Dearborn restricts Airbnbs to downtown area after complaints about parties, other concerns

Dearborn restricts short-term rentals

After a vote from city council, short-term rentals like Airbnbs will only be allowed in downtown Dearborn beginning next year.

DEARBORN, Mich. (FOX 2) - Beginning next year, short-term rentals like Airbnbs will only be allowed in Dearborn's downtown district.

City council voted Tuesday on the new ordinance after hearing mixed feedback from residents.

What they're saying:

The city began weighing its options on short-term rentals after complaints about activities at these properties, such as parties and parking issues.

When it came time to discuss the issue Tuesday, City Council President Mike Sareini said he would not like to live next to a rental where the occupants are constantly changing. He said that was a consideration when deciding how he would vote.

"We do not try to pass any rules that are purposely to hurt or hinder anyone. We want to make sure that we keep the neighborhoods intact," he said. "We believe a residential neighborhood is a residential neighborhood." 

Sareini went on to note that other commercial businesses like backyard car repair shops are not allowed in neighborhoods, so Airbnbs also shouldn't be permitted in these areas.

Previously, Mayor Abdullah Hammoud said another reason for limitations was also preventing big developers from buying homes strictly for business purposes. This, he said, takes the homes away from families who could be moving into the city.

Resident reactions:

Under the newly approved ordinance, short-term rentals will not be allowed in residential neighborhoods - a change applauded by some and bemoaned by others who say it punishes responsible homeowners just trying to supplement their incomes.

Some spoke in support of the restriction, with several people pointing out that residents don't want to live next to what is essentially a hotel with guests changing constantly.

Nancy Harmon, the president of the Morley Area Residents Association and secretary of the Dearborn Federation of Neighborhoods, said concerns about short-term rentals have frequently been brought up at federation meetings. She read a letter from the federation during public comment at Tuesday's city council meeting.

"The daily disruptions to neighborhood life that an Airbnb creates in neighborhoods, such as parking lot activities and security issues, have been mentioned repeatedly at our monthly meetings," that letter said in part.

However, not everyone is behind limiting where short-term rentals can be located.

Joel Nieman, a resident who said he rents out a room in his Dearborn home, expressed concerns about how the restriction would impact others like him.

"For me and for many others like me, renting a room in our home is not a big business - it's a necessity," he said. "It helps me pay my mortgage and bills, and it's how I can afford to stay in the home in the city that I love." 

He noted that he believes the issue isn't owners who rent out portions of the homes that they live in, but rather businesses that buy houses to rent without managing the activities happening at these rentals.

"I believe there is a better way forward than an outright ban that would hurt responsible homeowners like myself," Nieman said. "The problem is not caused by longstanding residents using their homes to supplement their income. The problem is caused by businesses."

What's next:

The short-term rental restrictions are slated to take effect Jan. 1, 2026.

Sareini did mention that there have been discussions about expanding the area where short-term rentals are allowed to other business districts, but under the current ordinance, they will only be permitted downtown.

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