Is Lyon Township, Michigan Good for Airbnb Investment?

To start an Airbnb in Lyon Township, Michigan, begin by researching local zoning ordinances and short-term rental regulations through Oakland County and Lyon Township offices, as the township may require special permits or have restrictions on rental duration and occupancy limits. Obtain necessary permits including a business license from Lyon Township, register with the Michigan Department of Treasury for tax purposes, and ensure compliance with fire safety codes and health department requirements. Find a suitable property by purchasing or leasing in residential zones that allow short-term rentals, considering proximity to attractions like Kensington Metropark, downtown Brighton, or major highways for guest convenience. Furnish the property with quality furniture, essential amenities, high-speed internet, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by local codes. Create compelling listings on Airbnb, VRBO, and other platforms with professional photography, detailed descriptions highlighting nearby attractions like Huron River activities and local dining, and competitive pricing based on similar properties in the Brighton-Howell area. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, coordinating cleaning between stays, and keeping detailed records for tax purposes while ensuring ongoing compliance with Lyon Township's short-term rental regulations and any homeowner association rules if applicable.

To identify profitable short-term rental properties in Lyon Township, Michigan, focus on locations within 15-20 minutes of major attractions like Kensington Metropark, downtown Brighton, or Milford, as these areas attract weekend visitors and outdoor enthusiasts. Target 3-4 bedroom single-family homes or lakefront properties built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking for multiple vehicles, as families and groups comprise the primary market. Analyze pricing by researching comparable Airbnb listings in nearby Brighton, Milford, and South Lyon, aiming for properties that can generate $150-250 per night during peak seasons while maintaining 60-70% occupancy rates. Study competition using AirDNA and Mashvisor to identify gaps in the market, particularly focusing on properties near lakes, golf courses, or recreational areas where supply may be limited. Utilize tools like Zillow and Realtor.com for property searches, STR Helper for rental analysis, and local Facebook groups like "Lyon Township Community" for market insights, while ensuring compliance with township zoning regulations and HOA restrictions that may limit short-term rentals.

To obtain an Airbnb/STR permit in Lyon Township, Michigan, you must first contact the Lyon Township Building Department at 58000 Grand River Avenue or call 248-437-1735 to submit an application for a short-term rental license. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (minimum $1 million coverage), floor plan showing maximum occupancy, contact information for a local property manager if you're not local, and payment of applicable fees. The permit fee is approximately $200-400 annually with potential additional inspection fees of $100-150. You must also comply with Lyon Township's specific requirements including maximum occupancy limits based on bedrooms and square footage, parking requirements of at least two spaces per unit, noise ordinance compliance, proper waste management, and adherence to all building and fire codes. The township may require a safety inspection before approval, and you must register with the state of Michigan for tax collection purposes. The approval timeline is typically 30-60 days from complete application submission, and permits must be renewed annually with Lyon Township while maintaining compliance with all zoning regulations and neighbor notification requirements.

Short-term rentals (STRs) in Lyon Township, Michigan are generally permitted but subject to local zoning regulations and licensing requirements. The township typically requires STR operators to obtain a business license and comply with zoning ordinances that may restrict operations in certain residential districts or require special use permits. Common restrictions include occupancy limits, parking requirements, noise ordinances, and safety inspections. Lyon Township has likely implemented or updated STR regulations between 2020-2023 following statewide trends, requiring registration with the township and adherence to Michigan's STR tax collection laws. Property owners must also comply with Oakland County health department regulations and may face restrictions in certain subdivisions with HOA covenants that prohibit short-term rentals, making it essential to verify both township zoning compliance and any private deed restrictions before operating an STR.

The best areas for Airbnb investment in Lyon Township, Michigan include the neighborhoods near Kensington Metropark, particularly around Kent Lake and Island Lake areas, which attract year-round outdoor enthusiasts for boating, fishing, hiking, and winter activities. The downtown Milford area, though technically adjacent, draws visitors to Lyon Township due to its proximity to the charming historic district, local festivals, and the popular Huron River corridor. Properties near the Lyon Oaks County Park and golf course appeal to recreational travelers and golf enthusiasts, especially during spring through fall seasons. The residential areas along Pontiac Trail and near the South Lyon border are attractive for business travelers working in nearby automotive facilities and corporate offices in the greater Detroit metro area, as well as families visiting residents or attending events at local venues. The neighborhoods around Kensington Road benefit from easy highway access while maintaining a peaceful, lakefront atmosphere that appeals to weekend getaway seekers from Detroit and Ann Arbor, approximately 30-45 minutes away.

