Nobody told you the rules would be this complicated. You bought a beautiful property in one of the best vacation regions in the country, you found it on Airbnb, and you figured the logistics would sort themselves out. Then someone in a Facebook group mentioned something about permits. Then you heard a neighbor got fined. Then you spent forty-five minutes on a township website that hasn't been updated since the Obama administration and found exactly nothing useful.

You are not alone. Northern Michigan's short-term rental landscape has changed faster than most owners realize, and the rules are genuinely local — not county-level, not state-level, but township by township. Two properties on the same two-lane road can operate under completely different regulations depending on which side of an invisible municipal line they sit on. No statewide database tracks this. No single agency enforces it. Michigan has handed all of it to local governments, and local governments have responded with a wide range of approaches, from enthusiastic permitting programs to outright bans backed by civil fines.

What follows is a current, verified breakdown of what the rules actually are in the four counties that matter most to northern Michigan property owners: Grand Traverse, Leelanau, Benzie, and Antrim.

Start here, because this is where the most active enforcement is happening right now.
East Bay Township — which wraps around the eastern shore of Grand Traverse Bay just north of Traverse City — capped its total short-term rental licenses at 145 in July 2023. That cap is full. No new licenses are available, and the township has added a 1,000-foot buffer requirement between any two registered rentals, which makes it nearly impossible to get in even if a spot opens up. Current license holders pay $450 per year to renew and must complete a septic system review every three years. The Planning and Zoning Department runs the program and hired a dedicated community police officer to help enforce it. If you're in East Bay and operating without a license, the township is looking for you.

Details and the application portal are at eastbaytwp.org.

Peninsula Township, which covers the Old Mission Peninsula, does not allow short-term rentals. Full stop. Rentals of fewer than 30 days in any non-commercially zoned residential property are a zoning violation, a policy the township says has been in place for decades. In early 2025, Peninsula Township adopted a formal schedule of civil fines to make enforcement faster — and then sent a letter to a local Realtor association asking members to stop helping clients circumvent the ordinance. The Michigan Supreme Court has upheld this type of permissive zoning, so legal challenges are unlikely to go anywhere. If you own on Old Mission and have been quietly listing on VRBO, consider this your warning.

Ordinance details are at peninsulami.us.

Acme Township, which sits just east of Traverse City, allows short-term rentals under a tourist home permit program. Tourist homes are owner-occupied, meaning you must be physically present when guests are staying. The township issues up to 50 permits per year and requires compliance with Grand Traverse Metro Fire Department safety standards — smoke detectors, carbon monoxide detectors, and proper egress. Acme's approach is notably more welcoming than its neighbors'.

Info and the ordinance are at acmetownship.org.

Long Lake Township has required annual registration for all short-term rentals since 2019, with the program updated in 2021. Every registered property must have a current septic inspection on file — renewed every 36 months — and the township posts a public map showing every licensed STR in the area. There is also a 24-hour complaint hotline at 231-835-6672.

The program page with full requirements is at longlaketownship.com.

Within the City of Traverse City itself, vacation home rentals are allowed in certain commercial zones and specific residential designations, but the rules are layered. New licenses cost $200, require proof of $1 million in liability insurance and a posted fire escape plan, and properties face a Fire Marshal inspection every three years. Enforcement is active but, by the city's own admission, difficult to sustain comprehensively. Always verify your specific parcel's zoning district before purchasing with rental income in mind. The city's Vacation Home Rental program page has current details.

Several Leelanau townships have active permitting programs, and a few are in the middle of building new ones.

Leelanau Township requires an annual permit for any full dwelling unit rented for fewer than 30 days. The program launched January 1, 2021 and caps total permits at 150 per calendar year. Owners must designate a 24-hour local contact person and give written notice to immediate neighbors within 200 feet.

Apply or renew at leelanautownshipmi.gov.

