Rental Investment Guide

Allegan


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

Updated May 2026

Area Overview


The City of Allegan is the seat of Allegan County, sitting on the Kalamazoo River roughly 35 miles southwest of Grand Rapids and 25 miles inland from the Lake Michigan shoreline at Saugatuck. It’s a small downtown river city of about 5,000 residents, with a historic Main Street, the Allegan County Fair, and a steady draw of antiquers and day-trippers from the Grand Rapids and Kalamazoo metros. Housing stock is a mix of older single-family homes, a handful of small multifamily buildings near downtown, and newer subdivisions on the city edges.

Allegan does not have a dedicated short-term rental ordinance. Instead, every non-owner-occupied dwelling rented for compensation โ€” long-term or short-term โ€” must be entered in the city’s rental registry and hold a current Certificate of Compliance under the Rental Inspection Program (Chapter 7, Article II of the City Code) [1]. The program was restarted in October 2023 under contract with Professional Code Inspections of Michigan (PCI) [2]. In March 2025 the City Council took up Ordinance 528, which would have rewritten the program and shifted inspection fees from the city to landlords; it was tabled 7-0 at the public hearing on March 24, 2025, leaving the current ordinance in force [3]. The new citywide Zoning Ordinance adopted July 14, 2025 (Ord 529) treats Bed-and-Breakfasts as a Special Exception Use in residential districts and otherwise has no separate short-term-rental use category [4].

Quick Status Summary


Short-Term Rentals LIMITED

There is no dedicated short-term rental ordinance in the City of Allegan, but any STR is still a ‘rental unit’ under Chapter 7, Article II โ€” the operator must register, hold a current Certificate of Compliance, and submit to PCI inspection [1]. The 2025 Zoning Ordinance has no STR use category; B&Bs require a Special Exception Use permit from the Planning Commission [4]. Operators should expect zoning verification on a parcel-by-parcel basis before listing.

Long-Term Rentals ALLOWED

Long-term rentals are allowed in any residentially zoned district [4] subject to the citywide Rental Inspection Program: rental registry entry, Certificate of Compliance, and 3-year periodic inspection cycle by PCI under Chapter 7, Article II [1]. Under the current (pre-528) ordinance, the city pays the inspection fee schedule; this is the policy that Ordinance 528 attempted to change before being tabled in March 2025 [3].

Rental Regulations


1 Where STRs Are Allowed (Zoning)

The 2025 Zoning Ordinance (Ord 529, adopted 7/14/2025) does not define a ‘short-term rental’ use category [4]. A standalone STR (no on-site owner, whole-house rental, no breakfast service) is therefore neither expressly permitted nor expressly prohibited by district โ€” it sits in the same legal posture as any other rental dwelling and is governed by the Rental Inspection Program plus the principal use of the parcel.

Bed-and-Breakfasts are explicitly listed as a Special Exception Use in the TN-1 Traditional Neighborhood, TN-2 Transitional Neighborhood, and MDR Mixed Density Residential districts and require Planning Commission approval under Articles 23 and 24 [4]. Hotels, Inns, and Resorts are commercial-district uses.

For any specific property: pull the zoning district from the official zoning map, then confirm STR-style operation with Lori Castello, the city’s Zoning Administrator (PCI), before listing or purchasing on STR-cashflow assumptions.

๐Ÿ“„ Open the Zoning Map (PDF, dated 7/31/2025)

2 Registration & Permit Process

Submit the rental registry information in writing to the City of Allegan Building Official, who works through PCI in Dorr [1] [2]. Allegan does not currently maintain a public online rental application portal; the program operates through contract with Professional Code Inspections of Michigan, who schedules inspections and issues Certificates of Compliance under the city ordinance.

