A Sterling Heights homeowner who rents out a house on Airbnb is hauling the city into court after getting slapped with a zoning ticket and a door notice that effectively shut the place down for guests.
The lawsuit, filed April 22, in Macomb Circuit Court, asks a judge to declare the short-term rental operation legal and to award damages the owner says were caused by the city's enforcement actions.
In the complaint, 5002 Rockdale LLC argues that the Rockdale Court property qualifies as a permissible one-family detached dwelling under Section 3.01 and that the city violated its constitutionally protected rights when it issued the ticket and notice, according to The Detroit News. The company wants a declaratory judgment that short-term rentals are allowed at the home and is claiming damages that include the cost of the ticket, potential fines and disruption to its business.
The house, marketed online as "Grandma's Family Fun House," is listed on short-term rental platforms with photos showing an indoor heated pool and space for big groups, according to Airbnb and Vrbo. Those listings show the entire home being rented for stays of less than 30 days, a setup the city says is not allowed in residential zones.
City records show officials issued a notice of violation labeled "unpermitted use 3.01" on March 27 and posted a door notice declaring the building "not to be occupied" until a certificate of occupancy is issued, the city told The Detroit News. Sterling Heights Assistant City Manager Dale Dwojakowski said neighbors complained about "constant coming and going" at the property and that police have been called there numerous times for civil disputes and parking issues. City spokesperson Melanie Davis said short-term rentals are "not a permissible commercial use in residentially zoned properties" and estimated that 70 to 100 such rentals are advertised in the city on any given day.
Legal Stakes And Regional Context
At the heart of the case is a deceptively simple question: Does operating a short-stay rental turn a single-family home into a commercial use that the zoning code forbids?
Sterling Heights is far from alone in wrestling with that issue. Similar lawsuits have followed strict short-term rental rules in other Michigan communities, including a federal challenge filed in Dearborn Heights earlier this year, showing that property owners and cities are increasingly battling it out in court over these regulations, according to reporting by Mortgage Professional America.
What Happens Next
The case will now move through Macomb Circuit Court, where judges will decide whether Sterling Heights' zoning code and enforcement efforts pass legal muster.
If the owner prevails, the ruling could narrow what the city is allowed to treat as a commercial use in residential neighborhoods. A win for the city would likely reinforce its enforcement powers and leave short-term rental hosts facing fines or pressure to switch to long-term tenants.
The city says it is reviewing the lawsuit and will respond in court. The owner maintains it already holds a certificate of occupancy and is asking a judge to settle whether Sterling Heights' zoning rules actually bar its rental operation.
