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

Yes, short-term rentals are explicitly allowed in Manistee, Michigan under the newly adopted Chapter 868 of the City Code of Ordinances. However, the city has implemented a comprehensive regulatory framework that balances tourism interests with residential neighborhood protection. Manistee has established a cap of 165 short-term rental registrations outside designated overlay districts, with no limit within specific tourism overlay zones. The city adopted its STR ordinance in July 2025, creating one of the more moderate regulatory approaches in Michigan compared to neighboring communities.

How to Start a Short-Term Rental Business in Manistee

Starting an STR business in Manistee requires a systematic approach that includes compliance with registration requirements, safety inspections, and ongoing operational standards. The process begins with property qualification, followed by application submission, inspection completion, and compliance with all ongoing regulatory requirements.

Step 1: Property Qualification

Before applying, ensure your property qualifies under Manistee's STR regulations:

• Confirm your property is located within city limits
• Verify compliance with all zoning requirements
• Ensure the property meets minimum dwelling size requirements
• Check if your location falls within the STR cap limits (165 units outside overlay districts)
• Determine if your property is within an overlay district (which has no cap)

Step 2: Application Preparation

Gather all required documentation and information:

• Complete property owner information
• Designate a local contact person who lives within 30 miles
• Prepare floor plans and emergency escape plans
• Create parking site plans
• Obtain proof of insurance coverage
• Certify smoke detector and carbon monoxide detector installations

Step 3: Registration Process

Submit your annual registration application with all required fees and documentation to the Zoning Administrator or designated city official. The city will review your application for completeness before proceeding to inspection.

Step 4: City Inspection

Schedule and complete the required city inspection, which costs $150 and must be conducted every three years for continuous registrations. The Building Official will verify compliance with all applicable codes and safety requirements.

Step 5: Ongoing Compliance

Maintain registration through annual renewal, ensure all operational requirements are met, respond promptly to any violations, and maintain current insurance and safety device certifications.

Required Documents, Permits, Licenses, and Guidelines

Registration Application Requirements

Manistee requires the following information and documentation for STR registration:

Owner and Contact Information:

• Property owner name, address, and telephone number
• Local contact person name, address, and 24-hour telephone number
• Proof that local contact lives or maintains business within 30 miles
• Evidence of local contact's full authority to manage the property

Property Details:

• Complete street address of the STR dwelling unit
• Property classification (single-family detached, condominium, duplex, multi-family)
• Total number of bedrooms in the unit
• Floor plan and emergency escape plans for each bedroom
• Property sketch plan

Safety and Compliance Certifications:

• Statement certifying working smoke detector in each bedroom
• Certification of working carbon monoxide detector on each floor per MCL 125.1504
• Commitment to test safety devices every 90 days
• Consent to city inspections upon request

Insurance Requirements:

• Certificate of insurance proving minimum $1,000,000 liability coverage (amount increases every 3 years based on federal CPI)
• Coverage must include all STR activities and property uses

Parking Documentation:

• Detailed parking site plan drawn to scale
• Aerial view showing all on-site parking spaces and ingress/egress
• Documentation of any proposed off-site parking spaces
• Certified statement regarding garage accessibility with date-stamped photos

Additional Requirements:

• "Be A Good Neighbor Guide" posting commitment
• Updated certification reflecting any changes (such as PRE status)
• Any other information deemed appropriate by the city

Annual Fees

• Registration Fee: $100 annually (subject to amendment by City Council resolution)
• Inspection Fee: $150 (charged every three years for continuous registrations)
• Enhanced fees may apply for previously unregistered or violative operations

Required Postings

• City-issued notice in prominent first-floor window showing local agent name, 24-hour contact number, and maximum occupancy (in at least 24-point type)
• Street address posted in at least two prominent locations within the dwelling unit
• "Be A Good Neighbor Guide" posted in accessible location for occupants

Specific Regulations for Short-Term Rentals

City of Manistee Regulations (Chapter 868)

Operational Limits:

• Short-term rental activity defined as rentals between 1-28 nights consecutively
• Maximum occupancy limited by International Property Maintenance Code and applicable building/fire codes
• Indoor occupancy only - no sleeping in accessory structures, RVs, tents, or outdoor areas

