Short-term rental rules · Saugatuck, Michigan
Short-term rentals in Saugatuck, explained properly.
The City of Saugatuck requires a City short-term rental license, renewed each year after a fire inspection, for every dwelling unit rented for fewer than 31 consecutive days. License numbers are capped in six R-1 zoning districts, licenses can't pass to a new owner except in limited cases among existing owners, and overnight occupancy is limited to 2 per bedroom plus 2 per finished floor, up to 12. We haven't reviewed the City's zoning code yet, so which districts allow short-term rentals, the cap figures and any owner-residency rule in zoning are unconfirmed; confirm zoning with the City before you buy. Whether Michigan's lodging use tax reaches a private host is also unsettled on this page.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Conditional: a licensed short-term rental is allowed only where the City Zoning Ordinance permits it, and license numbers are capped in six R-1 zoning districts. We haven't reviewed the zoning code yet, so confirm zoning with the City before you buy. [1] [2] Clause 1 Clause 2Confirming |
| Is a City short-term rental license required? | Yes: an annual City short-term rental license is required for every dwelling unit rented for fewer than 31 consecutive days, with an annual fire inspection. Hotels, motels, bed and breakfasts and inns are outside the definition of dwelling unit. [1] [3] [2] Clause 1 Clause 2 Clause 3 |
| Must the owner live at the property? | Conditional: an owner may live in the dwelling while it is rented, and renting an accessory dwelling unit separately from the main home requires the owner to live on the property. We haven't reviewed the zoning code yet, so confirm any further owner-residency rule with the City. [1] [2] Clause 1 Clause 2Confirming |
| Is there a cap on the number of short-term rental licenses? | Conditional: capped in six R-1 zoning districts: Community Residential 67 licenses, Peninsula West 10, Maple Street 7, Peninsula South 11, Peninsula North (Duneside) 3 and Peninsula North (Riverside) 2. The City is still accepting applications in other districts that permit short-term rentals. [2] [4] Clause 1 Clause 2Confirming |
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Detailed rules
The full picture, section by section
License, renewal and transfers
| How long is a license valid, and when must it be renewed? | A license lasts 1 year and keeps the same expiration date each year. Apply to renew no sooner than 60 days and no later than 30 days before it expires; a late renewal filed within 5 calendar days after that deadline carries a late fee, and after that the license is treated as expired. [3] [2] Clause 1 Clause 2 Sec. 99.58 as rewritten by Ordinance 260209-A (effective on its publication, February 19, 2026). The renewal application goes to the enforcing officer with the renewal fee in the City's fee schedule; the late fee is set by City Council resolution. A renewed license takes effect on the day the prior license expires. Each year a new signed fire safety checklist, a new fire inspection and an approved fire inspection certification are required, and rentals owned by corporate entities or trusts must file updated ownership documents showing no change that counts as a transfer. If the premises does not meet the chapter at renewal, the holder has 30 calendar days from the deficiency notice to cure, or the license is not renewed and is treated as expired. The enforcing officer may excuse a missed deadline (not other requirements) on satisfactory proof of extraordinary circumstances beyond the holder's control, such as flood, fire, pandemic, war, a documented medical condition or military deployment (Sec. 99.64(B)). The City's page still describes the older 30-day deadline only and warns owners to track their own expiration date; the ordinance text controls. A one-time window for licenses that lapsed between April 24, 2025 and the ordinance's effective date required applications within 5 calendar days after the effective date. |
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| Annual fire inspection | Required: the rental is inspected every year by the Saugatuck Township Fire District, within 30 days after the license or renewal application is submitted, and no license or renewal is issued until the inspection is completed and approved. [1] [3] Clause 1 Clause 2 Sec. 99.56: violations the Fire District finds must be corrected within 15 days of notice, and the owner or rental agency submits the approved inspection certificate to the City before any license or renewal is approved. The Fire District sets the inspection criteria (smoke alarms, emergency exits, hydrants, extinguishers, occupancy and capacity, fire exits and escapes, and others) and the maximum occupancy after the inspection. The application must include a completed and signed rental inspection checklist from the Fire District. A failed inspection carries a reinspection fee (see the fees rule). |
| License fees | The City's page gives an annual license fee of $540 and a $175 fee for each reinspection after a failed fire inspection; the fee schedule revised June 9, 2025 lists both amounts. [2] [5] [1] Clause 1 Clause 2 Clause 3Confirming The $540 and $175 figures are on the City's short-term rental page (which shows no date) and appear in the Schedule of Fees revised June 9, 2025. In the saved copy of the schedule the labels and amounts are in separate columns, so the other short-term rental lines (the license renewal application, the application penalty fee, the reinspection fee, and investigation fees after a first and a second notice) can't be matched to their amounts with confidence; confirm each fee with the City. The late-renewal fee is set by City Council resolution and isn't in the saved fee schedule. Sec. 99.55(C) also provides for an "after the fact" fee when a rental operates without first complying with the application procedures; its amount hasn't been confirmed. Confirm the current fee schedule with the City before applying. |
