Traverse CityShort-term rental rules

Additional vacation and regional market / Michigan

Traverse City publishes a transfer procedure for qualifying grandfathered vacation-home rentals in specified districts.

Research reviewed Oct 31, 2026. Primary sources linked.

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Does the operating permit transfer?: Depends on approval
Section 802.01(i) prohibits license transfer unless another provision allows it or the City Commission specifically authorizes it. A separate policy permits qualifying grandfathered vacation-home authorizations to transfer with approval within 90 days of closing. Confirm both the policy eligibility and buyer license filing.
Can the land-use approval continue?: Qualifying grandfathered use may continue
The published policy has eligibility and termination conditions. Obtain written confirmation that the specific property qualifies and complete the approval within its deadline.
Can this buyer obtain approval?: The published grandfathering policy concerns qualifying C-1, C-2 and D-2 vacation-home rentals. It does not establish general permission for new residential STRs.
License or registration: Identify whether the property is a vacation-home rental or a different tourist-home category, then obtain the applicable city license and approval record.
Application availability: Confirm current availability
Check the official program before applying. The absence of a reported waitlist is not evidence that this property or buyer can receive approval.
Timing to verify: For the qualifying grandfathered policy, obtain transfer approval within 90 days of closing; verify applicability with the city.
Changes and uncertainty: Chapter 870 covers vacation-home licenses; Chapter 868 covers tourist homes. The grandfathered C-1, C-2 and D-2 policy is not a general right to transfer every rental license.

What this means for the appraisal

Identify the exact approval held by the seller and obtain the issuing office’s written procedure for this ownership change.
Verify the property’s land-use approval and continuation conditions. Research finding: Qualifying grandfathered use may continue.
Check the proposed buyer against the recorded requirements: The published grandfathering policy concerns qualifying C-1, C-2 and D-2 vacation-home rentals. It does not establish general permission for new residential STRs.
In the assignment analysis, identify the evidence supporting the proposed rental use, any operating interruption and any unresolved assumptions.

Use these prompts to plan the property review. The appraiser must evaluate the evidence and reach the assignment-specific conclusions.

Record the property evidence in a worksheet

Request documents from the owner or agent

Copy this market-specific request, add the property address and edit it for the assignment.

Read or select the document request

Document request for Traverse City

Subject: STR property document request | Traverse City, MI

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: Section 802.01(i) prohibits license transfer unless another provision allows it or the City Commission specifically authorizes it. A separate policy permits qualifying grandfathered vacation-home authorizations to transfer with approval within 90 days of closing. Confirm both the policy eligibility and buyer license filing.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: The published policy has eligibility and termination conditions. Obtain written confirmation that the specific property qualifies and complete the approval within its deadline.
5. Documents addressing the proposed buyer and property requirements: The published grandfathering policy concerns qualifying C-1, C-2 and D-2 vacation-home rentals. It does not establish general permission for new residential STRs.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: Check the official program before applying. The absence of a reported waitlist is not evidence that this property or buyer can receive approval.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.
9. Confirmation of the applicable deadline and filing evidence: For the qualifying grandfathered policy, obtain transfer approval within 90 days of closing; verify applicability with the city.
10. Written clarification: Have the City Clerk confirm the qualifying grandfathered policy, the authorizing provision or Commission approval, and the buyer application packet. Complete any applicable 90-day approval requirement.

Market research reviewed: 2026-10-31. These requests need property-specific verification.
Official research sources:
Traverse City grandfathered vacation-home rental transfer policy: https://www.traversecitymi.gov/userfiles/filemanager/hpye97hfbzd2xgb6kzy6/
Traverse City current code, section 802.01(i), license transfer restrictions: https://library.municode.com/mi/traverse_city/codes/code_of_ordinances?nodeId=PTEIGHTBURETACO_TITTWOBURE_CH802LIPEGE
Traverse City current code, Chapter 870, vacation-home rental licensing: https://library.municode.com/mi/traverse_city/codes/code_of_ordinances?nodeId=PTEIGHTBURETACO_TITTWOBURE_CH870VAHORELI

Subject: STR property document request | Traverse City, MI

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: Section 802.01(i) prohibits license transfer unless another provision allows it or the City Commission specifically authorizes it. A separate policy permits qualifying grandfathered vacation-home authorizations to transfer with approval within 90 days of closing. Confirm both the policy eligibility and buyer license filing.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: The published policy has eligibility and termination conditions. Obtain written confirmation that the specific property qualifies and complete the approval within its deadline.
5. Documents addressing the proposed buyer and property requirements: The published grandfathering policy concerns qualifying C-1, C-2 and D-2 vacation-home rentals. It does not establish general permission for new residential STRs.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: Check the official program before applying. The absence of a reported waitlist is not evidence that this property or buyer can receive approval.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.
9. Confirmation of the applicable deadline and filing evidence: For the qualifying grandfathered policy, obtain transfer approval within 90 days of closing; verify applicability with the city.
10. Written clarification: Have the City Clerk confirm the qualifying grandfathered policy, the authorizing provision or Commission approval, and the buyer application packet. Complete any applicable 90-day approval requirement.

Market research reviewed: 2026-10-31. These requests need property-specific verification.
Official research sources:
Traverse City grandfathered vacation-home rental transfer policy: https://www.traversecitymi.gov/userfiles/filemanager/hpye97hfbzd2xgb6kzy6/
Traverse City current code, section 802.01(i), license transfer restrictions: https://library.municode.com/mi/traverse_city/codes/code_of_ordinances?nodeId=PTEIGHTBURETACO_TITTWOBURE_CH802LIPEGE
Traverse City current code, Chapter 870, vacation-home rental licensing: https://library.municode.com/mi/traverse_city/codes/code_of_ordinances?nodeId=PTEIGHTBURETACO_TITTWOBURE_CH870VAHORELI

Research and guide updates

Oct 31, 2026 Research record: Research recorded for this market. Primary sources linked. See the findings, open questions and official sources below.
Nov 1, 2026 Guide tools: Added assignment prompts, a document request and consistent research questions. This tool update does not change the market research date.

Changes and uncertainty to verify

Chapter 870 covers vacation-home licenses; Chapter 868 covers tourist homes. The grandfathered C-1, C-2 and D-2 policy is not a general right to transfer every rental license.

Still to confirm

Have the City Clerk confirm the qualifying grandfathered policy, the authorizing provision or Commission approval, and the buyer application packet. Complete any applicable 90-day approval requirement.

Sources and research limits

The sale summary cites official code, program guidance or a court record. Read its scope and any remaining questions; it is not a parcel determination.

Use this summary to identify the documents and questions for a property review. A seller's rental history alone does not establish a buyer's permission to operate.

Nearby, with different rules

A mailing address or destination name can cover more than one jurisdiction.

Holland, MI (additional vacation and regional market)

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