Rental Investment Guide

Laketown Township


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

Updated May 2026

Area Overview


Laketown Township is a roughly 18-square-mile lakeshore community in northern Allegan County, sitting between the City of Holland to the north and the Saugatuck-Douglas area to the south, with about six miles of Lake Michigan shoreline along its western edge [1]. Housing is a mix of year-round single-family homes, lakefront second homes, and an expanding subdivision belt near Beeline Road and the I-196 corridor. Demand from Chicago, Grand Rapids, and Detroit weekenders drives a busy summer rental market, especially in the bluff and beach-access neighborhoods between 142nd and 66th Streets.

Short-term rental activity is significant and contested. As of late 2025, roughly 111 homes were registered as licensed STRs while about 200 properties were appearing on listing sites โ€” meaning approximately half were operating unregistered [2]. On May 19, 2025, the Township Board enacted a moratorium on new free-standing STR license applications [3], and on May 13, 2026 the Board is scheduled to vote on a Planning Commission proposal that would prohibit all new stand-alone STRs in residential and agricultural zones going forward; existing licensed stand-alones would be grandfathered [4]. Long-term rentals (31+ days) remain permitted under the township’s 2020 rental registration program (Ordinances 208 and 209) [5][6].

Practical takeaway for investors: the STR window for new free-standing rentals is effectively closed pending the May 13, 2026 board action, and is likely to stay closed in AG, R-1, R-1.5, R-2, and R-3 districts if the proposal is adopted as drafted. Buyers purchasing a property with an existing STR license should confirm directly with the township whether the license travels with the property or with the operator before underwriting STR income.

Quick Status Summary


Short-Term Rentals MORATORIUM

New free-standing short-term rental applications are paused under the May 19, 2025 moratorium, extended through June 30, 2026 [3]. Renewals of existing licensed STRs, and applications for attached or detached accessory dwelling unit STRs, are still being processed [3]. The Township Board votes May 13, 2026 on a proposal to permanently prohibit new stand-alone STRs in all residential and agricultural zones; only MU Mixed-Use parcels would allow new stand-alone STRs going forward [4].

Long-Term Rentals ALLOWED

Long-term rentals (31+ day leases) are permitted with annual registration under the township’s 2020 Rental Unit Ordinance Amendment (Ords. 208 and 209) [5][6]. Inspection required at issuance. The rental program is administered by the Graafschap Fire Department on the township’s behalf [7].

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Under the current 2020 ordinance, short-term rentals are permitted township-wide in residential and mixed-use zoning districts subject to registration, inspection, and the moratorium described below. The Planning Commission’s pending proposal (going to the Township Board on May 13, 2026) would tighten this district-by-district [4]:

  • AG Agricultural District: all STRs prohibited under proposal [4].
  • R-1 Rural Estate & R-1.5 Very Low Density Residential: STRs allowed only in an attached or detached accessory dwelling unit, with owner living on the lot and Planning Commission special-use approval [4].
  • R-2 Low Density & R-3 Medium Density Residential: STRs allowed only in an attached accessory dwelling unit [4].
  • MU Mixed-Use District: STRs allowed in a stand-alone home or attached ADU [4].

Existing licensed stand-alone STRs would be grandfathered and may continue operating under the rules they were originally approved under [4]. Only one unit may be rented in any case.

๐Ÿ“ Zoning Map (Feb 2025). Township map is distributed as PDF only โ€” open the current PDF to locate your parcel’s district before underwriting STR eligibility.

For any specific parcel, verify the zoning district on the township zoning map and confirm STR eligibility with the Community Development Director.

2 Registration & Permit Process
โš  Free-standing STR applications are paused. The Township Board’s May 19, 2025 moratorium directs staff not to issue new permits for new free-standing STRs through June 30, 2026 [3]. Renewals of currently licensed STRs and new applications for attached or detached ADU STRs are still being accepted [3].

When applications are open, STR registration goes through the Graafschap Fire Department on paper using the same Rental Unit Registration Application used for long-term rentals [7][8]. Complete the form, attach the required documents, and submit to the township office or the Graafschap Fire Department.

Where to submitTownship Office, 4338 Beeline Road, Holland, MI 49423 โ€” or Graafschap Fire Department
Rental program administratorGraafschap Fire Department (616) 396-4060
Rental program emailrentals@laketowntwp.org
For investors: Confirm with the township in writing whether an existing license travels with the property at sale or terminates and must be re-applied for by the buyer. The moratorium changes the answer materially.
3 Fees & Penalties

The township publishes its rental fees on a separate Rental Fee Schedule document maintained by the Graafschap Fire Department [9]. That document is currently distributed as a scanned PDF without machine-readable text, so dollar figures should be confirmed directly with the rental program before submitting an application or budgeting renewal costs.

