Suttons Bay, Michigan Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed?

Yes, short-term rentals are allowed in Suttons Bay, Michigan, but with significant restrictions and permit requirements. It is important to note that Suttons Bay consists of two separate jurisdictions with different regulations:

Village of Suttons Bay - Has implemented a strict cap system with currently 57 active permits and a maximum limit of 45 permits (reached through attrition only)
Suttons Bay Township - Operates under a more permissive system allowing up to 150 permits annually on a first-come, first-served basis

Operating without a permit is a violation of local ordinances in both jurisdictions.

What do Airbnb hosts actually earn in Suttons Bay?

Suttons Bay hosts earn a median $47,346/year with $457 ADR and 52% occupancy.

Top performers pull in $67,588+ per year.

See the full Suttons Bay market breakdown

How to Start a Short-Term Rental Business

Village of Suttons Bay

New permits are currently unavailable - The village has capped permits at 45, and currently has 57 issued permits. New permits will only become available through attrition (when existing permits are not renewed). Prospective operators should:

Monitor the current permit list for availability
Contact the village office at 231.271.3051 to inquire about waitlist procedures
Ensure property compliance with zoning requirements
Prepare required documentation for when permits become available

Suttons Bay Township

The township operates on a first-come, first-served basis with up to 150 annual permits:

Application Period: Submit applications beginning October 1 through February 28 each year
Processing: All applications (renewal and first-time) processed starting March 1 regardless of submission order
Fee: $200 annually, payable to Suttons Bay Township
Validity: Permits valid January 1 through December 31

Required Documents, Permits, Licenses, and Guidelines

Village of Suttons Bay

Required Documents:

Short-Term Rental Application (when permits available)
Short-Term Rental Renewal Application (for existing permit holders)
Property compliance documentation
Proof of insurance (specific requirements per Ordinance 27)

Key Guidelines:

Permits are non-transferable (invalid if property is sold)
Annual renewal required
Property must comply with zoning regulations
Bed and breakfast operations may fall under different regulations

Suttons Bay Township

Required Documents:

Key Guidelines:

Permits apply only to Residential Districts
Non-transferable between property owners
Entire dwelling unit rentals only (room rentals fall under bed and breakfast guidelines)
Annual renewal window: October 1 - February 28

Specific Regulations

Village of Suttons Bay

Definitions and Scope:

Short-term rental: Any occupancy of dwelling unit for commercial use less than 30 consecutive days in exchange for consideration
Ordinance 27 governs all aspects of STR operations
Applies to entire dwelling units only

Operational Requirements:

Maximum occupancy as specified in permit
Compliance with all local safety codes
Maintenance of property standards
Guest conduct regulations

Restrictions:

No new permits until current count reaches 45 through attrition
Permits non-transferable upon property sale
Zoning compliance required

Suttons Bay Township

Definitions and Scope:

Short-term rental: Any dwelling unit leased for period less than 30 days
Applies only to entire dwelling unit rentals
Separate Bed and Breakfast guidelines for room rentals

Operational Requirements:

Annual permit renewal required
Compliance with residential district requirements
Maximum occupancy limits

Capacity Limits:

Maximum 150 permits annually
First-come, first-served issuance
Separate allocation for different property types

County-Level Considerations (Leelanau County)

While STR regulation primarily occurs at the municipal level, county services include:

Building safety inspections through Leelanau County Building Safety Department
Sheriff's Department enforcement for disorderly conduct
Animal control for pet-related complaints

Contact Information

Village of Suttons Bay

Village Office:

Phone: 231.271.3051
Email: suttonsbay@suttonsbayvillage.org
Address: 420 N Front Street, P.O. Box 395, Suttons Bay, MI 49682
Hours: Monday-Thursday 8:00 AM - 4:00 PM, Friday 8:00 AM - 12:00 PM

Zoning Administrator:

Email: zoning@suttonsbayvillage.org
Phone: 231.271.3051

24/7 STR Hotline:

Phone: 231.715.5419

Enforcement Contacts:

