Rental Investment Guide

Coloma


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

Updated April 2026

Area Overview


The City of Coloma is a small Paw Paw Lakeโ€“area city of about 1,400 residents in northern Berrien County, Michigan, incorporated within but politically separate from Coloma Charter Township. The City is compact (roughly one square mile of residential and small-commercial land along Paw Paw Street and North Street) and is served by the Paw Paw Lake Wastewater Department, the Coloma Police Department, and a part-time Building Inspector. Housing stock is almost entirely single-family homes on City lots; City addresses use only three numeric digits before the street name (e.g., 253 North St.), which is how residents tell City from Township parcels apart.

Unlike Coloma Charter Township, the City of Coloma has not adopted a dedicated short-term rental ordinance, does not operate a rental-registration program, and does not issue STR or LTR permits [1][2]. City Commission began drafting an STR framework in March 2024 with City Attorney Jessica Fette, but no final STR ordinance has been adopted and published in the City's Code of Ordinances (hosted on Municode) as of this verification [3][4]. Rental operators in the City therefore work within Chapter 66 Zoning, Michigan state law, and the County's transient-lodging tax โ€” and should verify at the parcel level with City Hall before buying or listing.

Quick Status Summary


Short-Term Rentals UNCLEAR

The City of Coloma has not adopted a short-term rental ordinance. Chapter 66 of the City Code (Zoning) does not list short-term or transient rental as a named permitted use in any residential district, and the City's Permits page lists only Building, Electrical, Plumbing, Mechanical, and Fence permits โ€” no rental-registration permit is issued. The City Commission opened the topic in a March 11, 2024 workshop with the City Attorney but no adopted STR ordinance has been published. Because zoning silence is not an affirmative allowance under Michigan case law, operators should verify at the parcel level with City Hall before advertising an STR. Coloma Charter Township (which surrounds the City) has its own STR ordinance that applies to Township parcels, not City parcels.

Long-Term Rentals ALLOWED

Long-term rentals (30+ day leases) are permitted in the City wherever residential dwelling use is permitted by Chapter 66 Zoning. The City of Coloma does not operate a rental-registration program, does not issue LTR certificates of compliance, and does not conduct periodic rental inspections. Michigan's Truth in Renting Act and the City's adopted Property Maintenance / nuisance ordinances set the baseline. Water and sewer service is through the Paw Paw Lake Wastewater Department and the City Water Department; landlords should confirm account titling with City Hall at closing.

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Chapter 66 of the City of Coloma Code of Ordinances is the Zoning chapter, and it does not name short-term or transient rental as a permitted use in any residential district [2]. The City operates a small, single-jurisdiction zoning scheme with traditional residential, business and industrial districts. Because Chapter 66 is silent on STR, the conservative read under Michigan zoning practice is that short-term rental is not expressly permitted in City residential districts โ€” it is neither banned by name nor approved by name.

The practical answer for any specific City parcel is get a written zoning opinion from City Hall before you buy or list. The City is roughly one square mile; parcel-level confirmation is quick when you ask in writing. Note that Coloma Charter Township, which surrounds the City, has a fully codified STR ordinance โ€” make sure you are confirming which jurisdiction actually governs the address (City addresses use only three numeric digits before the street name; Township addresses are longer) [1].

Berrien County GIS parcel viewer

Use the Berrien County GIS viewer to confirm City vs. Township jurisdiction for any specific parcel.

2 Registration & Permit Process

There is no City of Coloma short-term rental registration or permit program. The City’s Permits page lists only Building, Electrical, Plumbing, Mechanical, and Fence permits โ€” no rental, STR, or lodging permit is issued by the City [4]. Because no STR ordinance has been adopted, operators have only the general paths available to them:

Path 1 โ€” Written zoning opinionEmail City Hall with the parcel address and ask whether STR is a permitted use in that Chapter 66 district
Path 2 โ€” Commission meetingAttend a Regular Commission Meeting (1st and 3rd Mondays, 7:30 p.m.) to request clarification on STR status
Path 3 โ€” Ordinance amendment requestRequest that the Commission codify the STR framework it began drafting in March 2024 [3]

The City Commission opened the STR topic at a March 11, 2024 workshop with City Attorney Jessica Fette and agreed to revisit the issue at a subsequent meeting. No adopted ordinance has been published on Municode as of this verification [3].

