Rental Investment Guide

Fennville


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

Updated May 2026

Area Overview


The City of Fennville sits in southwestern Allegan County, about ten miles inland from the Lake Michigan shoreline at Saugatuck and Douglas. Originally a railroad-era trade town built around Elam Atwater Fenn’s 1860 sawmill, Fennville was incorporated as a village in 1887 and became a city in 1961 [7]. Today’s population is roughly 1,745 with a downtown anchored by Salt of the Earth, the Allegan County Fairgrounds traffic from August onward, and a growing draw from Saugatuck-Douglas weekend tourism that has spilled inland into the orchards and vineyards south of town.

Short-term rentals operate under Section 13.25 of the Fennville Zoning Ordinance and require a Special Land Use (SLU) permit from the Planning Commission in the residential and downtown districts where they’re conditionally allowed [1]. All rental dwellings, long-term and short-term alike, must also pass a city-administered rental inspection on a 3-year cycle [2]. Building inspections, zoning administration, and rental compliance are all contracted out to Professional Code Inspections of Michigan (PCI) from their Dorr office [3]. The city itself has no separate local lodging or hotel tax โ€” operators owe the State of Michigan 6% use tax and any applicable Allegan County assessments, but nothing layered on top by Fennville [4].

Quick Status Summary


Short-Term Rentals LIMITED

Short-term rentals are allowed only as a Special Land Use under Section 13.25 of the Zoning Ordinance โ€” Planning Commission approval required, and only in the R-1, R-2, RM, RMH, and CBD districts where STRs appear with an ‘S’ in the use chart [1]. Every STR must also be in the citywide rental registry and hold a current Certificate of Compliance under the 3-year inspection cycle [2]. There is no permit cap, but each property is approved (or denied) individually on its own merits.

Long-Term Rentals ALLOWED

Long-term residential rentals (28+ days) are permitted by right anywhere the underlying single-family, two-family, three-family, or four-family dwelling use is permitted [1]. The only city-level requirement is enrollment in the Fennville rental registry, plus a Certificate of Compliance issued by PCI after a passing inspection on a 3-year cycle [2]. No SLU permit, no occupancy cap, no separate LTR fee structure beyond the inspection.

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Short-term rentals are a Special Land Use in the R-1, R-2, RM, RMH, and CBD zoning districts under Section 13.25 of the Fennville Zoning Ordinance โ€” meaning Planning Commission approval is required before you can list one [1]. The use chart in Article 6 marks STRs with an ‘S’ in those five districts; they are not a permitted use anywhere else.

The five districts where an STR application is even possible:

  • R-1 โ€” Single-family residential (lower density; 7,000 sq ft minimum lot for single-family)
  • R-2 โ€” Single/two/three/four-family residential (5,000 sq ft minimum for single-family)
  • RM โ€” Multi-family residential (1-4 family at 35 ft height; 5+ family up to 60 ft)
  • RMH โ€” Manufactured housing community
  • CBD โ€” Central Business District (downtown, where dwelling units sit above commercial)

SLU criteria the Planning Commission applies under Articles 23 and 24 include compatibility with the surrounding neighborhood, off-street parking adequacy, and the property’s ability to meet Section 13.25’s specific STR standards (occupancy, parking ratio, designated local contact, posted house rules) [1].

For any specific property: pull the parcel’s zoning district from the city map below, then confirm with Katie Beemer (Zoning Administrator) before underwriting on STR cashflow assumptions. SLU approval is discretionary, not ministerial.

2 Registration & Permit Process

Two parallel approvals are needed: (1) a Special Land Use permit from the Planning Commission for the STR use itself [1], and (2) registration plus a Certificate of Compliance under the citywide rental inspection program [2]. Submit both through Fennville City Hall at 125 S Maple Street; building inspections are routed to PCI’s Dorr office.

SLU applicationPre-application meeting with City Administrator/Zoning Admin recommended; formal submission to Planning Commission [5]
Rental registry submissionCity Clerk’s Office, 125 S Maple St, in person or by mail
Required documents (rental cert)Completed Rental Registration form, proof of ownership (deed/tax bill), site plan with parking, floor plan with bedrooms/safety features, designated local contact info [4]
Certificate of Compliance term3 years from passing inspection [2]
RenewalRe-inspection required every 3 years before certificate expires
Building/zoning permit submissionsUse the BS&A Online portal or PCI Dorr Office forms [3] [6]
For investors: Plan on at least 60-90 days from offer to operational STR โ€” Planning Commission meets monthly and SLU applications need to be on the agenda with notice to neighbors. Build that timeline into any closing/financing schedule. Whether SLU approval transfers with the property is a Planning Commission call, so verify before relying on a seller’s existing approval.
3 Fees & Penalties

Fennville does not publish a single consolidated rental fee schedule online; SLU and rental-inspection fees are set by Council resolution and quoted by City Hall or PCI on application. Always call for a current quote before submitting.

