Rental Investment Guide

Saugatuck Township


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

Updated May 2026

Area Overview


Saugatuck Township sits along Lake Michigan in northwest Allegan County, wrapping around the City of Saugatuck and the City of the Village of Douglas. Housing stock is a mix of lakefront second homes, year-round single-family residences along the Kalamazoo River corridor, and rural properties extending east toward Blue Star Highway and I-196. The township covers three postal districts (Saugatuck, Fennville, Hamilton) and three school districts (Saugatuck-Douglas, Fennville, Hamilton). [1]

Unlike the neighboring City of Saugatuck (which imposed an STR cap and zoning restrictions in 2024), Saugatuck Township regulates rentals through a single registration-and-inspection framework that applies to both short-term and long-term operators. Under Article V of the township code (Ord. No. 2016-01), every single- and two-family rental dwelling must obtain a Rental Certificate, pass a fire/safety inspection, and renew on a three-year cycle. [2] There is no permit cap, no zoning-based prohibition on short-term rentals, and no separate STR fee tier — but operators must designate a local agent, submit a parking site plan, and adhere to occupancy and operating rules tied to short-term stays of less than 28 days. [2]

Quick Status Summary


Short-Term Rentals ALLOWED

Short-term rentals (under 28 days) are permitted township-wide where single-family or two-family residential use is permitted. Operators must obtain a Rental Certificate under Article V, pass a fire-safety inspection, designate a local agent, and submit a parking site plan. [2] No permit cap. Initial inspection fee is $550, valid for three years. [3]

Long-Term Rentals ALLOWED

Long-term rentals (28+ days) follow the same Rental Certificate framework as short-term rentals under Article V. [2] Single registration and inspection cycle covers both. $550 initial/three-year inspection fee. [3] No cap or zoning prohibition; standard residential zoning applies.

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Short-term rentals are permitted township-wide wherever single- or two-family residential dwellings are permitted under Chapter 40 (Zoning). Article V regulates rentals as a registration-and-safety framework, not as a zoning use category — there is no separate “short-term rental” or “commercial lodging” district overlay. [2] [6]

Single-family dwellings are permitted by right in the A-1, A-2, R-1, R-2, R-3, and R-4 residential districts, with two-family dwellings additionally permitted in A-1, A-2, and R-1. [6] Bed and breakfast operations are treated separately as a special land use under Section 8.80 and are not the same as a short-term rental under Article V.

Saugatuck Township Zoning Map (amended 3/28/2024)

Click the map to open the Zoning Map page with the printable 36×24 PDF.

2 Registration & Permit Process

Submit the Rental Certificate Application by email to info@saugatucktownshipmi.gov or by mail/in-person to Township Hall (3461 Blue Star Hwy, P.O. Box 100, Saugatuck, MI 49453). The same application covers short-term and long-term rentals; there is no separate STR portal. [4] [11]

Permit termThree years from date of issuance [2]
Renewal deadlineAt least 30 days before expiration, or within 30 days of property sale/transfer [2]
STR-specific itemsLocal agent designation (if owner not local) + parking site plan [2]

The Township issues a provisional Rental Certificate upon application acceptance and inspection scheduling. The final certificate is issued only after the fire-safety inspection passes. [2]

3 Fees & Penalties

The Township’s consolidated fee schedule (effective April 15, 2026) sets a single rental inspection fee that covers the three-year certificate term. [3]

Initial / three-year rental inspection$550
Per re-inspection$200
Investigation fee after 2nd notice$250 (issued 30 days after first notification)
Investigation fee after 3rd notice$300 (issued 30 days after 2nd notice)
Suspension cycle (after violation)1st: 3 months · 2nd: 6 months · 3rd: permanent [2]

Renting a dwelling without a current Rental Certificate is a violation of Article V; permits may be suspended administratively, with notice and an opportunity to be heard before the township board. [2]

4 Inspections & Safety Requirements

The Saugatuck Township Fire District conducts the rental inspection under the International Fire Code as adopted by the Township. [2] Inspections are scheduled within 60 days of the Township accepting a completed application, and a final Rental Certificate is not issued until the inspection passes.

