Overview: Are Short-Term Rentals Allowed in Saugatuck, MI?

Yes, short-term rentals are explicitly allowed in Saugatuck, Michigan. The City of Saugatuck has established a comprehensive licensing and regulatory framework for short-term rentals through Ordinance No. 240229-B, adopted February 29, 2024. This ordinance created a detailed Chapter 99.5 in the City Code specifically governing short-term rentals.

A short-term rental is defined as "a dwelling unit which is rented to a person for less than thirty-one (31) consecutive days, or is advertised to be rented for any period less than thirty-one (31) days." The city recognizes short-term rentals as an important component of its tourism economy while implementing regulations to minimize potential negative impacts on residential neighborhoods.

The city has implemented caps on the number of short-term rental licenses in specific R-1 zoning districts:

• Community Residential R-1: Maximum 67 licenses
• Peninsula West R-1: Maximum 10 licenses
• Maple Street R-1: Maximum 7 licenses
• Peninsula South R-1: Maximum 11 licenses
• Peninsula North (Duneside) R-1: Maximum 3 licenses
• Peninsula North (Riverside) R-1: Maximum 2 licenses

How to Start a Short-Term Rental Business in Saugatuck

Starting a short-term rental business in Saugatuck requires following a structured application and approval process:

Step 1: Pre-Application Planning

• Verify your property is in a zoning district that permits short-term rentals
• Check if your district has reached its license cap (particularly important for capped R-1 districts)
• Review the complete STR licensing ordinance requirements
• Assess your property's compliance with fire safety codes

Step 2: Application Submission

• Complete the official STR License Application (available on the city website)
• Gather all required documentation and attachments
• Submit complete application with the annual license fee of $540.00
• Ensure all city taxes, fees, and obligations are current

Step 3: Application Review

• City staff reviews application for completeness and compliance
• If deficiencies are identified, you have 14 days to provide missing information
• Application fees include an "after the fact" fee structure for unlicensed operation

Step 4: Fire Inspection Process

• Saugatuck Township Fire District contacts you to schedule inspection
• Complete required fire safety checklist
• Address any violations within 15 days of notification
• Failed inspections require $175 reinspection fee

Step 5: License Approval and Issuance

• Upon successful inspection and compliance verification, City issues STR license
• License is valid for one year from issuance date
• License receives unique identifying number required for advertising

Step 6: Ongoing Compliance Setup

• Designate and train local agent (if not serving as your own)
• Prepare guest materials including Good Neighbor Guide
• Implement operational procedures for guest communication
• Establish complaint response protocols

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements

1. Short-Term Rental License

• Annual Fee: $540.00
• Duration: One year
• Application: Official STR License Application (form available online)
• Renewal: Renewal application required 30 days before expiration

2. Fire Inspection Certificate

• Conducted by: Saugatuck Township Fire District
• Frequency: Annual (required for initial license and renewal)
• Cost: Included in license fee; $175 for each reinspection if failed
• Timing: Must be completed within 30 days of application submission

Required Application Documentation

Owner Information:

• Name, address, telephone numbers, and email address
• If corporate owner: all current members and ownership percentages
• If trust owner: all beneficiaries and trustees

Property Documentation:

• Property deed, land contract, or lease agreement
• If less than fee ownership: signed attestation from property owner
• Property address and parcel identification number

Property Plans and Specifications:

• Floor plan drawing showing number of bedrooms intended for STR use
• Premises drawing showing all buildings and designated parking locations
• Proposed occupancy calculations (subject to maximum limits)

Operational Information:

• Local agent designation (required if owner doesn't serve as agent)
• Owner attestation granting authority to applicant (if not owner)
• Certification that dwelling will operate in conformance with all requirements
• Documentation of current rental property insurance

Compliance Verification:

• Completed and signed fire inspection checklist from Saugatuck Township Fire District
• Insurance documentation showing dwelling insured as rental property
• Notification that any changes to approved application must be reported within 30 days