| Documents and information needed with the application | A complete certified application to the Zoning Administrator: owner and local agent details, proof of the owner's interest in the property, a floorplan showing the bedrooms, a drawing of the premises showing parking, proposed occupancy, a signed compliance certification, the Fire District inspection checklist and proof the dwelling is insured as a rental. [1] Clause Sec. 99.55(B). Corporate-entity owners list all members and their percentage interests; trust owners list all beneficiaries and trustees. The owner must notify the City of any change to the approved application within 30 days. An application isn't accepted until the enforcing officer deems it complete; if the applicant doesn't fix listed deficiencies or pay the fee within 14 days of notice, the application is denied as incomplete. The applicant must owe the City nothing in taxes, permit or inspection fees, escrow deposits or other amounts. Application numbering in the saved ordinance text skips items (11) to (13), so the list above is not confirmed to be complete. |
| Can a license be transferred to a new owner? | Conditional: licenses are not transferable to a new owner, and a license becomes void if the premises pass to a new owner; changes of form among the existing owners (to or from a corporation or trust) and removal or reallocation of existing owners are allowed with the City's prior approval. [4] Clause Sec. 99.63 as amended by Ordinance 250414-A (effective April 24, 2025). A sale or other conveyance of the premises, a license transfer to someone other than the owner or license holder, a change in membership of an owning corporation, or a change in the trustees or beneficiaries of an owning trust counts as a transfer. A new owner must get a new license before renting again, and any transfer that adds a new owner, member or beneficiary is not permitted. Permitted transfers require an approved transfer application to the enforcing officer showing the relationship of the transferor and transferee; examples include moving the property into a corporation or trust owned solely by all current owners, and moving it to a surviving spouse. For transfers not listed, the holder may apply to the enforcing officer for a waiver if the transfer only changes the form of ownership or removes or reallocates existing interests; the decision is final. An unauthorized transfer is also a ground for revocation (see enforcement), and a new license may be subject to the district caps. A one-time window for owners whose license or certificate was affected by an unauthorized transfer between August 26, 2021 and March 5, 2025 required applications within five days of the ordinance's effective date. |
| Do older short-term rental certificates stay valid until they expire? | Yes: certificates issued under the City's earlier Zoning Ordinance system may keep operating until they expire. They cannot be renewed; the holder then needs a license under Chapter 99.5, and the application is due within 5 calendar days after the certificate expires, with a late fee. [4] Clause Sec. 99.59 as amended by Ordinance 250414-A. An existing certificate continues to operate under the requirements in effect when it was issued. Applications filed more than 5 calendar days after the certificate expires are untimely and are not processed, and the certificate is treated as expired. The City's page says existing certificates are valid until their expiration date and are then subject to renewal under the new license requirements. |
Operating rules
| Maximum occupancy and visitors | Overnight occupants: 2 per bedroom plus 2 per finished floor, up to 12, and never above the limit the Fire District sets after inspection. Visitors (who do not stay overnight): up to 1.5 times the maximum occupancy, only between 7:00 am and 11:00 pm. [1] [2] Clause 1 Clause 2 Sec. 99.57(A). The extra 2 occupants per finished floor count only where adequate sleeping space is provided. The Saugatuck Township Fire District sets the final maximum occupancy after the required fire inspection, based on building, health, fire and safety codes. The maximum occupancy is published in the City's rental registry. |
|---|---|
| Local agent | Required: the license holder must have a local agent who lives or has a physical place of business within 25 miles of the rental and answers for the premises 24 hours a day, 7 days a week; the owner can serve as the agent if the owner meets that standard. [1] Clause Sec. 99.57(B) and the definition of local agent in Sec. 99.53. The agent must be knowledgeable about the premises, and the license holder must authorize the agent in writing. Owner, license-holder and agent contact details must be kept current, and the local agent's contact details are published in the City's rental registry. |
| Response to complaints | The license holder or local agent must fix a reported violation within 2 hours of receiving notice; failing to do so without good cause can lead to suspension or revocation and court enforcement. [1] Clause Sec. 99.60. The duty covers violations of Chapter 99.5 and the City's Noise Ordinance (Section 94.04) by occupants and visitors. Notice is deemed received when the holder or agent is contacted by telephone (including a call or text) or when a return-receipt email reaches the City, whichever is sooner. |
