The short-term rental market in Frankfort, Michigan, is thriving, with a 24% increase in rental units, steady occupancy rates, and average nightly prices of $368, indicating strong and continuous growth.
Thriving Short-Term Rentals in Frankfort, Michigan
Frankfort, Michigan, continues to excel in the short-term rental market, defying national trends. The number of short-term rental units in the area has seen a significant 24% increase over the past year, with occupancy rates rising by 8 percentage points. Currently, short-term rentals in Frankfort boast an average occupancy rate of 58% and command an average daily rate of $369.
This growth is a testament to the area's enduring appeal, with its proximity to Lake Michigan and attractions like the Crystal Mountain ski resort. Despite some signs of market softening, such as shorter booking windows, the overall outlook remains strong, making Frankfort an attractive destination for both vacationers and investors.
Short-Term Rental Regulations in Frankfort, Michigan for 2024
License and Registration
- Short-term rental properties must be registered and licensed. The application must include documentation of ownership or financial interest if the applicant has more than two short-term rentals in the area.
- A license fee, set by the Township Board, must be paid. The fee is not pro-rated for licenses issued for less than a full calendar year.
Insurance Requirements
- A certificate of general liability insurance coverage, issued by an insurance company licensed in Michigan, must be provided to cover the premises and insure against risks arising from commercial rental activities.
Local Contact Person
- The owner of a short-term rental must designate a Local Contact Person who has access and authority to manage the unit and respond to complaints within one hour, 24 hours a day during the rental period.
- The Local Contact Person’s phone number must be provided to all immediately adjacent neighbors.
Safety and Inspections
- A duly designated representative of the Township (e.g., the Frankfort Fire Chief or designee) may inspect the short-term rental unit prior to issuing a license and at any time there is reasonable belief of a safety hazard.
Usage Restrictions
- Only one dwelling unit may be used as a short-term rental on any parcel, unless the parcel lawfully contains more than one dwelling unit, in which case each unit must be separately licensed.
- Camping on the parcel where a short-term rental is located is prohibited, including the use of tents, campers, trailers, and other temporary shelters.
Local Regulations and Zoning
- Local regulations can include geographical restrictions, public health and safety standards, and blight mitigation. However, local ordinances cannot totally ban short-term rentals if there is a demonstrated need for them.
- The local unit of government can revoke a short-term rental permit for violations of local ordinances or zoning decisions.
State Regulations
- Short-term rentals must be registered with the Michigan Department of Licensing and Regulatory Affairs (LARA) and included in a short-term rental database.
- A 6% tax may be imposed on units rented for 15 or more days in a year, which can be added to the rental’s occupancy charge by the owner.
Hosting Platform Regulations
- Hosting platforms are prohibited from facilitating bookings for short-term rentals without current and valid authorization and registration from a local unit of government.
- Penalties for violations can include fines up to $1,000 for short-term rental owners and up to $5,000 for hosting platforms.
Top Neighborhoods for Airbnb Revenue in Frankfort, Michigan
1. Downtown Frankfort
- Appeal: Downtown Frankfort is highly appealing due to its proximity to the city's main attractions, including the Frankfort Public Beach, downtown shops, and restaurants like Dinghy's Restaurant & Bar. Guests can easily walk to these locations, making it an ideal spot for those who want to be in the heart of the action.
2. M-22 Corridor
- Appeal: The M-22 corridor, which includes areas like Market Square Park and Main Street, is popular for its scenic views and easy access to Lake Michigan. Properties like the Crystal Cottage, located on scenic M-22, offer private living spaces and are just steps away from the beach and local amenities.
3. Frankfort Highway and Surrounding Areas
- Appeal: Areas along Frankfort Highway, such as where Carol's Cabin is located, are favored for their easy access to downtown Frankfort, Lake Michigan, and nearby attractions like Crystal Lake and the paved bike path/rails to trails. These locations offer a balance between convenience and natural beauty.
4. Betsie Lake and Betsie Valley Trailway
- Appeal: Neighborhoods near Betsie Lake and the Betsie Valley Trailway, such as The Jewel House, are appealing due to their scenic trails and proximity to both Betsie Lake and Lake Michigan. These areas provide a tranquil setting with easy access to outdoor activities and downtown Frankfort.
