Otsego Township

Otsego Township’s 2019 Zoning Ordinance does not separately define or regulate “short-term rental,” “vacation rental,” or “transient rental” uses ^[3]. Whether a given parcel can be operated as an STR depends on whether the parcel’s zoning district permits the underlying single-family dwelling use. The ordinance recognizes Bed and Breakfast Operations as a defined subordinate accessory use of a single-family dwelling (Section 3.02 #32) ^[3], but treats most other transient lodging (motels, hotels, motor courts) as commercial uses confined to the C General Business District ^[3].

The township’s mapped zoning districts are AG (Agricultural and Rural Estate), R-1 (Low-Density Single-Family), R-2 (Medium-Density Single-Family), R-3 (High-Density Residential), RMH (Manufactured Home Park), C (General Business), and I (Industrial), plus several overlay districts under Article 14 ^[3]. Single-family dwellings are a permitted use by right in AG, R-1, R-2, and R-3 ^[3]. For any specific property, verify the zoning district on the current map and confirm intended use with PCI (the township’s contracted zoning administrator) before listing.

Click the link below to open the current zoning map PDF. A revised Future Land Use Plan map is being adopted as part of the 2026 Master Plan update ^[5].

There is no township-level short-term rental registration or permit to file with Otsego Township ^[3]. The township does not maintain an STR portal, a permit application, or a rental license. The township office at 400 N. 16th Street, Otsego, is open Monday through Thursday, 8:00 AM to 4:00 PM ^[2].

What investors and operators still need to handle independently of the township:

• Michigan Treasury, Use Tax on Accommodations. Operators of rentals under 30 days must register with the Michigan Department of Treasury and remit the 6% Use Tax on accommodations on gross rental receipts.
• Building, mechanical, electrical, and plumbing permits. Any improvements to the structure go through Professional Code Inspections (PCI) at 1575 142nd Ave., Dorr, MI 49323, (616) 877-2000. Applications can be downloaded from pcimi.com ^[2].
• Zoning sign-off. Before listing, confirm in writing (email is fine) with PCI that the parcel’s zoning district permits the proposed rental use ^[2].
• Septic and well records. If the property is on a private septic system, request inspection records and any permit history from the Allegan County Health Department, 3255 122nd Ave., Allegan, (269) 673-5415 ^[7].
• Property tax classification. If a former owner-occupied home is converted to a rental, file a Rescind Principal Residence Exemption with the Otsego Township Assessor ^[2]; the parcel will then be taxed at the non-homestead millage rate.

Otsego Township does not charge a township-level short-term rental fee or annual rental registration fee as of May 2026 ^[3]. There is no township STR permit to renew. The costs to budget for instead are state-level and PCI-administered:

If the township enacts a short-term rental ordinance in the future, this section will be updated and the new fee schedule added here. The Planning Commission is currently focused on updating mining, wind, solar, battery storage, data center, ADU, and affordable-housing ordinances rather than rentals ^[5].

Otsego Township does not run an STR safety-inspection program. Building, mechanical, electrical, plumbing, and zoning inspections triggered by new construction, additions, or alterations are handled by Professional Code Inspections (PCI), the township’s contracted code-enforcement provider, at 1575 142nd Ave., Dorr, MI 49323, (616) 877-2000 ^[2].

For any STR or LTR property, standard Michigan habitability and safety expectations still apply:

• Smoke and CO detectors meeting the Michigan Residential Code on each habitable level and outside each sleeping area.
• Egress windows in any bedroom; every sleeping room must have at least one operable emergency escape opening.
• Functioning utilities (water, electricity, heat capable of maintaining 68°F).
• Septic system in working order if not on municipal sewer. Otsego Township operates municipal water and sewer in portions of the township along the M-89 / 16th Street corridor ^[2]; outside the served area, properties are on private well and septic, with permits and records handled by the Allegan County Health Department ^[7].
• Well water permitted and (recommended) tested for safe drinking-water parameters at change of ownership and before any high-turnover rental use ^[7].
• Egress for manufactured homes in the RMH district must meet the standards of the Michigan Manufactured Housing Commission ^[3].

Otsego Township has not adopted a stand-alone noise, nuisance, or fireworks ordinance on its website as of May 2026. Day-to-day operating rules for any rental property here are set by Michigan state law and applicable Allegan County ordinances rather than a township-specific good-neighbor policy.

• Fireworks. Michigan’s Fireworks Safety Act (Public Act 256 of 2011, as amended) permits consumer-grade fireworks on the day before, day of, and day after federal holidays. Local governments may restrict use between 11:30 PM and 8:00 AM (and 1:00 AM on certain federal holidays). Verify any township resolution adopting these local hours with the township office ^[2].
• Noise / disturbing the peace. Enforced by the Allegan County Sheriff’s Office under Michigan Penal Code provisions. Non-emergency dispatch: (269) 673-3899 ^[7].
• Nuisance / blight. The Zoning Ordinance prohibits accumulation of inoperable vehicles, debris, and similar conditions under general standards in Article 4 and the penalty provisions in Article 25 ^[3].
• Signs. Property advertising signs are regulated by Article 20 of the Zoning Ordinance and require compliance with the underlying district’s sign standards ^[3].
• Trash and recycling. Curbside and recycling depot service details are published on the township website ^[2].

Bed and Breakfast Operations are the only “transient guest” use the Otsego Township Zoning Ordinance specifically names ^[3]. The ordinance defines a Bed and Breakfast as a use subordinate to the principal use of a dwelling as a single-family dwelling, in which transient guests are provided a sleeping room and board for payment, and which does not provide separate cooking facilities for guests (Sec. 3.02 #32) ^[3].

Key implications of that definition ^[3]:

• Owner-occupied. The dwelling must be the principal single-family residence, with the B&B subordinate to that residential use.
• Sleeping room and breakfast only. Cooking facilities for guests are not part of the use; the operator provides the meal service.
• Not a hotel/motel substitute. Motels, motor courts, and similar transient lodging are listed separately as permitted commercial uses in the C General Business District (Sec. 11.02) ^[3] with site-design standards in Article 18 ^[3].

Operating an entire non-owner-occupied dwelling for transient (short-term) stays would not fit the Bed and Breakfast definition, and would need to be evaluated against the underlying zoning district directly with PCI before proceeding. Otsego Township’s 2019 ordinance does not list whole-house short-term rental as a permitted, special, or prohibited use in any district ^[3].