How to get a short-term rental permit in Traverse City, MI (2026)
Traverse City requires Vacation Home Rental License — the fee is $200, renewed annual. Here's how to get and keep it.
Permit at a glance
| Permit required | Yes |
|---|---|
| Permit name | Vacation Home Rental License |
| Permit fee | $200 |
| Renewal | Annual |
Step by step
- 1
Confirm your property is eligible
Confirm the property's zoning allows short-term rentals. Vacation home rentals (whole-dwelling rentals under 30 consecutive days) are an allowed use only in non-residential districts: HR Hotel Resort, C-1 Office Service, C-2 Neighborhood Center, C-3 Community Center, C-4 Regional Center (not on the first floor), and the D-1/D-2/D-3 Development districts. In C-1 and D-2 the parcel must contain two or more dwellings and vacation rentals are capped at the greater of 1 unit or 25% of dwellings on the parcel. Whole-home STRs are prohibited in all residential districts (RC, R-1a, R-1b, R-2, R-3); there, only licensed owner-occupied 'tourist homes' are allowed - high-intensity (up to 3 rooms, 1,000-ft spacing from other high-intensity tourist homes) or low-intensity (up to 2 rooms, max 2 adults per room, stays capped at 14 consecutive days and 84 guest nights per year). A May 2025 planning commission proposal to cut allowed STR percentages in seven districts (e.g., D-1 100%->25%, C-3 ->35%, C-4a ->50%) was still pending before the City Commission as of June 2026.
- 2
Apply for the Vacation Home Rental License
Submit the Vacation Home Rental License application to Traverse City and pay the $200 fee. $200 application fee for new licenses and $200 for renewals (fee set by City Commission resolution per code sec. 870.04). Licenses expire December 31 each year; renewals are only processed 90 to 30 days before expiration. Owner-occupied 'tourist homes' in residential districts need a separate Tourist Home License under Chapter 868.
- 3
Register for occupancy taxes
Register to collect and remit the applicable lodging/occupancy taxes for Traverse City. Some are collected automatically by the booking platform and some you may need to remit yourself.
- 4
Renew on schedule
The permit renews annual — set a reminder so it never lapses, since operating on an expired permit typically triggers fines.
STR rules change without warning.
Get an email the moment Traverse City changes its short-term rental rules — plus renewal reminders before your permit expires.
Watch Traverse City for changes →Free monthly digest · same-day alerts from $5/mo · cancel anytime
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Verified July 13, 2026. Informational only — not legal, tax, or financial advice. Permit requirements and fees change; confirm current requirements with Traverse City before applying.