Estate Planning for Parents: Choosing a Guardian for Your Kids

If you are a parent, there is one part of estate planning that matters more than almost anything else, and it has nothing to do with money. It is naming a guardian, the person who would raise your children if you and their other parent could not. It is a hard thing to think about, which is exactly why so many parents put it off. Let me make it a little easier.

Why this is the most important decision

If something happened to you and your children were left without a legal guardian named, a court would decide who raises them. A judge does their best, but they are making that choice without knowing your family the way you do. Different relatives might disagree, the process can be stressful and public, and the outcome may not be who you would have chosen. Naming a guardian yourself takes that decision out of a courtroom and puts it where it belongs, with you.

How to choose a guardian

There is no perfect choice, only the right choice for your family, and it helps to think it through rather than default to the obvious name. A few things worth considering:

Values and parenting style. Who would raise your children in a way that reflects what matters to you?

Stability and capacity. Who has the health, the home life, and the willingness to take this on, not just the good intentions?

Location and disruption. A guardian nearby might let your children stay in the same schools and community, though this matters more to some families than others.

Age and life stage. A beloved grandparent may be perfect in spirit but may not be the most practical long-term choice, and that is okay to weigh honestly.

It is also wise to name a backup guardian, in case your first choice is unable to serve when the time comes.

Money and guardianship are two different jobs

Here is something many parents do not realize. The person who raises your children does not have to be the person who manages the money you leave for them. In fact, it is often smart to separate those roles, or to set up a trust so that your children's inheritance is managed responsibly and released over time, rather than handed over all at once. This protects your children and takes pressure off the guardian.

Have the conversation

Once you have chosen, talk to the person you have in mind. Naming a guardian is a significant thing to ask of someone, and you want to be sure they are willing and prepared. That conversation, hard as it may feel, is a gift to everyone involved.

The takeaway

Choosing a guardian is the heart of estate planning for parents. Getting it in writing, properly, means that no matter what happens, your children will be cared for by the people you chose, on your terms.

If you are ready to put this in place, I can help you do it right, and pair it with a plan for your children's future. Your $150 consultation applies in full toward your plan, and if you would like to see whether we are a good fit first, you are always welcome to call for a quick, no-pressure chat.

This post is general information about Michigan estate planning and is not legal advice for your specific situation. For guidance tailored to your circumstances, please reach out and we can talk it through.

5 Signs It Is Time to Set Up Your Estate Plan

A lot of people put off estate planning because it feels like something for "later," or for someone with a lot more money than they have. I understand that. But in my experience, the moment estate planning actually matters is usually earlier and more ordinary than people expect. If any of the following sound like you, it is probably time to put a plan in place.

1. You own a home

Your home is likely one of the largest things you own, and it is exactly the kind of asset that can get tangled up in the probate court process if you do not have a plan. A clear estate plan lets you decide who receives your home and helps your family avoid unnecessary delay and expense. If you own property in Michigan, this alone is a strong reason to sit down and get organized.

2. You have children

If you have minor children, the single most important thing an estate plan does is let you name a guardian, the person who would raise your children if you could not. Without that, a court decides, and it may not choose who you would have chosen. Even if your children are grown, a plan lets you pass things along clearly and fairly, and spares your family from having to guess at your wishes during an already hard time.

3. You have had a major life change

Marriage, divorce, a new baby, a new home, starting a business, or losing someone close to you are all moments that change your picture. If you already have documents, these events are a sign to update them. If you do not have anything in place yet, a big life change is often the nudge that finally makes it worth doing. Life rarely stands still, and your plan should reflect where you actually are now.

4. You have assets you want to direct

You do not need a fortune for this to matter. Retirement accounts, savings, a vehicle, a life insurance policy, or personal items with meaning all get passed on somehow. The only question is whether they get passed on the way you intended, or the way a default legal process decides. If you have anything you would want to go to a specific person, that is reason enough to write it down properly.

