Rental Investment Guide

Montague


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

Updated May 2026

Area Overview


The City of Montague sits at the northern tip of White Lake in Muskegon County, just inland from Lake Michigan and roughly 60 miles northwest of Grand Rapids. Housing is a mix of year-round single-family homes, lake-adjacent cottages, and downtown residences along Ferry Street, with the 22-mile Hart-Montague Bicycle Trail State Park drawing seasonal visitors through the warmer months.

Both short-term and long-term rentals are permitted under a single rental registration framework in Chapter 18, Article VI of the City Code [1], adopted March 7, 2018. The defining feature of the Montague rules is the city’s split definition: a Short-Term Rental is any dwelling rented for fewer than 120 days per year and is bound by extra operating conditions, while a Long-Term Rental is any dwelling rented for 120 days or more per year and is treated as a standard residential use [1]. Registration runs in two-year cycles at a flat $50 per building [2], and there is no city-wide permit cap on either rental type.

Quick Status Summary


Short-Term Rentals CAPPED (120 DAYS/YR)

Allowed in residential districts with rental registration, but each property is capped at 120 rental days per calendar year by definition [1]. Crossing that threshold reclassifies the dwelling as a long-term rental. Additional STR conditions apply (on-site parking only, residential exterior appearance, noise/odor limits, and registration certificate must be posted in the front window) [1]. $50 registration fee per building, valid two years [2].

Long-Term Rentals ALLOWED

Permitted citywide in residential districts with rental registration. Defined as any dwelling rented for 120 days or more annually [1]. No cap, no annual inspection cycle, and no city-imposed lease minimum. $50 registration fee per building, valid two years [2].

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Short-term rentals are permitted in residential districts citywide, subject to the operating conditions in Sec. 18-254 [1]. There is no separate “commercial lodging” classification; an STR is a residential dwelling use that happens to be rented short-term. For commercial, industrial, or mixed-use parcels, the underlying residential dwelling use itself must be permitted in that district.

The City of Montague Zoning Ordinance (effective January 1, 2018) governs district boundaries and use permissions [3]. Specific by-district permissions aren’t reliably summarized in machine-readable form. For any specific property, verify the parcel’s zoning district on the map below, then confirm residential dwelling use with the Zoning Administrator before applying.

๐Ÿ“„ Open the City of Montague Zoning Map (PDF)

2 Registration & Permit Process

Submit the Rental Registration Application by mail or in person to City Hall, 8778 Ferry Street, Montague, MI 49437 [2]. No online portal. The form covers both STR and LTR applicants with a checkbox to indicate classification.

Submission pathMail or in person to City Hall
Fee$50 per building (regardless of unit count) [2]
Registration termTwo years from approval [1]
New rentalsMust register before allowing occupancy [1]
TransferabilityNot transferable without written consent of the Zoning Administrator [1]
Ownership changeNew owner must re-register within 60 days [1]

Required information on the application: rental address, number of units, maximum occupancy, owner contact details, property manager / local agent details (if applicable), and verification that all City taxes, fines, and fees are current [1]. Family-occupied dwellings (grandparent, parent, child, current spouse of the owner) are exempt from registration but the owner must provide proof of the relationship [1].

3 Fees & Penalties
Rental registration (STR or LTR)$50 per building, valid two years [2]
Number of units in buildingDoes not affect fee โ€” flat $50
Violation classificationMunicipal civil infraction [1]
Enforcement authorityCity Zoning Administrator, City Manager, and law enforcement [1]

Failing to register a rental dwelling is itself a violation [1]. Renewal can also be withheld if the property has unaddressed violation notices [1]. Specific civil-infraction dollar amounts are set under the City’s general schedule of fines (Chapter 1, General Provisions) [4] โ€” verify the current amount with the City Clerk before relying on a figure.

4 Inspections & Safety Requirements

Chapter 18, Article VI does not specify a mandatory pre-occupancy or routine rental inspection cycle in the ordinance text [1]. The application packet does not require an inspection report at submission. However, the City reserves the right to inspect rental records and the dwelling itself when responding to a complaint or suspected violation [1].

Separate from the rental registration program, all construction and alterations require permits through the White Lake Area Building Inspection Board (a joint board with Montague Township and Whitehall Township) [5]. Required Inspections are documented in a published PDF.