Special Land Use application feePer City Council fee schedule โ€” call City Hall (269) 561-8321 [5]
Rental registration feePer current schedule โ€” quoted at registration
Inspection fee (PCI)Per PCI schedule [3]
Re-inspection after a failed inspectionPer PCI; required before a Certificate of Compliance can issue
State of Michigan Use Tax6% on STR booking total โ€” collected from the guest, remitted monthly to MI Treasury [4]
City local lodging taxNone โ€” Fennville does not impose its own STR / hotel tax [4]
Operating without a CertificateMunicipal civil infraction; certificate revocable; city can pursue an order to vacate

If Fennville Council adopts a published fee schedule (e.g. via a budget amendment), this row will reflect actual dollar amounts. Until then, treat the line items above as ‘call for current quote.’

4 Inspections & Safety Requirements

All rental dwellings in Fennville โ€” long-term or short-term โ€” must pass a city-administered inspection every three years [2]. The inspection is performed by PCI on the city’s behalf [3] and uses Michigan Building Code plus IPMC/ICC standards as the baseline.

Common pass/fail items the building inspector checks:

  • Working smoke detectors and carbon monoxide alarms in required locations
  • Egress windows in every bedroom (size, sill height, openability)
  • Functional handrails and guardrails on stairs and decks
  • No exposed electrical wiring; all junction boxes covered
  • Functional heating, hot water, and weatherproofing
  • No open or expired building permits on the parcel
  • If a pool is on the property, pool fencing per Michigan Building Code
  • Off-street parking adequate to the unit’s bedroom count and the zoning district minimum

Failed inspections: PCI issues a notice of violation with a correction timeframe. The Certificate of Compliance can be suspended or revoked, and if conditions are unsafe the unit may be required to be vacated until repairs are completed and re-inspected.

For STRs specifically: Section 13.25 of the Zoning Ordinance also imposes operating standards (max occupancy formulas, posted house rules, designated local contact, parking ratio) that the Zoning Administrator can enforce via the SLU approval [1]. Failure to meet those standards is grounds to revoke the SLU separately from any building-code issue.

5 Operating Rules (Occupancy, Quiet Hours, Parking)

Section 13.25 of the Zoning Ordinance imposes STR-specific operating standards on top of the citywide noise, parking, and nuisance ordinances [1]. Typical Fennville STR conditions of approval include:

  • Occupancy. Maximum overnight occupancy is set during SLU approval, generally tied to bedroom count plus the IPMC area-per-occupant minimums (70 sq ft per habitable room minimum; additional area per occupant in shared bedrooms).
  • Parking. Off-street parking adequate for occupancy is required; on-street guest parking can be a denial point for the SLU if neighborhood capacity is tight.
  • Designated local contact. A 24/7 reachable contact must be on file with the city โ€” the operator if local, otherwise a property manager. Required to respond to complaints within a defined window (commonly 1-2 hours).
  • Posted house rules. Quiet hours, occupancy limit, parking instructions, and emergency contacts must be posted inside the unit and provided to renters.
  • Trash & refuse. Containers must comply with the citywide trash collection ordinance โ€” no overflow, no early/late curbside placement.
  • Noise. The general city noise ordinance applies; complaints route through the Allegan County Sheriff (the Fennville Police Department’s dispatcher) or the city’s Report a Concern channel.

Specific dollar fines and quiet-hour windows are set by ordinance and can be confirmed with the City Clerk. The Michigan Short-Term Rental Promotion Act (PA 2017) prohibits cities from banning STRs outright, but expressly allows local regulation of noise, advertising, occupancy, and parking โ€” which is the legal hook Fennville’s SLU regime hangs on [4].

6 Local Agent / 24-Hour Contact Requirement

Every short-term rental in Fennville must have a designated local contact person on file with the city โ€” name, address, and 24/7 reachable phone number [1] [4]. If the property owner does not personally manage the unit and live in or near Fennville, a property manager or agent must be designated in writing.

