Rental Investment Guide

Watervliet


Short-term & long-term rental regulations, fees, and investor resources for Berrien County, Michigan.

Updated April 2026

Area Overview


The City of Watervliet is a small northern-Berrien-County city of roughly 1,669 residents (2020 census) on the Paw Paw River, just south of Paw Paw Lake. It is a separately-incorporated jurisdiction inside Watervliet Charter Township; the two governments are administered autonomously and have different rental rules. City Hall at 158 W Pleasant St. is open Monday through Thursday 8:30 a.m.โ€“5:00 p.m. and closed Friday through Sunday [1].

Unlike nearby small cities, the City of Watervliet operates an active Rental Permit and Rental Inspection program through the Building Department, administered by Bob Lohr at 269-463-5113 [2]. The City's codified ordinances live on Municode, where Chapter 10 (Buildings and Building Regulations) and Appendix A (Zoning) set the framework; no stand-alone short-term-rental chapter is codified as of this verification [3][4]. Rental operators in the City therefore work with the Building Department's rental permit, Appendix A zoning, and the County's transient-lodging tax โ€” and should verify at the parcel level with City Hall before buying or listing.

Quick Status Summary


Short-Term Rentals UNCLEAR

The City of Watervliet has not adopted a dedicated short-term-rental ordinance. Appendix A (Zoning) of the codified ordinances does not list short-term or transient rental as a named permitted use in any residential district, and Chapter 10 (Buildings and Building Regulations) frames a general rental-permit program rather than an STR-specific one. Because the City does administer rental permits and rental inspections through the Building Department (Bob Lohr, 269-463-5113), any residential rental use โ€” including a short-term rental โ€” is expected to register, pass inspection, and carry a rental permit. Operators should confirm STR eligibility at the parcel level with City Hall before advertising.

Long-Term Rentals PERMIT REQUIRED

Long-term rentals (30+ day leases) are permitted wherever residential dwelling use is allowed by Appendix A Zoning, but every rental property in the City โ€” whether long-term or short-term โ€” must register with the Building Department and carry a City Rental Permit administered by Bob Lohr at 269-463-5113. Rental inspections are conducted periodically by the same inspector. Michigan's Truth in Renting Act sets the baseline landlord-tenant law; landlord-tenant disputes are heard at the 5th District Court of Berrien County.

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Appendix A (Zoning) of the City of Watervliet Code of Ordinances does not name short-term or transient rental as a permitted use in any residential district [4]. Article VI of Appendix A lists the City’s zoning districts and maps; Article III (Rules and Definitions) likewise does not define “short-term rental” or “transient rental.” Because the zoning appendix is silent on STR, the conservative read under Michigan zoning practice is that short-term rental is not expressly permitted by name in City residential districts.

The practical answer for any specific City parcel is get a written zoning opinion from City Hall before you buy or list. The City is compact and directly surrounded by Watervliet Charter Township; make sure you are confirming which jurisdiction governs the address (Township parcels follow a separate Rental Registration and Inspection ordinance that does not apply to City parcels).

Berrien County GIS parcel viewer

Use the Berrien County GIS viewer to confirm City vs. Township jurisdiction for any specific parcel.

2 Registration & Permit Process

Apply for a City Rental Permit through the Building Department by contacting Bob Lohr at 269-463-5113 [2]. The City of Watervliet runs a rental-permit program through the Building Department at 158 W Pleasant St. Although the codified ordinances do not call out short-term rental separately, any residential rental use in the City is expected to register and pass a rental inspection before being let. The Building Department is staffed by contracted inspectors and is reachable during City Hall hours (Mon–Thu, 8:30 a.m.–5:00 p.m.) [1].

Submission pathCall Bob Lohr at 269-463-5113 to request the Rental Permit application and schedule an initial inspection
OfficeCity of Watervliet Building Department โ€” 158 W Pleasant St., Watervliet, MI 49098
HoursMondayโ€“Thursday 8:30 a.m.โ€“5:00 p.m. (closed Friโ€“Sun)
Companion permitsBuilding permits (except plumbing) — Troy Gano 269-930-2453. Electrical — Ken Simpson 269-471-5869. Mechanical — Rod Wilder 269-208-9067 [2]

For short-term rental use specifically, request a written zoning opinion from City Hall at the same time you apply for the rental permit. Appendix A does not name STR as a permitted use, so an operator relying solely on a Building Department rental permit is exposed to a later zoning enforcement action if the City Commission clarifies the rule.

