Short-Term Rental Investing in Traverse City: What Every Buyer Should Know

Kara Gelven
Oct 29
2 min read

By Kara Gelven, Peninsula Properties, Traverse City, MI

Why Traverse City Continues to Attract STR Investors

Northern Michigan’s crown jewel has become one of the Midwest’s most desirable short-term rental markets — and for good reason. Traverse City offers the perfect blend of tourism demand, limited inventory, and small-town charm. From summer beach vacations and wine-country weekends to fall color tours and winter ski getaways, the region sees consistent year-round travel, keeping occupancy strong across all seasons.

Combine that with Michigan’s natural beauty and a growing remote-work movement, and it’s easy to see why both local and out-of-state investors are seeking properties here.

What Makes a Strong STR Investment in Traverse City

Not every Northern Michigan home will perform well as a short-term rental — success comes down to a few key factors:

Location & Accessibility – Proximity to downtown, beaches, or wineries matters. Guests want to walk to restaurants or enjoy quick drives to the water.
Curb Appeal & Design – Stylish, well-designed interiors stand out online. STR guests book with their eyes first — clean, curated design means more clicks and better reviews.
Flexibility of Use – Homes that can also serve as family getaways or seasonal retreats offer long-term value and lifestyle balance.
Property Zoning & Permitting – Each township and municipality around Traverse City has different STR rules. Working with a brokerage that tracks every change (like we do) protects your investment.

Understanding Local STR Regulations

Short-term rental rules vary significantly across Grand Traverse, Leelanau, and Benzie Counties.Some townships require annual permits, others limit the number of rentals allowed per year, and a few prohibit them entirely in residential zones.

Before you buy, it’s essential to verify:

Whether the property currently holds an active STR permit
If that permit can transfer to a new owner
Any occupancy, parking, or septic requirements

At Peninsula Properties, we maintain one of the most comprehensive local STR regulation databases in Northern Michigan — giving our clients clarity before they invest.

Calculating ROI (and Setting Realistic Expectations)

When analyzing a short-term rental, investors should consider:

Average nightly rate and occupancy (by season)
Cleaning and management costs
Local property taxes (PRE vs. non-PRE)
Maintenance, utilities, and insurance

Traverse City’s peak season (July–September) can deliver impressive returns, while shoulder and off-season stays — especially mid-term rentals — help smooth income year-round.

We provide clients with a detailed ROI calculator and rental performance benchmarks based on real data from properties we manage throughout the region.

Why Work With Peninsula Properties

Our team doesn’t just sell investment homes — we own, manage, and design them.From evaluating township regulations to furnishing and marketing a property, Peninsula Properties guides clients through every step of the process with a blend of business strategy and creative design.

We also donate 3% of every commission to local Northern Michigan charities — keeping our success rooted in the community we serve.

Ready to Explore STR Investment Opportunities?

Whether you’re looking for your first income property or expanding an existing portfolio, our brokerage specializes in short-term rental investing across Traverse City, Leelanau County, and the Grand Traverse region.

Contact our team to schedule a consultation