Ann Arbor, Michigan Short Term Rental Regulations
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Reviewed by Karolyn Hutson
Last updated August 23, 2023
Ann Arbor Short-Term Rental Regulations
Information is maintained by the community to provide helpful insights and links to local regulations, HostScouts does not provide legal or investment advice.
City Code of Ordinances
According to Ann Arbor, a Short-Term Rental Unit is a home that is rented for 30 days or less to people who are neither permanent residents nor owners. The City has defined three types of Short-Term Rental Units:- Non-principal residence short-term rental (or commercial rental) - The owner of a non-principal residence hosts visitors, for compensation, for periods of 30 consecutive days or less.
- Principal residence homestay - The permanent residents host visitors in their homes, for compensation, for periods of 30 consecutive days or less, while at least one of the permanent residents lives on-site in the dwelling unit throughout the visitors' stay.
- Principal residence whole house - The permanent resident host visitors in their homes, for compensation, for periods of 30 consecutive days or less, while the owner of the record does not occupy a residential dwelling unit while the guest is present.
Business License Requirements
All short-term rental types must apply for a short-term rental license. Non-principal residence short-term rental (or commercial rental) requires an inspection, while Principal residence homestay and Principal residence whole house does not. Apply online through STREAM under the license tab.Building and Housing Standards
Ann Arbor has rules and regulations that specify minimum building, design, maintenance standards, habitability, health, and safety requirements. Some rules and regulations that apply to residential and non-residential properties may apply to your listing. Consult the City of Ann Arbor for more information.Tourist and Local Taxes
Short-term rentals might be subjected to state and county sales tax and are liable for payment as established by state and county law.Other Rules
It is also essential to understand and abide by other contracts or rules that bind you, such as leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable. Visit the City of Ann Arbor website for more information.Is something not quite right? Registered users can suggest changes to this guide.
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Short Term City Rating5.9
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Competition
8.5 -
Real Estate Cost
5.7 -
STR Regulations
4.0 -
Seasonality
2.3 -
Rental Rates
8.9
Ann Arbor, Michigan Quick Stats
Short-term rentals have gained a lot of traction in the last few years. The trends and statistics of this sector are constantly changing, and having access to accurate data is essential for making sound investment decisions.
- Population
- 123,851
- STR License Required
- Yes
- Tourist Season
- March, June, and July
- County
- Washtenaw
- Airports
- Detroit Metropolitan Wayne International Airport (DTW)
- Bishop Internation Airport (FNT)
Want to learn more about Ann Arbor?
Hostscouts has you covered. Our guides for this city cover topics that can help you research cities across the US quickly and easily.
Check out our Ann Arbor rental analytics guide if you're interested in data on the Ann Arbor rental market.
Review the popular activities that hosts include in their property positing in Ann Arbor.
The most popular local and regional landmarks hosts usually include in their Airbnb or Vrbo property listings.
Explore nightly rates that hosts list their properties and the average fees for pets and additional guests.
What are the most popular property sizes for rent? Research whether a 1, 2, or 3 bedroom best fits Ann Arbor guests.
Interested in other Michigan cities?
Check out the Michigan short term rental regulations directory
What makes Ann Arbor a great place to invest?
- World-Class University: The University of Michigan, one of the top public universities in the United States, adds an intellectual and cultural richness to the city. Tour the beautiful campus, take in a sports event at the iconic Michigan Stadium, or attend guest lectures and conferences featuring experts from various fields.
- Diverse Dining Experiences: Foodies will delight in Ann Arbor's culinary offerings, ranging from farm-to-table restaurants to international fare. Savor local favorites such as Zingerman's Delicatessen, Frita Batidos, and The Jolly Pumpkin, or sample cuisines from around the world at restaurants like Ayse's Turkish Café or Tomukun Noodle Bar.
- Outdoor Adventures: The city offers an abundance of outdoor activities, including over 150 parks and nature areas. Explore the Nichols Arboretum, which features a stunning collection of trees, flowers, and gardens, or kayak down the Huron River. Hike or bike the scenic trails at Gallup Park, or enjoy a round of golf at one of the area's many courses.
- Eclectic Shopping & Boutiques: Ann Arbor's unique shopping scene ranges from vintage stores to high-end boutiques. Stroll through the Kerrytown Market & Shops for local artisan goods, peruse indie bookstores like Literati or Crazy Wisdom, or hunt for treasures at the Ann Arbor Antiques Market, held monthly from April to November.
