Overview (explicit answer): Yes—short‑term rentals (STRs) are allowed in Port Sanilac, MI. The Village permits STRs through a zoning process (a Special Land Use plus a one‑year Short‑Term Rental Permit), enforces occupancy and safety standards, and caps the total number of STRs at no more than 10% of all village homes. In the R‑1 Residential‑1 district, no new STR may be established within 250 feet of another STR. Port Sanilac lies within Sanilac Township, which also has a separate Short‑Term Rental Licensing Ordinance (applies to township‑wide licensing, not the Village’s zoning permit). Michigan state law applies as well (use tax, fireworks regulation). As of 2024, the village has an estimated 15–20 STRs, and existing properties (with qualifying documentation) are grandfathered. Source references include the Sanilac County News article and the Village’s zoning and permit pages. Sources: Sanilac County News – Port Sanilac tightens STR zoning, Port Sanilac Zoning Ordinances (Village), Port Sanilac Short‑Term Rental Application, Port Sanilac STR Renewal Application, Good Neighbor Guide, Sanilac Township STR Licensing Ordinance (Ordinance 2024‑02).

How to Start a Short‑Term Rental Business in Port Sanilac

• Step 1: Verify zoning eligibility.
  • Confirm the subject property is in a zoning district that allows STRs as a Special Land Use (SLU). In R‑1 Residential‑1, also verify the 250‑foot separation distance to any other STR (see Zoning section). Sources: Sanilac County News article, Village Zoning Ordinances.
• Step 2: Existing vs. new operations.
  • Existing STRs (rented at least once between May 1, 2023 and April 30, 2024) are grandfathered. Provide documentation evidencing rentals during that window, then register/renew and receive the village’s Short‑Term Residential Permit for one year. No special land use hearing is required for existing properties. Source: Sanilac County News article.
  • New STRs must complete a Special Land Use Application. If approved, the village issues a one‑year permit, renewable for a fee. Source: Sanilac County News article, Village forms.
• Step 3: Submit the Short‑Term Rental Application and fees.
  • Initial registration fee: $200. Annual renewal fee: $50. Provide owner/agent contact details, property address, bedroom count/floor plan, plot plan, proof of $1,000,000 general liability insurance, Good Neighbor Guide acknowledgment, and any health/sanitary approvals as applicable. Sources: Sanilac County News article, STR Application, STR Renewal Application.
• Step 4: Local agent requirement.
  • If the owner resides more than 30 miles from the village, designate a local agent who lives within 30 miles and is reachable by phone at all times. Source: Sanilac County News article.
• Step 5: Safety and operations setup.
  • Install/maintain smoke detectors and fire extinguishers, display address visibly inside and outside, follow occupancy limits, prepare and display Good Neighbor Guidelines, and maintain compliance with noise and nuisance ordinances. Sources: Sanilac County News article, Good Neighbor Guide.
• Step 6: Renewal.
  • Renew annually and maintain compliance with the village’s permit conditions and zoning standards. Source: Sanilac County News article, STR Renewal Application.

Required Documents, Permits, Licenses, and Guidelines

• Village Special Land Use Application (for new STRs). Source: Village forms page.
• Short‑Term Rental Application (for permit issuance/renewal). Source: STR Application.
• Short‑Term Rental Renewal Application. Source: STR Renewal Application.
• Good Neighbor Guide for Renters (must be displayed). Source: Good Neighbor Guide.
• Insurance: Minimum $1,000,000 general liability coverage. Source: Sanilac County News article, STR Application.
• Plot plan and floor plan/bedroom count (include sketch drawings if needed). Source: STR Application.
• Owner and local agent contact details; agent designation required if owner resides >30 miles away. Source: Sanilac County News article, STR Application.
• Fees: $200 initial registration; $50 annual renewal. Source: Sanilac County News article.
• Evidence of prior rentals (for grandfathered existing STRs: rental activity between May 1, 2023 and April 30, 2024). Source: Sanilac County News article.
• Health and sanitary approvals when applicable (e.g., on‑site sewage disposal adequacy for proposed maximum occupancy). Source: STR Application.
• (Note) Port Sanilac lies within Sanilac Township. If a future township license applies to your specific property/use, additional items such as Building Official inspections and sewage compliance documentation may be required per Ordinance 2024‑02. Source: Sanilac Township STR Licensing Ordinance.

Specific Regulations (Village, County/Township, State)

• Village of Port Sanilac (local):
  • STRs are permitted through a zoning process. New STRs require a Special Land Use Application and approval; existing STRs (with qualifying documentation) are grandfathered and require registration/renewal. Source: Sanilac County News article.
  • Total STR cap: No more than 10% of all village homes. Applications for new STRs are accepted only when capacity is below this cap. Source: Sanilac County News article.
  • Separation requirement: In R‑1 (Residential‑1) district, new STRs may not be established within 250 feet of another STR. Source: Sanilac County News article.
  • Local agent: Required if owner resides more than 30 miles from the village; the agent must live within 30 miles and be reachable by phone at all times. Source: Sanilac County News article.
  • Permit term and fees: One‑year permit; $200 initial registration; $50 annual renewal. Source: Sanilac County News article.
  • Safety: Maintain smoke detectors and fire extinguishers; clearly display property address; follow occupancy limits and the Good Neighbor Guide. Source: Sanilac County News article, Good Neighbor Guide.
  • Zoning compliance: STRs must align with the Village Zoning Ordinance; review district standards and Special Land Use regulations (Articles 17 and relevant district articles). Source: Village Zoning Ordinances.
• Sanilac Township (county‑level overlay):
  • Separate Short‑Term Rental Licensing Ordinance (Ordinance 2024‑02) applies to licensing of STRs in the township, including definitions, a 160‑license cap, application/renewal processes, inspections, occupancy limits, and Good Neighbor Guidelines. This ordinance complements the Village’s zoning regime but does not replace it for Port Sanilac properties subject to village zoning. Source: Sanilac Township STR Licensing Ordinance.
  • Key provisions in township ordinance (for reference and potential applicability):
    • License cap: Maximum 160 STR licenses; first‑come, first‑served; renewal priority for licensees in good standing. Source: Township Ordinance.
    • Inspection and health: Building Official review/inspection; proof of adequate on‑site sewage disposal relative to maximum occupancy. Source: Township Ordinance.
    • Occupancy: Overnight occupancy capped at 2 persons per bedroom plus 2 additional; total on‑site persons (occupants plus non‑overnight guests) may be up to 1.5× the maximum overnight occupancy. Source: Township Ordinance.
    • Safety: Smoke detectors and fire extinguishers required; address visibility required; Good Neighbor Guidelines must be displayed. Source: Township Ordinance.
    • Local agent: Must reside within 30 miles and respond to calls/complaints. Source: Township Ordinance.
• State of Michigan:
  • Use tax: STR hosts owe 6% Michigan use tax on the total amount of each booking; Airbnb does not automatically collect this tax—hosts must calculate and remit it. Source: gosummer.com market overview for Port Sanilac.
  • Fireworks: Fireworks are regulated under the Michigan Fireworks Safety Act, Act 256 of 2011 (MCL 28.457). STRs may allow