5. You want a say if you could not speak for yourself

Estate planning is not only about what happens after you pass away. A complete plan also covers what happens if you are ever unable to make decisions for yourself, whether from an accident or an illness. With the right documents, you name the person you trust to handle your finances and your medical choices, on your terms. Without them, your family may have to go to court to get that authority, at the worst possible time.

The takeaway

If even one of these rang true, you are not being premature by thinking about this now. You are being responsible. Estate planning is not about expecting the worst. It is about making sure the people you love are protected and that your wishes are clear, so that if something does happen, your family has guidance instead of guesswork.

You do not have to sort this out alone, and you do not need to know all the answers before you reach out. In a consultation, we look at your situation together and I recommend the plan that actually fits, with the cost laid out clearly up front. If you would like to see whether we are a good fit first, you are always welcome to call for a quick, no-pressure chat.

This post is general information about Michigan estate planning and is not legal advice for your specific situation. For guidance tailored to your circumstances, please reach out and we can talk it through.

Do I Need an LLC for My Short-Term Rental?

If you own a short-term rental, or you are thinking about buying one, there is a question that comes up again and again: should I put it in an LLC? It is one of the smartest questions a host can ask, because the way you hold your property has a real effect on how protected you are. Let me explain what an LLC actually does and when it tends to make sense, in plain language.

What an LLC really does for you

LLC stands for limited liability company, and the key word is liability. When you own a rental in your own name and something goes wrong, a guest is injured, someone claims damage, a dispute turns into a lawsuit, your personal assets can be exposed. That can mean your home, your savings, and your other property are potentially on the line. An LLC creates a legal separation between you personally and the rental business. If a claim comes against the property, it is generally the LLC's assets at risk, not your personal ones.

For short-term rental hosts, who are inviting a steady stream of strangers to stay on their property, that separation is worth taking seriously. You are running a business, even if it does not always feel like one, and a business carries risk.

The other benefits

Liability protection is the headline, but an LLC brings a few other advantages. It keeps your rental finances cleaner and separate from your personal money, which makes bookkeeping and taxes far simpler. It can offer a layer of privacy, since the property is held in the company's name. And if you own more than one rental, holding them thoughtfully can keep a problem at one property from reaching the others.

What an LLC does not do on its own

Here is where I see people get into trouble. An LLC only protects you if it is set up and run correctly. That means keeping a separate bank account for the rental, not mixing personal and business money, and treating the company like a real, separate thing. If you blur those lines, a court can look right through the LLC, and the protection you thought you had may not hold.

An LLC also does not replace insurance. You still need proper short-term rental coverage, because the LLC and your insurance policy do different jobs and work best together. And if your property has a mortgage, moving it into an LLC can raise questions with your lender, so that is worth handling carefully rather than on your own.

So, is it right for you?

For most people running a genuine short-term rental, forming an LLC is a sensible, protective step. The details, how to set it up, how to transfer the property correctly, and how to keep the protection intact, are exactly the kind of thing that is easy to get slightly wrong and costly to fix later.

If you are running or buying a short-term rental in Michigan, I would be glad to help you set this up the right way from the start. You can book a consultation, and if you would like to talk it through first, you are always welcome to call for a quick, no-pressure chat about your situation.

This post is general information and is not legal advice for your specific situation. For guidance tailored to your circumstances, please reach out and we can talk it through.

Michigan Short-Term Rental Rules Every Airbnb Host Should Know

Running a short-term rental in Michigan can be a wonderful business, but it comes with a layer of rules that a lot of hosts do not fully understand until a problem shows up. If you are hosting on Airbnb, Vrbo, or on your own, here is a plain-language overview of the kinds of rules you need to be aware of, and why they matter.

There is no single statewide rulebook

The first thing to understand is that Michigan does not have one clear, statewide law that governs every short-term rental. State lawmakers have debated the topic, so it is an area worth keeping an eye on, but for now most of the rules that actually affect you are set at the local level. That means the city, village, or township where your property sits often has the biggest say in what you can and cannot do.

Local ordinances are where the action is

Two identical homes in two neighboring communities can face very different rules. Depending on where your rental is, your local government may require you to register or get a permit, may limit how many guests can stay, may restrict short-term rentals to certain zones, or may have specific safety and inspection requirements. Some communities in West Michigan are quite welcoming to short-term rentals, and others have tightened the rules considerably. Before you buy, and before you list, it is worth knowing exactly where your community stands.