3 Fees & Penalties

No STR-specific fees are published by the City of Coloma because no STR ordinance has been adopted. The fees that may come into play for any rental-related construction, inspection, or enforcement activity are the City’s general permit fees administered through the Inspectors department, with the Building Inspector paid 85% of the permit fee as a contracted inspector [4].

Building PermitSee City Building Permit form
Electrical PermitSee City Electrical Permit form
Plumbing PermitSee City Plumbing Permit form
Mechanical PermitContracted through Walt DeVisser
Fence PermitSee City Fence Permit form

Specific fee amounts are printed on each permit form; the permits page directs applicants to call City Hall at (269) 468-6606 for assistance filling them out. If the Commission adopts the STR framework it drafted in March 2024 [3], a fee schedule will follow โ€” until then, STR operators are exposed to general zoning enforcement rather than a codified STR penalty structure.

4 Safety & Property Maintenance

The City of Coloma enforces property-maintenance and nuisance standards through the City Code of Ordinances on Municode and the Coloma Police Department. Rental properties โ€” whether short-term or long-term โ€” must comply with:

  • The City’s General Offenses chapter (Chapter V of the pre-codified Charter materials) for noise, nuisance, and public-order violations [1].
  • Michigan Residential Code smoke and carbon-monoxide detector requirements.
  • Chapter 66 Zoning setbacks, lot coverage, and accessory-use provisions [2].
  • Paw Paw Lake Wastewater Department and City Water Department billing โ€” unpaid utilities can lien the property regardless of occupant.

Violations are reported to the Coloma Police Department (non-emergency) or to City Hall. As a compact one-square-mile city, complaint response is typically fast but informal.

5 State-Level & Tax Obligations

Even without a City STR ordinance, Michigan state-level and Berrien County obligations apply to any short-term rental operator in the City of Coloma:

  • 6% State Use Tax on rentals of 30 days or less โ€” collected and remitted to the Michigan Department of Treasury (Airbnb/Vrbo collect automatically for bookings through their platforms; direct bookings are the operator’s responsibility).
  • Berrien County 5% Accommodations Excise Tax on transient (<30 day) lodging, administered by the Berrien County Treasurer [5].
  • Michigan Principal Residence Exemption (PRE) cannot be claimed on a property used primarily as an investor STR.
  • Michigan sales/use tax license via the Department of Treasury if collecting tax directly.
1 Where LTRs Are Allowed (Zoning)

Long-term rentals (30+ day leases) are permitted anywhere residential dwelling use is permitted by Chapter 66 Zoning [2]. The City’s residential districts permit residential occupancy by right, whether owner-occupied or leased long-term. There is no City-level distinction between an owner-occupied home and a long-term leased home for zoning purposes. The City’s compact one-square-mile footprint means most single-family residential parcels allow LTR use as of right, but parcel-level verification with City Hall is still the cleanest move before closing or listing.

Berrien County GIS parcel viewer

Use the Berrien County GIS viewer to confirm zoning district and City vs. Township jurisdiction for any parcel.

2 Registration & Permit Process

There is no City of Coloma long-term rental registration program. The City does not require landlords to register rental properties, submit a landlord affidavit, obtain a certificate of compliance, or schedule periodic rental inspections. This is a markedly lighter regulatory footprint than nearby jurisdictions such as the Village of Stevensville or the City of Bridgman, both of which maintain active rental-registration regimes.

Michigan state law governs the landlordโ€“tenant relationship directly through the Truth in Renting Act (Public Act 348 of 1972) and the state’s security-deposit rules. Disputes are handled through the 5th District Court of Berrien County, not the City.

3 Safety & Property Maintenance

Because there is no City rental-inspection program, compliance is enforced on a complaint basis through the Coloma Police Department and City Hall. The baseline obligations for a long-term rental inside City limits are:

  • Chapter 66 Zoning compliance โ€” setbacks, accessory structures, and home-occupation rules still apply to rental parcels [2].
  • General Offenses and nuisance provisions of the City Code (noise, property maintenance, uncut grass) [1].
  • Michigan Residential Code smoke and carbon-monoxide detectors.
  • Paw Paw Lake Wastewater and City Water account in good standing at closing โ€” unpaid utilities are an owner liability, not a tenant one.

