As the city continues to grow in popularity, more Traverse City visitors are heading to popular online sites VRBO and Airbnb to find accommodations – someone else’s house, apartment or condo.

Hundreds of one, two and three-night minimum rentals can be found in town. The problem is, many of these walking-distance-to-everything, short-term rentals are not legal. City ordinance prohibits the renting out of residentially zoned homes for less than 30 consecutive days.

But that isn’t stopping local property owners from taking advantage of demand – and the city isn’t stopping them.

A year ago, city Zoning Administrator Dave Weston told The Ticker that unless he receives a complaint about a short-term rental, the city doesn’t crack down on violators. As high season for vacationers kicks off this weekend in Traverse City, that is still the case.

“Nothing has changed,” Weston says as far as enforcement, adding that complaints are infrequent.

Some overnight renters realize the practice is illegal and some say they weren't aware.

One Traverse City homeowner tells The Ticker he did receive a warning from the City last year after a neighbor complained. The owner knew the vacation rental was illegal and stopped operating it immediately.

A warning is the first step. If that is ignored, fines are the next step, up to $500 a day.

Some nightly and weekly rentals are legal in the city, however.

Chelsea Bay Dennis and husband Aaron have two such properties they rent – one is a condo at The Village at Grand Traverse Commons, the other in the brand new, six-unit Midtown Square on Eighth Street across from the Old Town Playhouse. Both properties are zoned correctly (i.e. in a commercial district) and both have the approval of the condo association of owners. The condos on State Street across from F & M Park are also legal and popular nightly rentals.

Dennis believes everyone who has purchased a condo at Midtown Square is planning to utilize it as a weekly rental. She sees the investment properties not only as a good way for the self-employed couple to plan for retirement, but also as a great way to invest in the town they love and keep their money local.

Another legal, short-term rental option within the city limits is via a “tourist house,” which is what Jody Mackey, a teacher, and her husband Norm operate on Washington Street. The Bay Town Suite is a room within their home, explains Mackey. It is a private suite with some kitchen amenities and laundry, but also has a shared entrance and access to the family’s fenced-in yard and use of their patio and grill.

“We never would have guessed it would be so successful,” she says. Now in its third summer season, it is booked solid through the summer and at 75 percent capacity in September and October. She sees more and more people who want to be right downtown; the majority are seeking three- or four-night stays.

Mackey says she enjoys meeting the guests and being an ambassador for the city, adding that nothing else could bring the money and flexibility this summer job does. She has never had a complaint about noise.

“They are in our home, so that would be disturbing us, too,” she adds.

Restrictions on other rental options in the City did loosen a bit this spring after commissioners approved accessory dwelling units (ADUs) in residential neighborhoods – permitting homeowners to rent out a secondary dwelling on their property – but for a minimum of three months.