Do not forget zoning and your HOA

Beyond the local ordinance, two other layers can quietly control your rental. Zoning rules can determine whether short-term renting is even allowed on your specific property. And if your home is in a neighborhood with a homeowners association or is subject to deed restrictions, those private rules can prohibit short-term rentals entirely, regardless of what the city allows. I have seen hosts invest in a property only to discover a restriction they never checked for.

Taxes are part of the picture

Short-term lodging in Michigan generally comes with tax obligations, and some communities add their own accommodation-related taxes on top. Platforms like Airbnb may collect some of this for you, but not always all of it, and the responsibility ultimately falls on you. It is worth understanding what applies to your rental so there are no surprises.

The bottom line

Short-term rental rules in Michigan are a patchwork, and the answer to "can I do this?" genuinely depends on your specific property and community. That is not a reason to be discouraged. It is a reason to check carefully before you commit, so you can host with confidence instead of crossing your fingers.

If you own or are considering a short-term rental in Michigan and want to make sure you are on solid ground, I would be glad to help. You can book a consultation, and if you would like to talk it through first, you are always welcome to call for a quick, no-pressure chat.

This post is general information and is not legal advice for your specific situation. Local rules change and vary by community, so please reach out for guidance tailored to your property.

What Is Probate in Michigan, and How Do You Avoid It?

You have probably heard the word "probate," usually in a sentence about how you want to avoid it. But a lot of people are not quite sure what it actually is or why it has such a reputation. Let me clear it up in plain language, and then walk through the real ways to keep your family out of it.

What probate actually is

Probate is the legal process where a Michigan court oversees settling someone's affairs after they pass away. The court confirms the will if there is one, appoints a person to manage the estate, makes sure debts and taxes are handled, and then oversees distributing what is left to the right people. It exists for good reasons, but it is a court process, and that is where the downsides come from.

Why people want to avoid it

Probate is not a disaster, but it carries three real costs. First, time. The process often takes many months, and sometimes longer, before your family can fully settle things. Second, privacy. Probate is a public process, so the details of your estate can become part of the public record. Third, expense and effort. There are costs and paperwork involved, and all of it lands on your loved ones during a period when they are already grieving. For most families, avoiding all of that is well worth a little planning now.

How to keep your family out of probate

The good news is that probate is largely avoidable with the right plan. Here are the main tools I use with clients.

A revocable living trust is the most complete option. Assets you place in the trust can pass to your loved ones without going through the court at all, while you stay in full control during your lifetime.

Beneficiary designations matter more than people realize. Accounts like retirement plans and life insurance pass directly to the people you name, outside of probate, so keeping those designations current is important.

How you hold title makes a difference too. Certain forms of joint ownership allow property to pass directly to the surviving owner. And in Michigan, there is a particularly useful tool for real estate sometimes called a lady bird deed, which can allow your home to pass to your loved ones without probate while you keep full control of it during your life.

The right combination depends on what you own and what you want to happen. That is the part I help you figure out.

The takeaway

Probate is the default, what happens when there is no plan in place. With some straightforward planning, you can spare your family the time, the cost, and the stress, and give them a clear path instead.

If you would like to keep your family out of probate, I can help you put the right pieces in place. Your $150 consultation applies in full toward your plan, so it costs you nothing extra to get started, and if you would like to see whether we are a good fit first, you are always welcome to call for a quick, no-pressure chat.

This post is general information about Michigan estate planning and is not legal advice for your specific situation. For guidance tailored to your circumstances, please reach out and we can talk it through.

Do I Need a Will or a Trust? A Plain-English Guide for Michigan Families

If you have started thinking about estate planning, there is a good chance you have run into the same question almost everyone asks me first: do I need a will, or do I need a trust? It is a great question, and the honest answer is that it depends on your situation. Let me walk you through the difference in plain language, without the legal jargon, so you can get a feel for what might make sense for your family.

