The Impact of Short-Term Rental Regulations on Property Owners in Park Township
Short-Term Rental Ban Forces Property Owners to Rethink Investment Strategy
In recent months, a wave of property sales has swept through Park Township as short-term rental owners face the consequences of a definitive zoning board ruling. For many investors, the decision to sell their vacation properties comes after years of uncertainty regarding the legality of short-term rentals in residential neighborhoods.
Laura Opsahl, who recently sold her charming blue cottage near Tunnel Park, represents a growing trend among property owners affected by the township’s enforcement actions.
“It was too risky to continue to wait and see how things played out,” Opsahl explained. “We felt it was better to move on.”
From Vacation Dream to Regulatory Nightmare
The Opsahl family, originally from Minnesota, purchased their Lake Michigan property in 2021 with plans to use it as both a family retreat and a short-term rental. Their decision came after consultations with local real estate professionals and community members.
“We weren’t really concerned it was going to become an issue,” Opsahl said, reflecting on their initial confidence in the investment.
However, their situation took an unexpected turn in 2022. Just two months after beginning extensive renovations on the cottage, Park Township announced it would start enforcing restrictions on short-term rentals in residential areas.
“If we could do it all over again, I would think twice about the amount of money we invested in our property,” admitted Opsahl, who later joined Park Township Neighbors, a nonprofit organization that challenged the rental ban through legal action.
Zoning Board Provides Clarity After Legal Battle
The uncertainty surrounding short-term rentals in Park Township reached a turning point during a May meeting where the Zoning Board of Appeals (ZBA) issued a comprehensive ruling. This followed a lengthy legal process in which a Michigan Circuit Court judge determined the township had jurisdiction in the matter.
In an 18-page document obtained through a Freedom of Information Act request, the ZBA defined short-term rentals as “a use that provides lodging accommodations on a transient or short-term basis in exchange for compensation.”
According to the board, while the township’s 1963 Zoning Ordinance permitted “tourist homes” in one residential district, this changed with the passage of the 1974 Zoning Ordinance. Since then, short-term rentals have “not [been] a permitted use in any residential zoning district other than a Planned Unit Development where they were specifically approved.”
Community Perspectives on the Ruling
For longtime Park Township resident Tony Senagore, the board’s interpretation simply reinforced what he had always understood about local zoning regulations.
“They were never meant to be commercial businesses in residential areas,” Senagore stated. “In the eyes of the township and a lot of us residents, that really never changed.”
Senagore believes the growing popularity of platforms like Airbnb and VRBO has negatively impacted the township’s character and school districts by creating a more transient, tourism-focused population.
“I understand people want to do commercial activity,” he acknowledged. “But there’s a place in the township to do that. There always has been.”
Limited Options for Current Owners
The ZBA ruling did leave a narrow path forward for some property owners. Those seeking grandfather status must “separately demonstrate the establishment of a lawful use of their property,” according to the board’s statement.
However, for many investors like the Opsahls, the uncertainty and potential for further legal challenges made selling their properties the most practical solution.
“Even though we sold it,” Opsahl said, “I will always be proud of what we did.”
From Vacation Rental to Permanent Home
Interestingly, the Opsahl family’s connection to the area took an unexpected turn. Their experiences vacationing at the cottage convinced them to make Michigan’s lakeshore region their permanent residence about a year ago.
“I don’t think our story’s all that uncommon,” Opsahl reflected. “That people would love it so much they want to live here long term.”
This transition from temporary visitors to permanent residents represents a different kind of investment in the community – one focused on long-term stability rather than short-term accommodations.
The Broader Implications for Vacation Rental Markets
The situation in Park Township reflects similar scenarios playing out in communities across Michigan and throughout the country. As municipalities grapple with the explosion of short-term rental platforms, property owners increasingly face regulatory uncertainty.
For investors considering short-term rental properties, the Park Township case highlights the importance of thoroughly investigating local zoning regulations and enforcement trends before making significant financial commitments.
While some areas actively court vacation rental investments, others like Park Township are working to preserve what they see as the residential character of their neighborhoods. Navigating these varying approaches requires careful research and planning for anyone entering the short-term rental market.
As the dust settles on Park Township’s regulatory changes, both supporters and opponents of the short-term rental ban are watching closely to see how property values, tourism, and community dynamics will evolve in this picturesque Lake Michigan community.