5. Harbor Lights Resort
- Appeal: The Harbor Lights Resort area, home to rentals like "THE NEST" Condo, offers stunning views of the Frankfort Lighthouse and direct access to the sandy beaches of Lake Michigan. Guests enjoy the heated pool, hot tub, and the short stroll to downtown Frankfort.
These neighborhoods are highly rated by guests for their combination of scenic beauty, convenience, and access to local attractions, making them prime locations for generating Airbnb revenue in Frankfort, Michigan.
Creating an Inviting Airbnb in Frankfort, Michigan: Design and Furnishing Tips
Entryway and First Impressions
- Ensure the entryway is welcoming and thoughtfully designed to make guests feel special.
- Provide amenities such as a keyless entry, a welcoming note, and perhaps a small gift or local treat.
Living Room
- Lighting Control: Install lamps and dimmer switches to create a cozy and adjustable atmosphere.
- Comfortable Seating: Include plush blankets, pillows with different fill options, and a pouf for added comfort.
- Functional Layout: Design the room to evoke conversation and ensure each guest has a place to put their drinks and belongings.
- Occasional Tables: Use well-priced occasional tables to provide ample space for guests to place their items.
Bedroom
- Layered Bedding: Offer extra bedding layers stored in the closet for guest convenience, and use a ribbon to indicate if the bedding has been used.
- Pillow Variety: Provide 2 sleeping pillows per guest with different fill options (e.g., foam-filled, down alternative).
- Temperature Control: Install ceiling fans or ensure there is adequate heating and cooling.
- Bedside Tables and Lamps: Include bedside tables with lamps for each guest, ideally with USB ports or wireless charging features.
- Blackout Shades: Use blackout shades to cater to different sleep preferences.
Kitchen and Dining
- Well-Equipped Kitchen: Ensure the kitchen is fully equipped with necessary appliances, cookware, and utensils.
- Modern and Functional Decor: Blend modern and rustic elements to reflect the local style, using natural materials and earthy tones.
Outdoor Spaces
- Relaxation Areas: Provide outdoor spaces perfect for relaxation, such as a patio, fire pit, or grill.
- Access to Nature: Highlight the proximity to natural attractions like Lake Michigan, Sleeping Bear Dunes, and local parks.
Additional Amenities
- Multiple Bathrooms: If possible, include multiple bathrooms to enhance guest satisfaction.
- High-Speed WiFi: Ensure reliable and high-speed WiFi throughout the property.
- Local Touches: Incorporate locally-inspired decor to give the space a home-like and authentic feel.
Neighborhood Considerations
- Proximity to Attractions: Choose locations near downtown Frankfort, local parks, or scenic areas like the Chippewa Nature Center.
- Accessibility: Ensure easy access to dining, shopping, and outdoor activities to enhance the guest experience.
By following these tips, you can create an inviting Airbnb in Frankfort, Michigan, that reflects the city's unique style and meets the preferences of your guests.
Discovering Frankfort, Michigan: Local Attractions and Insider Tips
Local Attractions
Point Betsie Lighthouse
- One of the most photographed lighthouses in the country, offering guided tours, a museum, and a gift shop. Climb to the top for panoramic views of Lake Michigan and learn about the area's maritime history.
Frankfort North Breakwater Lighthouse
- Located at the end of the Frankfort Pier, this lighthouse is a great spot for fishing, walking, and watching the waves. It's particularly beautiful at sunset.
Frankfort Beach and Lake Michigan
- Enjoy swimming, sunbathing, and picnicking on the soft sand beach with clear waters and stunning views. The beach features a playground, restrooms, and a pavilion.
Garden Theater
- A historic theater in downtown Frankfort showing current releases, independent films, and classic movies. It also hosts special events and community gatherings.
Oliver Art Center
- Showcases local and regional artists with rotating exhibitions, art classes, and workshops. A great place for cultural experiences and special events.
Frankfort Mineral Springs Park
- Relax in this park featuring a historic mineral spring, a playground, benches, and a walking trail along Betsie Lake. Access the Betsie River Trail from here.
