Deed restrictions; “Private dwelling”; Eager v Peasley; Restrictive covenants; Aldrich v Sugar Springs Prop Owners Ass’n, Inc; ; Short-term rentals; Waiver by acquiescence; Bloomfield Estates Improvement Ass’n, Inc v City of Birmingham; Changed neighborhood character; Taylor Ave Improvement Ass’n v Detroit Trust Co; Laches; Affirmative defense waiver; Rowry v University of MI

The court held that defendant’s short-term rental use violated the subdivision’s unambiguous deed restriction limiting lots to use as a private dwelling house, and that plaintiffs had not waived their right to enforce the restriction. Plaintiffs and defendant were neighbors in the Silver Shores Subdivision, whose plat provided that “[n]o buildings to be erected on any of said lots shall be used otherwise than as a private dwelling house.” Defendant did not regularly reside at his property, but renovated it, registered it with the township as a short-term vacation rental, and listed it on Airbnb. On appeal, the court first held that the restriction was enforceable because, when it was adopted, a “private dwelling” meant “a dwelling occupied by but one family,” and Eager established that “short-term rentals are not a permitted use for properties restricted as private dwellings.” The court rejected defendant’s attempt to distinguish Eager on the ground that the restriction here did not expressly prohibit commercial use because Eager clearly held “that short-term rental usage violated the private-dwelling restriction independently of any restriction against commercial use[.]” The court next held that plaintiffs did not waive enforcement by failing to object to a DNR boat launch or antique store in the subdivision. Defendant did not show reliance, those uses did not establish “‘a general abandonment of the restrictions,’” and defendant’s adjacent Airbnb imposed a “more serious” violation on plaintiffs through increased risk of noise, traffic, and disruptive behavior. Finally, the court held that defendant waived the laches affirmative defense by failing to raise it in responsive pleadings or a timely motion. Affirmed.