What a will actually does

A will is the foundation of most estate plans. In simple terms, it is a document that says who gets what after you pass away, and who you trust to carry out your wishes. A good will lets you name the people who will inherit your assets, name an executor to handle everything, and, if you have young children, name a guardian to raise them. That last part is one of the most important reasons parents come to see me, and it is not something you want a court deciding for you.

Here is the part people are often surprised by. A will does not skip the court. When you pass away with only a will, your estate typically goes through probate, which is the legal process where a Michigan court oversees settling your affairs and distributing your assets. Probate is not the disaster some people fear, but it does take time, it becomes part of the public record, and it can add cost and stress for the family you leave behind.

What a trust actually does

A revocable living trust does something a will cannot. It can help your family avoid probate altogether for the assets you place in it. You can think of a trust as a container you create while you are alive. You move your assets into it, you stay in complete control of everything while you are living, and you name who receives those assets when you are gone. Because the trust technically owns those assets, there is often no need for the court to get involved when you pass away.

That leads to a few real benefits. Your affairs stay private instead of becoming public record. Your loved ones can usually settle things faster and with less expense. And if you ever become unable to manage your own affairs, the person you named can step in smoothly, without a court process. For families who own a home, have young children, or simply want to keep things private and simple, a trust often carries its weight.

The real difference comes down to probate

If you take just one idea away from this post, let it be this. The biggest practical difference between a will and a trust is what happens with the probate court. A will directs your assets but still runs them through probate. A trust, when it is set up and funded correctly, can keep those assets out of probate entirely. Everything else, the privacy, the speed, the cost, and the peace of mind, tends to flow from that one difference.

So which one is right for you?

There is no single right answer, and anyone who gives you a one-size-fits-all response before learning about your life is guessing. That said, here are the patterns I see most often.

A will is often the right foundation if your situation is fairly straightforward and your main goal is to name guardians for your children and say clearly where your assets should go. A trust tends to make more sense if you own a home, want to keep your affairs private, want to spare your family the probate process, or want a smooth plan in place in case you are ever unable to manage things yourself.

And here is something a lot of people do not realize. It is not always one or the other. Many of the plans I build use both, a trust to hold the important assets and avoid probate, paired with a simple will that acts as a backstop for anything not placed in the trust. The pieces work together.

Estate planning is not just for the wealthy

One last myth worth clearing up. Estate planning is not only for people with large fortunes. It is for anyone who owns a home, has children, or simply wants to bring clarity and protection to the people they love. If you have someone you would want to care for, or assets you would want handled a certain way, you already have a reason to have a plan. In my experience, the families who feel the most relief afterward are ordinary people who simply wanted to know their loved ones would be taken care of.

The good news

You do not have to figure this out on your own, and you do not need to become an expert in Michigan estate law to make a good decision. That is my job. In a consultation, we look at what you own and who you want to protect, and I recommend the approach that actually fits your family, with the cost laid out clearly before you commit to anything.

If you have been meaning to get this handled, this is your sign to take the first step. You can book a consultation with me, and if you would like to see whether we are a good fit first, you are always welcome to call for a quick, no-pressure chat. Either way, you will walk away with a clearer picture of what your family needs.

This post is general information about Michigan estate planning and is not legal advice for your specific situation. For guidance tailored to your circumstances, please reach out and we can talk it through.

Buying an Investment Property in West Michigan: Protect Yourself Legally

Buying an investment property is exciting, and West Michigan has been a strong market for it. But an investment property is not the same as buying your own home, and the legal side deserves real attention. A few smart steps up front can protect you from expensive problems later. Here is what I walk investors through.

Decide how you will hold the property

Before you close, think about whose name goes on the deed. Many investors hold rental and investment property in an LLC rather than personally, because it separates the property's risks from their personal assets. If a dispute or claim arises, that separation can be the difference between a business problem and a personal one. The right structure depends on your goals, how many properties you own, and how you plan to finance them, so it is worth deciding intentionally rather than by default.

