Dearborn resident Therese Terns (left) speaks during the June 10 Dearborn City Council meeting.
By SUE SUCHYTA
Times-Herald Newspapers
DEARBORN – The City Council held first readings for proposed short-term rental rule changes that would restrict them from single- family neighborhoods and limit them mostly to multi-family units in downtown districts.
Short term rentals include roughly three types: single room rentals in owner-occupied units where the owner stays on site, single room rentals in owner-occupied units where the owner leaves the site during the rental, and the rental of housing units that are not the owner’s primary residence.
While short-term rentals are popular with people visiting tourist attractions like The Henry Ford or who are in town for family celebrations like weddings, they can also disrupt single-family residential neighborhoods if people rent a residence and throw noisy parties.
While retirees on fixed incomes may welcome rental income, investors who buy houses for short-term rental use can drive up housing prices and price some home buyers out of the market.
Under the proposed regulations, short-term rentals would only be permitted in the east and west downtowns, and would be prohibited from operating within Dearborn’s single-family residential neighborhoods.
The city would define short-term rentals as 30 consecutive days or less, so student housing would not be impacted.
A local property agent would be required to oversee the short-term rental if the owner does not remain on site or is out of town during a rental period.
It would prohibit short-term renters from using on-street parking.
Advertising of short-term rentals would not be permitted unless the owner has a permit. In addition, a city inspection schedule of the site would be established. Smoke and carbon monoxide detectors and fire extinguishers would be required.
Violators would face a $750 fine for a first offense and $1,000 fine for subsequent offenses.
The state’s attempt to create short-term rental regulations has seemingly stalled in the Legislature.
Recent litigation in Michigan related to short-term rentals has resulted in decisions that favor local oversight and control, Planning and Zoning Manager Kaileigh Bianchini said.
She said the goal of the ordinances would be to protect residential neighborhoods from what are essentially commercial businesses, to reduce the nuisances that occur with short-term rentals, and to require short-term rentals to be registered with the city and meet certain safety standards.
Bianchini said the city hopes to safeguard the city’s housing stock for long-term residents.
She said in the west downtown, short-term rental would be permitted in all frontages except in areas zoned mixed residential.
Bianchini said in the east downtown, short-term rentals would be allowed in zoning districts that allow multi-family use.
She said only one short-term rental unit will be permitted in a condominium unit unless a special land use is approved for additional units.
It was noted that some condominium home owner associations already forbid short-term rentals.
Bianchini said that short-term rental operators must be available 24/7 to respond within 30 minutes to complaints of noise, disturbances and other violations.
She said if three or more violations occur within a 12-month period the short-term rental permit may be revoked.
A second reading is planned for the July 15 council meeting.
For more specific information about the proposed rules, go to the city website, cityofdearborn.org, and look at the city council agenda packet for the June 10 meeting.