Can an HOA Restrict Rentals in Michigan?

What Michigan law says

Michigan has no comprehensive homeowners'-association statute. Condominiums are governed by the Condominium Act of 1978, Act 59 (MCL 559.101 et seq.), which covers creation, the association of co-owners, assessments, and the assessment lien. A non-condominium HOA has no dedicated governance code; its authority comes mainly from its own recorded declaration together with the Michigan Nonprofit Corporation Act (Chapter 355).

The Condominium Act expressly contemplates rental restrictions. Under MCL 559.190(2), the master deed, bylaws, and subdivision plan may be amended — even in ways that materially alter co-owners' rights — with the consent of at least 2/3 of the votes of co-owners and mortgagees. The same section protects existing tenancies: an amendment governing the rental of units does not affect the rights of lessors or lessees under a written lease executed before the amendment's effective date, or units owned or leased by the developer.

Enforcement runs through the documents. Michigan Condominium Act Rule R 559.510 provides that all co-owners, tenants, and other occupants are subject to and must comply with the Act, the master deed and bylaws, the articles of association, and association rules. When a rule is challenged, Michigan courts ask whether it is reasonable or arbitrary — the single standard that has decided nearly every Michigan association-rule dispute on appeal.

Short-term rentals are a particular flashpoint. In Cherry Home Association v. Baker, the Michigan Court of Appeals held that renting a home through Airbnb/VRBO for income is a commercial purpose, not a residential one, sustaining an HOA's enforcement of a residential-use covenant. Separately, Michigan municipalities regulate short-term rentals through local zoning and ordinances, so an investor must clear both the HOA documents and city rules.

• Condominium Act of 1978, Act 59 (MCL 559.101 et seq.) — Governs Michigan condominiums — creation, associations, assessments, liens
• MCL 559.190(2) — Condo documents (incl. rental provisions) may be amended with 2/3 of co-owner and mortgagee votes; rental amendments don't disturb existing written leases
• Mich. Admin. Code R. 559.501 / R. 559.510 — Bylaws requirements; all co-owners, tenants, and occupants must comply with the Act, master deed, bylaws, and rules

What HOAs in Michigan can and can’t do

HOAs generally can:

• Prohibit rentals entirely through the master deed, bylaws, or declaration.
• Impose rental caps, waiting lists, and per-unit lease limits.
• Require owner-occupancy waiting periods before first lease.
• Set minimum lease terms (90 days, 6 months, or 1 year are common).
• Require board approval of tenants, lease copies, and background or credit checks.
• Charge rental deposits or fees and fine owners for leasing violations, so long as rules apply uniformly and are reasonable.

Limits under Michigan law:

• Apply a new rental amendment to written leases already executed — MCL 559.190 preserves lessors' and lessees' rights under pre-amendment leases.
• Amend condo documents to restrict rentals without at least a 2/3 vote of co-owners and mortgagees (MCL 559.190(2)).
• Enforce arbitrary or discriminatory leasing rules — Michigan courts test association rules for reasonableness, and fair-housing laws apply.
• Treat short-term rentals as 'residential use' where the declaration limits property to residential use (Cherry Home Ass'n v. Baker).

Things to know in Michigan

• Amendment threshold matters: rental bans and caps in condos require the 2/3 co-owner-and-mortgagee vote of MCL 559.190(2) — a board cannot impose them by resolution.
• Existing leases are grandfathered: a newly adopted rental restriction cannot disturb written leases executed before the amendment's effective date.
• Michigan's residential-use case law is landlord-friendly for HOAs: courts have treated Airbnb-style rentals as commercial use, letting associations bar STRs even without an explicit ban.
• Rental caps and owner-occupancy minimums can push a project below FHA owner-occupancy thresholds, affecting buyers' financing.

Rental rules we’re seeing in Michigan

Real examples from the HOA411 database:

• Greenfield Village, Dearborn — Per the association's published FAQ, owners may lease with prior board approval, subject to a maximum of 1 lease per calendar year per unit and a minimum 90-day lease term. The 88-unit community is also a member of the King's Lake master HOA.
• Brighton Place Condominium, Brighton — Association Rules cap rental units at two per the Declaration; owners must obtain Board approval before offering a unit for lease, no initial lease term under 180 days, a lease copy goes to the property manager within 10 days, and subleasing is prohibited.
• Royal Oak Townhouse Condominium Association, Royal Oak — Association Rules (Art. 10.7) require tenant approval before occupancy — application, interview, and registration — with no rentals under 1 year and no room rentals, subleasing, Airbnb, or short-term rentals.
• West Wind Estates, West Bloomfield — The condo FAQ disclosure requires all leases to be submitted in writing and approved by the association, with no lease shorter than 90 days. Assessments run $375 per quarter.

Frequently asked questions

Can a Michigan HOA ban rentals completely?

Yes, if it is in the declaration or bylaws. Michigan associations routinely enforce hard rental bans, especially in co-ops and small condos, and courts treat those provisions as binding covenants. Adding a ban to an existing community requires a proper document amendment, not a board resolution.

What vote is needed to add a rental restriction?

For condominiums, MCL 559.190(2) requires the consent of at least 2/3 of the votes of co-owners and mortgagees to amend the documents, even when the amendment materially alters co-owner rights. Non-condo HOAs follow whatever amendment threshold their own declaration sets.

Does a new rental ban affect tenants already under a lease?

No. The statute expressly provides that a rental amendment does not affect the rights of lessors or lessees under a written lease executed before the amendment's effective date. The existing lease runs its course; the restriction applies to future leases.

Can my HOA stop Airbnb if the documents only say 'residential use'?

Yes. In Cherry Home Association v. Baker, the Michigan Court of Appeals held that advertising a home on Airbnb/VRBO is a commercial use for the purpose of raising money, not residential use — so short-term rentals can violate a residential-use covenant even without an explicit ban. Always read the use-limitation section of the declaration.

Does it matter whether my community is a condo or a regular HOA?

Both. The Condominium Act applies to condos, while a non-condo HOA draws authority from its recorded declaration plus the Michigan Nonprofit Corporation Act for governance. Either form of association can include rental restrictions in its documents.

Can the association demand a security deposit just because I'm renting my unit?

They can. Associations may require deposits or fees from owner-landlords as long as the rule applies uniformly and is reasonable. Requiring a deposit can be a sign the association discourages renting — pushing back hard risks the association adopting an outright ban instead.

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General information only, not legal advice. HOA rules change — confirm directly with the HOA or a Michigan attorney before buying or leasing.