Want to Airbnb a House in Fenton Township? In Residential Zones, the Owner Has to Live There.

By Carrie Thompson, Strategic Marketing Real Estate Agent, eXp Realty, Grand Blanc, MI

Fenton Township allows short-term rentals like Airbnb and VRBO, but only under Ordinance No. 856. In the township's single-family residential zones, a short-term rental needs a special use permit, and the property owner must be present and living on site. The township board adopted the ordinance on September 3, 2024, and it took effect September 15, 2024 (Fenton Township Ordinance No. 856).

That one line about the owner living on site matters to anyone buying a lake home in Fenton Township with plans to rent it out. Here is what the rule says and how it has played out at township meetings since.

What counts as a short-term rental in Fenton Township

The ordinance defines a short-term rental as a stay of one night to thirty nights. It amends Article 11 of the township's Zoning Ordinance No. 594 (Ordinance No. 856).

Where a rental is allowed depends on zoning. Short-term rentals are a principal use in the OS, C-1, C-2 and C-3 districts. They are a special use in the AG, R-1, R-2, R-3, R-4, R-5, R-6, R-M and R-MH districts. The ordinance then adds: "Special Use Permits for Single-Family Residential zoned properties shall have the property owner present and living onsite" (Ordinance No. 856).

The Planning Commission's March 13, 2025 minutes describe the AG district as allowed by special use without the owner-on-site condition (Fenton Township Planning Commission minutes, March 13, 2025).

The rules every permitted rental has to follow

Occupancy is capped at two people per bedroom. The Planning Commission can set a lower number on a non-conforming lot based on site conditions.

Guests must park on an improved surface on the rental property, not on public or private roads.

The designated local agent must live in or keep a physical presence within 30 miles of the rental.

Before the Planning Commission reviews an application, the township Fire Chief or Building Official inspects the home. Renewals require an inspection too (Ordinance No. 856).

One more rule matters on the lakes: "The rental of motorized watercraft shall not be allowed as part of a short-term rental" (Ordinance No. 856).

The board debated a 29-permit cap, then dropped it

An earlier draft drew pushback. At a May 21, 2024 board meeting, trustees debated a limit of 29 permits and spacing between rentals. Trustee Mark Goupil questioned writing rules for problems the township did not have, and Trustee Kade Katrack raised concerns about the 29 figure. The board sent the draft back to the Planning Commission (WNEM, May 22, 2024). The ordinance the board adopted on September 3, 2024 does not include a permit cap or a spacing requirement (Ordinance No. 856).

The first applications show how strict the owner rule is

On March 13, 2025, the Planning Commission approved a short-term rental on Margaret Drive with occupancy limited to two people and a review after one year. The same night, it postponed an application on Lake Shore Drive so the owner could seek an interpretation and a possible variance from the owner-present requirement (Planning Commission minutes, March 13, 2025).

By the April 24, 2025 meeting, that Lake Shore Drive application and a second one on Torrey Road had both been withdrawn. The Torrey Road applicant asked the township to refund $700, and the Lake Shore Drive applicant said the owner-on-site requirement had only been suggested for one-night rentals during early discussions (Planning Commission agenda packet, April 24, 2025).

What this means if you are buying or selling in Fenton Township

If you are buying a lake home and counting on Airbnb income to cover the payment, check the zoning district first. In single-family residential zones, the rental only works if you live there. A whole-house vacation rental you never stay in will not meet the rule.

If you are selling, do not market your home as a short-term rental investment unless you have confirmed the zoning and any permit with the township. Buyers will ask.

Rules change, so confirm current specifics with Fenton Township and an attorney before you buy or sell based on rental income.

I help buyers and sellers in Fenton Township, Lake Fenton and Linden sort out exactly this kind of question before it costs them. Every listing I take gets professional photos and video, room sizes, targeted digital ads, and targeted buyer avatars. Call or text Carrie Thompson at (810) 893-3269.

About Carrie Thompson

Carrie Thompson, "Your Favorite Property Girl," is a Strategic Marketing Real Estate Agent (REALTOR®) with eXp Realty serving Grand Blanc and Genesee County, Michigan, including Fenton, Fenton Township, Linden, Davison, Flushing, Swartz Creek and Burton. Michigan license 6501338662. Call or text (810) 893-3269.