Do your due diligence, all of it

The purchase agreement usually gives you a window to investigate the property, and that window is precious. Use it fully. That means a proper inspection, a look at the title to make sure there are no liens or ownership issues, and attention to survey and boundary questions. If you plan to rent the property, it also means confirming that the zoning and local rules actually allow the use you have in mind. Discovering a problem before you close is an inconvenience. Discovering it after is a lawsuit.

Read the purchase agreement like it matters, because it does

The purchase agreement is the contract that controls the whole deal, including your deadlines, your contingencies, and your right to walk away and keep your deposit if something goes wrong. These agreements are often handed over as standard forms, but the details carry real consequences. Understanding what you are signing, and negotiating the terms that protect you, is one of the most valuable things you can do before closing.

Get your insurance and financing right

Investment property is treated differently by both lenders and insurers than an owner-occupied home. Make sure your financing terms actually fit your plan, and that your insurance coverage matches how you intend to use the property, especially if you plan to rent it out short-term or long-term. A coverage gap is the kind of thing you never think about until the day you need it.

Protect yourself as a landlord

If tenants are part of your plan, you are stepping into Michigan's landlord-tenant world, which comes with its own rules about leases, deposits, notices, and habitability. Getting your lease and your processes right from the beginning saves you real headaches and protects your investment.

The takeaway

Investment property can be a great decision, and doing it carefully is what keeps it that way. A little legal groundwork before you buy protects the money you are putting in and the returns you are hoping for.

If you are looking at an investment property in West Michigan and want to make sure you are protected, I would be glad to help you through it. You can book a consultation, and if you would like to talk it through first, you are always welcome to call for a quick, no-pressure chat.

This post is general information and is not legal advice for your specific situation. For guidance tailored to your circumstances, please reach out and we can talk it through.

Getting Paid in the STR Industry: What Happens After Someone Owes You Money

Let me describe a situation I hear about regularly: an STR investor loans $200,000 to an operator to acquire and furnish a property. The deal is structured through LLCs. There’s a promissory note, but no personal guarantee, no collateral, and no security interest. The operator stops making payments. The investor sues, wins a judgment—and then discovers the LLC has no assets, the bank accounts have been drained, and the operator has transferred the property to a family member’s entity.

The investor did everything right in court and still can’t collect a dollar.

This is the gap most STR professionals don’t understand until they’re living it: being owed money and actually collecting money are two very different things. Winning a lawsuit is not the finish line. In many cases, it’s just the starting point of a second, harder fight.

In a recent episode of the STR Law podcast, I spoke with business litigation attorneys Mark Rossman and Noah Matthews of Rossman PC about what actually happens after a court awards money damages—the legal tools, timing strategies, and investigative techniques that turn judgments into real recoveries. For anyone in this industry who lends money, invests in deals, or operates through partnerships, this is essential knowledge.

Time Is Not on Your Side

The single most important takeaway from our conversation is urgency. Once a debt goes unpaid, every day that passes works against you. Debtors who know they owe money don’t sit still. They move assets, shift funds between accounts, transfer property to relatives, or simply drain business accounts. By the time many creditors get around to enforcement, there’s nothing left to enforce against.

What surprises most people is that even during short statutory waiting periods after a judgment is entered, attorneys can take immediate steps to protect assets. Courts may allow emergency motions, asset discovery, and other early interventions designed to prevent debtors from moving money beyond reach. The key is having counsel who is prepared to act on day one—not day sixty.

I’ve seen creditors wait months after a default “to be reasonable” or “give them a chance to work it out,” only to find that the debtor used that goodwill period to systematically move everything of value. Patience has its place. Collections is not usually it.

LLCs Don’t Always Protect the People Behind Them

In the STR world, deals are almost always done between LLCs. Many operators assume that means the company is the only entity on the hook if things go wrong. That’s not always true.

If a business owner personally guaranteed a loan, commingled personal and business funds, or transferred assets out of the company to avoid creditors, legal claims can extend well beyond the LLC itself. Rossman and Matthews described cases where property was transferred to family members for little or no consideration after debts arose. In those situations, creditors can pursue fraudulent transfer claims to unwind the transaction and recover the asset. In more egregious cases involving coordinated efforts to hide money, additional claims like civil conspiracy or racketeering statutes may come into play.

