A Decision Coming on Short-Term Rentals in Dexter Township

The question of short-term rentals (STRs) in Dexter Township remains up in the air as the township board looks to have more discussion and analysis before making a decision on this complex issue.

Should they officially be allowed in the township and if so, how should they be regulated? They have been operating in the township for a long time, unofficially, but now their existence and possible regulation are before the local government with the question of how to deal with them. At this point, the Dexter Township Zoning Ordinance does not list STRs as a permitted use in any zoning district.

This issue has been discussed and reviewed over this year since the township board established the Short-Term Rental (STR) Committee to evaluate whether STRs should be allowed and regulated within Dexter Township. The committee met regularly from December 2024 through April 2025, conducted surveys on the issue and made its own recommendations. Then the township Planning Commission had its own time with it and also made recommendations to the township board.

According to Dexter Township, an STR unit is “typically defined as the rental of a dwelling unit (in whole or in part) for periods of less than 30 days and more than 14 days per calendar year. The Michigan Court of Appeals has repeatedly determined that short term rentals are a prohibited use in residential neighborhoods, because they are commercial activities inconsistent with residential uses. Short-term rentals have become a popular alternative to hotels and motels for tourists, visitors, and vacationers. According to websites such as Airbnb and Vrbo, which serve as rental platforms for property owners, over two dozen short term rentals existed in Dexter Township in late 2024.”

At the meeting on Aug. 12, the township board introduced a proposal, which was made in recommendation by the Planning Commission, to potentially introduce new zoning ordinance language to help regulate short-term rentals. The board held a public hearing and began its own review and dive into the issue.

In the public hearing, the board heard from a variety of residents. The concerns about allowing short-term rentals range from nuisance issues to having too many of them on lake properties to safety concerns and enforcement, just to name a few. Those for them also offer a variety of reasons in support, from simply giving a family an opportunity to have some summer fun on a lake that otherwise wouldn’t have the chance without a rental opportunity to the idea that they’ve existed in the township for a long time without much complaint.

Some said that the township can look to neighboring communities, such as Putnam Township, to see how they exist with them through regulation. One resident said lets regulate wisely and not prohibit blindly.

In general, the advantages of STRs are often perceived as economic benefits and increased local activity while disadvantages are often perceived as potential nuisances or unique impacts to residents and/or neighborhoods and environmental concerns.

According to the township planning consultant, during its July 22 meeting, the Planning Commission also held a public hearing on two sets of zoning ordinance amendments to regulating STRs: adding a short-term rental use to the Zoning Ordinance in AG, RR, LR and RC zoning districts with an accompanying stand-alone ordinance requiring a license; or amending the bed and breakfast definition and regulations to include short-term rentals. The Planning Commission recommended a revised set of zoning ordinance amendments with the following modifications:

• STRs are permitted exclusively in the Agricultural and General Commercial Zoning Districts.

• Lot area, lot width, and setback requirements align with the applicable Zoning District (AG or GC) standards.

• Special events are permitted with administrative approval by the Director of Planning and Zoning.

The next step for this is now before the Township Board, who could decide to adopt, not adopt, or return the proposed zoning text amendment to the Planning Commission.

At the Aug. 12 meeting, the township board did not take any formal actions after its public hearing. The board had questions and wanted some tasks done, such as a legal review of the proposed ordinance language.

Township supervisor Lonnie Scott said in early September the board will have a board working session, which is discussion only, to further discuss several big issues including Single Hauler Trash and Short Term Rentals. Scott said the board expects to take action on STRs short term rentals at the board meeting on Sept. 16.