  • Maximum occupancy load: Two persons per bedroom, plus two additional persons per finished level with means of emergency egress (e.g. a functional window), up to a total of 12 persons. [2]
  • Bedroom standard: A bedroom must be at least 70 square feet and no less than 7 feet in any dimension. [2]
  • Inspection cycle: Three years — rental certificates are valid for 36 months from the date of issuance. [2]
  • Re-inspections: Charged at $200 each. Re-inspection may be waived if the owner submits written documentation that corrections have been completed. [2] [3]
5 Operating Rules (Occupancy, Parking, Waste, Agent Duties)

Section 8-108 of Article V applies STR-specific operating rules on top of the general rental registration framework. [2]

  • Parking site plan required. STR applicants must submit a parking site plan depicting available off-street parking; the plan must provide adequate access for emergency vehicles as determined by the fire chief.
  • No street parking within one mile. Occupants in a short-term rental may not park on a public street within one mile of the rental unit. Occupants must acknowledge the number of off-street spaces in writing before the lease begins.
  • Waste disposal. Occupants may not leave trash or refuse in public view except in proper containers, and only between 5:00 a.m. and 9:00 p.m. on scheduled collection days.
  • Five-hour agent remedy duty. Upon township notification of a violation (including by voicemail), the designated local agent must remedy the violation within five hours; failure to do so is itself a violation by the local agent.
  • Maximum occupancy advertising. Owners may not advertise occupancy levels in excess of the permitted load shown on the Rental Certificate.
6 Local Agent / 24-Hour Contact Requirement

If the property owner does not personally qualify as a local agent, the owner must designate one in writing as part of the STR application and authorize the agent to act on the owner’s behalf. [2] The designated agent is the township’s first point of contact for any complaint about the rental.

  • Notice by phone or voicemail counts. The local agent is deemed to have received notice upon receipt of a township voicemail.
  • Five-hour remedy clock. The agent must ensure that the violation is remedied within five hours of notice.
  • Penalty for failure. Failure to remedy within five hours is itself a violation chargeable to the local agent under Article V.
  • Agent Authorization Form: The Township maintains a standalone Agent Authorization Form (2025 PDF) for designating agents.
7 Permit Caps, Moratoriums & Recent Changes

Saugatuck Township does not cap the number of short-term rental permits and has not enacted a moratorium. [2] This is a key difference from the neighboring City of Saugatuck, which adopted Ordinance 240229-B in 2024 imposing a license cap and grandfathering existing STRs. The City and Township are separate jurisdictions.

  • Article V baseline (Ord. No. 2016-01): Adopted January 6, 2016, replacing the prior 2014 framework. [2]
  • Zoning Ordinance overhaul (2024): Saugatuck Township adopted a comprehensive Chapter 40 rewrite, effective with amendments through March 28, 2024. The new zoning ordinance does not add new STR-specific restrictions; rental regulation remains under Article V. [6] [7]
  • Updated forms (May 2025 and later): The Township refreshed all building and rental application forms in May 2025 and again in September 2025 for the Rental Certificate Application. Always use the most recent form. [11]
  • Fee schedule (April 15, 2026): Current consolidated fee schedule adopted April 2026; rental inspection fee held at $550 for the three-year term. [3]
For investors: The Township’s flat $550 every-three-years fee structure is materially less expensive than the per-bedroom annual fees in neighboring Berrien-County STR communities like Chikaming Township. Underwriting models built off Berrien fee assumptions will overstate operating cost in Saugatuck Township.
1 Where LTRs Are Allowed (Zoning)

Long-term rentals (28 days or longer) are permitted township-wide wherever single- or two-family residential dwellings are permitted. Article V regulates LTRs under the same Rental Certificate framework as STRs — there is no separate LTR-only fee or process. [2]

Single-family dwellings are permitted by right in the A-1, A-2, R-1, R-2, R-3, and R-4 districts; two-family dwellings additionally in A-1, A-2, R-1. Multiple-family dwellings (with public water and sewer) are allowed via Planned Unit Development in R-3. [6]

Saugatuck Township Zoning Map (amended 3/28/2024)

Click the map to open the Zoning Map page with the printable 36×24 PDF.

2 Registration & Permit Process

Long-term rental registration uses the same Rental Certificate Application as short-term rentals — submit by email to info@saugatucktownshipmi.gov or by mail/in-person to Township Hall. [4]

  • Application: Rental Certificate Application (2025 fillable PDF)
  • Permit term: Three years from date of issuance. [2]
  • Renewal: At least 30 days before expiration, or within 30 days of property sale/transfer. [2]
  • Exemptions: Family occupancy (rentals among related family members), house-sitting without remuneration, occupancy by the prior owner after sale for 90 days or less, and estate representatives are exempt from registration under ยง8-104. [2]
SubmissionEmail, mail, or in-person to Township Hall
Fee (three-year term)$550 inspection [3]
3 Fees & Penalties

LTRs and STRs share the same fee schedule under Article V. [3]

Initial / three-year rental inspection$550
Per re-inspection$200
Investigation fee after 2nd notice$250
Investigation fee after 3rd notice$300
Suspension cycle3 mo · 6 mo · permanent [2]

Fees apply equally to LTRs — there is no discount for longer-term tenancies. Renting without a current Rental Certificate is a violation regardless of lease length. [2]

4 Inspections & Safety Requirements

The Saugatuck Township Fire District inspects every registered rental (LTR or STR) for compliance with the International Fire Code. [2] Inspections are scheduled within 60 days of application acceptance.