The core principle is straightforward: moving assets to dodge legitimate business debts doesn’t eliminate legal exposure. It creates new legal exposure—often worse than the original debt.

How You Structure the Deal Determines How You Collect

This is where prevention and enforcement intersect, and it’s the part of the conversation I wish every STR investor would hear before they fund their next deal.

If your loan or investment relies solely on an LLC with no personal guarantee and no collateral, your recovery options narrow dramatically if the business fails. You may win in court and still have nothing to collect against. On the other hand, properly structured personal guarantees and security interests can give you real leverage—both in settlement negotiations and in enforcement.

I see this constantly in the STR space: investors who are sophisticated about deal economics but casual about deal documentation. The promissory note is two pages. There’s no default interest provision, no attorney fee clause, no collateral schedule. The money goes out the door based on trust and a handshake dressed up in just enough legal language to feel official. When the deal goes sideways, the creditor discovers that the agreement they relied on gives them almost nothing to work with.

Investing in well-drafted agreements on the front end is dramatically less expensive than trying to collect on a weak one after the fact.

Post-Judgment Discovery: The Tool Most Creditors Don’t Know About

One of the most powerful and underused tools in collections is post-judgment discovery. After a judgment is entered, creditors are often entitled to demand detailed financial information about the debtor’s assets, bank accounts, income sources, property transfers, and business interests. These examinations can surface accounts, real estate, vehicles, and even digital assets that weren’t previously known.

Modern collections work increasingly involves tracing electronic financial trails. Bank records, payment platforms, and even cryptocurrency holdings may be discoverable. For STR operators who run their businesses through Airbnb payouts, Stripe, Venmo, and other digital platforms, it’s a mistake to assume that funds are invisible simply because they’re not sitting in a traditional local bank account. Money leaves a trail, and experienced collections attorneys know how to follow it.

Judgment Liens Can Follow Real Estate

Real estate is often the most valuable asset in an STR professional’s portfolio, and it’s also one of the most reachable. Once a creditor obtains a judgment, they may be able to record a lien against real property owned by the debtor. That lien can prevent refinancing or sale without first addressing the debt. In some cases, foreclosure of a judgment lien is even possible.

For STR operators and investors who own rental properties personally or through closely held entities, this is an important reality: judgments can follow those assets long after the underlying lawsuit ends. A judgment lien recorded today can cloud a title for years, creating leverage that didn’t exist when the original debt was incurred.

Weak Contracts Make Hard Collections

A recurring theme in our conversation—and in my practice generally—is how often the most difficult collection cases trace back to the same root cause: informal agreements. Loans made on a text message. Partnership deals outlined in an email. Service arrangements with no written terms at all.

Without personal guarantees, collateral provisions, attorney fee clauses, and clear default terms, creditors are left with fewer tools and more risk when it’s time to collect. Clear payment terms, default interest, fee-shifting provisions, and properly documented guarantees change the economics of enforcement. They make settlement more attractive for the debtor and litigation more viable for the creditor.

I’ll keep saying it because it keeps being true: the best time to think about collections is before you need to collect.

The Bottom Line

In an industry built on partnerships, platforms, and private deals, the gap between being owed money and actually recovering it is wider than most people realize. Court judgments don’t automatically produce payment. Delay almost always benefits the debtor. And the strength of your recovery position is largely determined by decisions made long before a dispute arises.

STR professionals who extend credit, invest in deals, or rely on business partners need to understand both sides of this equation: how to structure agreements that reduce risk on the front end, and how enforcement actually works when things go wrong.

If you’re entering a deal that involves significant capital, a lending arrangement, or a partnership structure, Katie Johnson PLC can help you get the documentation right before the money moves. And if you’re already in a collection situation and need to understand your options, we work with experienced litigation counsel to help STR professionals recover what they’re owed.

Schedule a call today.

