for-new-Short-Term-Rentals.pdf

5. STR Renewal Form: villageoflexington.com/wp-content/uploads/2021/11/STR-Renewal-form-2021-002.pdf

6. Village Main Website: villageoflexington.com

Important Notes for Investors:

• The 250-foot spacing requirement and 20-property maximum create limited availability
• Properties in commercial districts offer the easiest path to operation
• Annual renewal is mandatory with proof of recent STR activity
• Consider the local market dynamics, particularly the concentration of STRs east of M-25
• Bed and breakfast operations are subject to different regulations under Zoning Ordinance Section 5.20