| License number in advertising | Required: all advertising for the rental must show the City license number, and an online listing must post it within the listing. [1] Clause Sec. 99.57(D). |
| Rental property insurance | Required: the dwelling must carry rental property insurance at all times, and the application must include documentation that it is insured as a rental dwelling. [1] [2] Clause 1 Clause 2 Sec. 99.55(B)(15) and Sec. 99.57(N). The City's page lists rental insurance as required for all short-term rentals. |
| Can individual rooms be rented separately? | No: individual rooms in a licensed dwelling may not be rented separately or sublet; all rooms are rented under a single contract. [1] Clause Sec. 99.57(K). The same section says it does not prevent an owner or license holder from occupying the dwelling unit while it is used as a short-term rental. |
| Are tents or campers allowed as sleeping space at the rental? | No: tents, campers and similar temporary sleeping facilities are prohibited at a short-term rental premises. [1] Clause Sec. 99.57(L). |
| Trash, fireworks and pets | Trash: at least 1 outdoor garbage can and 1 recycling bin, and at least 2 garbage cans where occupancy is 6 or more. Fireworks: the owner or license holder must prohibit their use by occupants and visitors. Pets: occupants and visitors must be told that pets are to be secured on the premises or leashed at all times. [1] Clause Sec. 99.57(J), (M) and (H). Waste must be kept in a garbage can or similar receptacle; exposed waste is a violation, and occupants must be told before occupancy not to leave waste outside the cans or bins. |
| Information to give occupants | Before occupancy, give every occupant, and post conspicuously in the rental: the license holder or local agent's name, phone and email for 24-hour contact, the maximum number of overnight occupants, the City Noise Ordinance, a copy of Chapter 99.5, notice that occupants and visitors may be cited, and the City's Good Neighbor Guide. [1] Clause Sec. 99.57(G). |
| Are owner and agent contact details published? | Yes: by applying for and receiving a license, the owner or license holder consents to the City publishing their name and contact details, the rental's address and maximum occupancy, and the local agent's contact details in its public registry. [1] [2] Clause 1 Clause 2 Sec. 99.57(O). The City's page says the list of current short-term rentals and agent contacts is updated quarterly. |
| Sales and use tax on stays | The ordinance says the person who rents a short-term rental pays any applicable sales tax and/or required Michigan Use Tax for any stay of 31 nights or less. [1] Clause Sec. 99.57(I). Which Michigan taxes apply to a private host, and who collects them, is covered in the Michigan state-level fields on this page, where it is marked for review. This page does not total state and local taxes. |
| Can an accessory dwelling unit be rented short-term? | Conditional: an accessory dwelling unit (ADU) may be rented short-term either together with the main home under a single contract, with each unit holding its own license, or on its own while the owner lives in the main home, with Planning Commission special land use approval and a separate license. [2] ClauseConfirming From the City's short-term rental page, which cites Section 154.092(J) of the Zoning Ordinance for the separate-rental pathway. ADUs are allowed on residential lots that contain an existing single-family home, are not counted toward the citywide license caps, and are still regulated when used for short-term rental. The Zoning Ordinance text hasn't been reviewed, so confirm the current ADU rules with the City. |
Enforcement
| Penalties for violations | A violation is a municipal civil infraction with a fine set by City Council resolution plus statutory costs; each day is a separate violation, and a violation is declared a public nuisance that the City may also pursue in Circuit Court. [1] Clause Sec. 99.62. This includes continuing to operate after a license is suspended or revoked. Citations may be issued by the enforcing officer, Allegan County Sheriff's deputies and others the City Council appoints. The fine amount set by resolution hasn't been reviewed. Ordinance 250414-A's title mentions updating penalties for violations, but the amended sections it prints cover late fees, transfers, suspensions and revocations. |
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| License suspension and revocation | The City Council may suspend a license for 3 months (first suspension) or 6 months (second), and may permanently revoke it; a license is revoked immediately for an unauthorized transfer or for false application information that would have made the applicant ineligible. [4] Clause Sec. 99.61 as amended by Ordinance 250414-A. Grounds: false or misleading application information, failure to meet the Sec. 99.57 standards, failure to remedy a violation of the chapter or Noise Ordinance in time, and a transfer to a person or entity with no existing interest. The Council acts after a written notice served at least 21 days before a hearing. A further violation within 1 year after a suspension ends is grounds for a second suspension, and a violation within 2 years after a second suspension ends may lead to permanent revocation and permanent ineligibility for the premises. Suspension time that falls outside the May through September tourist season carries over to the next season, and rental activity outside the season stays prohibited until the suspension ends. Existing contracts up to 60 nights past the start of a suspension or revocation may be honored with Council approval; later contracts must be cancelled. Knowingly filing a fraudulent complaint is itself a violation. |