What STR Investors Need to Know About Zoning Before Buying

A few months ago, an investor called my office after closing on a lakefront property in a small Michigan township. He’d already furnished the home, listed it on Airbnb, and started taking bookings. Then a neighbor filed a complaint, the township sent a cease-and-desist letter, and he learned—for the first time—that his property sat in a zoning district that didn’t permit short-term rentals. No conditional use permit process. No variance path. Just a flat prohibition he could have identified with a single phone call before closing.

Variations of this story play out across the country every week. Short-term rentals continue to grow, but the legal framework governing them has not developed evenly. Local zoning ordinances, discretionary permitting processes, and community opposition create serious risks for property owners—particularly those investing in unfamiliar markets. One of the most common and costly mistakes STR investors make is assuming that zoning compliance is straightforward, or that informal approval from local officials is sufficient.

It usually isn’t. Here’s what you need to understand before you buy.

Zoning Law Is Local—and Often Discretionary

Zoning rules are set at the local level and vary widely by jurisdiction. Depending on the state and location, zoning authority may rest with a city, township, or county. In some rural or unincorporated areas, investors assume zoning restrictions are minimal or nonexistent, only to discover later that the county exercises regulatory control.

Even when zoning ordinances appear clear on paper, interpretation and enforcement are often discretionary. Zoning administrators may provide informal guidance that later proves incomplete or nonbinding. A use that looks consistent with the zoning code may still require a conditional or special use permit—which introduces real uncertainty into the approval process.

I’ve seen investors spend six figures on a property based on a conversation with a township clerk, only to learn that the clerk’s interpretation didn’t reflect the zoning board’s position. That’s a risk you can manage, but only if you know to look for it.

Conditional and Special Use Permits Carry Inherent Risk

Conditional use permits (sometimes called special use permits) allow property owners to use land in a manner not permitted “by right” under existing zoning. These permits can unlock investment opportunities, but they come with meaningful risk that investors often underestimate.

First, approval is not guaranteed. Permit decisions are typically made by zoning boards or boards of adjustment and may be influenced by public comment, political dynamics, or subjective considerations like perceived neighborhood impact. Second, even when approved, these permits are issued with conditions that limit operations. Violating—or being accused of violating—those conditions can trigger enforcement actions or permit revocation.

Here’s the part that catches most investors off guard: conditional use permits do not permanently change your zoning. Future complaints, shifting enforcement priorities, or changes in local leadership can all affect your property’s ability to operate as intended. Your permit is only as durable as your compliance—and the political environment around it.

Neighbor Opposition Can Change Outcomes

Public hearings are a central feature of most conditional use permit processes. While they’re intended to promote transparency, they also give neighboring property owners a platform to influence outcomes. Organized opposition—even from a small, vocal group—can significantly affect how a zoning board views a proposed use.

Neighbor concerns typically center on traffic, noise, safety, and what they see as the commercialization of a residential or rural area. These concerns may persist even when a proposed use fully complies with the zoning ordinance or aligns with the comprehensive plan. In practice, perception can matter as much as legal compliance—and that’s a dynamic that doesn’t show up in your pro forma.

As someone who operates STR properties in addition to representing STR owners, I can tell you: the relationship you build with neighbors before a hearing often matters more than the legal argument you present at one.

Informal Assurances Are Not Legal Protection

Investors frequently rely on verbal or informal written assurances from zoning staff when evaluating a property. Speaking with local officials is an essential step in due diligence—but these conversations do not always bind the municipality. In many jurisdictions, statements made by individual staff members do not constitute official interpretations of the zoning ordinance.

Without a formal, written determination, you may find that your reliance on those assurances offers little protection if enforcement priorities shift or neighbors raise complaints. This risk is especially pronounced in STR regulation, where ordinances are frequently outdated, inconsistently enforced, or actively being revised.

The bottom line: get it in writing, and make sure the writing comes from someone with the authority to bind the jurisdiction.

Enforcement Can Be Complaint-Driven

STR enforcement is often reactive rather than proactive. In many municipalities, no one is actively monitoring compliance. Instead, complaints from neighbors trigger inspections, investigations, and permit reviews. Even minor or technical violations can become grounds for enforcement action if community tensions escalate.

