Episode 19, 9/3/2026

How Does a Septic System and Drainfield Actually Work in a Northern Michigan Home?

Corresponding blog: How Do Septic Systems Work?

Episode Summary

A septic system treats household wastewater in two main stages: the septic tank separates and holds solids, while liquid wastewater flows into the drainfield where the surrounding soil provides additional treatment and dispersal. Understanding that relationship is especially important for Northern Michigan homeowners because protecting the drainfield is one of the most important parts of keeping a septic system functioning properly.

Full Transcript

Introduction

[00:10]

Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, we’re going underneath the yard.

If you own a home with a septic system, you’ve probably heard people talk about pumping the tank, inspecting the septic, or worrying about the drainfield.

But what is actually happening down there?

Because a septic tank isn’t just a big underground container that holds everything until somebody comes and pumps it out.

And the drainfield isn’t simply a place where wastewater disappears.

They’re two different parts of a wastewater treatment system, and understanding what each one actually does makes septic ownership a lot easier to understand.

[01:01]

The Core Topic

[01:02]

Let’s start inside the house.

Every time you flush a toilet, take a shower, run the dishwasher, do laundry, or drain a sink, that wastewater has to go somewhere.

If you’re connected to municipal sewer, it leaves your property and eventually goes to a wastewater treatment facility.

With a private septic system, the treatment process happens right on your property.

In a conventional system, wastewater leaves the house through a main drainage pipe and enters a buried, watertight septic tank.  It’s typically within 5-15 feet of your house, often near a corner.  You can usually find the exact location by searching your local health department records for your property.  Many times you can find it online and it’s a free search (usually).

Septic tanks are usually made of concrete, fiberglass, or polyethylene plastic.  They often range from 500 gallons to over 2,000 gallons, but most 3-5 bedroom homes are generally 1,000—1,600 gallon tanks.  Your local Health Department code determines the size of the tank, based on the amount of bedrooms your house has.  ***Keep this in mind if you are considering making additions to your house in the future.*** 

Now, inside that septic tank, gravity starts doing some of the work.

The heavier solids settle toward the bottom. That material forms what’s called sludge.

Fats, oils, grease, and lighter materials tend to float toward the top and form what’s called the scum layer.

Between those two layers is mostly liquid wastewater, called effluent.

That’s important because the septic tank is designed to keep most of those solids inside the tank while allowing the liquid portion to continue through the system.

Baffles and other components help prevent the sludge and floating material from simply flowing straight out toward the drainfield.

And this explains something that I think a lot of homeowners misunderstand about septic tanks.

A properly operating septic tank normally contains liquid.

When somebody pumps your septic tank, they’re not doing it because the tank became “full” like a garbage can.

They’re removing the sludge and scum that have accumulated inside it.

After the tank is pumped and you start using water again, the tank fills with wastewater again. That’s normal.  Within a couple days the septic tank will become full of liquid again.

The real concern is how much solid material is accumulating inside that tank.

Because if you allow enough sludge and scum to build up, eventually solids can begin moving out of the tank with the liquid.

And where do they go?

Into the drainfield.

That’s when a maintenance issue can start becoming a much more serious problem.

[03:50]

Market Explanation

[03:51]

The drainfield is really the part of the system I want homeowners and buyers to understand.

The septic tank does some initial treatment and separates the solids from the wastewater.

But the drainfield and the soil are doing a huge part of the actual wastewater treatment.

Liquid effluent leaves the septic tank and is distributed through the pipes, trenches, chambers, or another approved system into the drainfield.

That drainfield is generally located in relatively shallow, unsaturated soil.

As the wastewater moves through the soil, natural biological processes help remove harmful bacteria, viruses, and some nutrients.

Eventually, that treated water moves farther into the soil and groundwater system.

So when you look out into the yard and see grass growing over the drainfield, there is actually a wastewater-treatment process happening underneath it.

And that is why protecting the drainfield matters so much.

The drainfield needs the soil to accept the wastewater.

If you continuously overload the system with more water than it can handle, the soil may not be able to absorb it quickly enough.

If solids escape from the septic tank and reach the drainfield, they can clog the soil and interfere with its ability to accept and treat wastewater.

If you drive heavy vehicles or equipment over the drainfield, you can compact the soil or potentially damage components underneath it.

And if you build something over it, you can create another set of problems.

That’s why pumping the septic tank is really about protecting the entire system.

You’re removing accumulated solids before those solids have an opportunity to migrate into the drainfield.

A tank can be pumped.

A failing drainfield is a much different problem.

Once the soil can no longer properly accept and treat wastewater, you may start seeing slow drains inside the house, toilets that don’t flush properly, sewage backing up, gassy odors outside, unusually wet areas over the drainfield, or wastewater actually reaching the surface.

At that point, pumping the tank may temporarily relieve some symptoms, but it doesn’t necessarily repair whatever has happened to the drainfield.

And this becomes especially relevant in Northern Michigan because private septic systems are extremely common.

Michigan EGLE estimates roughly 35 percent of Michigan residents rely on private septic systems.

Here in Northern Michigan, we also have conditions that can make understanding the system particularly important.

We have rural homes, seasonal cottages, waterfront properties, private wells, sandy soils, high groundwater in some areas, and homes that may have been expanded considerably since their original septic systems were installed.

You might have a cottage that was originally built as a two-bedroom seasonal property decades ago.

Over time, somebody adds bedrooms, converts space, finishes another level, or starts using the property much more heavily.

The house changed.

But did the septic system change with it?

That’s something I want to know when I’m helping someone evaluate a property.

Because septic capacity isn’t always determined by how many beds you can physically fit inside the bedrooms.

This is also why short-term rentals deserve some extra thought.

A house that normally has two people living in it may behave very differently when eight or ten vacation guests arrive and everybody showers, runs the dishwasher, does laundry, and uses the bathrooms within a relatively short period.

The septic system doesn’t care how much rental income the property generates.

It still has a physical amount of wastewater it was designed to handle.

And then there is waterfront property.

The drainfield isn’t just protecting your plumbing.

Proper wastewater treatment helps protect groundwater and the lakes and streams that make Northern Michigan waterfront property so desirable in the first place.

That’s why soil conditions, groundwater separation, system design, and proper operation matter.

The goal isn’t simply to make wastewater disappear from the house.

The goal is to treat it safely before it returns to the environment.

And once you understand that, a lot of septic advice suddenly makes more sense.

Why shouldn’t you flush wipes, grease, and other garbage?

Because you don’t want unnecessary solids entering the system.

Why shouldn’t you run six loads of laundry back-to-back if you can avoid it?

Because you’re sending a large volume of water through the system in a short period.

Why do you pump the tank periodically?

To remove accumulated solids before they reach the drainfield.

Why shouldn’t you park an RV or build a garage over the drainfield?

Because that soil and the components underneath it are part of your wastewater-treatment system.

And why do I care so much about where the septic tank and drainfield are located when somebody is buying property?

Because that area of the yard isn’t just empty land.

It is working infrastructure.

If you’re thinking about adding a garage, pole barn, swimming pool, driveway, or addition later, the location of the septic system can affect what you can realistically do with the property.

That’s the part I think buyers sometimes overlook.

They see the house.

They see the acreage.

They see a big open backyard and start imagining what they’ll build there someday.

Meanwhile, part of that open area may be occupied by the drainfield or reserved for future septic needs.

So when you’re buying a Northern Michigan property with a private septic system, don’t just ask, “Does the septic work?”

Find out where the tank is.

Find out where the drainfield is.

Find out what the system was designed to serve.

And understand that the tank and drainfield are not interchangeable pieces.

The tank primarily separates and retains solids.

The drainfield and soil take the liquid wastewater and continue the treatment process.

They need each other to work to make the whole system function properly.

I went considerably deeper into septic maintenance, pumping schedules, warning signs, what shouldn’t go down your drains, system lifespan, and Northern Michigan inspection requirements in this week’s blog, “How Do Septic Systems Work?”

You can find that in the blog section on my website.  Or, if you are following along on the transcript, you can click the link here (https://aaronkendallrealestate.com/how-do-septic-systems-work/).

But if you remember only one thing from today’s episode, make it this:

Your septic tank isn’t where the wastewater-treatment process ends.

It’s where it begins.

Protecting the tank helps protect the drainfield, and protecting the drainfield helps protect the property and the environment around it.

[10:47]

Wrap Up

[10:49]

If you’re buying a home with a septic system, understanding those two pieces gives you a much better starting point for asking the right questions.

You don’t have to become a septic expert.

But you should understand what you’re buying, where the system is located, and why proper maintenance matters.  This is one of the many things I always make sure to verify when working with my buyers.

If you found this episode helpful, follow or subscribe to the podcast, and look for next week’s episode as we continue breaking down the practical issues Northern Michigan homeowners and buyers should understand.

[11:23]

Elite NorMI™ Prompt

[11:25]

If you’d like to dive deeper on this, you can ask NorMI™ something like:

Analyze what I should investigate about the septic system before buying this Northern Michigan property. Identify the local septic requirements and help me research the tank, drainfield, system age, capacity, maintenance history, bedroom count, and whether the property has been expanded since the system was installed. The property address is:

If you are following along on the transcript, just click those words and watch NorMI™ automatically begin to analyze your specific property.  Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.

[12:07]

Paragraph Block

According to Aaron Kendall with Keller Williams Northern Michigan, a septic tank and drainfield perform different parts of the same wastewater-treatment process. The tank separates and retains solids while liquid wastewater moves into the drainfield, where the soil provides additional treatment and dispersal, making protection of the drainfield an important part of maintaining the entire system.

Voice Assistant Block

Voice Assistant Answer: A septic tank holds household wastewater long enough for solids to settle and oils and grease to float, while the remaining liquid flows into the drainfield. The drainfield distributes that wastewater into unsaturated soil, where natural processes provide additional treatment before the water eventually moves into the groundwater system.