Pre-occupancy rental inspection requiredNot specified in ordinance โ€” confirm with Zoning Administrator
Complaint-driven inspectionAllowed under Sec. 18-253 [1]
Building permit inspectionsRequired for construction work โ€” White Lake Area Building Inspection Board [5]
5 Operating Rules (120-Day Cap, Parking, Trash, Noise)

Short-term rentals must meet every condition in Sec. 18-254 [1]. Missing any one of these disqualifies the use as an STR under the ordinance:

  • 120-day annual cap. Occupancy by paying renters cannot exceed 120 days per year. Beyond 120 days, the dwelling is by definition a long-term rental and must register as such [1].
  • Registration certificate posted. The City-issued certificate must be displayed in the front window during occupancy. No off-site signage advertising the rental is permitted [1].
  • On-site parking only. All vehicles (including RVs and trailers) must park on the property. Parking must meet City zoning standards for location, size, ingress/egress. No street parking [1].
  • Trash containers. Garbage receptacles may be roadside no more than 1 day before pickup and must be moved within 1 day after collection. Storage area for receptacles must meet City zoning standards [1].
  • Residential appearance. The exterior of the dwelling cannot have anything other than a residential appearance when located in a residential district [1].
  • No nuisance noise, odor, or vibration discernible beyond the property line [1]. Chapter 46 (Offenses) sets the city-wide noise prohibition [6].
6 Local Agent Requirement (Out-of-Area Owners)

If the property owner does not reside within 30 miles of the City of Montague, the owner must designate a responsible local agent who can address issues that arise [1]. The agent’s name, address, cell phone, and email must be included on the registration application [2].

This rule applies to all rental classifications (STR and LTR alike) and is aimed at investor-owned and out-of-state-owned properties. The City uses the agent’s contact information when issuing notices, orders, or complaint follow-ups.

ThresholdOwner residing more than 30 miles from City of Montague
Information required on formLocal agent name, address, cell phone, email [2]
7 Transfer of Rental Registration on Sale

Rental registrations do not automatically transfer when a property is sold. Sec. 18-252(g) prohibits transfer of a registration certificate without the written consent of the City’s Zoning Administrator [1]. A new owner must re-register the dwelling within 60 days of assuming ownership [1].

โš  For investors: When underwriting an STR or LTR purchase in Montague, do not assume the seller’s registration conveys. Plan to re-register through the Zoning Administrator within 60 days of closing, pay a new $50 fee, and re-meet the STR conditions if rentals will be short-term. Confirm the current registration status of the parcel with the Zoning Administrator before closing.
1 Where LTRs Are Allowed (Zoning)

Long-term rentals follow standard residential zoning. If a parcel is zoned for residential dwelling use under the City Zoning Ordinance [3], LTRs are permitted with rental registration โ€” no separate classification applies.

Where verification matters: For commercial, industrial, or mixed-use-zoned properties, the underlying residential dwelling use itself must be permitted by right (or grandfathered) in that district. Verify the parcel’s zoning district on the map below, then confirm residential dwelling use with the Zoning Administrator.

A Long-Term Rental in Montague is defined as a dwelling providing semi-permanent accommodations to non-owners for 120 days or more annually [1]. There is no city-imposed minimum lease length beyond that classification threshold; standard Michigan landlord-tenant law applies to lease terms and security deposits.

๐Ÿ“„ Open the City of Montague Zoning Map (PDF)

2 Registration & Permit Process

Submit the same Rental Registration Application used for STRs โ€” by mail or in person to City Hall, 8778 Ferry Street, Montague, MI 49437 [2]. Check the “Long-Term Rental” box and list the number of dwelling units and maximum occupancy.

Submission pathMail or in person to City Hall
Fee$50 per building [2]
Registration termTwo years from approval [1]
New rental setupRegister before allowing occupancy [1]
Renewal triggerTwo years from registration approval date

If the owner does not reside within 30 miles of Montague, the application must designate a local agent with contact details [1].

3 Fees & Penalties
LTR registration$50 per building, valid two years [2]
Re-registration on ownership changeWithin 60 days of taking ownership [1]
Inaccurate information on formViolation of Article VI [1]
Failure to registerMunicipal civil infraction [1]
Renewal denialMay be withheld if outstanding violation notices [1]

Specific civil-infraction dollar amounts are set in the City’s general fine schedule (Chapter 1) [4] โ€” confirm the current amount with the City Clerk before relying on a figure.