This dynamic makes operational discipline essential. Strict compliance with permit conditions, guest limits, and occupancy restrictions isn’t optional—it’s your first line of defense. Clear house rules, conservative guest caps, and documented compliance practices can reduce your risk profile, though they may not eliminate exposure entirely.

What You Should Do Before You Buy

Before purchasing or operating a short-term rental—particularly in an unfamiliar jurisdiction—take these steps:

•       Identify the correct zoning authority and confirm the applicable ordinances for the property.

•       Determine whether your intended use is permitted by right or requires discretionary approval.

•       Obtain formal, written zoning determinations whenever possible.

•       Assess the likelihood of neighbor opposition and local sentiment toward STRs in the area.

•       Consult legal counsel early—especially when conditional use permits or rezoning may be involved.

•       Budget for legal and administrative costs associated with zoning compliance. These aren’t optional line items.

The Bottom Line

Zoning compliance for short-term rentals is not a box to check on your way to closing—it is a legal risk that can determine whether your investment is viable. Even thorough due diligence cannot eliminate all uncertainty, particularly in jurisdictions where enforcement is discretionary or influenced by local politics.

But investors who understand these risks, plan conservatively, and get the right legal guidance early are consistently better positioned to protect their investments and avoid the kind of surprises that turn a promising deal into a costly lesson.

If you’re evaluating a property for short-term rental use and want to understand the zoning landscape before you close, we can help. We work with investors across Michigan on zoning due diligence, conditional use permits, and regulatory compliance—so you know exactly where you stand before you sign.

Schedule a call today.

“There’s No HOA, So I’m Fine”… Not Necessarily

One of the most common assumptions I hear from property owners and short-term rental hosts is some version of: “There’s no HOA, so I’m good to go.” In Michigan, that assumption is often incorrect — and it can be an expensive one.

Deed restrictions, also referred to as restrictive covenants, are private limitations recorded in a property’s chain of title. They are not zoning laws, and they are not the same thing as HOA rules. While homeowners associations often enforce deed restrictions, the existence of an HOA is not what gives those restrictions legal force. A property can be subject to enforceable deed restrictions even when there is no HOA at all.

This distinction matters because enforcement of deed restrictions is private. Unlike zoning violations, which are enforced by municipalities, deed restrictions are enforced by the parties who benefit from them. In practice, that often means a neighbor. When a deed restriction is violated, enforcement typically comes in the form of a civil lawsuit seeking an injunction to stop the prohibited use, sometimes along with damages or attorney fees depending on the language of the restriction.

For short-term rental owners, this is where problems frequently arise. A property may be located in a jurisdiction that allows STRs by ordinance, and the owner may correctly conclude that zoning is not an issue. But if a recorded deed restriction limits rentals, requires minimum lease terms, or restricts use to single-family residential purposes, a neighbor can still bring suit to enforce that restriction. Zoning approval does not override a private covenant.

Another common misconception is that deed restrictions only apply in large subdivisions or formal developments. In reality, restrictions can appear in a single deed, a developer’s master declaration, or a recorded agreement affecting a small number of parcels. Many buyers never review these documents because they are not presented as part of an HOA packet and are easy to overlook during closing.

Once a neighbor files suit to enforce a deed restriction, options can be limited. Courts in Michigan generally treat valid restrictive covenants as enforceable contracts that run with the land. While there are defenses in certain circumstances — such as abandonment, waiver, or ambiguity — those arguments are fact-specific and rarely something a property owner wants to test after investing in a property and building a rental business around it.

The practical takeaway is simple but important. “No HOA” does not mean “no restrictions.” Before purchasing or operating a rental property, particularly a short-term rental, it is critical to review the recorded deed restrictions affecting the property and understand who has the right to enforce them. That review should happen before money is spent, not after a cease-and-desist letter or lawsuit arrives.

If you own property in Michigan or are evaluating an STR investment and want to understand whether deed restrictions apply — and what enforcement risk looks like — this is an issue worth addressing early. In real estate, private land use restrictions are often where the real risk lives.