  • The local contact must be reachable around the clock and able to respond to a call from a renter, neighbor, or city official within a reasonable timeframe (commonly 1-2 hours per Section 13.25).
  • For out-of-state owners, this is the practical constraint: a long-distance whole-home STR is not realistic in Fennville without a local agent in place before SLU approval.
  • The contact information must be kept current with the city; changes should be reported within 30 days.

Allegan County non-emergency dispatch (covering Fennville Police Department) is the route for nuisance complaints when a renter or neighbor cannot reach the local contact directly.

7 State Licensing & Tax Compliance

In addition to Fennville’s local rules, every STR operator in Michigan must register with state tax authorities and collect/remit the 6% state Use Tax on bookings [4]. Fennville does not impose its own local lodging or hotel tax on top of the state rate.

Michigan Use Tax6% of booking total โ€” registered & filed monthly with MI Treasury [4]
State business registrationSales/Use Tax license required from MI Treasury before operating
Liability insuranceState law and most lender/HOA covenants require commercial-grade STR liability coverage
Allegan County local lodging taxNone applicable to Fennville STRs as of this guide’s verification date

Michigan’s Short-Term Rental Promotion Act (PA 2017) prohibits cities from banning STRs in all residential zones but expressly preserves local zoning, licensing, occupancy, noise, and parking authority โ€” the legal basis for Fennville’s SLU regime.

1 Where LTRs Are Allowed (Zoning)

Long-term residential rentals (28+ days) are permitted in any district that permits the underlying dwelling use โ€” no separate SLU is required for LTRs the way it is for STRs [1]. The Article 6 use chart lists Single-Family, Two-Family, Three-Family, and Four-Family Dwelling Units as ‘P’ (permitted by right) in the R-1, R-2, RM, RMH, and CBD districts; multifamily buildings of five or more units require additional review under the multifamily standards in Article 9.

What this means in practice:

  • R-1, R-2, RM, RMH: single-family LTRs are permitted by right.
  • RM: two/three/four-family rentals are permitted by right; 5+ unit buildings get the larger-lot, taller-height treatment with additional plan review.
  • CBD: dwelling units above ground-floor commercial are permitted as part of the mixed-use pattern.
  • Industrial / E district / B-1: residential dwelling is generally not a permitted use โ€” LTRs there typically aren’t legal even if the existing structure is residential, unless grandfathered.

Verification matters for: commercial / industrial parcels (residential not permitted), nonconforming uses (a long-vacant rental may have lost its grandfathered status), and any property where the parcel is split between two zoning districts.

๐Ÿ—บ Open the Zoning Map (Planning & Zoning Page)

2 Rental Registry & Certificate of Compliance

Submit the rental registration form to Fennville City Hall at 125 S Maple Street [2]. Every rental dwelling โ€” non-owner-occupied or rented for compensation โ€” must be in the city’s registry and hold a current Certificate of Compliance before being let for occupancy.

Where to submitCity Clerk’s Office, 125 S Maple St, in person or by mail
Required registry infoCompleted Rental Registration form, proof of ownership, site plan with parking, floor plan with bedrooms/safety features, owner contact info, designated local contact info if applicable [4]
Initial inspectionScheduled by PCI after registry submission [3]
Certificate of Compliance term3 years from passing inspection [2]
RenewalRe-inspection required every 3 years before certificate expires
Update on changesOwner should notify city within 30 days of any change to registry info (owner, agent, contact, unit count)
3 Fees & Penalties

Fennville sets rental program fees by Council resolution rather than publishing a single online schedule. Confirm a current quote with City Hall or PCI before scheduling.

Rental registration feePer current City Council schedule โ€” call City Hall
Initial inspection fee (PCI)Per PCI schedule [3]
3-year renewal inspection (PCI)Per PCI schedule
Re-inspection after a failed inspectionPer PCI; payable before issuance of a certificate
Renting without a CertificateMunicipal civil infraction; certificate revocable; city can pursue an order to vacate occupants

For multi-unit buildings, expect a per-unit inspection charge. PCI’s Dorr office handles all Fennville rental scheduling.

4 Inspections & Safety Requirements

All rental units in Fennville pass through the same 3-year inspection cycle, performed by PCI on behalf of the city [2] [3]. The standard is Michigan Building Code plus IPMC/ICC for property-maintenance items.

What inspectors look for on long-term rentals:

  • Working smoke and CO alarms in required locations.
  • Functional egress windows in bedrooms (size, sill height, openability).
  • No exposed wiring or missing electrical covers; all junction boxes intact.
  • Functional heating, hot water, weatherproofing.
  • No peeling paint or other IPMC property-maintenance issues.
  • No open or expired building permits on the parcel.
  • Pool fencing per Michigan Building Code if a pool is present.
  • Right of entry: owner or agent must accompany the inspector and allow full access.