Where to submitCity of Allegan, 231 Trowbridge Street, or via PCI at 1575 142nd St, Dorr, MI 49323
Required registry infoAddress & unit; Tax ID; number/type of rental units; owner name, address, phone, email; agent info if different [1]
Agent residency ruleLocal agent must reside in Allegan County or an immediately adjoining county [1]
Initial inspectionMust be requested within 14 days of registry submission [1]
Certificate of Compliance term3 years [1]
Periodic re-inspectionOwner must request at least 90 days before certificate expires [1]
Transfer on saleCertificate transferable if sale closes within 90 days of issuance AND buyer notifies city within 30 days of sale [1]
For investors: A buyer cannot necessarily inherit the seller’s Certificate of Compliance unless the sale closed within 90 days of the certificate’s issuance date and the buyer notifies the city within 30 days. Otherwise, expect to re-register and re-inspect on close. Verify the certificate’s date with the City Clerk before underwriting.
3 Fees & Penalties

Fee posture is unusual: the current Rental Inspection Program ordinance places inspection-fee responsibility on the city, not the landlord โ€” that is precisely the language Ordinance 528 (tabled March 24, 2025) tried to flip [3]. Until and unless a new ordinance is adopted, the fee schedule referenced in the city’s adopted budget is published as ‘Per PCI’ for Rental Inspection Registration, Inspection, and Re-Inspection [5].

Registration feePer PCI fee schedule (current ordinance puts the cost on the city, not the landlord) [5] [3]
Inspection feePer PCI fee schedule [5]
Re-inspection after a failed inspectionCharged per PCI fee schedule; required before a certificate is issued [1]
Fee for failure to schedule an inspectionCharged per fee schedule adopted by City Council; no inspection until paid [1]
Penalty โ€” operating without a CertificateMunicipal civil infraction; city may revoke certificate and seek court order to evict occupants until compliance [1]

The fee schedule itself is set by City Council resolution and confirmed by PCI on a per-inspection basis. Call PCI’s Dorr office or City Hall for a current quote before scheduling.

4 Inspections & Safety Requirements

The standard the inspector uses is the 2015 International Property Maintenance Code (IPMC), adopted by reference [6], plus the current fire prevention, building, and zoning codes. PCI performs the inspection on the city’s behalf [2].

Common items the building official will check:

  • Working smoke detectors and CO detectors as required by code.
  • No peeling exterior paint, no exposed wiring, no missing electrical covers (typical IPMC pass/fail items).
  • No open or expired building permits on the parcel.
  • Egress windows in bedrooms; functional heating; no roof/structural defects.
  • If a pool is present, it must be fenced consistent with the building code.

Multifamily dwellings: for buildings with 20 or fewer rental units, every unit is inspected; for buildings with more than 20 units, PCI inspects 20 randomly selected units. Each unit with a violation triggers an additional unit added to the inspection sample [1].

If the property fails inspection: PCI issues a notice of violation with a timeframe to correct. The certificate can be revoked, and if conditions are hazardous the building official may require the unit be vacated. The city can also seek to escrow rents under state law where a certificate has been suspended [1].

5 Operating Rules (Occupancy, Quiet Hours, Parking)

There is no separate STR Good-Neighbor / occupancy ordinance in Allegan. STR operators are bound by the same general city ordinances as any other resident: noise & nuisance, property maintenance (IPMC 2015), trash and refuse, and the parking provisions of the underlying zoning district [4] [6].

  • Occupancy: the 2015 IPMC sets minimum-area-per-occupant standards (typical Michigan municipal default โ€” every habitable room must have at least 70 sq ft of floor area, and bedrooms occupied by more than one person require additional area per occupant). Operators advertising occupancy levels in excess of what the IPMC allows risk a code-enforcement complaint.
  • Parking: off-street parking must satisfy the parcel’s zoning-district minimums; on-street parking is governed by the city’s general traffic and parking ordinances.
  • Noise & nuisance: general city noise/nuisance ordinances apply citywide. Disturbances can be reported by neighbors to the Allegan Police Department or via the city’s Report a Concern channel.
  • Tenant complaints & code-enforcement reports: the City of Allegan publishes a Tenant Complaint Form for issues with a rental property โ€” useful for both tenants and neighbors of an STR with persistent problems.
6 Local Agent / 24-Hour Contact Requirement

If the owner of a rental unit does not personally manage it, an Agent must be designated in writing โ€” and that agent must reside in Allegan County or an immediately adjoining county (Barry, Kalamazoo, Van Buren, or Ottawa) [1]. An owner who lives locally can serve as the agent. The agent must be authorized to oversee the unit, respond to calls from renters and the city, and accept service of legal papers on the owner’s behalf.

For out-of-state STR operators, this is the practical constraint: you cannot operate a long-distance whole-home STR in the City of Allegan without lining up a local agent before registration. Property managers in Allegan County qualify.