Suttons Bay Township also requires an annual permit with a $200 fee, and it runs a matching cap of 150 permits per year. The township uses Host Compliance, a third-party monitoring service with a 24-hour complaint hotline at 800-787-4357. Zoning staff handles enforcement directly. Full program details are at the township's short-term rental page.

Elmwood Township, north of Traverse City, allows rentals across all zoning districts but caps total permits at roughly 93 units — about 4 percent of the township's housing stock. That cap came after significant public debate. Contact the township directly to confirm current availability before buying with rental income factored into your math.

Cleveland Township adopted a new ordinance in 2024 with enforcement beginning January 1, 2025. The township uses Granicus, a software platform that actively scans Airbnb and VRBO listings to identify unregistered properties. If you own in Cleveland Township and have been listing without a permit, the township is not waiting for a neighbor complaint — it has software running in the background looking for exactly that. Contact Cleveland Township directly for fee and cap details.

Benzie has been slower to regulate than its neighbors, but that is changing.
Lake Township, which includes a stretch of Crystal Lake shoreline, passed a new short-term rental ordinance in September 2023, effective November 30 of that year. The program requires a permit, a property inspection, and limits any single owner to no more than two STR properties in the township. Annual licenses are capped at 75 per year. Benzie County Sheriff's deputies are designated as enforcement officers under the ordinance, which gives this program some real teeth.

The application and full ordinance are at laketwp.org.

Most other Benzie townships — Inland, Platte, Colfax among them — have no dedicated STR ordinances currently in effect. That does not mean no rules apply. General zoning, noise, and nuisance ordinances still govern how a property can be used. It does mean the barrier to entry is lower than in Grand Traverse or Leelanau. Confirm directly with the specific township before assuming you're free and clear.

Here is where even experienced owners get caught off guard.

Torch Lake Township bans short-term rentals in all residential zones — R-1, R-2, and R-3. That ban has been on the books since July 2014. Torch Lake is internationally famous as one of the most beautiful lakes in the world, routinely compared to the Caribbean for its water clarity, and a top destination for summer visitors. It is also, in its primary residential zones, closed to short-term rentals. The irony is not lost on people who paid lakefront prices expecting vacation rental income.

The ordinance is at torchlaketownship.org.

The Village of Elk Rapids maintains a separate, capped licensing program. The village allows STRs up to a hard cap of approximately 61 units — about 7.7 percent of its housing stock. Annual licensing is required, occupancy is capped at 10 guests per property, and priority for new licenses goes to Elk Rapids residents with a principal residence in the village. A 2025 ordinance update is in progress, so confirm the current version directly with the village before purchasing with rental plans in mind.

Several other Antrim townships, including Banks, Forest Home, and Helena, currently have no dedicated STR ordinances. General zoning classifications govern what you can do. Confirm directly with each township before assuming unregulated means unrestricted.

Michigan has no statewide short-term rental registration system. Every rule above exists because a local board voted to create it, and local boards can change their minds. Stay subscribed to your township's agenda notices and check your permit renewal window every fall without fail.

Before buying any northern Michigan property with rental income built into the budget, use the Grand Traverse County Parcel Viewer or the equivalent tool in Leelanau, Benzie, and Antrim counties to verify the exact jurisdiction of the parcel. Zip codes cross township lines constantly. What applies one block away may not apply to you.
The rules in this region are tightening, not loosening. The townships that haven't acted yet are watching the ones that have. Getting your permit in order now — and keeping it current — is the lowest-cost insurance you can buy.

The information in this article was compiled from publicly available township ordinances, official township websites, and published news sources as of March 2025. Regulations change, and some townships update their rules without advance notice. Always verify current requirements directly with the relevant township office before making purchase or operational decisions. This article does not constitute legal or financial advice.

Sources: Long Lake Township | Leelanau Township | Suttons Bay Township | Cleveland Township Ordinance | Crystal Lake Township | Antrim County Zoning | Peninsula Township | Old Mission Gazette STR Coverage | 9&10 News STR Report