Failed inspections: PCI issues a notice of violation with a correction timeframe. If conditions are unsafe, the unit may be required to be vacated until repairs are completed and re-inspected. The Certificate of Compliance can be suspended; the city can pursue an order to vacate or escrow rents under state law in serious cases.

5 Tenant Rights & Eviction Resources

Michigan landlord-tenant relationships are governed by state law (MCL 554.601 et seq.) and the summary proceedings act for evictions. The State Bar of Michigan publishes a free Practical Guide for Tenants and Landlords covering leases, security deposits, repairs, and the eviction process [8]. These statewide rules apply equally in the City of Fennville and are not modified by local ordinance.

Local tenants in Fennville with property-condition complaints can route them to the city’s Submit Feedback / Report a Concern channel; the building official (PCI) can order a non-periodic compliance inspection if a credible habitability complaint is filed [2].

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.

Explore Rental Guides โ€” Allegan County


Every municipality in Allegan County. Click any to view its rental guide โ€” or request one if itโ€™s not yet live. View the Allegan County hub โ†’

STRs Allowed
STRs Capped/Limited
STRs Heavily Restricted
STRs Not Allowed
Unverified
Guide Coming Soon

Buying, selling, or investing in Fennville?

Fennville's STR rules sit at the intersection of a Special Land Use process and a citywide rental inspection program โ€” both administered through PCI. I help investors and homeowners read the city's rules the same way the building official and Planning Commission read them, before you sign or commit to a rental cashflow assumption.

Sources & Downloads


  1. 1
    City of Fennville โ€” Zoning Ordinance (Section 13.25 Short Term Rentals; Article 6 use chart) https://www.fennville.gov/planningandzoning
    Department page hosts the current Zoning Ordinance PDF + zoning map (city CMS uses signed-token blob URLs that rotate). Use chart in Article 6 marks Short-Term Rentals as 'S' (Special Land Use) in R-1, R-2, RM, RMH, CBD districts. Section 13.25 sets STR-specific standards. SLU process governed by Articles 23-24.
    Verified: 2026-05-11
  2. 2
    City of Fennville โ€” Rental inspection program (every 3 years) https://www.fennville.gov/planningandzoning
    City confirms all long- and short-term rentals require inspection every three years; covers smoke detectors, egress windows, handrails, etc.
    Verified: 2026-05-11
  3. 3
    Professional Code Inspections of Michigan โ€” Dorr Office (Fennville inspections contractor) https://www.pcimi.com/forms/dorr-office/
    PCI provides building inspections and zoning administration to Fennville under contract; rental inspections route through the Dorr office.
    Verified: 2026-05-11
  4. 4
    Michigan Short-Term Rental Promotion Act & Use Tax (state-level rules) https://www.michigan.gov/taxes/business-taxes/sales-use-tax
    MI Use Tax 6% applies to STR bookings; PA 2017 Short-Term Rental Promotion Act preserves local zoning/licensing/occupancy/noise/parking authority.
    Verified: 2026-05-11
  5. 5
    City of Fennville โ€” Building, Planning & Zoning Department https://www.fennville.gov/planningandzoning
    Pre-application review process, zoning permits, schedule of meetings, contact info for Zoning Administrator Katie Beemer.
    Verified: 2026-05-11
  6. 6
    City of Fennville โ€” Permits & Forms https://www.fennville.gov/permitsandforms
    Comprehensive list of city permits and licenses; building/zoning routes through PCI Dorr Office.
    Verified: 2026-05-11
  7. 7
    Fennville, Michigan โ€” Wikipedia (history & demographics) https://en.wikipedia.org/wiki/Fennville,_Michigan
    City history (Elam Atwater Fenn 1860 sawmill; village 1887; city 1961); 2020 census population 1,745.
    Verified: 2026-05-11
  8. 8
    Michigan Legislature โ€” A Practical Guide for Tenants & Landlords https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide landlord-tenant law: leases, security deposits, eviction process. Applies in Fennville without local modification.
    Verified: 2026-05-11
  9. 9
    City of Fennville โ€” Charter & Ordinances (eCode360 FE6693) https://ecode360.com/FE6693
    Fennville's full codified ordinances and charter on the eCode360 platform.
    Verified: 2026-05-11
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.