City Watch
Short-term rental rules in Petoskey, MI
How Petoskey regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Residential-zone exclusion: no STR licenses in R-1, R-2, R-3, RM-1, RM-2 districts
- Hard citywide cap on total STR licenses set by City Council resolution
- Grandfathered residential STRs only; extinguished on transfer/lapse/revocation
- Annual STR license required with mandatory inspection
Based on: City of Petoskey Code of Ordinances Chapter 15 (Short-term Rentals), Sec. 15-1 through 15-8, as AMENDED IN ITS ENTIRETY
Summary of the rule
Verbatim § 15-4(9) (Ord. 815, current in-force text): 'Properties situated in any district in which short-term rentals are not a principal permitted use are not eligible to receive STR licenses. However, those properties that were properly licensed and operating as a short-term rental prior to December 18, 2023 are permitted to continue operating as a short-term rental despite being in a district in which short-term rentals are not a principal permitted use, provided those properties comply with the requirements of this chapter. ... Upon transfer of the property, licensure lapse, or revocation of the short-term rental license for property authorized under this subsection, the license shall be extinguished at which point the property is no longer available for short-term rental licensing.'
View the ordinance source ↗✓ Verified
Last reviewed Sep 17, 2026 · Sources · Report an error
Pending legislation
Monitoring Petoskey · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.