Short-term rentals in Ann Arbor, explained properly.

This comes from the City's short-term rentals page only. The Chapter 97 text read does not mention ADUs, and the zoning code provision behind the statement was not read, so the rule is held for review.

The City issues a short-term rental license only to the owner or permanent resident of the property, and only 1 license per dwelling unit. The license cannot be transferred or assigned to another person or address, and does not let anyone other than the named person operate the rental. The application must include the address, dwelling type, rental type (non-principal residence, principal residence homestay or whole house), number of bedrooms for rent, maximum permitted occupancy, and the names and contact details of 2 contact persons. Principal residence applicants also submit a sworn statement that the unit is and will remain their principal residence. The City's page says applications are made and paid online through its STREAM portal, review can take up to 21 business days, properties with several units need a separate license for each unit, and third-party companies cannot apply for a license. The code does not say which City office issues the license; the City's page and guide name Rental Housing Services as the contact. The fee is shown in the license fee rule.

Principal residence means the one dwelling unit where an owner, or a tenant with a lease of more than 30 days, has their true, fixed and permanent home. A principal residence homestay requires a permanent resident to live on site throughout the guests' stay. A principal residence whole house rental is rented while the owner of record is not present. Principal residence applicants swear that the unit is and will remain their principal residence and, each year within 30 days of the anniversary of the license, confirm it still is. At least 1 of the 2 contact persons must be a permanent resident for homestay and whole house rentals. The City's guide says factors relevant to permanent residency include a Michigan principal residence property tax exemption, voter registration, driver's license or state ID address, tax return address and the address used for bank statements and utility bills. The City's page says a tenant who signs a lease and never moves in will not be granted a license, and the permanent resident must live there and have the owner's permission.

Chapter 97 applies the Housing Code (Chapter 105) to non-principal residence rentals and says principal residence homestay and whole house rentals do not require an inspection. The City's page says non-owner-occupied properties must have a valid Certificate of Compliance before applying for a license, and the City's guide says non-principal residence rentals require a Certificate of Compliance and periodic inspections. No page read says which City office issues the Certificate; Rental Housing Services is named as the contact. The Housing Code itself was not read, so inspection frequency and standards are not stated here.

The City's page says applications must be paid in advance, the cost is $500.00 per unit per year, the fee for each license is $500 paid at submission, and there is no refund if an application is denied. The page shows no date for the fee. Chapter 97 says the nonrefundable license fee is set by annual resolution of City Council, and the current resolution was not found among the pages read. The fee is also due again each year on renewal.

Chapter 97 requires each licensee who submitted a sworn statement with the original application to complete a yearly renewal within 30 days of the anniversary of the original issuance: the principal residence sworn statement and the license fee. The City's page says each license is renewed annually (one year from the date of issuance), and that rentals without a valid license face enforcement, including a ticket for each day in violation. Licenses can be revoked.

Chapter 97 says occupancy may not exceed the limit in the zoning code (Sec. 5.16.1.A.2 of the Unified Development Code) and that no host may rent in a way that requires someone to sleep in an area that is not habitable under the Housing Code. The City's guide describes the zoning limits as a maximum of 4 persons plus their offspring (descendants, adopted and foster children) in all districts and a maximum of 6 persons as a single unit in multiple-family and mixed-use districts, in each case unless a Certificate of Compliance specifies a lower number based on the Housing Code. The zoning code section itself was not read; the figures come from the City's guide. The maximum occupancy must be stated on the license application and in every advertisement.

No host may advertise a short-term rental unit unless the advertisement includes the applicant's short-term rental license number and the maximum occupancy permitted in the unit. The City's page repeats that both must be included and visible in the advertisement.

The application must list the names, telephone numbers and email addresses of 2 contact persons responsible for the rental, and contact information must be updated with the City as necessary. For homestay and whole house rentals at least 1 contact must be a permanent resident. The host is responsible for all nuisance and enforcement complaints on the premises. The City's guide says Community Standards handles parking, trash and vegetation complaints and the Ann Arbor Police Department handles noise complaints, which must be reported while they are occurring.

Any person who violates Chapter 97 is responsible for a civil infraction punishable by a civil fine of not more than $500.00, plus costs and all other remedies available by statute, and each day of violation is a separate violation. It is also unlawful to change the operation of the rental from what the application represented without first amending the application. The City may also impose other penalties authorized by the City Code or file a public nuisance lawsuit.

Chapter 97 lists four grounds: the license holder is convicted of or found responsible for violating the chapter; the application contains a misrepresentation, omission or false information; the rental operates in violation of the application, any conditions of approval or other applicable law; or the City determines the rental has become a public nuisance. The code text read does not set out a notice or appeal procedure.