7 Ordinance 528 and Recent Changes

Allegan’s rental rules are in mid-update โ€” read this before underwriting.

  • October 2023: the city restarted its dormant Rental Inspection Program under a fresh contract with PCI, after identifying inconsistencies with the older ordinance text [2].
  • February 24, 2025: staff first presented draft Ordinance 528 to the City Council, proposing a full rewrite of Chapter 7, Article II and a shift of inspection-fee responsibility from the city to the landlord [3].
  • March 10, 2025: first reading of Ord 528 held; public hearing and second reading scheduled for March 24 [3].
  • March 24, 2025: at the public hearing, Council voted 7-0 to table Ordinance 528 [7]. The motion to table came after public comment from local landlords and an Allegan-area resident. As of this guide’s verification date the prior version of the ordinance remains in effect.
  • July 14, 2025: separately, the city adopted a full Zoning Ordinance overhaul (Ord 529 โ€” 2025 Zoning Ordinance) [4]. This is the document that now governs the use-table side of the rental question.
โš  Investor takeaway: a future Allegan City Council could revive an Ordinance-528-style rewrite that puts inspection fees back on landlords. Build a contingency for that into any pro forma where Allegan rental margins are tight.
1 Where LTRs Are Allowed (Zoning)

Long-term residential rentals are permitted in any district that permits the underlying residential dwelling use โ€” TN-1 Traditional Neighborhood, TN-2 Transitional Neighborhood, and MDR Mixed Density Residential as principal uses, plus mixed-use downtown districts where dwellings are listed as permitted or special-exception uses [4]. The 2025 Zoning Ordinance does not impose an extra license tier on LTRs beyond what already applies to the dwelling itself.

Verification matters for: commercial / industrial parcels (residential use may not be permitted), nonconforming uses (a long-vacant LTR may have lost its grandfathered status), and any parcel near downtown where mixed-use districts have specific upper-floor residential rules.

๐Ÿ“„ Open the Zoning Map (PDF, dated 7/31/2025)

2 Rental Registry & Certificate of Compliance

Submit the rental registry information in writing to the City of Allegan Building Official โ€” administered by PCI [1] [2]. Every dwelling unit that is non-owner-occupied or rented for compensation must be in the registry and hold a current Certificate of Compliance before being let for occupancy.

Required registry infoAddress & unit number, Tax ID, number/type of rental units, owner contact info, agent info if applicable [1]
Initial inspectionMust be requested within 14 days of registry submission (new dwellings or new-to-rental conversions) [1]
Certificate of Compliance term3 years from issuance [1]
RenewalOwner must contact building official at least 90 days before expiration [1]
Update on changesOwner must notify city within 30 days of any change to registry info [1]
Transfer on saleCertificate transfers only if sale closes within 90 days of issuance AND buyer notifies city within 30 days; the transferred certificate expires on the date originally stated [1]
3 Fees & Penalties

Under the current (pre-528) Rental Inspection Program ordinance, inspection-fee responsibility sits with the city rather than the landlord โ€” that is the specific provision Ord 528 (tabled March 24, 2025) sought to reverse [3]. The city’s adopted fee schedule lists Rental Inspection Registration, Inspection, and Re-Inspection as ‘Per PCI’ [5].

Registration feePer PCI schedule (currently borne by the city) [5] [3]
Inspection feePer PCI schedule [5]
Re-inspection after a failed inspectionPer PCI; payable before issuance of a certificate [1]
Failure-to-schedule feePer fee schedule adopted by Council; no inspection until paid [1]
Renting without a CertificateMunicipal civil infraction; certificate revocable; city may seek a court order to vacate occupants [1]

Confirm a current fee quote with PCI’s Dorr office before scheduling, especially if Council revisits Ord 528 in the next budget cycle.

4 Inspections & Safety Requirements

Standard: 2015 International Property Maintenance Code (IPMC), referenced by the city [6], plus current fire prevention, building, and zoning codes [1]. Inspection is performed by PCI on behalf of the building official.