- Vibrant Festivals & Events: There is always something happening in Ann Arbor, with a calendar full of events and festivals. Experience the Ann Arbor Film Festival, the oldest experimental film festival in North America, or immerse yourself in the Ann Arbor Art Fair, featuring over 1,000 artists from across the country. Other highlights include the Summer Festival, the African American Downtown Festival, and the Michigan Theater's Cinetopia Film Festival.
Ann Arbor Nearby Cities
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15 miles away
- Rating: 6.7
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35 miles away
- Rating: 7.0
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Local Real Estate
How expensive is the real estate in Ann Arbor?
The cost of real estate can vary widely depending on the location, size, and features of the property, as well as market conditions. The median home value in Ann Arbor has increased 8% over the past year, and the average price per square foot is $303, which is higher than the national average.
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Median Sale Price
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$507,007
8% YoY
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Median per Square Foot
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$303
3% YoY
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Average Monthly Rent
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$2,116
5% YoY
Local Short-Term Rental News for Ann Arbor
The most common terms hosts include in their listings for Ann Arbor, Michigan
Common terms for Ann Arbor short term rental listings.
When potential guests are scrolling through listings on Airbnb, they’re looking for certain essential information to help them decide if your property is the right fit for their needs. As a host, ensuring that your listing includes all the relevant information that guests will be looking for is vital.
Some of the must-have elements of a property description include:
- Location: Guests will want to know where your property is located in relation to popular attractions, public transportation, and other points of interest.
- Amenities: What amenities does your property offer? Be sure to list all features guests can access, such as a pool, hot tub, parking, etc.
- Informative: The average listing in Ann Arbor has a description approximately 1,600 words long. Make sure yours is long enough to describe your property but doesn't require your potential guest to read a novel.
After reviewing more than 687 listings in Ann Arbor, we've consolidated the most common terms on the word cloud. The larger text represents a term that is used more often. The top ten mentioned terms are Ann Arbor, Downtown Ann, Big, Downtown, University, Block, Comfortable, Michigan, Best, and Beautiful.
What are the most popular tourist activities in Ann Arbor?
Whether renting a house, an apartment, or a room, you should include popular tourist activities in your posting. The most common choices mentioned on property listings in Ann Arbor involve going to the City Centre, Museums, Adventure Activities, the Health Spa, and Ice Skating. When you write your listing, have a section with recommended activities near the property to give your guests an idea of what is available.
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City Centre
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Museums
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Adventure Activities
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Health Spa
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Ice Skating
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Cycling
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Antiquing
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Hiking
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Sledding
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Mountain Biking
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Swimming
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Kayaking
Local Attractions
What attractions do hosts highlight to guests?
There are quite a few popular attractions in Ann Arbor, including University of Michigan, Michigan Stadium, U of M Hospital, Briarwood Mall, and Eastern Michigan University. Below we've included the most popular local and regional landmarks hosts usually include in their Airbnb or Vrbo property listings. Many hosts like to show off lesser-known regional landmarks visitors might not have heard of.
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Well Known Attraction
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University of Michigan
Included on nearly all listings
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Regional Landmark
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Michigan Stadium
Included on nearly all listings
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Regional Landmark
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U of M Hospital
Included on nearly all listings
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Regional Landmark
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Briarwood Mall
Included on nearly all listings
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Regional Landmark
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Crisler Arena
Included on nearly all listings
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Regional Landmark
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Eastern Michigan University
Included on nearly all listings
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Local Landmark
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Yost Ice Arena
Included on most listings
What’s the weather like in Ann Arbor, Michigan?
The weather is generally milder than the national average, with an average high temperature of around 58°, while the average low is about 41°. It has normal rainfall, averaging about 25 inches per year, compared to the national average of about 27 inches. Snowfall can be rather heavy, averaging less than 21 inches per year. The humidity levels in Ann Arbor are generally lower than the national average, and the city tends to be a bit cloudy for most of the year.
Winter
December through February
21° Low 34° High
Spring
March through May
39° Low 58° High
Summer
June through August
61° Low 81° High
Fall
September through November
43° Low 61° High
Cities Near Ann Arbor
Ann Arbor, Michigan, is located in Washtenaw County. Some cities that are located nearby include:
