Major Michigan college town eyes 6-month freeze on short-term rental permits

Key Takeaways

Ann Arbor officials are considering a six-month pause on approvals for new short-term rentals
The University of Michigan college town already limits where non-owner-occupied rentals can operate
City planners could use the pause to consider permanent caps, zoning changes or additional licensing restrictions

One of Michigan’s best-known college towns is considering implementing a six-month freeze on short-term rentals.

Ann Arbor, home to the University of Michigan, is weighing a six-month moratorium on new short-term rental units, according to MLive.com.

The proposed pause would prevent the city from approving additional STR licenses while officials study the effect of vacation rentals and decide whether to make broader changes to local zoning and licensing rules.

Ann Arbor already has one of Michigan’s more restrictive short-term rental systems.

To join the playing field, hosts must obtain annual licenses, and dedicated rentals that are not occupied by their owners are generally limited to certain mixed-use and commercial areas.

This isn’t the first time Ann Arbor has proposed tighter regulations. The city has debated the role of short-term rentals for years.

In May, the City Council rejected a zoning proposal that could have allowed non-owner-occupied vacation rentals inside a downtown residential development.

A temporary freeze could now give officials time to consider permanent limits on the number and location of STRs across the city.

Existing Ann Arbor rentals could keep operating

The proposed rule would target new approvals rather than shut down licensed properties already operating under the city’s current STR regulation system.

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Applications that have not been approved before the freeze takes effect could be placed on hold for the six-month period.

Existing licensed rentals are expected to remain open as long as they continue meeting Ann Arbor’s operating and renewal requirements.

The discussion follows similar action in other Michigan communities.

For instance, Birmingham approved a six-month moratorium on new short-term rental licenses in April while officials review possible permanent regulations.

College towns in other states are also reconsidering their rules.

In Bloomington, home to Indiana University, officials are weighing new restrictions after years of rapid growth in the local vacation rental market, as covered in REWire’s earlier report.

Ann Arbor’s Planning Commission is expected to study possible changes during the pause, including where short-term rentals should be permitted and whether the city should limit the number of licenses available.

REWire Media has reached out to Ann Arbor for comment.