The City of Petoskey requires an annual Short-Term Rental License for a $250 fee, with distinct rules for primary ('Homestead') and non-primary ('Non-Homestead') residences. Non-homestead properties are subject to a city-wide cap of 125 licenses and are restricted to certain zoning districts. All STRs must pass a safety inspection, have a 24/7 local contact, and display the license number on all listings.
To host an Airbnb in Petoskey, you must get an annual Short-Term Rental License from the city for a $250 fee. It's much easier if the property is your primary residence ('Homestead'), as there are fewer restrictions. If it's a second home, it must be in an approved zone and is subject to a city-wide cap of 125 units, which may be full. You'll need to provide floor plans, proof of $1 million in insurance, and pass a safety inspection before your license is approved. Make sure to post your license number on your Airbnb listing once you get it.
Permit Required
Yes
Night Limit
None
Primary Residence
Required
Total Tax Rate
11.0%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
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Permit Fee
$250
Processing Time
4-6 weeks
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