Overview

Short-term rentals ARE explicitly allowed in Saginaw, Michigan. The City of Saginaw enacted comprehensive regulations for short-term rentals under Ordinance O-263, which became effective September 5, 2024. The city has established a licensing and regulatory framework that permits both principal residence and non-principal residence short-term rentals, with specific requirements for safety, zoning, and operations.

How to Start a Short-Term Rental Business in Saginaw

Step 1: Determine Zoning Compliance

• Verify your property is located in an approved zoning district: R-3, R-4, RMU-UE, RMU-UF, RMU-RR, or RMU-MS
• Confirm the property meets all dwelling requirements under the Michigan Building Code
• Ensure adequate on-site parking is available

Step 2: Choose Your License Type

Principal Residence Short-Term Rental:

• Property is your primary domicile where you maintain permanent residency
• Must submit sworn statement annually affirming continued residency
• Requires at least one designated contact person who is a permanent resident

Non-Principal Residence Short-Term Rental (Commercial):

• Investment property not used as primary residence
• Must comply with non-owner occupied property registration requirements (City Code §§151.110-151.117)
• Must designate a local agent if owner resides out-of-state

Step 3: Prepare Required Documentation

• Complete application with property details
• Submit floor plan and parking layout
• Provide emergency contact information
• Obtain proof of building compliance inspections

Step 4: Submit Applications and Pay Fees

• Apply for short-term rental license with City Clerk
• Register property as required
• Pay nonrefundable licensing and registration fees per City Council fee schedule

Required Documents, Permits, and Licenses

Short-Term Rental License Requirements

Initial Application Must Include:

• Property address and dwelling unit type
• License type (principal residence vs. non-principal residence)
• Number of bedrooms available for rent
• Names, phone numbers, and email addresses of 2 contact persons (1 must be permanent resident for principal residence licenses)
• Complete floor plan of dwelling unit
• Off-street parking plan
• License and registration fees

Business Registration Requirements

• All applicants must comply with Chapter 110 of the City Code regarding business licenses
• Annual inspection and registration renewal required
• Maintain updated contact information

Non-Owner Occupied Property Registration (Additional Requirements)

• Complete registration application with City Clerk
• Owner information including date of birth, driver's license number, mailing address, phone, email, and webpage
• If out-of-state owner: designation of local agent with name, address, phone, email, and webpage
• Written agreement appointing local agent or controller

Building and Safety Compliance

• Inspection by city representatives for Michigan Building Code compliance
• Proof of inspection required for annual renewal
• Carbon monoxide detectors required per state law
• Smoke detectors in each sleeping room
• Fire extinguisher on each floor
• Minimum of two exits meeting building code requirements
• All needed parking provided on-site (not in street)

Specific Regulations

City of Saginaw Zoning and Operational Requirements

Zoning Districts: Permitted in R-3, R-4, RMU-UE, RMU-UF, RMU-RR, and RMU-MS districts

Occupancy Limits:

• Maximum of 10 total guests at any time
• Maximum rental period of 30 consecutive days or less
• All lodging must be within the principal dwelling (no separate structures)

Parking Requirements:

• All parking must be provided on-site and not in the street
• Additional on-site parking requires Chief Building Inspector approval
• Outdoor lighting for parking areas must be approved and designed to screen neighboring properties
• Must comply with residential installation standards

Advertising Requirements:

• All advertisements must include license number
• Must state maximum occupancy permitted
• Advertising must conform to approved occupancy limits and standards
• Information must be posted in prominent location within rental unit
• Include name and phone number of designated representative

Record Keeping:

• Must maintain record of all guests
• Records must be available for city inspection

Prohibited Items:

• Tents and RVs are not allowed as part of short-term rentals
• No alteration or construction not customarily found in a dwelling

Michigan State Requirements (Subject to Legislative Action)

Proposed State Regulations (House Bills 5437-5446):

• 6% excise tax on short-term rentals rented more than 14 days annually
• Liability insurance requirement of at least $1 million
• Registration with Michigan Department of Licensing and Regulatory Affairs (LARA)
• Carbon monoxide detectors, smoke detectors, and fire extinguisher requirements
• Emergency contact and floor plan posting requirements
• Hosting platform registration requirements

Note: These state-level requirements are pending legislation and may not yet be in effect. Saginaw's local regulations currently govern short-term rental operations.

Historic District Considerations

• Properties in local historic districts require sign permit approval from Historic District Commission
• Must comply with all applicable historic district guidelines

Enforcement and Penalties

Prohibited Acts

• Violating any provision of the ordinance or license conditions
• Making changes to operations without notifying the city
• Operating without a valid license
• Advertising without required license information
• Exceeding occupancy limits
• Renting non-habitable areas

License Sanctions

License Revocation Triggers:

• Conviction or finding of responsibility for violating ordinance provisions
• Misrepresentation or omission of material facts in application
• Operation violating license specifications or applicable laws
• Property determined to be a public nuisance

Penalties

• Violations constitute Class C municipal civil infractions
• Civil fines set forth in Chapter 37 of City Code plus costs, restitution, and sanctions
• Each day of violation constitutes a separate violation
• License may be suspended or revoked
• City may pursue other legal actions including nuisance lawsuits

Compliance Responsibilities

Hosts are responsible for compliance with city ordinances including:

• Noise ordinance (§§ 94.045 through 94)
• Curfew for minors ordinance (§§ 130.50 through 130.53)
• Disturbing peace of neighborhoods ordinance (§ 130.32)
• Property maintenance regulations (§§ 151.097 and 151.098)
• Parking regulations (§ 72.23)

Contact Information

City of Saginaw - Primary Contacts

City Clerk's Office

• Phone: (989) 759-1404
• Email: [email protected]
• Address: 1315 S. Washington Avenue, Saginaw, MI 48601
• Responsible for: License applications, registration, renewals

Planning Department

• Phone: (989) 759-1474
• Email: [email protected]
• Responsible for: Zoning compliance, site reviews

Building Department/Chief Building Inspector

• Phone: (989) 759-1480
• Responsible for: Building code compliance, parking approvals, inspections

Code Enforcement

• Phone: (989) 759-1465
• Responsible for: Ordinance enforcement, complaint investigations

Historic District Commission

• Phone: (989) 759-1474
• Email: [email protected]
• Responsible for: Historic district permits and approvals

Additional Resources

Saginaw County Chamber of Commerce

• Phone: (989) 752-7161
• Website: www.saginawchamber.org
• Address: 515 N. Washington Ave., 3rd Floor, Saginaw, MI 48607
• Provides advocacy and business resources

Source Links

• City of Saginaw Zoning Ordinance O-263: www.saginaw-mi.com/DocumentCenter/View/2553
• Saginaw County Chamber of Commerce Opposition Statement: www.saginawchamber.org/blog/chamber-opposes-short-term-rental-legislation
• Michigan House Bills 5437-5446 Analysis: legislature.mi.gov/documents/2023-2024/billanalysis/House/pdf/2023-HLA-5437-52D26EA3.pdf

Important Disclaimers

This guide is based on information available as of the documents provided. Regulations may change, and investors should verify current requirements with the City of Saginaw before making investment decisions. The proposed state legislation referenced in this guide has not yet been enacted and may significantly alter the regulatory landscape for short-term rentals in Michigan. Always consult with qualified legal and real estate professionals familiar with local Saginaw regulations before proceeding with any short-term rental investment.