Prohibited Uses:

• Accessory buildings, pole barns, outbuildings, bunkhouses, yurts, sheds
• "Tiny houses" that don't meet minimum dwelling size requirements
• Unlawfully built, expanded, or modified structures
• Camping trailers, RVs, popup trailers, tents, buses, motorhomes

Safety Requirements:

• Working smoke detector in each bedroom, tested every 90 days
• Working carbon monoxide detector on each floor, tested every 90 days
• No attic or basement bedrooms unless city inspection confirms egress compliance
• All major appliances must be in good working order

Behavioral Restrictions:

• No fireworks usage by anyone other than property owner
• No special events, concerts, reunions, weddings, or group activities
• No non-permanent fireplaces or firepits during STR activity
• Compliance with quiet hours and neighborhood peace standards

Contact Person Requirements:

• Local contact must be available 24 hours during any STR rental activity
• Contact must live or maintain business within 30 miles of property
• Contact must have full authority to manage property and take remedial action
• Property owner responsible for all activities occurring at the property

Zoning and Cap Limitations

Manistee operates under a complex cap system:

• General Cap: Maximum 165 STR registrations outside designated overlay districts
• Overlay Districts: No limit on STR registrations within designated tourism overlay zones
• Grandfathering: Existing lawful nonconforming rentals and units registered under Chapter 1482 as of the ordinance effective date may continue
• Lottery System: If applications exceed available registrations, city will conduct a lottery to allocate registrations

Manistee County Regulations

The provided content does not indicate specific county-level STR regulations. Operators should consult directly with Manistee County for any additional requirements outside city limits.

State of Michigan Requirements

Use Tax Requirement: All Michigan short-term rentals must collect and remit the state's 6% use tax for stays shorter than 30 days, as administered by the Michigan Department of Treasury.

Insurance Standards: Liability insurance requirements mirror those for residential rental properties under Chapter 1482 of Manistee's Codified Ordinances.

Carbon Monoxide Detection: Properties must comply with MCL 125.1504 regarding carbon monoxide detector installation and maintenance.

Contact Information for Local STR Authorities

City of Manistee

Primary Contacts:

• City Hall: (231) 723-2558
• City Manager: Available through City Hall
• Building Official: Contact through City Hall for inspection scheduling
• Zoning Administrator: Available through City Hall for registration questions

Mailing Address: City of Manistee 70 Maple Street Manistee, MI 49660

Physical Location: Manistee City Hall 70 Maple Street Manistee, MI 49660

Website: www.manisteemi.gov

Key Departments:

• Building Department: For inspection scheduling and safety compliance
• Zoning Department: For registration applications and zoning questions
• City Clerk's Office: For ordinance questions and public records

Inspection Scheduling: Contact the Building Department through City Hall to schedule required inspections and discuss compliance requirements.

Registration Questions: Direct all registration inquiries to the Zoning Administrator or designated City Manager designee as outlined in the ordinance.

Michigan Department of Treasury

Use Tax Questions: Michigan Department of Treasury Revenue ACT 157 P.O. Box 30458 Lansing, MI 48909 Phone: (517) 373-3200 Website: www.michigan.gov/taxes

Source Pages

1. Manistee STR Ordinance - Draft Version: www.manisteemi.gov/DocumentCenter/View/5455/DRAFT-City-of-Manistee---Ordinance-to-Amend-Code-of-Ordinances---Short-Term-Rentals?ref=writing.strisker.com

2. Manistee Codified Ordinances - Chapter 868 (Adopted July 2025): www.manisteemi.gov/DocumentCenter/View/5622/CHAPTER-868

3. Manistee News Advocate - STR Regulatory Overview: www.manisteenews.com/news/article/michigan-short-term-rentals-20782191.php

4. Rental Scale Up - Industry Analysis: www.rentalscaleup.com/approach-to-short-term-rental-regulations/

This guide provides comprehensive information based on Manistee's STR regulations as of July 2025. Property owners should verify current requirements with city authorities and stay informed of any regulatory updates or amendments to these ordinances.