I’m in Wyoming, Michigan and I’m trying to make sure I’m handling my house hack correctly.

I own a single-family home and currently live in the basement while renting the upstairs to a tenant. The house is not set up as a duplex, and there is an interior door separating the basement from the upstairs. I’m still living there as my primary residence, but I rent out part of the house.

I recently started looking into my city’s rental registration requirements and discovered that the city says rental properties need to be registered and certified. I’m now trying to figure out whether that applies to my situation as an owner-occupied house hack, or whether there is a distinction between renting part of your primary residence and operating a separate rental property.

My bigger concern is that I plan to move out around June of next year and rent the entire house to one tenant while I travel. I want to get everything squared away well before then rather than finding out at the last minute that I need permits, inspections, repairs, etc.

For anyone who has experience with house hacking:

• Does your city require you to register/inspect the property when you live in one part and rent another?

• Is an owner-occupied house hack treated differently from a normal rental property?

• If you eventually move out and convert the house to a full rental, did you have to go through a new inspection/registration process?

• If you discovered that you should have registered earlier, did the city simply have you register and get inspected, or were there penalties?

• How much did your city care about the distinction between a single-family house hack and a legal duplex/two-family dwelling?

I’m mainly looking for experiences from other landlords who have dealt with this, especially in Michigan, rather than legal advice.

Thanks!