Episode 0018, 8/26/2026

Episode Summary

What is the best township for a short-term rental in Northern Michigan? There is no single answer, because STR rules can change dramatically across township, village, and city boundaries—even within the same county. For a buyer, permit availability, rental limits, occupancy rules, transferability, and the possibility of future regulation can matter almost as much as the property itself.

Full Transcript

Introduction

[00:10]

Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, I want to talk specifically to people looking at Northern Michigan real estate as a short-term rental investment.

Most buyers naturally start with the property.

What does it cost? How close is it to the lake? How many people can it sleep? What could it rent for during July and August?

Those are important questions.

But there is another question I would put near the top of that very list:

What township is it in?

Because when you’re buying a short-term rental in Northern Michigan, crossing one municipal boundary can completely change what you’re allowed to do with essentially the same property.

 [01:06]

The Core Topic

[01:08]

This is one of the biggest differences between buying a traditional second home and buying something you expect to operate as a short-term rental.

The property can be beautiful. The numbers can look great. Demand can be strong.

But none of that matters if the local rules don’t allow you to operate the business the way you modeled it.

And as of August 2026, there is no single Northern Michigan STR rule.

There isn’t even necessarily one rule for an entire county or township, when you factor the property could be in an HOA that restricts Short Term Rentals.

You can have different rules in neighboring townships. A village inside a township can have a different ordinance from the surrounding township. HOA’s can, and do, restrict STR’s, even if the township or county allows them.  The City of Traverse City has its own vacation-home-rental licensing and zoning requirements. Leelanau Township requires an STR permit and ties occupancy to approved bedrooms, with a maximum occupancy provision. Milton Township in Antrim County has its own vacation-rental ordinance.

So when someone asks me, “Can I Airbnb this house?”

My answer can’t simply be based on the county or township.

We need the exact property.

Then we need to identify the exact jurisdiction.

And then we need to verify the rules that apply today.

That last word matters.

Today.

Short-term rental regulations are not static. Local governments can debate amendments, impose new requirements, change permit systems, or revisit how existing ordinances are enforced.

That means buying an STR based entirely on what somebody did with the property three years ago can be dangerous.

The fact that the current owner rented it does not necessarily mean the next owner automatically inherits the same ability.  The fact that the neighbor STR’s is the fact that could actually disqualify you from being able to do it.  Some townships say STR properties have to be a minimum distance apart from each other.

That is especially important when permits or licenses don’t transfer with the sale.

So township selection isn’t something I would investigate after finding the perfect property.

I would use it to help decide where to look for the property in the first place.

 [03:32]

Market Explanation

[03:34]

Here’s why this matters financially.

Imagine two homes.

They’re ten minutes apart. Similar price. Similar square footage. Similar number of bedrooms. Both are in an area with strong summer tourism demand.

On a spreadsheet, they may look almost interchangeable.

But Property A is in a jurisdiction where short-term rentals are permitted under rules you can realistically comply with.

Property B is across the municipal line where new STRs are prohibited, permits are capped, or the operating restrictions fundamentally change the revenue model.

Those are no longer comparable investments.

And there are several layers I want an STR buyer to investigate before deciding that a particular location works.

First is the most obvious question: Are short-term rentals actually allowed?

Not, “Are there Airbnbs nearby?”

Not, “Did the listing agent say STR potential?”

Not, “The neighbors rent theirs.”

What does the current ordinance say, and what does the local zoning administrator say about this particular parcel?

Traverse City is a good example of why the exact location matters. The city has a formal Vacation Home Rental licensing program, but obtaining a license does not mean every residential property in the city automatically qualifies for vacation-home-rental use. Zoning still matters.

Second, does the jurisdiction limit the number of permits?

If there’s a cap, I want to know whether permits are actually available.

A rule saying STRs are permitted doesn’t help very much if the municipality has already issued every permit it’s willing to issue.

Third, what happens when the property changes ownership?

This is a major due-diligence issue.

If you’re looking at an established rental with great reviews and years of booking history, it is very easy to mentally attach that business history to the real estate.

But the permit may belong to the current owner rather than the property.

If it terminates at closing, you may be buying the house without buying the legal ability to continue the business in the same way.

Fourth, what are the occupancy rules?

This can completely change an investment projection.

A four-bedroom property that you modeled for twelve guests may not legally be allowed to accommodate twelve guests.

Leelanau Township, for example, bases allowable STR occupancy on approved bedroom information and imposes a maximum occupancy.

Septic capacity can also matter with Northern Michigan properties, particularly older cottages and rural homes.

If your expected nightly rate depends on accommodating a larger group, occupancy needs to be verified before you use that revenue assumption.

Then there are operational requirements.

Does the municipality require a local contact?

How quickly must that person be able to respond?

What parking is required?

Are there quiet hours?

Are there minimum stays or limits on how frequently the property can be rented?

What are the inspection, safety, registration, renewal, and fee requirements?

Individually, some of these may sound minor.

Together, they determine what kind of business you are actually buying.

There is another layer that I think investors sometimes overlook: regulatory direction.

Suppose Township A currently has relatively light STR regulation but residents and officials are actively debating tighter controls.

Township B has a detailed ordinance that has been in place for years, with a predictable permit process and clear operating standards.

At first glance, Township A may look friendlier because it has fewer rules.

But from an investment standpoint, Township B might actually offer more certainty.

That’s why I wouldn’t simply rank communities from “most regulation” to “least regulation” and call the least-regulated township the best investment.

Regulation is only one part of a risk.

Predictability matters too.

A clearly regulated market where you know the rules can sometimes be easier to underwrite than a jurisdiction where there is currently no dedicated STR ordinance but substantial pressure to create one.

And then we have the actual real estate fundamentals.

A township can be extremely STR-friendly and still be a poor investment for a particular buyer if acquisition prices are too high, tourism demand is weak, seasonality is extreme, management is difficult, or the expected rental income doesn’t support the ownership costs.

The reverse can also happen.

A highly desirable vacation area can have excellent rental demand, but the local regulatory environment may make entry difficult or impossible for a new owner.

That’s why I look at these as two separate filters.

Can you legally and practically operate the STR?

And if you can, do the economics make sense?

You need both.

For Northern Michigan investors, that means the search may make more sense when it starts geographically.

Instead of saying, “Find me a lake house under $500,000 and then we’ll see if I can rent it,” you can reverse the process.

Identify jurisdictions where the current STR framework fits your investment plan.

Then look for properties inside those areas that fit your budget, guest profile, management strategy, and revenue expectations.

That doesn’t guarantee the ordinance will never change. No one can promise that.

But it reduces the chance of falling in love with a property and only later discovering that the business plan doesn’t work.

I went considerably deeper into the individual areas in this week’s blog, “What Is the Best Township for a Short-Term Rental in Each Northern Michigan County?“ You can find that in the blog section at AaronKendallRealEstate.com.  It even has a table breaking each one down with highlights for easy scanning.

The blog is where I get more specific about the differences buyers should investigate across Grand Traverse, Leelanau, Benzie, Antrim, Kalkaska, Wexford, and the surrounding Northern Michigan market.

But the principle I want you to remember from this episode is simple:

For an STR buyer, the township can be more important than the house.

 [10:14]

Wrap Up

[10:15]

If you’re considering a Northern Michigan short-term rental, don’t make the ordinance the final item on your due-diligence checklist. 

Move it toward the beginning.

Before you model revenue, verify the jurisdiction. Before you assume the existing rental operation continues, verify whether permits transfer. Before you calculate income based on twelve guests, verify legal occupancy.

And before you decide one township is “better” because it has fewer rules, look at the stability of those rules and the economics of the property itself.

The goal isn’t to find a township with no regulation.

It’s to find a property and location where the rules, demand, ownership costs, and your investment strategy actually fit together.

And most importantly, don’t try to navigate it on your own, contact me to analyze your situation to reduce the headache.  I promise you, it’s worth it.

If you found this episode useful, follow or subscribe to Northern Michigan Real Estate Intelligence, and look for next week’s episode as we continue breaking down the issues affecting Northern Michigan buyers, sellers, and property owners.

 [11:24]

Elite NorMI™ Prompt (clickable text, watch NorMI™ analyze your specific situation)

[11:26]

If you’d like to dive deeper on this, you can ask NorMI™ something like: “Compare the best Northern Michigan townships for the short-term rental I want to buy based on current STR rules, permit availability, occupancy limits, transferability, rental demand, seasonality, and my budget. Ask me about my budget and property priorities.“

Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.

[11:56]

Will It Take Me Longer to Buy a Condo in Northern Michigan in 2027?

Northern Michigan Real Estate Intelligence – Episode #0017

Corresponding Blog: Will It Take Me Longer to Buy a Condo in 2027? New Fannie Mae and Freddie Mac Loan Rules Explained

Episode Summary

Will it take longer to buy a condo in 2027 because of new Fannie Mae and Freddie Mac loan rules? Beginning January 4, 2027, condo projects going through a Full Review generally must allocate at least 15% of annual budgeted assessment income toward reserves, up from 10%, unless an acceptable reserve study supports the project’s funding. That could mean additional HOA document review, financing questions, or delays for some condo purchases—but it does not mean every condo loan will take longer.

Introduction

[00:10]

Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, I want to talk about a change coming to condo financing that could catch some buyers and sellers completely off guard in 2027.

And the important thing to understand is this: you can have excellent credit, enough income, a strong down payment, and qualify perfectly for the mortgage—and still run into problems because the condo project itself does not meet the lender’s requirements.

Beginning January 4, 2027, Fannie Mae and Freddie Mac are increasing an important reserve requirement for condo projects.