3 Fees & Penalties

No STR-specific fee schedule is published by the City of Watervliet because no dedicated STR ordinance has been adopted. Rental-permit and inspection fees are set by the Building Department and are most accurately obtained by calling Bob Lohr at 269-463-5113 at the time of application [2]. Companion trade-permit fees are administered through the Building Department by the contracted inspectors listed below.

Rental Permit / Rental InspectionFee set by Building Department — call 269-463-5113 to confirm
Building Permit (non-plumbing)Troy Gano — 269-930-2453
Electrical PermitKen Simpson — 269-471-5869
Mechanical PermitRod Wilder — 269-208-9067

An operator who lists an STR without a rental permit and without a written zoning opinion is exposed to general municipal enforcement under Chapter 10 (Buildings and Building Regulations) and zoning enforcement under Appendix A [3][4]. Until the City Commission codifies STR-specific penalties, expect enforcement to run through the Building Department with the Zoning Administrator as backstop.

4 Safety & Property Maintenance

The City of Watervliet enforces property-maintenance and nuisance standards through the codified ordinances on Municode and the Berrien County Sheriff’s Office (the City does not operate its own police department). Rental properties — whether short-term or long-term — must comply with:

  • Chapter 10 (Buildings and Building Regulations) for basic building-code and rental-permit compliance [3].
  • Appendix A Zoning for permitted-use, setback, and accessory-structure rules [4].
  • Michigan Residential Code smoke and carbon-monoxide detector requirements.
  • City water and sewer utilities in good standing — unpaid utilities can lien the property regardless of occupant.

Non-emergency complaints (noise, parking, nuisance) are routed to City Hall at (269) 463-6769 during business hours and to the Berrien County Sheriff’s Office dispatch after hours.

5 State-Level & Tax Obligations

Even without a City STR ordinance, Michigan state-level and Berrien County obligations apply to any short-term rental operator in the City of Watervliet:

  • 6% State Use Tax on rentals of 30 days or less — collected and remitted to the Michigan Department of Treasury (Airbnb and Vrbo collect automatically for bookings through their platforms; direct bookings are the operator’s responsibility).
  • Berrien County 5% Accommodations Excise Tax on transient (<30 day) lodging, administered by the Berrien County Treasurer [5].
  • Michigan Principal Residence Exemption (PRE) cannot be claimed on a property used primarily as an investor STR — file Form 2602 (Request to Rescind PRE) with the City Assessor when converting from homestead.
  • Michigan sales/use tax license via the Department of Treasury if collecting tax directly.
1 Where LTRs Are Allowed (Zoning)

Long-term rentals (30+ day leases) are permitted anywhere residential dwelling use is allowed by Appendix A Zoning [4]. Residential occupancy by right in the City’s residential districts applies whether the occupant is the owner or a long-term tenant; Appendix A does not distinguish between owner-occupied and leased residential use. The City’s compact footprint means most single-family parcels inside the City allow LTR use as of right, but the property must still carry a valid City Rental Permit administered by the Building Department [2].

Berrien County GIS parcel viewer

Use the Berrien County GIS viewer to confirm zoning district and City vs. Township jurisdiction for any parcel.

2 Registration & Permit Process

Every rental property in the City of Watervliet must carry a City Rental Permit administered by the Building Department [2]. Apply by contacting Bob Lohr at 269-463-5113 to obtain the rental-permit application and schedule an initial rental inspection. Permits cover both short-term and long-term residential rentals; long-term operators should register the property in the owner’s or managing agent’s name and keep a current mailing address on file so inspection and renewal notices reach the right party.

Submission pathCall Bob Lohr at 269-463-5113 for application + to schedule inspection
OfficeCity of Watervliet Building Department โ€” 158 W Pleasant St., Watervliet, MI 49098
HoursMondayโ€“Thursday 8:30 a.m.โ€“5:00 p.m.

Michigan’s Truth in Renting Act (Public Act 348 of 1972) sets the landlord-tenant baseline that applies on top of the City’s rental permit. Security-deposit handling, lease-disclosure requirements, and habitability standards all flow from state law, not the City ordinance.

3 Safety & Property Maintenance

Because the City operates an active rental-inspection program, LTR compliance in Watervliet is enforced both proactively (periodic inspections by the Building Department) and on a complaint basis through City Hall. The baseline obligations for a long-term rental inside City limits are:

  • Chapter 10 (Buildings and Building Regulations) compliance — the framework under which the rental permit is issued [3].
  • Appendix A Zoning compliance — setbacks, accessory structures, and home-occupation rules still apply to rental parcels [4].
  • Michigan Residential Code smoke and carbon-monoxide detectors, verified at initial inspection.
  • City water and sewer account in good standing at closing — unpaid utilities are an owner liability, not a tenant one.