State law that also applies
| Michigan use tax on rooms and lodging | Michigan's Use Tax Act taxes rooms or lodging furnished by hotelkeepers, motel operators and other persons furnishing accommodations that are available to the public on the basis of a commercial and business enterprise, at a combined 6% rate; rooms and lodging rented for a continuous period of more than 1 month are excepted. Whether a privately owned home rented to guests is covered is not settled by the statute text we saved. [6] [7] [8] Clause 1 Clause 2 Clause 3Confirming MCL 205.93a(1)(b) lists "rooms or lodging" among the services taxed under the Use Tax Act, and defines "hotel" or "motel" to include inns, tourist homes, lodging houses, resort lodges and cabins, and "any other building or group of buildings in which accommodations are available to the public," except accommodations rented for a continuous period of more than 1 month. MCL 205.93(1) sets the combined tax at 6% of the price of the services specified in section 3a. The saved text of both sections is complete. Whether an individual who rents out a home, directly or through a booking platform, is a person furnishing accommodations "available to the public on the basis of a commercial and business enterprise" isn't answered by that text; the Department of Treasury's guidance on short-term rentals wasn't available to us, so confirm with the Department of Treasury. The General Sales Tax Act section we saved (MCL 205.52) is a 6% tax on retail sales of tangible personal property. This page does not total state and local taxes. |
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| Do booking platforms collect Michigan taxes? | Not settled: MCL 205.95b requires a seller of tangible personal property or services subject to the Use Tax Act to register and collect the tax once it has more than $100,000 in sales into Michigan or 200 or more transactions in the previous calendar year, and counts a marketplace facilitator's own sales together with its marketplace sellers' sales. Whether a booking platform collects tax on lodging stays isn't answered by the text we saved. [9] ClauseConfirming The saved section refers to the definition of a marketplace facilitator in section 5c, which wasn't saved. It applies to transactions on or after October 1, 2018. Confirm with the Michigan Department of Treasury and the platform whether tax is collected on a given booking. |
| Can Michigan counties and cities add their own lodging taxes? | Michigan's Accommodations Tax Act (Act 263 of 1974) lets counties and local units of government impose an excise tax on persons engaged in the business of providing rooms for dwelling, lodging or sleeping purposes to transient guests, and the Community Convention or Tourism Marketing Act (Act 395 of 1980) provides for assessments on the owners of transient facilities to support tourism marketing programs. [10] [11] Clause 1 Clause 2 These statements come from the titles and section lists of the two acts; the section text (rates, exemptions, the definition of a transient-guest business and any voter approval) wasn't saved, and whether any local tax or assessment applies at a given address hasn't been reviewed. Act 263 was amended in 2024 (Act 35, effective April 2, 2024). |
| Is there a statewide short-term rental law? | Not settled: the Michigan sources saved for this page are tax statutes and the title and article list of the Zoning Enabling Act (Act 110 of 2006); no state short-term rental law and no section of the Zoning Enabling Act has been reviewed yet. [12] ClauseConfirming The Zoning Enabling Act is described in its title as codifying the laws on local units of government regulating the development and use of land and providing for the adoption of zoning ordinances, with articles on zoning authorization, adoption and enforcement, special zoning provisions and the zoning board of appeals. Its section text, any pending state bills, and Michigan court rulings on short-term rentals and zoning haven't been reviewed. |
Changes
Recent and pending changes
We read City of Saugatuck Ordinance 240229-B (Chapter 99.5), the 2025 and 2026 amendments (250414-A and 260209-A), the City's short-term rental page and the Schedule of Fees revised June 9, 2025, as saved on October 18, 2026. We haven't reviewed the City's Zoning Ordinance, the license notification and issuance policy, the City Council resolutions that set fines and late fees, or Council and Planning Commission agendas yet, so we will watch the City's short-term rental page and its list of recently adopted ordinances for changes.
The City Council adopted the licensing ordinance on February 29, 2024, adding Chapter 99.5 to Title IX of the City Code. It takes effect at the later of the effective date of Ordinance 240229-A or its publication; the saved text doesn't show either date.
Adopted April 14, 2025 and effective on publication on April 24, 2025. It rewrote Sec. 99.58 (renewal, since replaced again), Sec. 99.59 (older certificates), Sec. 99.61 (suspension and revocation) and Sec. 99.63 (transfers of ownership, with permitted transfers and a waiver).
Adopted February 9, 2026 and effective on publication on February 19, 2026. It rewrote Sec. 99.58 (a fixed annual expiration date, renewal applications accepted from 60 to 30 days before expiry, a 5-day grace period with a late fee, and a narrow reapplication window for licenses that lapsed after April 24, 2025) and Sec. 99.64 (the enforcing officer may excuse missed deadlines for extraordinary circumstances).
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.