Leelanau County Sheriff: 231.256.8800 (disorderly conduct/trespassing)
Animal Control: 231.256.8800 (pet complaints)

Suttons Bay Township

Township Office:

Phone: 231-271-2722, ext. 3
Email: zoning@suttonsbaytownship.gov
Address: 8527 E. Government Center Dr., Suttons Bay MI 49682

24/7 STR Hotline (Host Compliance, Inc.):

Phone: (800) STR-HELP (800-787-4357)

Zoning Administrator:

Phone: 231-271-2722, ext. 3
Email: zoning@suttonsbaytownship.gov

Sources and Links

Village of Suttons Bay

Suttons Bay Township

Important Considerations for Investors

Jurisdiction Verification: Always confirm whether your property lies within Village of Suttons Bay or Suttons Bay Township boundaries, as regulations and permit availability differ significantly.
Waitlist Situation: Village permits are currently unavailable due to the cap system, requiring potential operators to wait for attrition-based openings.
Market Dynamics: The village's restrictive cap (45 permits) versus township's generous allocation (150 permits) creates different investment opportunities and challenges.
Compliance Costs: Factor in annual permit fees ($200 township, village fee TBD), application costs, and potential compliance modifications.
Zoning Compliance: Both jurisdictions require compliance with residential zoning requirements, which may limit or prohibit STR operations in certain areas.
Enforcement: Both jurisdictions actively enforce STR regulations through complaint-driven processes and regular inspections.

Next step

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Ask the AI Advisor about Suttons Bay

Suttons Bay is a small village in Leelanau County, Michigan, situated on the eastern shore of the Leelanau Peninsula where it meets the deep blue waters of the East Arm of Grand Traverse Bay. With a population of roughly 600 residents, it has the feel of a quiet, year-round community that swells with visitors each summer as travelers explore the surrounding cherry orchards, vineyards, and lakeshore. The village is best known as a gentle, walkable gateway to the wider Leelanau Peninsula, a finger of land that draws visitors for its beaches, farms, and small historic harbors. Traverse City, the nearest major city and a four-season destination in its own right, lies approximately 15 miles to the south along M-22.

Just to the north of Suttons Bay, the community of Leland is home to Fishtown, a weathered cluster of old fishing shacks and smokehouses perched over the Leland River. About 10 minutes up the peninsula from the village, Fishtown functions as a small open-air museum of Great Lakes commercial fishing history, with shops, galleries, and a couple of well-known fish markets set on wooden docks. It is one of the most photographed spots on the peninsula and a frequent stop for visitors driving the M-22 scenic route.

A short drive southwest of Suttons Bay, roughly 30 to 40 minutes via M-22 and M-109, Sleeping Bear Dunes National Lakeshore preserves more than 70 miles of Lake Michigan shoreline, including towering sand dunes, dense beech-maple forests, and the turquoise waters of Glen Lake. The park's namesake Dune Climb, Pierce Stocking Scenic Drive, and the historic South Manitou Island ferry make it a centerpiece of any northern Michigan trip and the single biggest day-trip draw for visitors staying in the area.

Just down the road, the rolling farmland of the Leelanau Peninsula supports one of the state's most celebrated wine trails, with dozens of tasting rooms scattered along M-22 between Suttons Bay and Northport. Riesling, Pinot Grigio, and cool-climate reds are the focus, and many wineries offer outdoor terraces with views over the vineyards and the bay. Together with the area's U-pick cherry farms and farm stands, the wine trail gives Suttons Bay a distinctly agricultural, slow-travel atmosphere that appeals to couples, families, and leaf-peepers in autumn.

Suttons Bay works well as a short-term-rental base because it sits in the middle of the Leelanau Peninsula's most appealing attractions while remaining an easy drive from Traverse City's restaurants, breweries, and Cherry Capital Airport. Guests can spend a morning on the village's beach or marina, an afternoon hiking dunes at Sleeping Bear, and an evening sampling wines and watching the sun set over the bay, all without long daily transfers. The combination of small-town character, water access, and proximity to marquee northern Michigan destinations makes the village a reliable draw for travelers planning a multi-day stay on the peninsula.