Short-Term Rental Rules by Township in Southwest Michigan

 

Short-Term Rental Rules by Township in Southwest Michigan: What Buyers and Owners Must Know

By Gary Hardina | Southwest Michigan Property Advisor
@properties Christie's International Real Estate

Short-term rentals (STRs) have become one of the most searched and misunderstood issues for buyers in Southwest and West Michigan. Whether you're purchasing a lakefront cottage, an in-town home, or a rural getaway, short-term rental rules can vary dramatically by township, city, or village — sometimes even street by street.

As a full-time local real estate professional based near the Lake Michigan lakeshore between South Haven and Saugatuck, I spend a significant amount of time helping buyers understand what is allowed, what is restricted, and what may be changing before they commit to a purchase. This article is designed to give you a clear framework — and help you avoid costly assumptions.

Why Short-Term Rental Rules Matter Before You Buy

Many buyers assume:

  • "If the home is currently rented, I can rent it too."

  • "There's no ordinance, so rentals must be allowed."

  • "I'll just apply for a license later."

Unfortunately, those assumptions can be wrong.

In Southwest Michigan:

  • STRs may be permitted, restricted, capped, grandfathered, or temporarily paused

  • Some townships require local registration, inspections, or caps on licenses

  • Others allow STRs by right — until an ordinance changes

The rules at the time you buy — and how they are written — matter immensely.

The Patchwork of STR Regulation in Southwest Michigan

Unlike some states with uniform rules, Michigan allows local municipalities to regulate short-term rentals. That means:

  • Cities, villages, and townships all have independent authority

  • Regulations change frequently

  • Public information online is often outdated or incomplete

Understanding STR rules requires local, current, and practical knowledge, not just reading an ordinance summary.

Common Types of STR Regulations You'll Encounter

1. STRs Allowed by Right

Some municipalities allow short-term rentals without a license or cap.

However:

  • Rules may still exist regarding noise, parking, occupancy, or nuisance complaints

  • Future ordinances can change the landscape

2. STRs Allowed With Licensing or Registration

Many communities require:

  • Annual registration or licensing

  • Local contact person within a certain distance

  • Safety inspections

  • Payment of local fees

Failure to comply can result in fines or loss of rental privileges.

3. STR Caps and Quotas

Some townships limit:

  • The number of STRs allowed overall

  • The percentage of homes that may be rented short-term

Once the cap is reached, new licenses may not be issued — even if you buy a home intending to rent.

4. Grandfathered STRs

This is one of the most misunderstood areas.

A property may be allowed to continue renting only because it was operating legally before an ordinance changed. These rights:

  • Often do not transfer to a new owner

  • May be lost if rental use stops

Assuming a grandfathered STR automatically conveys can be a very expensive mistake.

5. Moratoriums on New STR Licenses

Some townships temporarily pause new STR approvals while studying regulations.

Important note:

  • A moratorium does not always mean STRs are banned

  • It often signals future regulation is coming

Understanding intent matters.

Township-by-Township: What Buyers Should Expect

Rather than listing ordinances that may change, here's how rules typically break down across Southwest Michigan communities:

Lakefront and Resort-Oriented Areas

  • STR demand is high

  • Regulations tend to be more detailed

  • Enforcement is increasing due to resident concerns

In-Town and Village Areas

  • Often have clearer ordinances

  • Licensing and caps are more common

  • Neighborhood character is a major consideration

Rural Townships

  • Historically more lenient

  • Many are now studying STR impacts

  • Ordinances may be evolving quickly

This is why local guidance matters more than general advice.

Key Questions Buyers Should Ask Before Writing an Offer

Before purchasing a property with STR intent, buyers should confirm:

  • Is short-term rental use currently permitted?

  • Is a license or registration required?

  • Are there caps or waiting lists?

  • Do STR rights transfer with sale?

  • Is the property currently grandfathered?

  • Are ordinance changes under discussion?

These answers should be verified directly with the municipality, not assumed.

How STR Rules Impact Property Value

STR regulations directly affect:

  • Buyer demand

  • Income potential

  • Resale value

  • Financing and insurance considerations

A home that allows short-term rentals may:

  • Sell faster

  • Command a premium

Conversely, a property with restricted or uncertain STR status may:

  • Appeal to a smaller buyer pool

  • Require a different pricing strategy

Why Working With a Local Expert Matters

Short-term rental rules are not static.

As a full-time local agent who lives and works near the Lake Michigan shoreline:

  • I speak regularly with township officials

  • I track ordinance changes as they happen

  • I help buyers understand both current rules and likely future direction

This insight is especially important for out-of-area buyers, including those from Chicago and other metro markets.

Final Thoughts: Don't Guess — Verify

Short-term rentals can be an excellent way to offset ownership costs or generate income — when done correctly.

The key is simple:

Never assume STR use is allowed. Always verify before you buy.

If you're considering purchasing property in Southwest Michigan and short-term rental use is part of your plan, getting clear answers upfront can save time, money, and stress.

 

Current Short Term Ordinances by Jurisdiction as of Febraury 2026

City Of South Haven 

STR licenses are currently allowed but no new licenses are being issued except for a few overlay areas of the city. Properties that curremtly have an STR license can continue to be licensed with same license type after sale by new owner. License subject to fees, inspections and city reveiw. Occupany limits apply. Some HOAs in the city may prohibit STRs.

South Haven Township

STR licenses are currenty allowed in the Townhip subject to permit application, inspection and fees. Occupancy limits apply. Some HOAs in the township may prohibit STRs.  

Casco Township 

STR licenses are currently allowed in the Townhip subject to permit application, inspection and fees. Occupancy limits apply. Some HOAs in the township may prohibit STRs.  

Ganges Township 

The township is currently in process of reviewing the need for STR regulations and licensing. Currently no license or regulations exist. In December 2025, the Township Board passed an ordinace banning the issuance of STR licenses through June 2026. This created confussion as there currently is not a requirement or process for STR licensing. I anticipate that Ganges Township with establish licensing requirements and rules for STRs sometime in 2026.   

City Of Saugatuck

STR licenses are currently allowed but no new licenses are being issued and this applies to most areas in the city. Properties that currently have an STR license do not transfer to a new owner. License subject to fees, inspections and city reveiw. Occupany limits apply. Some HOAs in the city may prohibit STRs.  

Village of Douglas 

STR licenses are currently allowed. Properties that curremtly have an STR license can continue to be licensed after sale by new owner. License subject to fees, insepctions and city reveiw. Occupany limits apply. Some HOAs in the village may prohibit STRs.  

Saugatuck Township 

STR licenses are currenty allowed in the Township subject to permit application, inspection and fees. Occupancy limits apply. Some HOAs in the township may prohibit STRs.  

STR rules and regulations by area can frequently change. Always verify current rules and regulations with the applicable jurisdiction before makng a purchase.  

By Gary Hardina | Southwest Michigan Property Advisor
@properties Christie's International Real Estate

Phone: 269-281-3990

Email: ghardina@atproperties.com 

Serving South Haven, Saugatuck, Douglas, Glenn, Fennville, and surrounding Lake Michigan communities