Complaints and violations are routed through City Hall at (269) 463-6769 during business hours, or to the Berrien County Sheriff’s Office dispatch after hours.

4 Utilities, Water & Sewer

Rental properties inside City limits are served by the City of Watervliet water and sewer utilities, billed through City Hall. Michigan law treats unpaid water and sewer balances as a lien on the property regardless of occupancy, so landlords should:

  • Confirm the water/sewer account is titled to the owner (not the tenant) before closing, or accept the lien exposure.
  • Obtain a final-read letter from City Hall at closing for any property change of ownership.
  • Call City Hall at (269) 463-6769 to set up or transfer service; a View/Pay Water Account link is available from the City homepage [1].
5 Assessments, Taxes & the PRE

The City of Watervliet Assessor’s office handles property valuation and the Principal Residence Exemption (PRE) certification that determines whether a parcel qualifies for the 18-mill school-operating reduction. For a long-term rental:

  • A non-owner-occupied LTR is not eligible for the PRE — the owner must file a Request to Rescind PRE (Form 2602) with the City Assessor when converting from homestead to rental.
  • Annual property taxes are billed in July (summer) and December (winter) by the City Treasurer.
  • Berrien County’s 5% Accommodations Excise Tax does not apply to long-term (30+ day) leases — only to transient lodging [5].

Official Resources


Property Tax Treatment


i
Important for investors: A property used as a rental in Michigan is generally classified as non-homestead, which is taxed at the full local millage rate (no Principal Residence Exemption). Short-term rental income may also be subject to the Michigan Use Tax on transient accommodations. Consult a CPA before underwriting any deal โ€” these are not opinions, they are starting points for your own tax research.

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Evaluating a property in or near the City of Watervliet?

The City of Watervliet's rental permit is administered through the Building Department by Bob Lohr โ€” which means every City rental parcel, whether long- or short-term, should be registered and inspected. I help buyers compare City of Watervliet parcels against Watervliet Charter Township (which has its own Rental Registration and Inspection ordinance), Paw Paw Lake shoreline properties, and the wider Berrien County tourism market with a clear read on current rules and where they're likely to tighten.

Sources & Downloads


  1. 1
    City of Watervliet โ€” Official Homepage
    https://www.watervliet.org/
    Source for City Hall address (158 W Pleasant St., PO Box 86, Watervliet, MI 49098), phone (269-463-6769), and hours (Monโ€“Thu 8:30 a.m.โ€“5:00 p.m.). Also the entry point for the View/Pay Water Account link.
    Verified: 2026-04-20
  2. 2
    City of Watervliet โ€” Building Department
    https://www.watervliet.org/building
    Source for the rental-permit and rental-inspection program: Rental Permits โ€” Bob Lohr 269-463-5113; Rental Inspections โ€” Bob Lohr 269-463-5113. Also lists the other trade inspectors (Building โ€” Troy Gano 269-930-2453; Electrical โ€” Ken Simpson 269-471-5869; Mechanical โ€” Rod Wilder 269-208-9067).
    Verified: 2026-04-20
  3. 3
    City of Watervliet โ€” Chapter 10 Buildings & Building Regulations (Municode)
    https://library.municode.com/mi/watervliet/codes/code_of_ordinances?nodeId=PTIICOOR_CH10BUBURE
    Chapter 10 of the codified City of Watervliet Code of Ordinances. Framework for building-code administration and general rental-permit compliance.
    Verified: 2026-04-20
  4. 4
    City of Watervliet โ€” Appendix A Zoning (Municode)
    https://library.municode.com/mi/watervliet/codes/code_of_ordinances?nodeId=PTIICOOR_APXAZO_ARTVIZODIMA
    Appendix A (Zoning), Article VI โ€” Zoning Districts and Maps. Article III (Rules and Definitions) does not define short-term or transient rental, and Article VI does not list STR as a named permitted use in any City residential district.
    Verified: 2026-04-20
  5. 5
    Berrien County Treasurer โ€” Accommodations Excise Tax
    https://www.berriencounty.org/819/Treasurer
    County-level 5% accommodations excise tax applies to transient (<30 day) lodging in Berrien County municipalities including the City of Watervliet. Does not apply to 30+ day leases.
    Verified: 2026-04-20
How this guide is produced. This rental guide is researched and drafted with assistance from Claude, an AI model made by Anthropic, working from the official municipal sources linked in this page. AI can make mistakes โ€” any fact that would materially affect a purchase or rental decision should be verified against the official source cited above and confirmed directly with the municipality. See an error? Email a correction.