4 Inspections & Record Keeping

Montague’s rental ordinance does not require a routine pre-occupancy or periodic inspection of LTR units in its text [1]. The City may inspect rental records or the dwelling itself when responding to a complaint or suspected violation under Sec. 18-253 [1].

Record keeping is mandatory. The owner or local agent must obtain and maintain the name, address, and contact information for each occupant for at least two years, and update it for each new tenant [1]. Records must be conveyed to any successor owner or agent.

Building permit work (electrical, mechanical, plumbing, structural) is inspected through the White Lake Area Building Inspection Board [5]. The Required Inspections checklist describes which trades trigger which inspections.

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 booklet, A Practical Guide for Tenants and Landlords, covering leases, security deposits, repairs, and the eviction process [7]. These rules apply equally in Montague and are not modified by city ordinance.

Michigan Legal Help also maintains the do-it-yourself eviction and tenant-rights toolkits used by district courts statewide [8].

Special Regulations


Montague properties along White Lake and within walking distance of Lake Michigan may sit in flood, septic, or water-front zones that affect what you can buy and how you can rent. Investors should review these in addition to the rental rules.

โ˜… Septic & Wells (Muskegon County Health Department)

Most newer construction inside the City of Montague is on municipal water and sanitary sewer, but some older parcels and edge-of-city lots use private septic and well systems. The Muskegon County Health Department’s Environmental Health program permits and inspects on-site septic and private wells [9].

Existing-system evaluations are available for a fee and are recommended for any buyer of a property using septic or well water โ€” failed or undersized septic systems are a common surprise on older waterfront cottages and can be expensive to remediate.

โ˜… Flood Zones (Chapter 42)

The City of Montague enforces Chapter 42 of the Code of Ordinances for development within FEMA-mapped flood areas [10]. White Lake frontage and low-lying parcels near tributaries should be checked on the FEMA map before purchase or significant renovation.

Official Resources


Property Tax Treatment


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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€” Muskegon County


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


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Sources & Downloads


  1. 1
    City of Montague โ€” Chapter 18, Article VI: Rental Dwelling Registration https://cityofmontague.org/wp-content/uploads/2018/02/Chapter_18_ARTICLE_VI_Rental_Registration.pdf
    Adopted March 7, 2018 โ€” defines STR (<120 days/yr) and LTR (>=120 days/yr), registration term, transferability, local agent rule, STR conditions, violations
    Verified: 2026-05-15
  2. 2
    Application form with $50 fee, two-year term, submission to City Hall, STR conditions reprinted on back
    Verified: 2026-05-15
  3. 3
    Effective January 1, 2018 โ€” district boundaries and residential use definitions
    Verified: 2026-05-15
  4. 4
    Code framework including general municipal civil-infraction fine schedule
    Verified: 2026-05-15
  5. 5
    White Lake Area Building Inspection Board โ€” Brochure https://cityofmontague.org/wp-content/uploads/2024/04/WLABIB_Brochure_20240404.pdf
    Joint building inspection board for Montague City, Montague Twp, and Whitehall Twp
    Verified: 2026-05-15
  6. 6
    City of Montague โ€” Chapter 46 Offenses & Miscellaneous Provisions https://cityofmontague.org/wp-content/uploads/2023/04/Chapter_46_OFFENSES_AND_MISC_PROVISIONS_20230417.pdf
    City-wide noise/nuisance prohibitions applicable to all residences including rentals
    Verified: 2026-05-15
  7. 7
    Michigan Legislature โ€” A Practical Guide for Tenants and Landlords (PDF) https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide tenant-landlord reference (leases, deposits, evictions)
    Verified: 2026-05-15
  8. 8
    Michigan Legal Help โ€” Housing Resources https://michiganlegalhelp.org/resources/housing
    DIY eviction defense and tenant-rights toolkits used in Michigan district courts
    Verified: 2026-05-15
  9. 9
    Muskegon County โ€” Septic Permits & Evaluations https://co.muskegon.mi.us/1042/Septic-Permits-Evaluations
    County Environmental Health program for septic permits and existing-system evaluations
    Verified: 2026-05-15
  10. 10
    Floodplain development rules โ€” relevant for White Lake frontage and low-lying parcels
    Verified: 2026-05-15
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.