Grand Rapids Mayor David LaGrand and several local property investors are calling on the city to loosen restrictions on short-term rentals as hundreds operate illegally and city officials update rules to meet demand.
Grand Rapids’ home occupations ordinance, last updated in 2014, caps the number of short-term rental licenses that can be issued at 200 citywide. It also requires short-term rentals to be owner-occupied, with property owners on premises during guests’ stays. Operators are limited to a maximum of two occupants per booking. Entire houses and accessory dwelling units are prohibited as short-term rentals.
However, searches this week of third-party booking platforms like Airbnb and VRBO show more than 1,000 listings for short-term rentals in the city, five times the number allowed. The city issues several warnings to violators that, if left unaddressed, can lead to fines of $265 to $370 per violation, plus court costs…