Investors · Short-term rentals & 1031 exchanges
Buying a rental or doing a 1031 exchange up north.
In Northern Michigan, whether a house can be rented by the night depends on which side of a township line it sits on. Taylor works with investors on exactly that: finding the properties where a short-term rental is legal today, and getting an exchange closed inside its deadlines.
What we check before you write an offer
The ordinance itself.
Whether short-term rentals are allowed in that township, village or city, and in that zoning district. We read the adopted ordinance and call the zoning administrator.
Whether a permit is available.
Several townships cap the number of licenses, and in some places the license does not transfer when the house sells.
Septic and occupancy limits.
Some townships tie the guest count to the health department's bedroom count, which can be lower than the number in the listing.
Deed restrictions and association rules.
These can ban rentals even where the township allows them. A Leelanau County case shows how.
Your tax bill, not the seller's.
Taxable value uncaps when a property sells, and a rental does not get the principal residence rate. Here is what that gap looks like.
The township-by-township guide
We keep a guide to every township, city and village across Grand Traverse, Leelanau, Antrim, Benzie and Kalkaska counties. Each one is checked against its own ordinance and lists the person to call, with a map you can tap.
Taylor owns one too
Taylor owns and runs a short-term rental in Northport, so the questions that come up after closing are ones he has dealt with himself.
If you are doing a 1031 exchange
The rules are federal and the clock is strict. Your sale proceeds go to a qualified intermediary, you have 45 days from the closing of the property you sold to identify replacements in writing, and you generally have 180 days to close. Both properties have to be held for investment or business use. A vacation rental can qualify, but the IRS limits personal use, so ask your CPA about the safe harbor before you count on it.
We are not tax advisers. Your CPA and your intermediary run the tax side. Our part is the real estate: lining up replacement properties that fit your deadline and the local rental rules, and writing offers with closing dates that work for the exchange.
Tell us your 45-day date at the start. It changes which properties are worth your time.
Worth reading first
Looking at a specific property?
Send the address before you write the offer. We'll tell you what the township allows and what we'd want to verify.