By Joanne Bailey-Boorsma
“It’s noisy, it’s loud,” said Steven Christensen of an AirBnB located near his home along Mayflower Drive in Wyoming. “You are trying to sit in the living room, trying to relax and people are coming and going, slamming doors all the time. It’s just loud. I had one time with a wedding … I have to go to work at five and they are out there at three o’clock in the morning hooting and hollering it up.”
Christensen and his neighbor Andrew Hanselman attended a Wyoming City Council work session earlier this year to encourage the city to host public hearings on short-term rentals such as AirBnBs, VRBO, and HomeAway, in an effort to create a city ordinance to regulate them.
At its March work session, the Wyoming City Council reviewed an ordinance that would prohibit all short term rentals for non-owner occupied homes. The proposed ordinance will be presented at Monday’s regular council meeting, which is at 7 p.m. at the Wyoming City Hall, 1155 28th St. SW.
“So, if I owned a house, I could rent my room or a room in the house, the basement or something as a short-term rental and that would be completely acceptable,” said City Manager Curtis Holt as he explained the proposed ordinance. “If I own a house and I bought a house just for the idea of an AirBnB that would not be acceptable. If I own a house and let’s say I would be out-of-town for long periods of time and I wanted to hold that house, it would not be acceptable to do short-term rentals with it.”
Holt acknowledged that the ordinance would address the one property the city has received two complaints about. In general, the city has not received a lot of complaints about short-term rentals. He said in a recent search, city staff found about six properties listed as short-term rentals. The most the city has had at one time is around 12, Curtis said.
“Well, understand this short-term rental issue is far more prevalent in tourist destination type towns…,” Curtis said.
The tougher challenge would be enforcement, Curtis said. Mayor Jack Poll said he could see that as if he goes away for the weekend and his children came by to stay, it would be tough to determine if they were renting or just house guests.
Still several council members liked the simplicity of the proposed ordinance and it gave something for the city to refer to when a property owner is blatantly obvious in not following the rules.
The ordinance could have a short life. At the state level, both the House and the Senate have bills — HB5403 and SB329 respectively — in committee that would prohibit municipalities enacting zoning ordinance bans of short-term rentals. Rep. Steve Johnson said during a January Government Matters, cities would still be able to regulate short-term rentals through such means as noise, advertising, traffic or other conditions. The house bill remains in committee, Johnson said.
“There is a battle going with one side on the private property rights of an individual who owns a piece of property versus local control and what control a local municipality can have on it,” State Senator Peter MacGregor said of the proposed Senate bill. In the past couple of months, there has been little movement on either the Senate or House bill.
Holt said municipalities have several concerns about the state bills. It is the belief of many community leaders, including those in the cities of Wyoming and Kentwood, that to avoid inspection requirements, landlords would change their leases to 28 days or less.
“The majority of people who own residential properties do a great job,” said Mayor Stephen Kepley during the January Government Matters meeting, “but then you have have five percent who don’t and if they don’t have to do something they aren’t going to do something.”
To prevent a “one bad apple” scenario, Kepley said city officials are hoping to prevent that loophole so as to keep the neighborhoods nice. Currently the City of Kentwood does not have any regulations on short-term rentals.
AirBnB has opposed outright banning of short-term rentals but does support fair regulations. In an October 2017 Crain’s Detroit Business op-ed piece, a representative for AirBnB said “by taking the nuclear option off the table (the banning of short-term rentals), this law would encourage communities to collaborate with local hosts on commonsense rules…”
The most popular Michigan destinations for AirBnB travelers is Detroit followed by Ann Arbor and then Traverse City. Traverse City does regulate short-term rentals like bed and breakfasts. Traverse City’s ordinance requires owners must be present when renters are there, be licensed and cannot be within 1,000 feet of one another.
Last summer, AirBnB did strike a deal with the Michigan Treasury to collect use taxes. It is estimated that about $1.5 million would be generated through the tax. The move also will allow the state to track and collect the six percent use tax that applies to nightly rental charges on stays in Michigan hotels for periods of less than a month. However the six percent use tax, currently, does not come back to the municipalities.
