Michigan City reviews short-term rental ordinances amid state law limitations

The Michigan City Common Council held a workshop on June 10, 2025, to address pressing issues surrounding short-term rentals and the limitations imposed by Indiana state law. The meeting featured discussions on potential solutions for managing short-term rentals, particularly in light of concerns from residents about noise and disruptive behavior.

The session began with a focus on the challenges homeowners face due to existing regulations. A real estate broker emphasized the need for collaboration among rental managers and the community to address these issues effectively. The broker highlighted the importance of direct communication with property owners, suggesting that having a contact number displayed could help resolve disturbances quickly.

City Attorney Trammell Ranks provided a legal overview of the constraints that Indiana law places on local governments regarding short-term rental regulations. He explained that cities are limited in their ability to enforce ordinances, particularly those enacted after February 2017. Ranks noted that many proposed solutions, such as implementing minimum stay requirements or requiring local ownership, are not permissible under current state law. He clarified that local governments cannot selectively approve permits or regulate rental platforms based on location.

The discussion also touched on the broader implications of these limitations, with residents expressing frustration over the inability to manage short-term rentals effectively. Some community members suggested that the city should allow residents to self-regulate, drawing parallels to successful community initiatives in other cities, such as Chicago's theater scene.

As the meeting progressed, participants raised questions about the specific legal statutes governing these regulations. Ranks referenced Title 36, Article 1, Chapter 24 of Indiana law, which outlines the restrictions on local governance concerning short-term rentals.

In conclusion, the workshop underscored the complexities of managing short-term rentals in Michigan City, highlighting the need for ongoing dialogue between residents, property owners, and city officials. The council plans to continue exploring viable solutions within the framework of state law while encouraging community involvement in addressing local concerns.