What Michigan community associations and managers need to know about Letvin v. Village at Grand Traverse Commons Condominium Association.
– by Amy M. Smith, MAGWV
In July 2026, the Michigan Court of Appeals issued a published decision in Letvin v. Village at Grand Traverse Commons Condominium Association that every Michigan condominium board and manager should understand. The Court held that a short-term rental guest, meaning someone staying in a unit through a service like Airbnb, is an invitee of the condominium association while on the Common Elements the association maintains. That classification matters, because an invitee is entitled to the highest level of protection Michigan premises liability law gives to a visitor, and it carries the association’s most demanding duty of care. For community associations that allow short-term rentals, the decision widens the circle of people to whom the association owes that duty.
What Happened
A couple booked a condominium unit for a winter weekend in Traverse City through Airbnb. As the guest walked across the parking lot one evening to reach a waiting rideshare, he slipped on ice and broke his arm. The parking lot was a Common Element the association was responsible for maintaining, and the association had hired an outside contractor to handle snow removal and de-icing. The guest sued the association. The association argued the short-term guest was only a licensee, a category of visitor an owner owes very little to, and that it had done enough. The trial court agreed and dismissed the case, but the Court of Appeals reversed.
What the Court Decided
Michigan law sorts visitors to real property into three categories, and the association’s duty depends on which one applies. An invitee, such as a customer entering a store to make a purchase, receives the greatest protection because the visitor’s presence provides an economic benefit to the property owner. A licensee, often a social guest, receives much less protection because the owner need only warn of hidden dangers it already knows about and has no duty to inspect or actively fix problems. A trespasser receives the least protection. The trial court had treated the short-term rental guest as a licensee, but the Court of Appeals held that the short-term rental guest was an invitee of the association on the Common Elements. That meant the association owed the short-term rental guest the full duty to keep the parking lot reasonably safe. Because the plaintiff pointed to evidence that ice remained across the lot and that the contractor’s work was not being monitored, a jury, rather than a judge, must now decide whether the association met that duty.
Why the Association Was Responsible
The Court built on a 2024 Michigan Supreme Court decision, Janini v. London Townhouses, which held that a condominium association’s relationship with its co-owners resembles a landlord’s relationship with tenants. Co-owners pay assessments, and in exchange they give the association control over the Common Elements and rely on it to keep those elements safe. That exchange is enough to make co-owners invitees. Letvin extended that logic one step further, to short-term rental guests. Michigan courts have long held that a tenant’s guest is the landlord’s invitee, because part of a tenant’s rent pays for the right to have visitors on the property. The Court applied the same idea to short-term renters, reasoning that part of what a co-owner pays the association in assessments is consideration for keeping the Common Elements it is responsible for maintaining safe for the co-owner and the co-owner’s short-term rental guests. A co-owner’s short-term rental guest, therefore, is an invitee of the association, even though the guest pays the association nothing. This does not depend on the association making a profit. Associations are nonprofits that simply cover their expenses, and the association argued that it gained nothing from the rental. The Court was not persuaded, because the legal test looks at whether there is an ongoing financial relationship behind the duty to maintain the property, not whether anyone turned a profit.
Takeaway
Letvin confirms and extends Michigan premises liability law to short-term rental guests. Condominium associations owe a real, active duty to keep the Common Elements they are responsible for maintaining safe, and the Court held that this duty extends not only to co-owners but also to short-term renters using those areas. The decision specifically addressed short-term rental guests and did not specifically decide the status of other categories of guests. Communities that allow short-term rentals should keep in mind that each guest is a potential claimant when they weigh rental policies in their governing documents. The most effective protection is straightforward: maintain the Common Elements diligently, oversee and document contractors’ work, and make sure appropriate insurance coverage is in place.
This article is provided for general informational purposes and is not legal advice. Every community’s governing documents and circumstances are different. If you have questions about how this ruling affects your association’s maintenance practices, contracts, or insurance, please contact our office.
Author
Amy M. Smith
Reprinted with permission from MAGWV, PLLC – Condominium & HOA Lawyers, Michigan