Lyon Township in Michigan does not impose specific lodging or occupancy taxes on Airbnb properties as of 2024, as most Michigan townships lack the authority to levy such taxes without special legislation. However, Airbnb hosts in Lyon Township are subject to Michigan's 6% state sales tax on short-term rental accommodations, which Airbnb typically collects and remits directly to the Michigan Department of Treasury on behalf of hosts for stays under 30 days. Oakland County, where Lyon Township is located, does not currently impose a county-level lodging tax. Hosts must register for a Michigan sales tax license if they collect payments directly rather than through Airbnb's platform, and are required to file monthly or quarterly returns depending on their volume. There are no specific exemptions for short-term rentals, though stays of 30 days or longer are generally exempt from sales tax as they're considered long-term rentals rather than transient accommodations. Property owners should also ensure compliance with local zoning ordinances and any homeowners association restrictions, though these don't constitute taxes.

The total cost to start an Airbnb in Lyon Township, Michigan is approximately $385,000-$425,000. Property purchase represents the largest expense at $350,000-$380,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom home including furniture, bedding, kitchenware, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-$3,000. Permits and fees in Oakland County include short-term rental permits ($200-$500), business license ($50-$100), and potential HOA approval fees. Insurance costs approximately $2,000-$3,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, gas, water, internet, and cable services cost roughly $500-$800 initially. First six months of operating costs including utilities ($1,200), cleaning services ($1,800), maintenance reserves ($1,000), property management software ($300), and marketing expenses ($500) total approximately $4,800. Additional considerations include potential property improvements or renovations which could add $5,000-$15,000 depending on the property condition and desired amenities to compete effectively in the Detroit metropolitan short-term rental market.

Airbnb properties in Lyon Township, Michigan typically generate annual revenues between $18,000-$35,000 for entire homes, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts in the area reporting annual profits of $8,000-$15,000 per property. Key success factors include proximity to Detroit Metro Airport (20 minutes away), competitive pricing during peak summer months and fall color season, professional photography, and maintaining superhost status through consistent 4.8+ ratings. Properties near Kensington Metropark and those offering amenities like hot tubs or fire pits command premium rates, with some luxury properties achieving $200+ nightly rates and annual revenues exceeding $45,000, though higher-end properties also face increased operating costs and seasonal demand fluctuations that can impact overall profitability.

Based on Lyon Township, Michigan market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the township. Properties near Kensington Metropark and downtown areas command higher nightly rates of $120-180, while standard residential properties average $80-120 per night with 65-75% occupancy rates during peak seasons. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with gross rental yields averaging 10-14% annually. The proximity to Detroit Metro area and recreational attractions supports consistent demand, though seasonal fluctuations affect winter months with occupancy dropping to 45-55%, requiring investors to budget for 3-4 months of reduced income annually.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Lyon Township, Michigan. Local real estate agents like those at Keller Williams Livingston County, RE/MAX Platinum, and Coldwell Banker Weir Manuel have experience with investment properties in the area and understand the local vacation rental market dynamics. National services include Awning, which provides end-to-end Airbnb investment services, and Mashvisor, an analytics platform that helps identify profitable rental properties in Michigan markets. AirDNA offers market data and analysis specific to short-term rentals in the Lyon Township area, while RedAwning provides property management and investment guidance. Local property management companies like Great Lakes Property Management and Michigan Vacation Rentals can assist with both finding properties and managing them post-purchase. Real estate investment firms such as Roofstock and Arrived Homes occasionally feature Michigan properties, and local agents specializing in investment properties include teams from Century 21 Curran & Oberski and Howard Hanna Real Estate Services who understand the Lyon Township market's proximity to lakes and recreational areas that drive Airbnb demand.