What inspectors look for on long-term rentals:

  • Working smoke and CO detectors; functional egress windows in bedrooms.
  • No peeling paint, exposed wiring, or missing electrical covers โ€” classic IPMC items.
  • Functional heating, hot water, and weatherproofing.
  • No open or expired building permits associated with the parcel.
  • Pool fencing if a pool is present on the property.
  • Right of entry: owner or agent must accompany the inspector and allow full access; failure to permit entry permits the city to revoke a certificate or pursue an administrative warrant [1].

Failed inspections: notice of violation specifies what must be corrected and the timeframe. If a unit is occupied and the violation is serious, the building official decides whether the unit must be vacated or repairs can proceed in place. The city can suspend the certificate and, in some cases, seek to escrow rents [1].

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 [8]. These statewide rules apply equally in the City of Allegan and are not modified by local ordinance.

Local tenants in Allegan also have a dedicated path for habitability complaints: the city’s Tenant Complaint Form routes property-condition complaints to the building official, who can order a non-periodic compliance inspection [9]. If a complaint inspection finds a violation, the inspection fee is borne per the program rules; if it passes, no fee is owed [1].

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


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

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

Buying, selling, or investing in Allegan?

Allegan's rental rules are unusually nuanced right now โ€” no dedicated STR ordinance, a Rental Inspection Program in mid-rewrite, and a new 2025 Zoning Ordinance. I help investors and homeowners read the city's rules the same way the building official reads them, before you sign.

Sources & Downloads


  1. 1
    City of Allegan โ€” Code of Ordinances (amlegal) https://codelibrary.amlegal.com/codes/alleganmi/latest/overview
    Chapter 7 Article II Rental Inspection Program โ€” registry, certificate of compliance, inspection cycle, agent requirement, transfer rules, penalties
    Verified: 2026-05-10
  2. 2
    PCI of Michigan โ€” Dorr Office (Allegan building inspections) https://www.pcimi.com/forms/dorr-office/
    Confirms PCI handles Allegan building & rental inspections from the Dorr office at 1575 142nd St
    Verified: 2026-05-10
  3. 3
    City of Allegan โ€” Council Meeting Packet 3/10/2025 (Ord 528 first reading) https://www.cityofallegan.org/03-10-2025%20Regular%20Meeting%20Packet.pdf
    Full text of proposed Ord 528 amending Chapter 7 Article II, background on the 2023 program restart with PCI, the city-pays-fees issue, and the fee schedule reference ('Per PCI')
    Verified: 2026-05-10
  4. 4
    City of Allegan โ€” Zoning Ordinance (Ord 529, adopted 7/14/2025), via Planning & Zoning page https://www.cityofallegan.org/departments/planning.php
    Current zoning ordinance. Defines Bed & Breakfast as Special Exception Use in TN-1, TN-2, MDR; no STR use category. NOTE: the city's direct 'ZO 2025.pdf' was unpublished sometime after Dec 2025 and 404s as of 6/7/2026; relinked to the official Planning & Zoning host page until the adopted PDF is re-posted.
    Verified: 2026-06-07
  5. 5
    City of Allegan โ€” Adopted Fee Schedule (in 3/10/2025 packet) https://www.cityofallegan.org/03-10-2025%20Regular%20Meeting%20Packet.pdf
    Lists Rental Inspection Registration, Inspection, and Re-Inspection fees as 'Per PCI'
    Verified: 2026-05-10
  6. 6
    International Property Maintenance Code 2015 https://codes.iccsafe.org/content/IPMC2015
    The property-maintenance standard the City of Allegan references for rental inspections
    Verified: 2026-05-10
  7. 7
    City of Allegan โ€” Council Meeting Packet 4/14/2025 (Ord 528 tabled) https://www.cityofallegan.org/04-14-2025%20Regular%20Meeting%20Packet.pdf
    Confirms 7-0 vote to table Ord 528 at the 3/24/2025 public hearing; minutes appear in the 4/14 packet
    Verified: 2026-05-10
  8. 8
    Michigan Legislature โ€” A Practical Guide for Tenants & Landlords https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide landlord-tenant law: leases, security deposits, eviction process
    Verified: 2026-05-10
  9. 9
    City of Allegan โ€” Tenant Complaint Form https://www.cityofallegan.org/Tenant%20Complaint%20Form-updated.pdf
    City-published form for habitability or rental-program complaints; routes to building official for non-periodic inspection
    Verified: 2026-05-10
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.