Fee schedule (PDF)Rental Fee Schedule โ€” confirm current amounts with the Graafschap Fire Department
Building/zoning permit fees (separate)2025 Building Permit Fees (PDF)

Operating an unregistered rental remains the most common enforcement issue โ€” township officials estimated in early 2026 that roughly half of about 200 rentals visible on listing sites were operating without a license [2]. Always confirm registration before listing.

4 Inspections & Safety Requirements

All registered rentals require a safety inspection administered by the Graafschap Fire Department before a license is issued [10]. The township publishes a “What To Do Ahead of Time” checklist so owners can prepare โ€” typical items include working smoke and carbon-monoxide detectors, GFCI outlets in wet areas, properly handrailed stairs, an accessible electrical panel, and an unobstructed second means of egress from sleeping rooms [10].

Occupancy under the pending proposal would be set by the International Property Maintenance Code, which sizes occupant counts by bedroom square footage [4]. Visitor counts at the property at any one time would be capped at 50% of the registered occupants โ€” e.g., a 4-occupant STR could host two outside visitors at a time [4].

5 Operating Rules (Occupancy, Quiet Hours, Parking)

Operating rules sit in two places: the rental ordinance amendment adopted in 2020 (Ords. 208 and 209) [5][6], and the new operational rules the Planning Commission is drafting to follow the May 13, 2026 zoning vote [4]. Until that second package is adopted, owners should comply with these:

  • Occupancy: set by International Property Maintenance Code bedroom standards [4].
  • Visitors: proposed cap of 50% of registered occupants on the property at any one time [4].
  • One unit per parcel: only one dwelling unit on a lot may be operated as an STR under the pending proposal [4].
  • Owner-occupancy: for ADU-based STRs, the property owner must live in the main house on the lot [4].
  • Allegan County Sheriff non-emergency: (269) 673-2121 for complaints between rentals.
6 Moratorium, Pending Changes & Recent Activity

Laketown’s STR framework is mid-revision โ€” the timeline matters for any new investment.

  • 2020: Township adopted Rental Unit Registration ordinance (Ords. 208 and 209) requiring all rentals โ€” short- and long-term โ€” to register and be inspected [5][6].
  • May 14, 2025: Township Board voted to enact a moratorium on new free-standing STR licenses [3].
  • May 19, 2025: Moratorium took effect after attorney review by Ron Bultje of Dickinson Wright [3]. Renewals and ADU-based STR applications excluded from the pause.
  • Augustโ€“November 2025: Special joint committee of the entire township board and planning commission met four times to gather public input on a permanent ordinance update [4].
  • November 2025: Township published an updated STR location map (V2) showing all licensed STRs in the township [11].
  • April 1, 2026: Planning Commission public hearing on draft new rules [4].
  • May 6, 2026: Planning Commission unanimously voted to send the proposed zoning amendments to the Township Board [4].
  • May 13, 2026 (scheduled): Township Board votes on adoption, with public comment opportunity [4]. Outcome will determine whether new stand-alone STRs are permanently prohibited in residential/AG zones.
  • June 30, 2026: Current moratorium scheduled to expire [4].
โš  Investor takeaway: Do not underwrite a Laketown purchase on the assumption that a new free-standing STR license will be available. If the May 13 proposal passes as drafted, only MU Mixed-Use parcels will allow new stand-alone STRs. Always confirm a property’s zoning and current licensing status before offer.
7 Lookup: Is a Specific Property Currently Licensed?

Laketown Township publishes a map of all currently licensed short-term rentals, updated in November 2025 [11]. Use it to verify whether an address is already in the licensed pool before underwriting.

Because the township estimated in early 2026 that roughly half of โ‰ˆ200 properties listed online were operating without a license [2], a listing on Airbnb or Vrbo is not by itself evidence of a valid permit. Always verify directly.

1 Where LTRs Are Allowed (Zoning)

Long-term rentals (31+ day leases) are permitted in all residential zoning districts where dwelling use is allowed. There is no separate “Commercial Lodging” classification or cap for LTRs in Laketown Township โ€” the rental registration program covers both short- and long-term rentals through Ords. 208 and 209 [5][6], but the moratorium and pending zoning restrictions on stand-alone STRs do not apply to long-term rentals [3][4].

For any specific parcel, verify the zoning district on the map below, then confirm residential dwelling use is permitted by right (or grandfathered) with the Community Development Director.

๐Ÿ“ Zoning Map (Feb 2025). The township map is distributed as PDF only โ€” open the current PDF to verify your parcel’s residential district.

2 Registration & Permit Process

Long-term rental registration is on paper. Complete the Rental Unit Registration Application and submit it to the township office or the Graafschap Fire Department, which administers the rental program [7][8].

