Northern Michigan Townships With No Short Term Rental Caps

Episode 0008, 5/29/26                 

Relevant Blog: https://aaronkendallrealestate.com/which-northern-michigan-townships-have-no-short-term-rental-caps/

Episode Summary

Many Northern Michigan investors want to know which townships appear to operate without hard short-term rental permit caps. The more important question, however, is understanding the zoning, permitting, operational requirements, and long-term regulatory considerations that can impact whether an STR investment succeeds. This episode explains why township-level research matters and what buyers should evaluate before purchasing.

Key Takeaways for Northern Michigan Buyers & Sellers

• Long Lake Township may offer STR opportunities, but buyers should verify zoning and permit requirements before purchasing.
• Leelanau County contains townships with differing STR approaches, making township-level research more important than county-wide assumptions.
• Wexford County areas such as Selma Township and Clam Lake Township may provide flexibility, but operational requirements still matter.
• Kalkaska County investors should evaluate both STR regulations and recreation-driven tourism demand before making investment decisions.

🎙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 talk about something that comes up more often than most people realize when they start looking at vacation rentals and investment properties across Northern Michigan.

[00:37] A lot of buyers ask me a version of the same question: “Which townships don’t have short-term rental caps?”  And on the surface, that sounds like the right question.  But in reality, it’s only part of the story.

In May 2026, many buyers are becoming more sophisticated about short-term rental investing. They understand that finding a property is only one part of the equation. The bigger challenge is understanding whether that property can legally and practically operate as a short-term rental over the long term.

And that’s where township ordinances become incredibly important.

[01:13] One of the things I’ve learned serving Northern Michigan buyers is that people often focus on the word “cap” because it’s easy to understand. A cap means a township limits the number of permits available.  If there are no permits left, you’re out of luck.

But even in townships that appear to operate without a hard numerical cap based on publicly available ordinances, there can still be significant restrictions that affect whether an investment works.  That’s why I encourage buyers to think beyond the cap itself.

[01:45] For example, a township may allow short-term rentals without a hard numerical limit, but still regulate occupancy levels, parking requirements, septic capacity, local contact requirements, noise standards, or zoning districts.

In other words, the absence of a cap doesn’t necessarily mean unlimited flexibility.  Across Northern Michigan, that distinction becomes especially important because every township approaches these issues differently.

In Grand Traverse County, a township may have a different regulatory philosophy than a neighboring township only a few miles away.  The same thing happens in Leelanau County, Benzie County, Kalkaska County, Wexford County, and Antrim County.

That’s why investors can sometimes make expensive assumptions when they rely on broad internet advice instead of township-specific research.

[02:38] One example involves zoning.  Sometimes buyers see a property advertised as a great AirBnB opportunity. They assume that means short-term rentals are allowed everywhere in that community. 

But zoning districts matter.  A property may sit in a district where short-term rentals are permitted, while another property in the same township may fall into a district with entirely different rules.  The result is that two properties with the same mailing address can have very different investment potential.

[03:10] Another factor buyers should evaluate is long-term regulatory stability.  This is something I think gets overlooked.  Just because a township appears relatively flexible today does not guarantee it will remain that way forever.

Townships respond to resident concerns, housing pressures, tourism growth, infrastructure limitations, and enforcement challenges. 

That doesn’t mean restrictions are coming.  It simply means investors should evaluate where a township appears to be heading, not just where it is today.

[03:44] When I work with buyers evaluating STR properties, I often encourage them to ask four questions.  First, are short-term rentals allowed on this specific parcel?  Second, what permits, registrations, or licenses are required?  Third, are there operational restrictions that could affect revenue potential?  And fourth, how stable does the regulatory environment appear over time?

Those questions tend to produce better decisions than simply asking whether a township has a cap.

[04:17] As I researched this topic recently, several townships across Northern Michigan appeared to operate without hard numerical permit caps based on publicly available ordinance materials that were reviewed.

Examples included areas such as Long Lake Township in Grand Traverse County, Leelanau Township and Leland Township in Leelanau County, Inland Township and Benzonia Township in Benzie County, Clearwater Township in Kalkaska County, and Selma Township and Clam Lake Township in Wexford County.

[04:45] However, and this is important, I would never encourage someone to rely solely on an article, podcast, or online summary before purchasing.  Township ordinances can change.  Interpretations can change.  Permit processes can change.  That’s why direct verification remains essential.

If you’d like a much deeper breakdown, I recently published a full article called “Which Northern Michigan Townships Have No Short-Term Rental Caps?” You can find it at:

aaronkendallrealestate.com/which-northern-michigan-townships-have-no-short-term-rental-caps

The article goes into much greater detail regarding specific counties, township examples, and some of the practical considerations investors should evaluate before buying.

[05:29] The broader takeaway is this: A township without a hard cap can create opportunity.

But successful STR investing still depends on understanding zoning, permits, operational requirements, tourism demand, property management realities, and long-term regulatory risk.

In my experience, the investors who perform the best are not necessarily the ones who find the cheapest property or the highest projected nightly rate.  They’re usually the ones who understand the rules before they buy.  That preparation helps reduce surprises and creates a much stronger foundation for long-term success.

[06:09] 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.

[06:21] If you’d like to dive deeper into this topic, NorMI™ can help organize township-level information and local market context.  If you’d like to dive deeper on this, you can ask NorMI™ something like:

Compare Long Lake Township, Leelanau Township, Leland Township, Inland Township, Benzonia Township, Clearwater Township, Selma Township, and Clam Lake Township for short-term rental investment potential including tourism demand, zoning considerations, and regulatory risk. Click HERE for the NorMI™ prompt.

With the new NorMI™ feature, you can simply click on this prompt, right here in the transcript and it will take you right to NorMI™, with this prompt already loaded 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.