Reviewed and updated 6/30/2020

In November, Detroit official decided to move forward with an Airbnb rental ban, much to the dismay of its residents. According to the new law, owner-occupied properties can’t be used for overnight rentals. Residents are complaining and plan to protect the law saying that Detroit property owners have been able to legally rent their properties for the last 100 years.

According to City Council, the ordinance was introduced as a way to curb the use of Airbnb and other rental platforms in residential districts – a valid concern for some homeowners who want to ensure their neighborhood remains quiet and peaceful. However, the law doesn’t appear to be well thought out as some officials point out that it even bans friends and family members from staying at a property and paying rent, not just guests using Airbnb.

In light of these concerns, the regulations won’t be inforced until lawmakers clarify their stances.

Update: An amendment was presented in June 2019, discussing potential changes to the ban on short-term rentals in Detroit. You can view the full amendment here on the Detroit government website: Short-Term Rental Ordinances. Regulations include the following and more: 

  • Residency requirement – Any property used as a short-term rental must be the owner’s principal residence.
  • Registration required – Any short-term rental must be registered with the Buildings, Safety Engineering, and Environmental Department.
  • Limitations on groups – A host may not rent to more than one group of guests under more than one reservation at any given time.

According to Detroit Free Press, in 2019, there were nearly 900 short-term rental listings in the City despite the total ban since 2017.

Why is short-term rental insurance so important?

Many cities across the US have adopted short-term rental regulations, leaving hosts wondering how to proceed with their business. The most important part of entering the vacation rental market is to ensure you and your business will be protected in things turn south. If you offer your home to a paying guest, you should certainly make sure you have proper insurance coverage.

Proper Insurance offers comprehensive short-term rental insurance that takes the place of your current homeowner’s policy. If a guest were to be injured on your property and hold you responsible, there is $1,000,000 in commercial general liability. Short-term rentals are a business and you need business insurance. Many homeowner’s policies straight out exclude “business activity” (i.e. short-term rental activity). With the right policy, you don’t need to worry.

Call Proper Insurance today to discuss their full-replacement policy – (888) 631-6680!

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