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

Yes, short-term rentals are explicitly allowed in Midland, Michigan. The City of Midland's Building Department clearly states that short-term rentals (including Airbnb, VRBO, and similar platforms) are subject to the city's rental housing inspection and certification program. The city treats short-term rentals as rental properties that must be inspected and certified before being occupied, regardless of whether rent is being collected or the occupants are related to the owner.

Unlike some Michigan municipalities that have banned or severely restricted short-term rentals, Midland has established a clear regulatory framework that permits STR operations while ensuring compliance with safety and housing standards.

How to Start a Short-Term Rental Business in Midland

Step 1: Property Assessment and Compliance

Before purchasing or converting a property for short-term rental use, ensure the property meets basic housing standards under Midland's Housing Code (Chapter 12). Properties must comply with minimum standards for:

• Equipment and facilities (kitchen sink, water closet, bathtub/shower, hot water)
• Light, ventilation, and heating
• Space requirements (minimum 125 sq ft for first occupant + 75 sq ft per additional occupant)
• Safe and sanitary maintenance conditions

Step 2: Registration and Certification Process

All short-term rental properties must be registered with the City of Midland's Building Department before renting. The process includes:

1. Complete Application: Fill out the Rental Certification Application (PDF available from the city)
2. Pay Applicable Fees: Submit certification fees (see fee schedule below)
3. Schedule Inspection: Contact the Building Department to schedule a required inspection
4. Obtain Certification: Units cannot be rented until they pass inspection and receive certification

Step 3: Ongoing Compliance

• Maintain certification status (reinspections may be required)
• Comply with all local, state, and federal regulations
• Monitor changes in city or state regulations affecting STRs

Required Documents, Permits, Licenses, and Guidelines

City-Level Requirements (Midland)

Rental Certification Application

• Available as PDF from city website
• Must be completed and submitted before renting

Required Fees (Effective July 1, 2025):

• All other rental units: $79.00 for first unit, $36.00 for each additional unit
• Room inspection fees: Additional charges for reinspections
• Delinquency fees: $36.00 for delinquent certification, increasing to $79.00 for delinquencies over 30-60 days

Property Standards Compliance:

• Housing Code Chapter 12 compliance
• Building Code compliance (Chapter 5)
• Fire safety standards (Chapter 8)

State-Level Requirements (Proposed Michigan Legislation)

Pending Short-Term Rental Regulation Act (HB 5438): If enacted, would require:

Safety Equipment:

• Functioning carbon monoxide detector
• Functioning smoke detector in each sleeping room
• Functioning fire extinguisher on each floor

Insurance Requirements:

• Liability insurance of at least $1 million per unit
• Must defend and indemnify owner and tenants for bodily injury and property damage

Registration Requirements:

• Annual certificate filing with Michigan Department of Licensing and Regulatory Affairs (LARA)
• Include owner contact information, property address, insurance certification
• Emergency contact within 30 miles of dwelling

Required Posting Information:

• Owner's emergency contact and working phone number
• Local emergency services contact information (police and fire)
• Floor plan and escape routes

Hosting Platform Requirements (If State Legislation Passes)

• Platforms must register with LARA and pay $100 per listing (up to $50,000 annually)
• Must maintain booking transaction records
• Monthly reporting to state treasurer required

Specific Regulations for Short-Term Rentals

City of Midland Regulations

Property Type Restrictions:

• No specific zoning restrictions mentioned for STRs
• General housing occupancy limits apply (no more than 4 unrelated tenants per unit)
• Single-family owner-occupied homes may have up to 2 boarders without inspection

Inspection Requirements:

• Mandatory inspection and certification before renting
• Periodic reinspections as determined by building official
• Violations must be corrected within specified timeframes (typically 90 days maximum)

Owner-Occupied Exemptions:

• Single-family owner-occupied homes with up to 2 boarders exempt from inspection requirements
• More than 2 boarders in owner-occupied single-family home requires inspection

County-Level Regulations (Midland County)

Regional Convention and Tourism Promotion Act (HB 5439):

• Midland County can levy up to 5% assessment on STR room charges
• Assessment would fund tourism promotion programs
• Currently applies to facilities with 2+ rooms, would expand to 1+ room including STRs

State-Level Regulations (Pending Legislation)

Proposed Excise Tax:

• 6% tax on occupancy charges for STRs rented 15+ days per year
• Collected alongside use taxes
• Revenue distributed to local units of government after 1% administrative deduction

Local Government Authority:

• Local units can enact reasonable regulations for public health, safety, and welfare
• Can determine number of STR units allowed and establish geographic restrictions
• Can revoke permits for violations
• Cannot totally ban STRs (prohibited by Section 207 of Zoning Enabling Act)

Penalties:

• Up to $1,000 fine for STR owner violations
• Up to $5,000 fine for hosting platform violations

Contact Information for Local Authority

City of Midland Building Department

Primary Contact:

• Phone: (989) 837-3383, select option 1
• Email: rentalprogram@midland-mi.org
• Address: 333 West Ellsworth Street, Midland, MI 48640
• Hours: Monday-Friday, 8 a.m. - 5 p.m.

Specific Staff Contacts:

• Julie Moe, Office Assistant: (989) 837-3384
• Chris Inman, Housing/Code Inspector: (989) 837-3385
• Nate Pounders, Housing/Code Inspector: (989) 837-3389

General City Information:

• Phone: (989) 837-3300
• Website: cityofmidlandmi.gov

State-Level Contacts (If Applicable)

Michigan Department of Licensing and Regulatory Affairs (LARA):

• To be established if STR legislation passes
• Would handle registration, database management, and enforcement

Important Regulatory Considerations

Current Status

• City-level regulations are fully in effect and enforceable
• State-level regulations (HB 5437-5446) are pending legislation and not yet enacted
• Investors should monitor legislative developments, as these could significantly impact STR operations

Future Regulatory Landscape

• State legislation would create unified framework for STRs across Michigan
• Local governments would maintain some authority but cannot completely ban STRs
• New tax structure would apply to STRs similar to hotel taxes
• Enhanced safety and insurance requirements would be mandatory

Best Practices for Investors

1. Start with City Compliance: Ensure full compliance with current city requirements
2. Monitor State Legislation: Track HB 5437-5446 progress through legislature.mi.gov
3. Maintain Insurance: Even without state mandate, carry comprehensive liability coverage
4. Document Everything: Maintain thorough records of all inspections, certifications, and communications
5. Professional Management: Consider professional property management to ensure ongoing compliance

Source References

1. City of Midland Rental Program: cityofmidlandmi.gov/155/Rental-Program
2. Midland Housing Code Chapter 12: www.cityofmidlandmi.gov/DocumentCenter/View/2120
3. Michigan House Bills 5437-5446 Analysis: legislature.mi.gov/documents/2023-2024/billanalysis/House/pdf/2023-HLA-5437-52D26EA3.pdf
4. Mackinac Center STR Commentary: www.mackinac.org/blog/2025/new-legislation-on-short-term-rentals-make-sense-for-communities

This guide provides a comprehensive overview of short-term rental regulations in Midland, Michigan, based on currently available information. Given the evolving regulatory landscape, investors should regularly consult these sources and maintain direct contact with city officials for the most current requirements.