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Dearborn city council approves ordinance eliminating short-term rentals in residential areas

Dearborn City Council approves ordinance on short-term rentals
Dearborn City Council approves ordinance on short-term rentals 01:59

The Dearborn City Council voted Tuesday night in favor of a measure to eliminate short-term rentals in certain areas.

The city proposed allowing short-term rentals in only specific areas of the east and west sides of downtown; however, the ordinance prohibits short-term rentals from operating within Dearborn's single-family residential neighborhoods. 

"The best way to do this is through zoning, and zoning has been upheld through our court of appeals," said City Council President Michael Sareini at the meeting.

The council did agree to a friendly amendment to delay the ordinance from going into effect until Jan. 1, 2026.

Dozens of community members spoke on Tuesday, with about half giving strong testimonies as to why they're siding with the city council. Many others who were at the meeting left with a feeling of frustration, as some residents will now have to look for new ways to earn the income they were making from renting out short-term rentals. 

"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," said Nancy Harmon, president of the Morley Avenue Residents Association.

"It helps me pay my mortgage and bills, and it's how I can afford to stay in the home and the city that I love," said Joel Newman.

In February, Basel Musaed converted his home on the west side of Dearborn into a short-term rental. That's when he found Airbnb.

"I've been doing long terms for quite a while, and I just haven't seen like a great return in investment, to be honest with you, and I want to try something different," Musaed said. "It's a night and day difference. I've been very much successful since that point."

Musaed added, "I feed my family with this, you know. I've already made more in the short few months that I've done Airbnb than I've made with all my long-term property houses combined."

Before Tuesday's meeting, a representative with the city of Dearborn said:

The measure before City Council balances the needs of our neighborhoods and small business owners by creating new rules for operating short-term rentals in the City of Dearborn. What has been proposed to the Council addresses feedback that we've received from residents about concerns with short-term rentals operating in residential areas, and feedback we've received from the owners of these properties, who depend on their rentals as a source of income.
We believe that limiting short-term rentals to commercial areas, like our downtown districts, will protect housing stock for residents, including long-term renters; alleviate noise and other nuisances in quiet neighborhoods; and still offer options to those seeking to book or profit from short-term stays. We are joining cities across the country in creating updated regulations to meet challenges these businesses may present."

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