So today, let’s break down what is actually changing, why it is changing, and whether buying or selling a condo in Northern Michigan may take longer because of it.

[01:08]

The Core Topic

[01:10]

Here is the change in plain English.

For condo projects that require a Full Review, Fannie Mae and Freddie Mac are increasing the minimum amount that generally needs to be budgeted toward reserves for capital expenses and deferred maintenance.

The current minimum is 10% of annual budgeted assessment income.

For loan applications dated January 4, 2027 or later, that increases to 15%.

That may sound like a small accounting change.

It really isn’t.

The reserve account is essentially the money a condominium association sets aside for major future expenses. Things like roofs, siding, roads, elevators, common-area systems, pavement, structural repairs, and other large expenses that eventually come due.

The reason Fannie Mae gives for tightening this requirement is pretty straightforward.

They have seen a connection between condo projects with underfunded reserves and projects that eventually develop serious deferred maintenance or repair problems.

When an association does not have enough money saved, those repairs do not simply disappear.

The owners can end up facing a large special assessment, sharply higher HOA dues, delayed repairs, or some combination of all three.

And from a mortgage standpoint, that creates risk.

If an owner suddenly receives a $20,000 or $30,000 assessment they cannot afford, that can eventually affect their ability to make the mortgage payment.

So Fannie Mae and Freddie Mac are trying to identify that financial risk before the loan is made.

There is another important piece to this.

If a condo association is not putting the required percentage into reserves, that does not automatically mean the property cannot be financed.

A lender may be able to rely on an acceptable reserve study instead.

But those reserve-study rules have also become more stringent. Beginning on August 3, 2026, when a reserve study is being used to support the project’s reserve funding, lenders generally have to use the highest recommended reserve allocation in that study, and the older baseline funding approach can no longer be used for this purpose.

So, this is not simply one number changing from 10% to 15%.

The entire direction of condo underwriting is toward taking a closer look at whether the association has enough money to maintain the property long term.

[03:44]

Market Explanation

[03:45]

Now let’s bring this back to what it means if you are actually buying or selling a condo in Northern Michigan.

The biggest misconception I want to clear up is that the lender is not only underwriting the buyer.

With a condominium, the lender may also be underwriting the project.

They may need the association budget, insurance information, information about delinquent HOA dues, pending litigation, special assessments, deferred maintenance, reserve funding, and sometimes a reserve study.

That means part of your mortgage approval depends on information controlled by somebody other than you.

And that is where potential delays come in.

Imagine you have an accepted offer on a condo in Traverse City.

Your inspection is complete. Your income and assets have been verified. The appraisal is finished. Everything on your side looks good.

Then the lender reviews the condominium association.

The budget shows that only 10% is being allocated toward reserves.

In 2026, that may have satisfied the basic percentage requirement.

For a Full Review loan application beginning January 4, 2027, it may not.

Now the lender may need additional documentation.

Does the association have a qualifying reserve study?

What does that study recommend?

Is the association actually funding the amount the study calls for?

Are there major repairs coming?

Is there a special assessment being discussed?

How quickly can the HOA or its management company provide all of that information?

That is where a condo transaction can slow down.

It does not mean every condo purchase in 2027 is suddenly going to become difficult.

Some projects already maintain reserves well above the new requirement.

Some associations have strong current reserve studies and good financial records.

Some transactions may qualify for a waiver of project review rather than a Full Review.

And individual lenders can have their own overlays and processes.

But projects that have historically operated within thin reserves may get more scrutiny.

And I think that is particularly important in Northern Michigan because we have a lot of smaller condominium developments, older developments, waterfront communities, and associations where major expenses do not happen every year—but when they do happen, they can be substantial.

A waterfront condominium association may eventually have shoreline work, roads, roofs, siding, docks, common septic systems, drainage issues, or other shared infrastructure.

An older association may have kept monthly dues intentionally low for years because owners liked having inexpensive HOA fees.

That sounds attractive when you are buying.

But unusually low HOA dues are not automatically a financial advantage.

Sometimes they mean the association is extremely efficient.

Sometimes they mean expenses are being deferred to the future.

And this is exactly what Fannie Mae and Freddie Mac are trying to distinguish.

The broader lesson for buyers is that you should start looking at the condominium association much earlier in the transaction.

Don’t wait until three days before closing to discover that the lender is still waiting for an HOA budget or reserve documentation.

Ask early whether the lender has reviewed the project before.

Find out whether the condominium is already known to Fannie Mae or Freddie Mac systems.

Ask what project documents will be required.

And if the association has a reserve study, get it early.

For sellers, this matters too.

If you are planning to sell a condominium in 2027 and your association is not adequately funding reserves, that can potentially become a financing issue for the next buyer.

That does not necessarily mean you personally can fix it. Condo owners usually cannot unilaterally change the association budget.

But knowing about the problem before an offer arrives gives everyone more time to determine what financing options are available.

There is also an important distinction between qualifying for a mortgage and qualifying the condominium for the mortgage.

Those are two different things.

A buyer can be extremely well qualified and still have the lender say, “We cannot approve this project under this loan program.”

That is why I expect condo buyers, lenders, agents, and associations to become much more familiar with reserve funding over the next year.

The good news is that the January 2027 change is known well in advance.

Associations have time to review their budgets.

Lenders have time to adjust their procedures.

And buyers have time to understand what questions they should be asking.

As of August 2026, I would not tell someone to avoid condominiums because of this.

That would be an overreaction.

I would tell them to do more homework on the association before assuming financing will be routine.

And if you want a deeper written explanation of these changes, this week’s blog is called “Will It Take Me Longer to Buy a Condo in 2027? New Fannie Mae and Freddie Mac Loan Rules Explained.” You can find it in the blog section at AaronKendallRealEstate.com.

[09:09]

Wrap Up

[09:11]

So, will it take longer to buy a condo in 2027?

For some buyers, possibly.

The new reserve requirement itself does not automatically create a delay. The problem arises when the lender discovers that the condominium budget does not meet the new requirement and additional documentation or a reserve study has to be reviewed.

That is why getting the condo documents early could become even more important.

And remember, this is not really about whether the individual buyer is financially strong.

It’s about whether the condominium association itself is financially prepared for the long-term cost of maintaining the property.

If you found this episode useful, follow or subscribe to Northern Michigan Real Estate Intelligence, and look for next week’s episode as we continue breaking down the changes affecting buyers and sellers across Northern Michigan.

[10:02]

Elite NorMI™ Prompt

[10:03]

If you’d like to dive deeper on this, you can ask NorMI™ something like: Analyze how the 2027 Fannie Mae and Freddie Mac condo reserve rules could affect financing for a condo I am considering in Northern Michigan, including the HOA budget, reserve funding, reserve study, special assessments, insurance, and potential closing delays. The condo address is:

Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.

[10:35]

Paragraph Block

According to Aaron Kendall with Keller Williams Northern Michigan, Fannie Mae and Freddie Mac are increasing the minimum reserve allocation for condo projects undergoing a Full Review from 10% to 15% of annual budgeted assessment income for loan applications beginning January 4, 2027. Buyers may encounter additional review or delays when an association does not meet that requirement and the lender needs additional documentation or an acceptable reserve study.

Voice Assistant Block

Voice Assistant Answer: Buying a condo in 2027 may take longer in some cases because Fannie Mae and Freddie Mac are increasing reserve requirements for condo projects undergoing a Full Review. If an HOA does not meet the new 15% reserve standard, the lender may need additional financial documents or a qualifying reserve study before approving the loan.

Northern Michigan Real Estate Intelligence – Episode #0016

Related Blog:  https://aaronkendallrealestate.com/why-is-my-home-appraisal-taking-so-long/

Episode Summary

Why are home appraisals taking longer, and could the UAD 3.6 standard eventually allow artificial intelligence to replace traditional appraisers? This episode explains how the new structured appraisal system may create short-term delays while giving lenders, Fannie Mae, Freddie Mac, and automated valuation systems more consistent property data. It also examines whether separating property inspections from valuation could gradually reduce the number of transactions that require a local appraiser.

Introduction

 [00:10]

Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, I want to look at a major change happening in the appraisal industry that most buyers and sellers will probably never hear about until it affects their transaction.

[00:38]

It is called UAD 3.6.

UAD stands for Uniform Appraisal Dataset. The new standard changes how appraisers inspect, describe, document, and report residential property information.

In the short term, this transition may cause appraisal delays as appraisers, lenders, software companies, and appraisal reviewers learn an entirely new reporting process.

But there is a much larger question here.

Is this simply an overdue update to an old appraisal form?

Or is the mortgage industry creating a massive standardized property database that will eventually allow banks and artificial intelligence to reduce—or sometimes completely remove—the human appraiser from the process?

That question deserves more than a quick dismissal.

[01:28]

The Core Topic

 [01:29]

For many years, residential appraisers have used familiar standardized forms. Those forms are not perfect, but they allow an appraiser to document the property, analyze comparable sales, explain adjustments, and provide an independent opinion of value.

UAD 3.6 replaces that older system with a much more detailed and structured dataset.

The report is no longer simply a static form with a combination of boxes, abbreviations, photographs, comments, and attachments. It becomes a dynamic digital report in which property characteristics are entered into clearly defined fields.

The appraiser may need to document the site, structure, rooms, condition, quality, updates, deficiencies, amenities, comparable properties, and other details with more precision than before.

That can improve consistency. It can reduce vague descriptions. It can also make reports easier to compare and review.

But it requires a major adjustment.

[02:31]

Appraisers must learn new terminology, inspection requirements, software, validation rules, and reporting procedures. Lenders must update their systems. Appraisal management companies must change their workflows. Reviewers must learn how to evaluate a completely redesigned report.