Ongoing Operational Requirements

Good Neighbor Guide

• Must be displayed in each STR unit
• Contains expectations for noise, trash, parking, and maximum occupancy
• Available as downloadable PDF from city website

Advertising Compliance

• All advertisements must display the STR license number
• Applies to online platforms (Airbnb, VRBO, etc.) and all other advertising

Insurance Requirements

• Continuous rental property insurance coverage required
• Must maintain throughout license period

Tax Compliance

• Payment of applicable sales tax and Michigan Use Tax for stays of 31 nights or less

Specific Regulations for Short-Term Rentals

City of Saugatuck Regulations

Occupancy Limits:

• Maximum 2 occupants per bedroom
• Plus 2 additional occupants per finished floor (adequate sleeping space required)
• Absolute maximum: 12 occupants
• Visitors permitted: Up to 1.5 times maximum occupancy
• Visitor hours: 7:00 AM to 11:00 PM only

Local Agent Requirements:

• Required if owner/license holder doesn't serve as agent
• Must reside or maintain physical business within 25-mile radius
• Must be available 24/7/365
• Must be knowledgeable about premises and accountable for response

Operational Restrictions:

• No subletting of individual rooms within STR dwelling
• No tents, campers, or similar temporary sleeping facilities on premises
• No fireworks use by occupants or visitors
• All waste must be stored in appropriate containers

Property Standards:

• Full compliance with all water and sewer requirements
• Proper trash disposal: minimum one outdoor garbage can and one recycling bin
• Two garbage cans required if occupancy is 6 or more
• Full compliance with zoning ordinance including signage provisions

Guest Information Requirements: Must provide to all occupants prior to occupancy and post conspicuously:

• License holder and/or local agent contact information (24-hour availability)
• Maximum overnight occupancy limits
• City Noise Ordinance (Section 94.04)
• Complete STR licensing chapter
• Violation consequences explanation
• City's Good Neighbor Guide
• Pet restrictions (secured or leashed at all times)

Enforcement and Penalties

Response Requirements:

• License holder/agent must remedy violations within 2 hours of city notification
• City may contact via phone or return receipt email
• Failure to remedy violations constitutes grounds for suspension/revocation

Suspension and Revocation Grounds:

• False or misleading application information
• Failure to comply with STR standards and regulations
• Failure to remedy violations within 2 hours
• Attempted license transfer

Suspension/Revocation Structure:

• First suspension: 3 months
• Second suspension: 6 months
• Third suspension or subsequent violations: Permanent revocation
• Suspensions effective immediately (with tourist season considerations)

Existing Contract Protection:

• Existing contracts up to 60 nights beyond suspension start may be honored with City Council approval
• Contracts beyond 60 nights must be canceled

Penalty Structure:

• Municipal civil infraction with fines established by City Council resolution
• Each day of violation considered separate violation
• Designated enforcement officials include enforcing officer, sheriff's deputies, and appointed persons

Zoning and License Caps

Capped Districts: Current license caps in effect for specific R-1 districts:

• Community Residential R-1: 67 licenses maximum
• Peninsula West R-1: 10 licenses maximum
• Maple Street R-1: 7 licenses maximum
• Peninsula South R-1: 11 licenses maximum
• Peninsula North (Duneside) R-1: 3 licenses maximum
• Peninsula North (Riverside) R-1: 2 licenses maximum

Non-Capped Districts: City continues accepting STR applications in other zoning districts that permit STRs. Refer to current zoning map for district boundaries and requirements.

