Saugatuck, Michigan Short Term Rental Regulations Guide for Airbnb hosts

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

What do Airbnb hosts actually earn in Saugatuck?

Saugatuck hosts earn a median $59,269/year with $446 ADR and 53% occupancy.

Top performers pull in $80,331+ per year.

See the full Saugatuck market breakdown →

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

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.

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