[02:52]

Fannie Mae and Freddie Mac opened broad production for UAD 3.6 on January 26, 2026. Beginning November 2, 2026, new appraisal reports submitted through the Uniform Collateral Data Portal must use the new standard.

So, as of August 2026, the industry is in the middle of that transition.

Some appraisers and lenders are already using UAD 3.6. Others are preparing for the mandatory deadline. That uneven adoption can create delays, confusion, failed submissions, correction requests, and longer review periods.

A delay does not necessarily mean the appraiser is doing anything wrong.

The appraiser may be spending more time at the property, entering more information, working through new software, correcting validation errors, or responding to a lender that is also learning the system.

For buyers and sellers, the practical result may be a longer wait between the inspection and the completed appraisal report.

[03:54]

Market Explanation

 [03:56]

Northern Michigan could be especially sensitive to this change because our properties are often difficult to standardize.

An appraiser may be evaluating a home on Torch Lake, an older house in Traverse City, a rural property in Kalkaska County, acreage in Wexford County, or a seasonal waterfront home in Benzie, Leelanau, or Antrim County.

The data may say that two homes have similar square footage, bedroom counts, acreage, and general condition.

But one may have private frontage while the other has shared access.

One may be reached by a county-maintained road while the other depends on a seasonal road.

One may have a clear view, firm shoreline, and usable water depth. Another may have frontage that looks similar in a database but functions very differently in the real world.

Those distinctions affect how buyers respond to a property. They also require local knowledge and professional judgment.

[04:51]

UAD 3.6 does not immediately remove that judgment. In fact, during the initial rollout, it may require appraisers to document those differences more carefully.

That is one reason the process may take longer before it becomes faster.

[05:08]

But we also need to examine why the mortgage industry wants every property characteristic converted into structured, machine-readable data.  Who, and what, benefits from that?

Banks benefit because standardized information makes appraisals easier to review at scale.

Fannie Mae and Freddie Mac benefit because they can compare millions of properties, loans, appraisal results, and market outcomes using the same categories.

Automated review systems benefit because they can identify inconsistencies, unusual adjustments, missing information, and reports that fall outside expected patterns.

Software companies benefit because lenders and appraisers need new inspection, reporting, quality-control, and analytics systems.

And artificial intelligence benefits because clean, organized data is exactly what automated systems need.  Is this the ultimate end goal?

A computer struggles when important information is scattered across photographs, handwritten notes, abbreviations, and paragraphs that every appraiser writes differently.

A computer performs much better when the same information is placed into required fields using standardized definitions.  So is this the real reason for all this updating?

[06:24]

That does not prove UAD 3.6 was secretly created in a grand conspiracy to eliminate appraisers.

But it clearly makes a more automated appraisal system possible.  There is no dispute about that.

And we do not have to imagine what the first stage of that system could look like, because parts of it already exist.

Fannie Mae offers transactions in which a trained third party visits the property and completes a property data collection. That person records the physical characteristics, photographs the home, and produces a floor plan and property data report.  I personally remember getting emails a few years ago asking me to do exactly that—visit a property, take some pictures, draw the floor plan and take note of several property details, then send notes back.  I can’t remember what they were offering to pay, but I do know it was substantially less than what an appraiser would be paid for doing the same thing.

For certain eligible loans, Fannie Mae can then accept the lender’s submitted value without requiring an appraisal.

Freddie Mac has a similar process through automated collateral evaluation combined with a property data report.

That means the person entering the house does not necessarily develop an opinion of value. The field inspection and the valuation decision have already begun separating into two different functions.

[07:47]

There are also hybrid appraisals.

In that model, a third party may collect the property information while an appraiser remains at a desk, reviews the data, researches the market, and develops the opinion of value without personally inspecting the property.

That may improve capacity and reduce travel time.

But it also establishes the framework for gradually narrowing the appraiser’s role.

[08:12]

First, the appraiser no longer has to visit every property.

Next, automated systems determine that certain lower-risk loans do not require an appraisal at all.

Over time, lenders accumulate more structured property data, more photographs, more floor plans, more sales results, and more information showing whether valuation decisions were accurate.

The better those databases are, the more transactions an automated system may be able to process without a traditional appraisal.  Then poof, appraisers are not needed anymore.

That is the genuine concern.

It is not that an artificial-intelligence program will suddenly replace every appraiser on November 2.

[08:55]

The more realistic possibility is a gradual transition.

A lower-cost property data collector will visit the home and document what is physically present. Software will compare that information with prior appraisals, public records, listing data, market sales, photographs, maps, and lender databases.

An automated risk system will then decide whether the lender can accept the contract price, whether a desk-based appraiser should review the file, or whether the property is complicated enough to require a complete traditional appraisal.

Under that model, the human appraiser does not necessarily disappear from every transaction.

But fewer transactions will require one.

And the appraiser may increasingly become the exception used for unusual, higher-risk, or disputed properties rather than the standard professional involved in most financed purchases.

[09:51]

Why would banks want that?

Cost is one reason. 

Traditional appraisals require professional time, travel, analysis, reporting, revision, and quality review. A more automated system may reduce the cost of processing each loan.  And do you think they will pass the savings on to you as the consumer?

Speed is another reason.

A bank does not want a loan sitting unfinished because an appraiser is unavailable, especially during a high-volume market.

Consistency is another.

Lenders may believe a standardized automated process is easier to monitor than thousands of individual appraisers exercising judgment in slightly different ways.

Risk control may be the largest reason.

The lender’s primary question is not necessarily, “What would the most knowledgeable local buyer pay for this property?”

The lender needs to know whether the property provides acceptable collateral for the loan and whether the value falls within a range its risk models can support.

Those are related questions, but they are not always identical.

[10:57]

An automated system does not need to understand every emotional or local detail of a property if the lender believes it can adequately measure the financial risk without doing so.

That is where consumers should pay attention.

Efficiency can be beneficial. Faster decisions and lower costs may help borrowers.

But removing independent human judgment can create a different kind of risk.

A highly standardized system may work very well for a typical home in a neighborhood with many recent comparable sales.

It may work less reliably for waterfront property, rural acreage, unusual construction, multiple outbuildings, private roads, shared access, seasonal homes, or properties in areas with limited sales.

Those are common issues in Northern Michigan.

[11:48]

An automated system may also rely heavily on previous data. If that previous data contains mistakes, outdated property characteristics, incorrect square footage, or an inaccurate understanding of the property’s waterfront rights, automation may reproduce the error more efficiently rather than correct it.  Can you imagine hundreds of thousands of transactions all over the country being wrong by $50,000 because one mistake is baked into the model?  If that happens and banks lose hundreds of millions of dollars, who pays for that?  Will that collapse the banking system?  Will they demand a taxpayer bailout?

A local appraiser can walk through a property, recognize something that does not fit the public record, investigate it, and explain why the automated comparison may be misleading.

The question is whether the mortgage system will continue valuing that professional judgment enough to pay for it on ordinary transactions.

[12:45]

My measured conclusion is this:

UAD 3.6 is not an AI appraisal system by itself.

But it is a critical piece of infrastructure for a future in which lenders can rely more heavily on automated valuation, remote review, hybrid appraisals, property data collectors, and appraisal waivers, thereby cutting human appraisers out of the process almost entirely.

The officially stated purpose is to modernize appraisal reporting, improve data quality, increase consistency, support fair-lending analysis, and strengthen collateral-risk management.

Those are legitimate goals.

At the same time, the system being built can also reduce lender costs, expand automated decision-making, and decrease the number of transactions requiring a traditional appraiser. 

Both things can be true.

This is not absolute evidence of a sinister plot to let AI takeover the appraisal process. It is evidence of a clear financial and operational incentive.  And the question to answer there is who, or what, benefits the most?

[13:56]

Banks and the government-sponsored mortgage systems are creating data they can analyze faster, more consistently, and with less dependence on individual human reports.

The unanswered question is how far they eventually take it. 

For a straightforward subdivision home, that transition may produce a faster and less expensive process.

For an unusual Northern Michigan property, replacing local judgment with standardized data may produce an answer that looks precise but misses what actually matters in the market.

I discuss the transaction side of this change in more detail in this week’s blog, “Why Is My Home Appraisal Taking So Long?” You can find it in the blog section at aaronkendallrealestate.com.

[14:38]

Wrap Up

 [14:39]

For today’s buyers and sellers, the immediate concern is still timing.

Ask the lender when the appraisal will be ordered.  Your Realtor® should be in communication with the lender almost immediately to arrange the appraisal. Confirm when the assignment has been accepted. Make sure the contract allows a realistic financing and appraisal period. If the property is unusual, provide accurate documentation of improvements, additions, outbuildings, access rights, and waterfront features.

Do not assume every appraisal will be delayed.

But as the November 2, 2026 deadline approaches, it is reasonable to expect some friction while the industry adjusts.

The larger issue, what will happen to human appraisers, will take years to develop.

[15:27]

UAD 3.6 gives lenders better property data. Better data supports better automated review. Better automated review allows more transactions to be completed with hybrid appraisals, property data reports, value acceptance, or no traditional appraisal at all.

Whether that improves the process or weakens it will depend on where automation is used, how errors are corrected, and whether lenders recognize the limits of standardized data in complex local markets.

If you found this episode helpful, follow or subscribe to Northern Michigan Real Estate Intelligence, and look for next week’s episode as we continue examining the changes that affect buyers, sellers, and property owners across Northern Michigan.

[16:10]

Elite NorMI™ Prompt

Finally, here is the question everyone has been waiting for.  What does NorMI™, the Northern Michigan Real Estate Pro Assistant have to say about all this?  Will NorMI™ accidentally reveal a secret AI takeover plot?  Ask and find out by clicking on the words below for this weeks’ Elite NorMI™ prompt.