Cap Management:

• City provides annual notice of available licenses
• If STR certificate/license expires while cap is in effect, reapplication not possible until active licenses fall below maximum
• City maintains selection process for issuing available licenses

Noise Regulations

Updated Noise Ordinance:

• Recently amended for public clarity
• STR owners must provide copy to all occupants
• Violations subject to same 2-hour response requirement
• Full ordinance available as separate PDF document

State of Michigan Requirements

Tax Obligations:

• Sales tax and Michigan Use Tax required for stays of 31 nights or less
• STR operator responsible for collecting and remitting applicable taxes
• No separate state registration mentioned in city materials

County Level (Allegan County)

No specific county-level STR regulations identified in the provided materials. County health department requirements referenced for water and sewer compliance, but no separate county licensing requirements for STRs found.

Contact Information for Local Authority

Primary STR Authority Contacts

City of Saugatuck - Planning and Zoning Department

• Director of Planning and Zoning: (269) 857-2603
• Primary Phone: (269) 857-2603
• Address: 102 Butler St., PO Box 86, Saugatuck, MI 49453
• Hours: Monday-Friday, 8:30 AM - 5:00 PM
• Website: saugatuckcity.com/short-term-rentals.html

Enforcement and Complaint Contacts

24/7 STR Reporting Hotline

• Phone: (269) 442-4845
• Purpose: Report violations and complaints
• Available: 24 hours per day, 7 days per week

Online Complaint Reporting

• Website: secure.hostcompliance.com/saugatuck-mi/complaints/type
• Purpose: Submit online violation reports

Sheriff's Office (Noise Complaints)

• Emergency: 911
• Non-Emergency: (269) 673-3899
• Purpose: Active noise complaints

Supporting Agencies

Saugatuck Township Fire District

• Contact: Through city application process
• Role: Conducts required annual fire inspections
• Website: saugatuckfire.org

Saugatuck Township Building Department

• Phone: (269) 857-7721
• Address: 3461 Blue Star Hwy, Saugatuck, MI 49453
• Role: Fire inspection scheduling and safety compliance

BS&A Online Municipal Dashboard

• Website: bsaonline.com/?uid=126
• Purpose: Check license status, expiration dates, agent contacts
• Available: Property address, parcel number, or owner name search

Links to Source Pages

City of Saugatuck Official STR Information

• Main STR Page: www.saugatuckcity.com/short-term-rentals.html
• Full STR Licensing Ordinance: www.saugatuckcity.com/uploads/1/3/3/9/133977444/ord_240229-b_short-term_rental_license.pdf
• STR License Application: www.saugatuckcity.com/uploads/1/3/3/9/133977444/str_license_app_06-12-25.pdf
• STR Renewal Application: www.saugatuckcity.com/uploads/1/3/3/9/133977444/str_renewal_application_8-5-25.pdf
• Noise Ordinance Amendment: www.saugatuckcity.com/uploads/1/3/3/9/133977444/ord_240229-c_amendment_to_noise_ ordinance.pdf
• Good Neighbor Guide: www.saugatuckcity.com/uploads/1/3/3/9/133977444/copy_of_good_neighbor_guide__2_.pdf
• STR License Notification and Issuance Policy: www.saugatuckcity.com/uploads/1/3/3/9/133977444/short_term_rental_license_notification_and_issuance_policy.pdf
• Current STR Registry List: www.saugatuckcity.com/uploads/1/3/3/9/133977444/strlistwithownersandresponsiblepartyoctober_2025.csv.xlsx
• Zoning Map: www.saugatuckcity.com/uploads/1/3/3/9/133977444/2024_zoning_map_for_website_2.pdf

Property and License Status Checking

• BS&A Online Municipal Dashboard: bsaonline.com/?uid=126
• Complaint Reporting Portal: secure.hostcompliance.com/saugatuck-mi/complaints/type

Supporting Resources

• Saugatuck Township Website: saugatucktownshipmi.gov/departments/building-rental-inspections/rental/
• Fire Department Website: www.saugatuckfire.org
• City Code of Ordinances: codelibrary.amlegal.com/codes/saugatuck/latest/overview

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This guide provides comprehensive information for short-term rental investment in Saugatuck, Michigan. Investors should verify current requirements and consult with local authorities before making business decisions, as regulations may be updated by the city.