On September 8, 2020, the Ann Arbor City Council voted 7-4 to prohibit non-owner-occupied short-term rental homes in Ann Arbor’s residential zoning districts. The most updated version of the ordinance can be downloaded here.
Per the ordinance, homeowners in residential zoning districts are still allowed to offer short-term rentals of a portion or the entirety of their owner-occupied home. The point to pay attention to is that the dwelling must be an owner-occupied home as opposed to a dedicated, non-owner occupied home in order to offer a short-term rental in one of Ann Arbor’s residentially zoned districts.
Short-term dedicated rentals will still be allowed to exist and operate in mixed-use zoning districts.
Some council members expressed that their goal in passing this new law would be to increase opportunities for local residents to afford permanent housing in the city, as prices continue to increase due to high demand and low inventory. The new law goes into effect on March 1, 2021.
Currently, it is estimated that there are over 100 Airbnb-type permanent rental homes in Ann Arbor, representing roughly 0.2% of the local residentially-zoned housing supply. An influx of 100 homes for sale in the Ann Arbor City limits would represent about an 8% increase in inventory over the course of a year, should they come available on the housing market.
The ordinance will also require short-term Airbnb type rental owners to apply for a non-transferable license and make the “host” responsible for all nuisance and enforcement complaints on their premises.