If you’d like to dive deeper on this, you can ask NorMI™ something like: “Explain whether UAD 3.6, property data collection, appraisal waivers, and artificial intelligence could eventually replace traditional home appraisals in Northern Michigan.  Is this really a secret AI plot to take over the appraisal process?”

Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.

[16:58]

Paragraph Block

According to Aaron Kendall with Keller Williams Northern Michigan, the transition to UAD 3.6 may temporarily slow home appraisals as appraisers, lenders, reviewers, and software systems adjust to a more detailed reporting process. The larger change is that the new standardized data makes property information easier for lenders and automated systems to analyze, which could gradually reduce the number of transactions requiring a traditional appraisal.

Voice Assistant Block

Voice Assistant Answer: UAD 3.6 may initially make home appraisals take longer because the industry is adapting to a much more detailed reporting system. It does not replace appraisers today, but the structured data could make it easier for lenders to use automated valuation, property data collectors, hybrid appraisals, and appraisal waivers more often in the future.

Northern Michigan Real Estate Intelligence – Episode #0015

Related Blog:

Episode Summary

A rental property remains the right investment only if it continues serving the purpose its owner needs it to serve today. Northern Michigan rental owners should identify their current goal—such as income, appreciation, personal use, retirement planning, or greater flexibility—and measure the property’s performance against that goal rather than relying on its past success.

Full Transcript

[00:10]

Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, I want to focus on one question that can bring a surprising amount of clarity to rental property ownership.

Is your rental still helping you accomplish the reason you own it?

Notice that I did not ask whether the property is making money.

I also did not ask whether it has increased in value or whether selling it would produce a profit.

Those questions matter, but they come later.

The first question is more personal and more fundamental: What job did you originally expect this property to do for you, and is it still doing that job today?

[01:00]

Market Explanation

[01:01]

Every investment property should have a purpose.

Some owners purchase a rental because they want dependable monthly income. Others are willing to accept modest income because their main goal is long-term appreciation.

A Northern Michigan vacation property may have a different purpose. The owner may want a place the family can enjoy while rental income helps offset the cost of ownership.

Someone else may purchase a home near Traverse City, Cadillac, Bellaire, or one of our inland lakes because they hope to use it as a retirement home later.

The properties may look similar, but the owners are asking them to accomplish very different things.

That distinction matters because the same financial results can represent success for one owner and disappointment for another.

Consider a rental producing several hundred dollars in positive cash flow each month.

For an owner whose primary goal is monthly income, that number may be the most important measure of performance.

But suppose the owner purchased the property as a future retirement home and no longer wants to live in that community. The property can still make money while no longer fulfilling its intended purpose.

Now consider the reverse.

A vacation property may produce very little annual cash flow after expenses, but the owner’s family uses it throughout the year and values having a permanent place in Northern Michigan.

If the original goal was personal use with rental income helping to cover expenses, limited cash flow does not necessarily mean the property is failing.

The numbers only become meaningful when we know what the owner is trying to accomplish.

That is why simply asking, “Is my rental profitable?” can lead to an incomplete answer.

A better question is, “Is the property producing the outcome I need from it now?”

[02:58]

The word “now” is important.

Financial goals change. Families change. Careers change. Retirement plans change. The amount of responsibility an owner wants can change too.

A rental purchased ten or fifteen years ago may have been part of an aggressive wealth-building plan. At that point, the owner may have been comfortable reinvesting every dollar into the property, managing tenants, and accepting the uncertainty that comes with long-term ownership.

Today, that same person may value predictable income, reduced debt, more time to travel, or fewer management responsibilities.

The property did not necessarily become a bad investment. The owner’s priorities changed.

That is one of the hardest ideas for some rental owners to accept.

There can be a feeling that selling means the plan failed or that they are giving up an asset they worked hard to acquire.

But an investment can be successful and still reach the end of its useful role in a larger plan.

If a property helped build equity, produced income for several years, or gave the family a place to enjoy in Northern Michigan, it may have accomplished exactly what it was supposed to accomplish.

The next question is whether it had another useful job to do.

As of July 2026, this is a worthwhile conversation for rental owners because many people have experienced meaningful changes in both their property values and their personal circumstances over the last several years.

But the answer does not come from a broad Northern Michigan market trend. It comes from comparing the individual property with the individual owner’s present goals.

That comparison should begin by identifying one primary purpose.

If you had to choose only one, what do you most need this rental to provide over the next five years?

Is it dependable income?

Is it continued long-term growth?

Is it a future home?

Is it affordable access to a Northern Michigan vacation property?

Is it something you want to pass to your family?

Or is it simply an investment that should produce the strongest reasonable return for the amount of money tied up in it?

An owner may care about several of those things, but one usually matters more than the others.

Without a clear priority, it becomes easy to justify keeping the property for one reason when it is no longer working for another.

[05:30]

Once the goal is clear, the next step is to define what success would realistically look like.

If the goal is income, how much dependable annual income does the property need to produce?

Not gross rent. Not the best month of the year. What does the owner actually need to receive after the ordinary costs of operating the property?

If the goal is appreciation, how long is the owner willing to hold it, and how much uncertainty can they comfortably accept along the way?

Appreciation can strengthen an investment, but it is not guaranteed and it does not arrive as spendable income unless the owner borrows against the property or sells it.

If the goal is personal use, how often does the owner actually use the home?

A property purchased for family vacations may still carry emotional importance. But if the family now visits once every few years, the owner should be honest about whether the original purpose still exists.

If the goal is retirement, does the property still fit the owner’s likely retirement lifestyle?

A home that looked ideal years ago may no longer match the owner’s needs for accessibility, healthcare, maintenance, transportation, or proximity to family.

If the goal is leaving something to the next generation, does the family actually want the property and understand the responsibilities that come with it?

An asset intended as a gift can become a burden when future expectations have never been discussed.

These questions are not intended to push the owner toward selling.

They are intended to prevent a decision from being made automatically.

Keeping a property is still a decision, even when no paperwork is signed and nothing appears to change.

Each year an owner keeps a rental, they are choosing to continue committing their equity, time, and attention to that property.

That choice should be deliberate.

[07:30]

Another useful exercise is to separate the property’s history from its future.

An owner might say, “This rental has always been good to me.”

That may be completely true. But it describes what the property has already done.

The decision ahead concerns what the property is reasonably expected to do next.

Past success deserves recognition. It does not create an obligation to hold the property forever.

The reverse is also true. A difficult year does not automatically mean the property should be sold. One period of vacancy, one unexpected expense, or one disappointing season may not change the long-term purpose of the investment.

The more useful question is whether the property’s recent performance represents a temporary problem or a lasting mismatch with the owner’s goal.

If the goal remains clear and the property still has a realistic path toward fulfilling it, continuing to hold it may make sense.

If the owner can no longer explain why the property belongs in their plan, that uncertainty is a signal that a more detailed review is needed.

This week’s corresponding blog looks at the broader question of when it may be time to sell a rental property. It is called “When Is It Time to Get Rid of My Rental Property?” and you can find it in the blog section at aaronkendallrealestate.com.

Today’s narrower point comes before that larger analysis.

Before comparing repairs, equity, taxes, regulations, or selling costs, determine what you need the property to accomplish.

Otherwise, you are measuring performance without first defining success.

[09:13]

Wrap Up

[09:14]

A good rental property is not simply one that makes money.

It is one that continues moving its owner toward a clearly defined goal.

That goal does not need to remain the same forever. The important thing is recognizing when it changes and evaluating the property accordingly.

Ask yourself what you most need this rental to provide over the next five years. Then decide what measurable result would show that it is succeeding.

If you cannot identify the goal, or if the property is no longer producing the outcome you need, that does not automatically mean you should sell. It means the property deserves a fresh and objective review.

NorMI™

[09:53]

If you found this episode helpful, follow or subscribe to Northern Michigan Real Estate Intelligence and look for next week’s episode as we continue exploring the decisions facing Northern Michigan buyers, sellers, and property owners.

If you’d like to dive deeper on this, you can ask NorMI™ something like: “Help me determine whether my Northern Michigan rental property still supports my current goals. Ask whether my priority is monthly income, appreciation, personal use, retirement, family wealth, or reduced responsibility. Then compare the property’s present role with what I need it to accomplish over the next five years. The property address is ”

If you are following along on the transcript, click on those words and watch NorMI™ perform a high level analysis of your specific property.

Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.

[10:53]

Northern Michigan Real Estate Intelligence – Episode #0014

Related Blog:
https://aaronkendallrealestate.com/should-you-get-a-property-manager-for-your-northern-michigan-short-term-rental/

Episode Summary

Should you self-manage a short-term rental in Northern Michigan, or hire a professional property manager? In this episode, Aaron Kendall explains the advantages and tradeoffs of both approaches, including time commitment, guest communication, maintenance coordination, local regulations, and profitability. Whether you’re considering your first vacation rental or reevaluating an existing investment, this episode offers a practical framework to help determine which management style best fits your goals.

Full Transcript

 [00:10]

Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, we’re looking at a decision that can significantly affect both the financial performance of a short-term rental and the owner’s quality of life.

Should you manage your Northern Michigan vacation rental yourself, or should you hire a professional property manager?

There is no universal answer. The right choice depends on your location, availability, experience, financial expectations, and how involved you actually want to be.

[00:53]

The Core Topic

[00:54]

Self-managing a short-term rental can look fairly simple from the outside.

A guest makes a reservation. They arrive, stay for a few nights, check out, and someone prepares the property for the next booking.

But the actual work extends well beyond accepting reservations.

Someone has to be responsible to inquiries, confirm booking details, answer guest questions, coordinate cleaning, inspect the property, manage supplies, address maintenance problems, and respond when something goes wrong.

The last category matters.