Crystal Lake
- Known for its clear waters and sandy beaches, perfect for swimming, boating, and fishing. Families can enjoy picnicking and exploring nearby hiking trails.
Sleeping Bear Dunes National Lakeshore
- Explore trails like the Empire Bluff Trail, Dune Climb, and Pierce Stocking Scenic Drive. A must-visit for outdoor enthusiasts.
Insider Tips
Best Times to Visit
- Enjoy the breathtaking sunsets over Lake Michigan, especially at Frankfort Beach and the North Breakwater Lighthouse.
Dining Recommendations
- Stormcloud Brewing Company: Known for tasty beers, a full food menu, and a nice patio space.
- L'Chayim Delicatessen: Great for bagels and lunch sandwiches.
- Vita Bella: Offers Italian cuisine with a water view in the back seating area.
- Rock's Landing: A good spot for dinner with lake views; reservations recommended.
- Birch & Maple: A solid spot for brunch and dinner downtown.
Outdoor Activities
- Betsie Valley Trail: A 22-mile multi-use trail from Frankfort to Thompsonville, ideal for hiking, biking, and running.
- Elberta Dunes South Natural Area: Offers rugged hiking trails through dunes, forests, and wetlands with stunning views of Lake Michigan.
Family-Friendly Fun
- Crystal Falls Mini Golf & Fun Center: Features mini-golf, go-kart racing, and an arcade, perfect for an afternoon with kids.
Local Events and Culture
- Check out the Oliver Art Center for rotating exhibitions, art classes, and special events.
- Catch a film or live performance at the historic Garden Theater.
Practical Tips
- Be cautious on windy days when visiting the North Breakwater Lighthouse due to waves splashing over the breakwall.
- Consider visiting the Point Betsie Lighthouse early or late in the day to avoid crowds and enjoy better photo opportunities.
Practical Tips to Run a Successful Short Term Rental Business in Frankfort, Michigan
To ensure a smooth and enjoyable experience for both you and your guests, several practical tips can be implemented when running a short-term rental business in Frankfort, Michigan.
Noise Regulations and Quiet Hours
Inform your guests about the noise regulations and quiet hours in the area. Frankfort strictly enforces noise ordinances, so it is crucial to communicate these rules clearly in your listing and within the property. A notice or sign indicating quiet hours can help prevent disturbances and ensure compliance with local laws.
Creating a Comprehensive House Manual
Develop both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also outline the house rules, including noise regulations, to set clear expectations for your guests.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide detailed instructions on how to use the smart locks, along with parking instructions accompanied by photos. This ensures that guests can easily access the property and find parking without any confusion.
By implementing these strategies, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short-term rental property in Frankfort, Michigan.
Here is a brief list of house cleaning, repair, or maintenance providers in Frankfort, Michigan:
House Cleaning Services
- FreshTrippin: Offers cleaning services for short-term rentals, commercial, and residential properties in the northwest Michigan area, including Frankfort.
- M22 Clean & Co.: Specializes in cleaning services, particularly for Airbnb properties, and is highly rated by clients.
General Cleaning and Maintenance
- Top-Rated Cleaning Services on HomeAdvisor: A list of various cleaning services in Frankfort, MI, with reviews and ratings.
- Top 10 Best House Cleaners on Angie's List: A compilation of highly rated house cleaners in Frankfort, MI, based on user reviews.
Additional Services
- While not exclusively focused on Frankfort, FreshTrippin also offers handyman and concierge services, including grocery shopping and decoration for special occasions.
Short-Term Rental Management Fees in Frankfort, Michigan: A Comprehensive Overview
In Frankfort, Michigan, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, which handle guest communication, marketing, and maintenance, usually charge fees at the higher end of this spectrum, often starting at around 20% of the rental income and sometimes increasing to 25% or more after the initial year.
Basic service packages, which may include fewer amenities and less hands-on management, can be more cost-effective but still incur additional fees for services such as cleaning, repairs, and design. For instance, cleaning fees are often charged separately, and some managers may add a management fee on top of these costs.
Understanding these fee structures is crucial for property owners to maximize their rental income while ensuring compliance with local regulations and maintaining high standards of property upkeep.