Traverse City requires an annual permit for short-term rentals, which are only allowed in an owner's principal residence for a maximum of 30 days per year. Accessory Dwelling Units are prohibited from being used as STRs. A total of 11% tax (6% state, 5% local tourism assessment) applies to all stays under 30 days.
To host an Airbnb in Traverse City, you must get an annual $250 permit from the City Clerk for your primary home only. You can only rent it out for a maximum of 30 nights per year, and you cannot rent out a separate guest house or ADU. You'll need to provide proof you live there, proof of $500,000 in liability insurance, and a floor plan. Be sure to include your permit number in your listing and collect and pay the 11% in state and local lodging taxes.
Permit Required
Yes
Night Limit
30/year
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.
Learn more about STR regulations and hosting tips.
Regulations Videos
Permit Fee
$250
Expert advice on STR compliance