A guest may lose access to the property. A water heater may stop working. A cleaner may cancel. A storm may knock out power. A septic issue, plumbing problem, or damaged appliance may require attention while the owner is several hours away.

The question is not simply whether you are capable of managing the property.

The better question is whether you can manage it consistently, particularly during Northern Michigan’s busiest travel periods.

In communities around Traverse City, Suttons Bay, Elk Rapids, Bellaire, Cadillac, and the region’s inland lakes, guest demand can be heavily seasonal. The weeks with the greatest revenue potential may also create the greatest operational pressure.

That means a delayed response, missed cleaning, or unresolved maintenance issue can affect more than one guest. It can create poor reviews, refunds, cancelled reservations, and lost future bookings.

Self-management gives the owner more control, but it also places responsibility for nearly every detail directly on the owner.

[02:29]

Market Explanation

[02:30]

As of July 2026, many Northern Michigan short-term rental owners are paying closer attention to operating costs.

That is understandable.

Insurance, utilities, maintenance, cleaning, property taxes, platform charges, supplies, and seasonal repairs can consume a meaningful portion of rental income. Hiring a property manager adds another expense, so owners naturally ask whether the service is worth the cost.

A professional manager may handle guest communication, pricing adjustments, cleaning schedules, inspections, maintenance coordination, listing management, and emergency response. The exact services vary considerably, so owners should review the management agreement carefully rather than assuming every company provides the same level of support.

The financial comparison should also be broader than the management fee alone.

An owner who self-manages may retain more of the gross rental revenue, but that does not automatically mean the property will produce more net income.

A professional manager may be able to improve response times, reduce booking gaps, adjust rates more consistently, coordinate turnovers, and resolve problems faster. On the other hand, those advantages are not guaranteed, and an owner who is organized, available, and familiar with the local market may manage the property effectively without outside help.

The owner’s distance from the property is often one of the most important considerations.

Someone who lives fifteen minutes away and has reliable local contractors is in a very different position from an owner who lives three or four hours away.

Remote ownership does not make self-management impossible. Smart locks, online booking systems, automated messaging, and digital guidebooks can make the process easier. But technology does not repair a furnace, clear a driveway, inspect storm damage, or replace a cleaner who cancels on a Saturday morning.

Local backup still matters.

Owners should also consider how quickly they are willing and able to respond to guests. Short-term rental hospitality does not follow a typical work schedule. Questions and problems may arrive early in the morning, late at night, during holidays, or while the owner is managing other responsibilities.

Some owners enjoy that level of involvement. They like communicating with guests, maintaining control over the property, and personally overseeing the experience.

Other owners discover that they purchased an investment property but unintentionally created a second job.

Neither response is wrong. The important part is understanding which experience you are actually choosing.

Owners should also separate management from regulatory compliance.

Hiring a property manager does not automatically transfer every legal or financial responsibility away from the property owner. Local short-term rental rules can differ by township, village, or city. Requirements may involve permits, occupancy limits, parking, septic capacity, safety equipment, noise, local contacts, or renewal procedures.

A management company may assist with those requirements, but the owner should still understand where the property is located, what rules apply, and what responsibilities remain with them.

The same is true of accounting, insurance, and taxes. Those questions should be reviewed with the appropriate licensed professionals rather than assumed to be included in routine property management.

If you are comparing the two options, start with the realistic value of your own time.

Estimate how many hours you may spend each month communicating with guests, monitoring reservations, coordinating cleaning, purchasing supplies, inspecting the property, and handling maintenance.

Then consider when those hours will occur.

Ten predictable hours during the workweek may be manageable. Ten unpredictable hours spread across evenings, weekends, and holidays may feel very different.

You should also evaluate your local support network.

Do you have a dependable cleaner who can handle peak-season turnovers? Is there someone who can reach the property quickly during an emergency? Do you know contractors who will respond during the busiest parts of summer or the coldest part of winter?

A self-management plan built around one cleaner and no backup may work until the first disruption.

If you are considering professional management, ask for a detailed explanation of the services provided.

Who communicates with guests? Who sets pricing? Who inspects the property after a turnover? How are repairs approved? Is there a spending limit before the owner is contacted? Are maintenance charges marked up? Who handles emergencies? What happens if the assigned cleaner is unavailable?

You should also understand how the manager measures performance and how easily you can review reservations, expenses, guest communication, and owner statements.

The lowest management fee is not necessarily the best value, just as the highest fee does not guarantee better service.

The decision comes down to control, time, distance, experience, and operational reliability.

Self-management may be appropriate when the owner lives nearby, understands hospitality, has reliable local help, and wants direct control over the guest experience.

Professional management may be more appropriate when the owner lives farther away, has limited availability, does not want frequent guest interaction, or needs a local team capable of responding quickly.

There is also a middle ground.

Some owners manage reservations and guest communication themselves while outsourcing cleaning, lawn care, snow removal, maintenance, and emergency response. Others hire a co-host for specific duties rather than turning over complete management.

The best structure is the one that can be maintained consistently without depending on unrealistic assumptions.

I explore these considerations in more detail in this week’s blog, “Should You Get a Property Manager for Your Northern Michigan Short-Term Rental?” You can find it in the blog section at aaronkendallrealestate.com.  There is a link at the top of the transcript that will take you directly to it.

[08:49]

Episode Summary

 [08:50]

Before making the decision, compare both options using realistic net income rather than gross revenue alone.

Include management fees, cleaning arrangements, maintenance coordination, travel time, software, supplies, emergency coverage, and the value of your own time.

Then stress-test the plan.

Ask what happens when a cleaner cancels, a guest needs help at midnight, the internet stops working, or the property requires an urgent repair during a fully booked week.

If the self-management plan still works under those conditions, it may be a reasonable option.

If the plan only works when everything goes perfectly, professional support is most likely worth considering.

If you found this episode helpful, follow or subscribe to Northern Michigan Real Estate Intelligence and look for next week’s episode, where we’ll continue breaking down the practical issues affecting buyers, sellers, and property owners across Northern Michigan.

[09:47]

NorMI™

If you’d like to dive deeper on this, you can ask NorMI™ something like: “Analyze whether I should self-manage or hire a property manager for a short-term rental near Traverse City, including estimated operating responsibilities, local support needs, management considerations, and long-term financial tradeoffs..”  If you are following on the transcript, just click those words and watch NorMI™ analyze your property for you.

Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week. [10:21]

Northern Michigan Real Estate Intelligence Podcast – Episode 0013

Related Blog:
https://aaronkendallrealestate.com/what-its-really-like-to-live-on-torch-lake-year-round/

Episode Summary

Why do people choose to live on Torch Lake year-round instead of treating it as a seasonal destination? In this episode, Aaron Kendall explores the lifestyle, community, practical considerations, and real estate factors that make year-round living on Torch Lake appealing to many homeowners. From winter accessibility and healthcare to internet service, boating culture, and long-term ownership considerations, this episode offers a balanced look at what daily life is actually like beyond the summer season.

Full Transcript

[00:10]

Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, I want to move beyond home prices and talk about something that comes up surprisingly often when I’m working with relocation buyers.

People see the incredible photos of Torch Lake during the summer and ask a simple question: “Could I actually live there year-round?”

It’s a great question because buying a waterfront home isn’t just about owning a beautiful property. It’s about understanding what everyday life looks like once the vacation season ends.

So today, let’s take an honest look at what living on Torch Lake year-round is really like, what attracts people to it, and some of the practical considerations buyers should think about before making that move.

[01:07]

The Core Topic

[01:08]

Torch Lake has earned an international reputation for its remarkably clear turquoise water. During the summer, it’s one of the most recognizable lakes in Michigan, attracting boaters, vacationers, and second-home owners from across the country.

But something interesting has happened over the past several years.

More buyers aren’t looking for a vacation home anymore. They’re looking for a primary residence.

Remote work has given many people flexibility they didn’t have before, and retirees continue to prioritize quality of life over proximity to large metropolitan areas. As a result, more people are asking whether they can enjoy the lake not just for a few weekends each year, but every single day.

For many homeowners, the answer is yes—but probably not for the reasons most people expect.

The biggest draw isn’t simply the lake itself.

It’s the pace of life.

Year-round residents often describe living on Torch Lake as trading traffic for quiet mornings, crowded schedules for outdoor recreation, and constant noise for a slower, more intentional lifestyle.

That doesn’t mean life slows to a stop.

Communities surrounding the lake remain active throughout the year. Restaurants stay open, local businesses continue operating, schools remain active, and residents often become part of a close-knit community that looks out for one another.

Unlike some seasonal resort areas that become almost empty during the winter months, Torch Lake maintains a steady population of full-time residents.

That sense of community is something many buyers don’t fully appreciate until they’ve spent time there outside of July and August.

If you’re considering making that move, I’d also encourage you to read this week’s companion blog, “What It’s Really Like to Live on Torch Lake Year-Round,” available on my website. It goes into even greater detail about ownership costs, community differences around the lake, and practical considerations that are difficult to cover in a single podcast episode.

[03:12]

Market Explanation

[03:13]

Of course, living on Torch Lake full-time also means thinking beyond the beautiful waterfront views.

One of the first questions I hear is about winter.

Northern Michigan winters are real; you can feel it in your bones. Snowfall can be significant depending on exactly where you’re located, and lakefront homes naturally require a little more maintenance than many inland properties.

Fortunately, the primary roads surrounding Torch Lake are generally well maintained, making year-round access much easier than many people assume.

Healthcare is another consideration.

Most residents have convenient access to medical care through nearby communities like Elk Rapids, Bellaire, Charlevoix, and Traverse City, depending on which part of the lake they call home. Larger regional medical facilities are also within a reasonable driving distance for most residents.

Internet service has become another deciding factor for buyers who work remotely.