Complaints and violations are routed through the Coloma Police Department (non-emergency) or City Hall at (269) 468-6606.

4 Utilities, Water & Sewer

Rental properties inside City limits are served by the City of Coloma Water Department (potable water) and the Paw Paw Lake Wastewater Department (sanitary sewer treatment, a multi-jurisdiction facility operated by the City). Billing flows through City Hall; the online Pay Water and Sewer Bills Here link on the City homepage routes to the City’s payment portal. Because Michigan law treats unpaid water/sewer balances as a lien on the property regardless of occupancy, landlords should:

  • Confirm the water/sewer account is titled to the owner (not the tenant) before closing, or accept the lien exposure.
  • Obtain a final-read letter from City Hall at closing for any property change of ownership.
  • Budget for Paw Paw Lake Wastewater quarterly rates, which are set by the Wastewater Authority separate from the City general fund.
5 Assessments, Taxes & the PRE

The City of Coloma’s Assessor’s office handles property valuation and the Principal Residence Exemption (PRE) certification that determines whether a parcel qualifies for the 18-mill school-operating reduction. For a long-term rental:

  • A non-owner-occupied LTR is not eligible for the PRE โ€” the owner must file a Request to Rescind PRE (Form 2602) with the City Assessor when converting from homestead to rental.
  • Annual property taxes are billed in July (summer) and December (winter) by the City Treasurer.
  • Berrien County’s 5% Accommodations Excise Tax does not apply to long-term (30+ day) leases โ€” only to transient lodging [5].

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.

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Evaluating a property in or near the City of Coloma?

The City of Coloma's light regulatory footprint โ€” no STR ordinance, no rental registration โ€” is an investor opportunity and a risk at the same time. I help buyers compare City of Coloma parcels against Coloma Charter Township (which has a fully codified STR ordinance), Paw Paw Lake shoreline properties, and the wider Berrien County tourism market with a clear read on current rules and where they're likely to tighten.

Sources & Downloads


  1. 1
    City of Coloma โ€” Code of Ordinances (Municode)
    https://library.municode.com/mi/coloma/codes/code_of_ordinances?nodeId=COORCOMI
    Full codified City ordinances. No short-term rental chapter is present in the codified body as of this verification. Chapter V of the pre-codification Charter materials covers General Offenses.
    Verified: 2026-04-20
  2. 2
    City of Coloma โ€” Chapter 66 Zoning (Municode)
    https://library.municode.com/mi/coloma/codes/code_of_ordinances?nodeId=COOR_CH66ZO
    Zoning chapter governing residential, business, and industrial district regulations. Short-term / transient rental is not listed as a named permitted or special use in any district.
    Verified: 2026-04-20
  3. 3
    Herald-Palladium โ€” Coloma to revamp short-term rental ordinances (March 2024)
    https://www.heraldpalladium.com/communities/coloma/coloma-to-revamp-short-term-rental-ordinances/article_62ff69fb-75dc-5de1-95ae-b290dbcb9ebe.html
    Reports a March 2024 Commission workshop with City Attorney Jessica Fette drafting STR regulations for the City. The Commission agreed to revisit at a subsequent meeting at 119 N. Paw Paw St. No adopted ordinance has been published on Municode since.
    Verified: 2026-04-20
  4. 4
    City of Coloma โ€” Permits page
    https://www.cityofcoloma.org/permits
    Source for the list of City-issued permits: Building, Electrical, Plumbing, Mechanical (via Walt DeVisser), and Fence. No rental, STR, or lodging permit is issued by the City. Building Inspector is part-time; other inspectors are contracted at 85% of the permit fee.
    Verified: 2026-04-20
  5. 5
    Berrien County Treasurer โ€” Accommodations Excise Tax
    https://www.berriencounty.org/819/Treasurer
    County-level 5% accommodations excise tax applies to transient (<30 day) lodging in Berrien County municipalities including the City of Coloma.
    Verified: 2026-04-20
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.