Executive Overview

Yes, short-term rentals are explicitly allowed in Cedar Springs, Michigan. The City Council has established a comprehensive regulatory framework for STRs through Ordinance 252 (effective July 23, 2025) and Ordinance 253 (effective July 30, 2025). However, the market is highly limited by design: only five permits will be issued city-wide at any given time through a competitive lottery system.

How to Start a Short-Term Rental Business in Cedar Springs

Step 1: Confirm Zoning Compliance

Before pursuing any permits, verify your property is located in an approved zoning district. STRs are permitted by right in:

• R-2 Single-Family and Two-Family Residential District
• B-2 Central Business District
• MU Mixed Use District

Step 2: Apply During the Application Window

The City Manager will establish specific application windows for STR permits. Applications must be submitted on city-manager-approved forms during these designated periods.

Step 3: Participate in the Lottery System

If more than five qualified applications are received in any year, permits will be allocated through a random public drawing conducted at a City Council meeting. This creates a competitive, transparent allocation process.

Step 4: Complete Required Inspections

All prospective STR properties must pass safety and compliance inspections before receiving permits.

Required Documents, Permits, Licenses, and Guidelines

Primary Requirements

1. STR Permit - Mandatory for operation and advertising
2. Safety Inspection - Required before permit issuance
3. Application Forms - City manager-approved forms only
4. Fee Payment - City Council will establish appropriate fees by resolution

Permit Specifications

• Validity: Calendar-year basis
• Transferability: Not transferable between properties or owners
• Eligibility: Must be issued to property owner only
• Revocable Privilege: Permits are revocable privileges, not property rights

Required Disclosures and Documentation

• Current operator information on file with the City
• Maximum permitted occupancy documentation
• Emergency contact procedures
• Trash pickup schedule and requirements
• Parking limitations and property boundary information

Specific Regulations for Short-Term Rentals

Permitting Limitations

• Hard Cap: Maximum of 5 permits city-wide
• Allocation Method: Random public drawing if demand exceeds supply
• Application Period: Limited to designated windows established by City Manager

Property Requirements

Address and Visibility

• Street number marker must be visible from the road
• Address must be posted in at least two prominent interior locations (near kitchen and telephone/pool areas)

Occupancy Restrictions

• Maximum occupancy limited by International Property Maintenance Code standards
• Cannot advertise occupancy exceeding permitted maximum
• Prohibited: Using campers, tents, or similar arrangements for additional occupancy

Operator Requirements

• Availability: Must be available by phone 24/7 during rental periods
• Response Time: Must be physically present within 30 minutes when contacted by City or law enforcement
• Licensing: May be property owner or state-licensed real estate broker

Property Standards

• Adequate trash receptacles with closed containers required
• Weekly trash disposal by licensed waste hauler mandatory
• Compliance with International Property Maintenance Code required
• Safe, adequate sleeping arrangements with proper egress required

Zoning Compliance

STRs are specifically permitted in:

• R-2 District: Single-family and two-family residential
• B-2 District: Central business district
• MU District: Mixed-use areas

Prohibited Activities

• Renting without a valid permit
• Advertising STR services without a permit
• Exceeding maximum occupancy limits
• Using the property for purposes beyond residential accommodation

Penalty Structure

• Municipal Civil Infraction: Violations of permit requirements or operational regulations
• Fine: Up to $500 per violation plus allowable costs
• Daily Violations: Each day of continued violation constitutes a separate offense

Revocation Procedures

• Trigger: Two or more municipal civil infraction determinations
• Process: Written notice from City Manager stating revocation basis and effective date
• Effective Date: 30 calendar days following notice issuance
• Appeal Period: 20 calendar days to appeal to City Council
• Reapplication Restriction: One-year waiting period after revocation

State-Level Considerations for Michigan

Residential Use Restrictions

Michigan courts have consistently held that residential-use covenants can prohibit short-term rentals even without explicit commercial use restrictions. The Michigan Supreme Court affirmed in Melvin R. Berlin Revocable Trust v. Rubin (September 2025) that:

• Covenants restricting property to "single family residence purposes" are sufficient to prohibit STRs
• STRs are considered commercial enterprises despite residential use during stays
• "Residence" requires permanence and continuity, which excludes transient rental activity
• Residential-use restrictions broadly cover STR prohibitions

Legal Implications for Investors

Investors must verify:

1. HOA/Condo Restrictions: Check association governing documents for residential-use limitations
2. Neighborhood Covenants: Review deed restrictions that may prohibit commercial activity
3. Municipal Compliance: Ensure local STR compliance while respecting state contract law

Contact Information

City of Cedar Springs

Address:

• PO Box 310, Cedar Springs, MI 49319-0310
• 66 S. Main Street, Cedar Springs, MI 49319-0310

Phone: (616) 696-1330

Hours: 7:30 AM - 5:30 PM, Monday - Thursday

Key Departments:

• City Manager: Administers STR permit program
• City Clerk: Handles permit applications and appeals
• Code Enforcement: Monitors compliance and issues violations

Online Resources

• City Website: cityofcedarsprings.org/
• Ordinances Library: library.municode.com/mi/cedar_springs/codes/code_of_ordinances
• Meeting Calendar: cityofcedarsprings.org/meetings/
• Forms and Applications: cityofcedarsprings.org/forms/

Source Documentation and Links

Primary Ordinance Sources

1. Ordinance 252 (STR Regulatory Framework): Municode Library - Cedar Springs

2. Ordinance 253 (Zoning Amendments): Available through City Clerk office and Municode library

3. City Ordinance Archive: https://cityofcedarsprings.org/ordinances/

4. Direct Ordinance PDF: https://mcclibraryfunctions.azurewebsites.us/api/ordinanceDownload/14671/1368118/pdf

City Information and Resources

5. Official City Website: https://cityofcedarsprings.org/

6. Business and Zoning Information: https://cityofcedarsprings.org/business-information/

7. Meeting Minutes Archive: https://cityofcedarsprings.org/meetings/meetings-minutes-library/

State Legal Precedent

8. Michigan STR Legal Analysis: https://maglawpllc.com/restrictions-affirmed-short-term-rentals/

9. City Facebook Notice: https://www.facebook.com/OfficialCityofCedarSprings/posts/public-notice-of-the-city-of-cedar-springsthe-city-council-has-approved-ordinanc/1205879568243523/

Investment Recommendation: Cedar Springs presents a highly regulated but legally viable STR market with strong municipal support. The five-permit limitation creates significant scarcity value for successful applicants, but investors should prepare for competitive application processes and maintain meticulous compliance with operational requirements. The recent legal clarity around residential-use restrictions makes property due diligence essential to avoid covenant conflicts.