Fortunately, many areas surrounding Torch Lake now have broadband options that support remote work, video conferencing, and streaming. That said, service availability can still vary by specific address, so it’s always worth verifying before purchasing a home if working from home is part of your plan.  I have links to the major providers in the blog article so you can easily verify an address.

Then there’s the boating lifestyle.

Many people picture Torch Lake as a place that’s only enjoyable from Memorial Day through Labor Day.

The reality is much different.

Spring fishing, fall colors reflecting across the water, peaceful winter mornings, wildlife viewing, kayaking, hiking, snowmobiling, cross-country skiing, and simply enjoying the changing seasons all become part of everyday life.

For many full-time residents, summer eventually becomes just one chapter of the year rather than the entire reason they chose the lake.  You still want to winterize your boat, but there is plenty more to do after you wrap it up for the season.

From a real estate perspective, year-round waterfront ownership also requires realistic budgeting.

Maintenance costs, insurance, docks, shoreline protection, utilities, and seasonal upkeep all become part of long-term ownership. Those costs vary considerably depending on the property itself, but they’re important to understand before purchasing rather than after.

That’s why I encourage buyers to think beyond the asking price.

The right waterfront home isn’t always the least expensive one, and the most expensive home isn’t automatically the best fit either.

It’s about understanding how a particular property aligns with your lifestyle, long-term goals, and budget.

As of July 2026, demand for high-quality waterfront property across Northern Michigan remains steady, but buyers are taking more time to evaluate the practical side of ownership. They’re asking better questions, comparing communities more carefully, and focusing on long-term livability rather than simply chasing a dream location.

Personally, I think that’s a healthy trend.

Buying a waterfront home should be an informed decision, not an emotional one.

[06:39]

NorMI™

[06:41]

If you found today’s episode helpful, I’d appreciate it if you’d follow the podcast, subscribe wherever you listen, and come back next week for another look at Northern Michigan real estate and the factors shaping our local market.  If you click the 3 little dots by the play button, then hit follow, you will get notifications whenever I post a new podcast.

If you’d like to research your own situation in more detail, you can also try NorMI™, my Northern Michigan Real Estate Pro Assistant. It’s designed to remove confusion—not replace judgment—and can help you compare communities, explore ownership costs, and better understand the local market before making a decision.  It gives you hyper-local answers that Google and Zillow can’t.

If you’d like to dive deeper on this, you can ask NorMI™ something like:

Which area around Torch Lake best matches my budget, lifestyle, remote work needs, and long-term homeownership goals?  If you are following along on the transcript, just click those words and watch NorMI™ analyze your personal situation.

Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.

[07:54]

Episode 0012, 6/25/2026

What’s The Best Town To Move To In Northern Michigan?

Blog Reference:

Episode Summary

There is no single best town to live in Northern Michigan because every community serves a different lifestyle. This episode explains how to evaluate Traverse City, Cadillac, Suttons Bay, Elk Rapids, and Frankfort based on your priorities instead of relying on generic internet rankings.

Key Takeaways for Northern Michigan Buyers & Sellers

• Traverse City: Prioritize this community if healthcare, shopping, and employment opportunities are important to your daily life.
• Cadillac: Consider this area if affordability and four-season recreation are higher priorities.
• Suttons Bay: Expect limited inventory and higher pricing if you prioritize walkability and waterfront living.
• Elk Rapids: Look here if you want a balance between small-town living and convenient access to Traverse City.

The Core Topic

How to determine which Northern Michigan town best fits your lifestyle instead of relying on generic “Top 10” rankings.

Full Transcript

[00:11]Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, I want to tackle one of the most searched relocation questions I hear from people moving here.

[00:33] What’s the best town in Northern Michigan to move to?

It’s a simple question, but I think it’s actually the wrong question.

Because there is no universal winner.

And that’s one of the reasons Northern Michigan is so unique.

As we move through June of 2026, more people continue exploring Northern Michigan as a place to relocate, retire, work remotely, or simply slow down their pace of life.

And understandably, people want an answer.

They want someone to tell them where they should live.

[01:05] But after years of helping buyers across Northern Michigan, I’ve learned that rankings don’t work very well here.

The internet loves to publish articles that say things like “The Top 10 Places to Live In Northern Michigan.”

The problem is those lists don’t know anything about you.

They don’t know your budget.

They don’t know if you’re commuting.

They don’t know if you have children.

They don’t know if you work remotely.

And they certainly don’t know what kind of lifestyle you want.

That’s why I encourage people to stop asking, “What’s the best town?” and start asking, “Where would my everyday life work best?”

[01:41]For some people, that’s Traverse City.

Traverse City offers the largest concentration of amenities in Northern Michigan.

You have shopping, healthcare, restaurants, an airport, trails, beaches, and employment opportunities.

For many people relocating from larger metropolitan areas, Traverse City feels familiar while still offering Northern Michigan’s slower pace.

The tradeoff, of course, is housing costs.

Generally speaking, you’ll pay more for convenience.

But for many buyers, that’s a worthwhile tradeoff.

[02:14] Then there’s Cadillac.

Cadillac has become one of the most attractive options for buyers seeking affordability while still maintaining access to Northern Michigan’s lifestyle.

You still have four-season recreation.

You still have lakes.

You still have healthcare and a strong sense of community.

But often at a lower price point than Traverse City.

[02:34] Then we have communities like Suttons Bay.

Suttons Bay appeals to people who value walkability, wineries, and a smaller waterfront environment.

It’s beautiful.

It’s highly desirable.

And inventory can sometimes be limited, so expect significantly higher prices.

[02:51] Elk Rapids is another community I think gets overlooked.

It’s positioned between Traverse City and Charlevoix, and many people appreciate the balance it offers.

You get a walkable downtown, marina access, schools, and easy access to larger communities without feeling overly busy.

[03:11] Then there’s Frankfort.

Frankfort appeals to buyers who truly want to embrace a slower pace.

If Lake Michigan sunsets and a quieter atmosphere are high priorities, Frankfort deserves a serious look.  With crystal clear water and some of the best sunsets around, it can feel like you are living in a puzzle or a postcard scene.

[03:32]None of these communities are better than the others.

They’re simply different.

And that’s really the point.

The biggest mistake I see relocation buyers make is choosing a town before they choose a lifestyle.

That’s backwards.

[03:46] Before selecting a location, I encourage people to answer a few questions.

How important is healthcare access?

Do you want to walk downtown?

How much do schools matter?

How much are you willing to commute?

Do you want acreage?

Do you want to be near water?

Do you want a vibrant social environment, or something quieter?

Once those answers become clear, the list of potential communities usually gets much smaller.

[04:12] I recently published a companion article called “What Northern Michigan Town Is Best to Live In?”

You can find it at my website, aaronkendallrealestate.com and look under the blog section for that title.  The article breaks down several communities and explains why there isn’t one perfect answer.

Because most people aren’t actually choosing a town.

They’re choosing how they want to live every day.

And those are very different decisions.

[04:38] Before we wrap up, make sure you follow or subscribe and look for next week’s episode.

Each week, I’ll continue breaking down what’s actually happening across Northern Michigan so you can make informed and confident real estate decisions.

If you want more information, NorMI™ can help compare communities based on lifestyle, schools, commute times, affordability, and long-term fit.

If you’d like to dive deeper on this, you can ask NorMI™ something like:

Compare Traverse City, Cadillac, Suttons Bay, Elk Rapids, and Frankfort for a family of four based on cost of living, schools, commute, outdoor activities, and overall lifestyle fit.  Ask me the questions needed to figure out the best Northern Michigan town to move to.

If you are following along on the transcript, you can just click on those words and watch NorMI™ do magic.

Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.

Episode Title

The Hidden Costs People Don’t Think About When Living in Northern Michigan

Episode 0011, 6/19/26

Blog Reference:

Episode Summary

Living in Northern Michigan involves more than housing costs. Buyers should also budget for winter expenses, utilities, transportation, home maintenance, and lifestyle-related costs that may not be obvious before relocating. Understanding these expenses ahead of time can make the transition much smoother.

Key Takeaways for Northern Michigan Buyers & Sellers

• Traverse City: Budget for higher housing costs, but potentially shorter drives to shopping, healthcare, and employment centers.
• Cadillac: Plan for four-season recreation expenses if you intend to fully embrace the Northern Michigan lifestyle.
• Kalkaska County: Rural properties may require additional budgeting for transportation and seasonal property maintenance.
• Wexford County: Buyers should account for winter expenses such as snow removal and vehicle maintenance in annual budgets.

The Core Topic

The hidden costs people often overlook when relocating to Northern Michigan and how to realistically budget for a four-season lifestyle.

Full Transcript

[00:11] Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, I want to talk about something that catches a lot of people by surprise when they move to Northern Michigan.

Not home prices.  Not interest rates.  The expenses they never thought about before they got here.

[00:40] As we move through June 2026, I continue to work with buyers relocating from all over Michigan and from out of state, and many of them arrive with a very similar assumption.

They think moving to Northern Michigan will either be dramatically cheaper than where they live now, or dramatically more expensive.  In reality, it’s usually somewhere in the middle.

What surprises people isn’t necessarily the overall cost.  It’s the types of expenses they didn’t anticipate.  One of the biggest examples is winter.

[01:10] Most people intellectually understand that Northern Michigan gets snow.  But living with winter and budgeting for winter are two very different things. Snow removal is often overlooked.

If you own a larger driveway, hire plowing services, or maintain a property with acreage, those costs can add up throughout the season.

Vehicle maintenance is another area people don’t always anticipate.  Snow tires, alignments, brakes, and general wear can become a larger part of annual budgeting than people expected.

And if you’re commuting frequently between communities, fuel expenses may become more noticeable as well.