Where to submitTownship Office, 4338 Beeline Road, Holland, MI 49423 โ€” or Graafschap Fire Department
Rental program administratorGraafschap Fire Department (616) 396-4060
InspectionRequired at registration; renewed periodically [10]
3 Fees & Penalties

Long-term and short-term rentals share the same Rental Fee Schedule maintained by the Graafschap Fire Department [9]. That document is currently distributed as a scanned PDF without machine-readable text, so confirm current LTR fee amounts directly with the rental program.

Fee schedule (PDF)Rental Fee Schedule
Confirm current amountGraafschap Fire Department (616) 396-4060 or rentals@laketowntwp.org

Renting an unregistered LTR exposes the owner to the same enforcement risk as an unregistered STR โ€” register before placing tenants.

4 Inspections & Safety Requirements

All long-term rentals require a Graafschap Fire Department safety inspection before a license is issued and again on a renewal cycle [10]. The township publishes a preparation checklist so owners can fix common items before the inspector arrives.

Typical inspection items include:

  • Smoke alarms in each sleeping room, outside sleeping areas, and on each level.
  • Carbon monoxide alarms outside sleeping areas if the dwelling has fuel-burning appliances or an attached garage.
  • GFCI outlets in kitchens, bathrooms, laundry rooms, garages, and exterior locations.
  • Two means of egress from each sleeping room (door plus window meeting size and sill-height standards).
  • Properly mounted handrails on stairways with four or more risers.
  • An accessible, properly labeled electrical service panel with no exposed wiring.
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 [12]. These rules apply in Laketown Township and are not modified by local ordinance.

Local resources for tenants and landlords:

  • Allegan County Legal Assistance Center (ACLAC): free help with court forms and procedural questions โ€” aclac.allegancounty.org
  • 57th District Court (Allegan County): small-claims and summary-proceedings filings โ€” court page

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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I help investors and homeowners navigate Laketown's moratorium, ADU rules, and the May 13, 2026 STR vote that could permanently reshape what stand-alone rentals are allowed. Let's underwrite the property correctly the first time.

Sources & Downloads


  1. 1
    Laketown Township, Michigan โ€” Wikipedia https://en.wikipedia.org/wiki/Laketown_Township,_Michigan
    Geography and land area
    Verified: 2026-05-11
  2. 2
    Crain's Grand Rapids Business โ€” Laketown Township looks to ban standalone short-term rentals https://www.crainsgrandrapids.com/news/hospitality-tourism/lakeshore-township-wants-to-ban-short-term-rentals-unless-an-owner-lives-on-site/
    Estimated ~111 licensed STRs vs ~200 listed; ~half unregistered
    Verified: 2026-05-11
  3. 3
    Laketown Township โ€” UPDATE: Moratorium for some short-term rentals now in effect https://laketowntwp.org/update-moratorium-for-some-short-term-rentals-now-in-effect/
    Moratorium effective May 19, 2025 on new free-standing STRs
    Verified: 2026-05-11
  4. 4
    Laketown Township โ€” Short-term rental changes head to township board https://laketowntwp.org/short-term-rental-changes-head-to-township-board/
    May 13, 2026 board vote details and proposal contents
    Verified: 2026-05-11
  5. 5
    Codified rental ordinance text
    Verified: 2026-05-11
  6. 6
    Codified rental ordinance text
    Verified: 2026-05-11
  7. 7
    Laketown Township โ€” Building Permits & Other Forms (Rental Unit Applications section) https://laketowntwp.org/building-permits-forms/#rental-units
    Graafschap Fire administers rental program
    Verified: 2026-05-11
  8. 8
    Laketown Township โ€” Rental Unit Registration Application (PDF) https://laketowntwp.org/wp-content/uploads/2023/05/051623RentalUnitRegistrationApplication.pdf
    Application form for both STR and LTR
    Verified: 2026-05-11
  9. 9
    Laketown Township โ€” Rental Fee Schedule (PDF) https://laketowntwp.org/wp-content/uploads/2023/05/051623RentalFeeSchedule.pdf
    Scanned PDF โ€” confirm amounts with Graafschap Fire
    Verified: 2026-05-11
  10. 10
    Laketown Township โ€” Rental Unit Safety Inspection Prep (PDF) https://laketowntwp.org/wp-content/uploads/2023/05/051623RentalInspection.pdf
    What to do before inspection
    Verified: 2026-05-11
  11. 11
    Laketown Township โ€” STR Location Map V2 (Nov 2025 PDF) https://laketowntwp.org/wp-content/uploads/2025/11/111125STRMapV2.pdf
    Map of currently licensed STRs
    Verified: 2026-05-11
  12. 12
    State Bar of Michigan โ€” Practical Guide for Tenants & Landlords https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide landlord-tenant overview
    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.