  • Maximum occupancy load (same formula as STR): Two persons per bedroom, plus two per finished level with emergency egress, up to 12 total. [2]
  • Inspection cycle: Three years from issuance. [2]
  • Re-inspection waiver: If the owner submits written documentation that corrections were completed within the violation-notice window, the fire code official may waive re-inspection. [2]
  • Inspector contacts: Building: Leon Lawrence at (269) 857-7721 ext. 108; Electrical: Jeff Nyboer (616) 610-2897; Mechanical/Plumbing: Bob Modreske (616) 477-4940. [12]
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 Michigan Legislature publishes a free Practical Guide for Tenants and Landlords covering leases, security deposits, repairs, and the eviction process. [10] These rules apply equally in Saugatuck Township and are not modified by local ordinance. Tenants in distress can also contact Lakeshore Legal Aid for free civil legal help in Allegan County.

Special Regulations


Saugatuck Township’s Lake Michigan shoreline and Kalamazoo River corridor are subject to state and county overlays that materially affect rental investment underwriting, especially for lakefront and septic-served properties.

โ˜… Floodplain & Kalamazoo River Lowland Construction

Portions of the Township along the Kalamazoo River, Goshorn Lake, and tributary lowlands are subject to FEMA-mapped Special Flood Hazard Areas, governed locally by the Township’s Floodplain Construction Code (Ordinance 2023-02). Construction, substantial improvement, or repair after flood damage in a designated floodplain requires additional approvals on top of the standard building permit. Investors evaluating waterfront or low-lying properties should verify flood-zone status before underwriting capex.

โ˜… Septic & Well (Allegan County Health Department)

Many properties outside the Kalamazoo Lake Sewer & Water Authority (KLSWA) service area rely on private septic and well systems. The Allegan County Environmental Health Division evaluates existing septic and well systems at the request of buyers or lenders before closing — this is the local equivalent of a Time-of-Sale inspection and is essential for older lakefront and rural cottages where failed or undersized systems are a common surprise. [8]

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


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

Thinking about a rental investment in Saugatuck Township?

The Township's flat three-year inspection cycle and no-cap STR posture make it materially different to underwrite than the City of Saugatuck next door. I help investors and homeowners evaluate Allegan-County lakefront, river-corridor, and rural properties against the township-specific rules that decide whether a deal pencils.

Sources & Downloads


  1. 1
    Township geography, postal districts, school districts
    Verified: 2026-05-12
  2. 2
    Saugatuck Township โ€” Article V (Rental Dwelling Ordinance, Ord. 2016-01) https://saugatucktownshipmi.gov/wp-content/uploads/2023/06/ARTICLE_V.pdf
    Full rental ordinance text including STR-specific operating rules, 3-year permit term, suspension cycle
    Verified: 2026-05-12
  3. 3
    Saugatuck Township โ€” Consolidated Fee Schedule (effective 4/15/2026) https://saugatucktownshipmi.gov/wp-content/uploads/2026/04/04152026-Fee-Schedule-FINAL-1.pdf
    Rental Inspection fees: $550 initial/3-year; $200 re-inspection; $250 / $300 investigation fees (page 4)
    Verified: 2026-05-12
  4. 4
    Current Rental Certificate Application form (covers STR and LTR)
    Verified: 2026-05-12
  5. 5
    Visual workflow from application through final certificate issuance
    Verified: 2026-05-12
  6. 6
    Codified zoning ordinance โ€” use chart for residential and commercial districts
    Verified: 2026-05-12
  7. 7
    Saugatuck Township โ€” Zoning Ordinance Final PDF (3/1/2024) https://saugatucktownshipmi.gov/wp-content/uploads/2024/03/Saugatuck-Twp-ZO-Draft-3-1-24-v2.pdf
    Full text including Table 3.30 (residential) and Table 4.30 (commercial/industrial) use regulations
    Verified: 2026-05-12
  8. 8
    Allegan County โ€” Environmental Health Field Services https://www.allegancounty.org/health/environmental-health/field
    Septic and well evaluations on existing systems for buyers and lenders; (269) 673-5415
    Verified: 2026-05-12
  9. 9
    Public parcel lookup for utilities, zoning overlays, and tax info
    Verified: 2026-05-12
  10. 10
    Michigan Legislature โ€” A Practical Guide for Tenants & Landlords https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide landlord-tenant law, leases, eviction process
    Verified: 2026-05-12
  11. 11
    Master list of all current building, rental, and zoning application forms
    Verified: 2026-05-12
  12. 12
    Saugatuck Township โ€” Building & Rental FAQs https://saugatucktownshipmi.gov/departments/building-rental-inspections/faqs/
    Inspector contacts, permit validity, fee structure overview
    Verified: 2026-05-12
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.