[01:48] Another surprise for many newcomers is home maintenance.  Northern Michigan experiences four distinct seasons, which is one of the reasons many people love living here.

But those seasons also mean your home works hard throughout the year.  Roofs experience snow loads.  Decks experience weather exposure.  Exterior paint and wood surfaces require maintenance.  Septic systems need attention.

And if you own waterfront property, there may be shoreline, dock, or erosion considerations as well.  None of these are unusual expenses.  They’re simply part of owning property in a four-season environment.

[02:26] Another category that surprises some buyers is utilities.  Many homes across Northern Michigan rely on different heating sources.  Some use natural gas.  Some use electric heat.  Many homes, especially in more rural areas, use propane.

Propane isn’t necessarily a negative.  But it does create seasonal budgeting fluctuations that people may not have experienced before.  A particularly cold winter can affect household expenses more than expected.

That’s why I encourage buyers to think about annual ownership costs rather than only monthly mortgage payments.

[03:02] Transportation is another area that’s highly dependent on location.  Living in Traverse City may offer shorter access to shopping, healthcare, and employment opportunities.  Meanwhile, living in a more rural area may mean slightly longer drives for some services.

Neither situation is necessarily better.  It’s simply a lifestyle decision that affects budgeting.

[03:25] One thing I also tell relocation buyers is to think about opportunity costs.  Northern Michigan offers incredible access to recreation.  And many people eventually embrace those activities.  Maybe it’s boating.  Maybe it’s snowmobiling.  Maybe it’s mountain biking, skiing, fishing, or kayaking.

Those activities can become meaningful lifestyle investments over time.  That’s not a warning.  In fact, for many people, that’s one of the reasons they move here in the first place.  But it’s important to understand that lifestyle often becomes part of the budget.  And that’s okay.

Because when people relocate successfully, they’re usually not trying to minimize every dollar spent.  They’re trying to maximize quality of life. 

[04:10] I recently published a companion article called: “What Does It Actually Cost to Live in Northern Michigan in 2026?”  You can find it at my website blog under that title.  If you are following along on the transcript, you can click on the link at the top.

The article breaks down housing costs, utilities, groceries, taxes, and some of the hidden expenses that buyers often don’t anticipate before moving here.

The biggest takeaway is this: Don’t build your relocation budget around your mortgage payment alone.  Build it around your actual lifestyle.  Because most people who move to Northern Michigan aren’t simply changing addresses.  They’re changing how they live.  And if you plan for that transition ahead of time, the adjustment often becomes much smoother.

[04:55] Before we wrap up, make sure you follow or subscribe and look for next week’s episode.

Each week I’ll continue breaking down what’s actually happening across Northern Michigan so you can make informed and confident real estate decisions.  If you’d like to dive deeper into this topic, NorMI™ can help compare community-level expenses and lifestyle factors.

If you’d like to dive deeper on this, you can ask NorMI™ something like:

Compare the cost of living between Traverse City, Cadillac, Kalkaska, and Wexford County for a two-person household including housing, utilities, taxes, groceries, and transportation.  If you are following along on the transcript, you can just click on those words and watch NorMI™ do the magic.

Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.

Things to Do in Northern Michigan: Summer Adventures, Fall Colors, and Local Favorites

Episode 0010

Related Blog:
https://aaronkendallrealestate.com/things-to-do-in-northern-michigan-the-ultimate-summer-guide-to-beaches-festivals-food-and-outdoor-adventures/

Episode Summary

Northern Michigan offers a wide variety of summer and fall activities, including beaches, boating, hiking, festivals, farmers markets, and scenic fall color drives. For many people considering relocation, these lifestyle opportunities play a significant role in why they choose to make Northern Michigan home.

Key Takeaways for Northern Michigan Buyers & Sellers

• Traverse City hosts major seasonal events including the National Cherry Festival, helping create a strong sense of community and year-round activity.
• Leelanau County offers scenic drives, wineries, shoreline access, and some of the region’s most popular fall color destinations.
• Benzie County provides access to Sleeping Bear Dunes, outdoor recreation, and seasonal tourism that continues well into autumn.
• Cadillac attracts residents and visitors with four-season recreation, including hiking, boating, snowmobiling, and access to extensive trail systems.

The Core Topic

What makes Northern Michigan attractive during the summer and fall seasons, and why lifestyle continues to be one of the region’s strongest draws for residents and visitors alike.

What This Means

For buyers considering Northern Michigan, understanding the local lifestyle can be just as important as understanding the real estate market. Many relocation decisions are driven by quality of life, recreation, community involvement, and access to outdoor activities.

Full Transcript

[00:09]  Welcome to Northern Michigan Real Estate Intelligence. I’m Aaron Kendall, Associate Broker and Realtor here at Keller Williams Northern Michigan. Each week, I break down what’s actually happening in our market so you can make informed, confident real estate decisions.

This week, I want to step away from regulations, financing, and market statistics for a few minutes and talk about something that often plays a major role in why people choose to buy property here in the first place.

The lifestyle.

[00:39]  One of the most common questions I hear from buyers relocating to Northern Michigan is simple: “What is there actually to do up there?”  And the answer is usually much bigger than people expect.

As we move through June 2026 and look ahead toward the heart of summer and eventually into fall, Northern Michigan continues to attract people who are looking for a different pace of life, access to the outdoors, and a stronger connection to community.

What makes the region unique is that there isn’t just one attraction.  It’s really a collection of experiences spread across multiple counties, lakes, small towns, and seasons.

[01:19]  When most people think of summer in Northern Michigan, they naturally think of the water first.  And for good reason.

You have places like Traverse City, Elk Rapids, Frankfort, Suttons Bay, Northport, Charlevoix, and Cadillac offering access to some of the most beautiful freshwater resources in the country.

Whether it’s boating on Torch Lake, kayaking along the Crystal or Platte Rivers, spending a day at Sleeping Bear Dunes, or simply enjoying a beach along Grand Traverse Bay, water tends to be a major part of the summer experience.  But one thing I think surprises newcomers is how much there is to do beyond the lakes.

[01:58]  Northern Michigan has developed a strong festival culture over the years.

Traverse City’s National Cherry Festival remains one of the most recognizable events in the region.  You’ll also find wine events, art fairs, farmers markets, music festivals, car shows, craft fairs, and community celebrations throughout Grand Traverse, Leelanau, Benzie, Antrim, Kalkaska, and Wexford counties.

What these events create is something that’s harder to measure than tourism numbers.

They create community.  People often tell me they came to Northern Michigan because of the scenery, but they stayed because they found a sense of connection.

[02:37]  Another factor that continues to attract people is outdoor recreation.  Summer hiking opportunities are everywhere.

You have the Sleeping Bear Dunes area, numerous state forests, trails throughout Kalkaska County, mountain biking systems, inland lakes, rivers, and countless public access opportunities.

[02:57]  Then as summer transitions into fall, Northern Michigan takes on a completely different character.  For many longtime residents, fall is actually their favorite season.

The crowds begin to thin.  The temperatures become more comfortable.  And the region’s forests create some of the most impressive color displays in the Midwest.

Areas throughout Leelanau County, Benzie County, Antrim County, and along the M-22 corridor often become destinations specifically for fall color tourism.  Apple orchards become active.  Roadside farm markets become busy.  Harvest events begin appearing throughout the region.  And many residents view that season as one of the best times to explore Northern Michigan.

[03:42]  Something else that stands out is the variety of experiences available within a relatively short drive.  A family can spend the morning at a beach, the afternoon exploring a small downtown, and the evening attending a local event without traveling very far.

That accessibility is part of what makes the region attractive to both visitors and full-time residents.

[04:05]  From a real estate perspective, lifestyle continues to play a major role in housing demand.  Many people don’t relocate to Northern Michigan because of a specific house.  They relocate because of the life they imagine living around that house. 

They want access to trails.  They want access to lakes.  They want local events.  They want walkable downtowns.  They want a stronger connection to outdoor recreation and community activities.

And when I talk with buyers who have successfully made that transition, those lifestyle factors are often mentioned long after the details of the transaction are forgotten.

[04:42]  If you’d like a deeper look at many of the activities, festivals, outdoor destinations, and seasonal experiences I mentioned today, I recently published a companion article called:

“Things to Do in Northern Michigan: The Ultimate Summer Guide to Beaches, Festivals, Food and Outdoor Adventures.”

You can find it at my website in the blog section under the title Things To Do In Northern Michigan.  I included a link in the transcript if you are following along…

https://aaronkendallrealestate.com/things-to-do-in-northern-michigan-the-ultimate-summer-guide-to-beaches-festivals-food-and-outdoor-adventures/

The article goes into much greater detail and may be helpful if you’re planning a visit, considering relocation, or simply exploring what different parts of Northern Michigan have to offer.

[05:20]  The bigger takeaway is this: When people talk about Northern Michigan, they’re often talking about more than real estate.  They’re talking about lifestyle.

The combination of outdoor recreation, seasonal events, local communities, and natural beauty continues to be one of the biggest reasons people choose to make this region home.

Before we wrap up, make sure you follow or subscribe and look for next week’s episode.  Each week I’ll continue breaking down what’s actually happening across Northern Michigan so you can make informed and confident real estate decisions.

[05:55]  If you’d like to dive deeper into this topic, NorMI™ can help you compare activities, communities, and lifestyle options across different parts of Northern Michigan.

If you’d like to dive deeper on this, you can ask NorMI™ something like:

Compare summer and fall activities in Traverse City, Leelanau County, Benzie County, and Cadillac for someone considering relocating to Northern Michigan.

If you are following along on the transcript, you can just click on those words and watch NorMI™ do its magic. Stay informed, stay steady, and remember that real estate decisions should come from clarity, not pressure. I’ll talk with you next week.