Short-Term Rentals: Dexter Township to Stick with Current Ordinance, For Now

As part of Dexter Township decisions on Short-Term Rentals (STRs), the township said it will lift the moratorium on enforcement actions against short-term rentals currently operating in the township and will now continue to address STR activity on a complaint-driven basis.

Dexter Township has been grappling with this issue for nearly a year with a process that began in the fall of 2024 and involved reviewing short-term rentals. The process involved extensive work from Township staff and planning consultants, the Planning Commission, and the Short-Term Rental Committee, along with input from residents.

Now some decisions were made by the township board.

With STRs already in existence in the township and seeing the need to take an official look at them, Dexter Township worked on some questions, such as should STRs officially be allowed in the township and if so, how should they be regulated. Their existence and possible regulation went before the township with the question of how to deal with them. Dexter Township Zoning Ordinance does not list STRs as a permitted use in any zoning district.

The township board made a number STR related decisions at its Sept. 16 meeting. The Sun Times News connected with the township supervisor Lonnie Scott in follow up.

Scott issued the following statement:

“I want to thank the Short-Term Rental Committee, the Planning Commission, Township staff, and my fellow Board members for their thoughtful and diligent work over the past year. I also want to thank our community members for their input and patience as we navigated this complicated topic together. This is a complex issue, and we will continue discussions about what might work for our unique township. For now, we have decided to stick with our current ordinance, which does not allow short-term rentals in Dexter Township.”

Dexter Township said the Township Board “concurred with the Planning Commission’s recommendation to reject the Hamburg Township ordinance.”

The idea of looking into using Hamburg Township’s ordinance in Dexter Township came after a request that was originally submitted by residents who had purchased a property in the township to operate as a short-term rental. This is what prompted Dexter Township’s broader exploration of this complex issue.

According to the township, on Aug. 13, 2024, the property owners of 8980 Dexter-Pinckney Road submitted an application to Dexter Township requesting that the Township amend their Zoning Ordinance to allow short-term rentals. The application and proposed amendments went before the Planning Commission on October 22, 2024. The Planning Commission postponed its recommendation on proposed amendments until additional information could be obtained. At that meeting, the Planning Commission made a motion to request that the Board of Trustees establish, appoint, and fund a working group or task force to research short-term rentals with a goal of amending the Zoning Ordinance with regard to the legal establishment, regulation, and/or prohibition.

On Sept. 16, the township board said it was determined that even if the Hamburg ordinance had been adopted, the property in question likely would not have met the ordinance’s requirements.

Also on the 16^th, the township board said it reviewed the proposed guidelines put forward by the Township’s Short-Term Rental Committee. However, in its decision the township board determined staff analysis showed that those recommendations “would have effectively eliminated all 13 of the currently operating short-term rentals in the township—each of which is operating outside of current ordinance compliance.”

Similarly, the Township Board said it rejected the “Planning Commission’s suggestion that short-term rentals be allowed only in agricultural and commercial zones, with several Trustees emphasizing that taxpayer resources should not be used to subsidize commercial rental activity.”

Scott said after discussion on the 16th, the township board determined that licensing and registration fees could not reasonably cover the enforcement costs, given the limited number of properties that would qualify.

As part of its decision, the township board said it will officially lift the moratorium on enforcement actions against short-term rentals currently operating in the township and it will continue to address STR activity on a complaint-driven basis.

Moving forward, Scott said the Planning Commission and Planning & Zoning staff has been directed to clarify language in the zoning ordinance to make clear that short-term rentals are not permitted, while also exploring updates to the definition of “bed and breakfast” establishments, which do allow rentals when the owner is present.