Everything You Need to Know About Owning a Short Term Rental in Frankfort, Michigan

Short-Term Rental Regulations in Frankfort, Michigan for 2026

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.

Regulatory information last reviewed for accuracy in 2026. Local STR ordinances change frequently — verify current rules with the city or county before listing.

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.

Short-Term Rental Management Fees in Frankfort, Michigan (2026)

Short-term rental management fees in Frankfort, Michigan in 2026 typically range from 15% to 30% of gross rental revenue, depending on the scope of services provided. Full-service management — covering guest communication, channel distribution across Airbnb, Vrbo, and Booking.com, dynamic pricing, cleaning coordination, and 24/7 guest support — generally falls in the 22% to 30% range. Co-hosting or partial-service arrangements that leave more responsibility with the owner usually run 15% to 20%.

Industry-wide management fees have crept upward by roughly 1–2 percentage points since 2024 as operating costs, insurance premiums, and labor expenses have risen across the vacation rental sector. Frankfort-area managers may also charge separately for cleaning turnovers, maintenance dispatch, linen programs, and listing optimization. Some full-service operators in Michigan now offer guaranteed-rent or revenue-share hybrid models, which can be worth comparing against a flat percentage structure for higher-revenue properties.

Market estimates as of 2026. Conditions vary; consult local operators for current data.

Short-Term Rental Market in Frankfort, Michigan (2026)

The short-term rental market in Frankfort, Michigan remains active in 2026, supported by ongoing visitor demand. The average daily rate is approximately $385. These figures reflect 2024 baseline data adjusted for 2025–2026 ADR growth of 3–5% and the modest occupancy compression seen across the U.S. short-term rental sector as new supply has entered the market.

For investors and operators evaluating Frankfort, the broader Michigan dynamic remains favorable: rate strength continues to offset volume softness, keeping RevPAR (revenue per available rental) relatively stable year-over-year. Hyperlocal factors — neighborhood-level demand, seasonality, and the regulatory environment — should be confirmed before making investment or pricing decisions.

Market estimates as of 2026. Conditions vary; consult local operators for current data.