Rental Investment Guide

Monterey Township


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

Updated May 2026

Area Overview


Monterey Township is an inland agricultural township in north-central Allegan County, about 35 miles southwest of Grand Rapids and 25 miles north of Kalamazoo. The township covers roughly 36 square miles, is bordered by Hopkins, Wayland, Salem and Heath townships, and shares ZIP codes 49328 (Hopkins), 49419 (Hamilton) and 49010 (Allegan) [11]. Land use is dominated by farmland, woodlots, scattered single-family homes, and a handful of small lakes including Dumont Lake. There is no incorporated village center inside the township.

Monterey Township does not operate a stand-alone short-term-rental registration program. STR-style overnight lodging is regulated through the Zoning Ordinance (revised July 2024) as a “Tourist home or bed and breakfast” use, which is permitted only by Special Use Permit in the AG-1 Agricultural and R-1 Rural Estate districts and is capped at six (6) bedrooms per dwelling [1]. Long-term rentals (30+ days) are not separately licensed by the township โ€” they follow Michigan landlord-tenant law and the parcel’s underlying zoning. Building permits, plan review, and code enforcement are contracted out to Professional Code Inspectors (PCI) of Dorr [2].

Quick Status Summary


Short-Term Rentals SUP REQUIRED

Monterey Township has no general STR ordinance. Short-term overnight lodging (“tourist home or bed and breakfast”) is treated as a zoning use that requires a Special Use Permit from the Planning Commission, is limited to 6 bedrooms, and is permitted only in AG-1 and R-1 districts [1]. Investors should plan on Planning Commission review before listing.

Long-Term Rentals ALLOWED

Long-term rentals (30+ days) are allowed in every district that permits residential dwelling use [1]. Monterey Township does not operate a rental-registration or routine-inspection program โ€” landlords follow Michigan Housing Law, the Michigan Building/Residential Code, and parcel-level zoning. Tenant rights, lease terms, and eviction follow state law.

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Short-term overnight rentals operate in Monterey Township only as a zoning-permitted "Tourist home or bed and breakfast" use, which is a Special Use in the AG-1 Agricultural District (Section 5.03) and the R-1 Rural Estate District (Section 6.03) and is capped at six (6) bedrooms per dwelling [1]. The Zoning Ordinance defines a Bed-and-Breakfast Inn as a dwelling in which overnight accommodations not exceeding 14 continuous days are provided to transient guests for compensation by the resident owners [1]. The R-2, R-3, C-1, and I-1 districts do not list tourist home / bed-and-breakfast as a permitted or special use.

There is no stand-alone short-term-rental ordinance and no rental-registration program; the Planning Commission’s Special Use Permit process is the only township-level entitlement path for an STR-style operation.

Monterey Township Hall โ€” open Zoning Map PDF

Click to open the official Monterey Township Zoning Map (PDF).

2 Special Use Permit Process (Tourist Home / B&B)

The Planning Commission is the approving body. Tourist home / bed-and-breakfast applications are filed with the Township Clerk and are reviewed under the Special Use standards in Section 10.18 of the Zoning Ordinance [1].

Approving bodyMonterey Township Planning Commission
FilingTownship Clerk (paper, by appointment) [4]
Required findings (Section 10.18)Compatibility with surrounding uses, adequate access & off-street parking, no nuisance impacts, and compliance with all area, height and yard regulations of the underlying district [1]
Maximum bedrooms6 bedrooms per dwelling
Maximum stay14 continuous days per guest (per definition of Bed-N-Breakfast Inn)
Public hearingRequired โ€” notice to property owners within 300 feet and published in the local newspaper
Planning Commission meetings2nd Monday of odd-numbered months at 7:00 PM [4]
For investors: Build at least 60-90 days into your due-diligence timeline for SUP review. Confirm with the Township Clerk that the parcel is in AG-1 or R-1 before submitting โ€” SUPs in other districts will not be entertained.
3 Fees & Penalties

Monterey Township does not publish a standing Special Use Permit fee schedule on its website. The application fee, public-hearing notice costs, and any required escrow for engineering review are set by the Township Board and must be confirmed with the Township Clerk at the time of application [4]. Building-permit fees (separate from the SUP) are set and collected by Professional Code Inspectors of Dorr (the township’s contracted building department) [2].

SUP application feeSet by Township Board โ€” confirm with Clerk
Public-hearing notice costPass-through; mailing & newspaper publication paid by applicant
Building permit (alterations to add B&B)Per PCI Dorr fee schedule [2]
Zoning Ordinance violationsMunicipal civil infractions โ€” fine plus costs per Section 10.32 of the Zoning Ordinance [1]
Continuing violationsEach day a violation continues is a separate offense [1]
4 Operating Rules (Occupancy, Quiet Hours, Parking)

Because there is no STR-specific ordinance, an approved Tourist Home / B&B operates under the conditions of its Special Use Permit plus the general standards in the Zoning Ordinance [1]:

  • Length of stay: No guest stay may exceed 14 continuous days (per the Bed-N-Breakfast Inn definition in Section 3.02).
  • Bedroom cap: Maximum 6 bedrooms per dwelling.
  • Resident-owner requirement: The definition contemplates accommodations "by the owners and residents therein" โ€” investor-owned remote operations should expect Planning Commission scrutiny on this point.
  • Parking: Off-street parking must satisfy the Section 10 parking standards for the use type. The Planning Commission may impose additional on-site parking conditions as part of the SUP.
  • Noise: The Zoning Ordinance’s noise standard caps continuous sound at 40 dB(A) at residential property lines, with limited allowances for short-term events such as severe wind storms or utility outages [1].
  • Fireworks & nuisance: Michigan’s Fireworks Safety Act and the township’s general nuisance authority apply. Allegan County Sheriff handles after-hours complaints.
  • Signage: The Zoning Ordinance limits accessory signs for home occupations and Special Use businesses โ€” verify any proposed signage with the Township Zoning Inspector prior to installation.
5 Inspections & Safety Requirements

Monterey Township does not perform routine STR inspections. The compliance touch-points are independent of any local STR program and apply to any habitable dwelling used for lodging:

  • Building/zoning inspections for additions, conversions, or new construction โ€” performed by Professional Code Inspectors of Dorr on behalf of the township [2]. Required for any permitted alteration tied to a B&B SUP.
  • Septic & well inspections for properties not served by public sewer/water โ€” handled by the Allegan County Health Department, Environmental Health Division (3255 122nd Ave., Suite 200, Allegan, MI 49010; 269-673-5415) [5]. Existing-system evaluations are commonly required by lenders on point-of-sale and are highly recommended before underwriting an STR purchase.
  • Smoke and CO detectors per the Michigan Residential Code: working smoke alarms in every sleeping room, outside each sleeping area, and on every floor; carbon-monoxide alarm on each floor with fuel-burning appliances.
  • Egress: Every sleeping room must have a code-compliant emergency egress window or door.
  • Fire extinguishers: At least one ABC-rated extinguisher on each floor is best-practice for transient lodging and is commonly required as a SUP condition.
6 Other Permitting Pathways & Local Contacts

Because Monterey Township contracts out building enforcement and shares many functions with the county, investors should expect to interact with several agencies:

  • Township Supervisor โ€” Henry Reinart: First point of contact for zoning interpretation and SUP pre-application questions [4].
  • Township Clerk โ€” Megan Frank: Receives SUP applications, issues meeting notices, maintains records [4].
  • Township Treasurer โ€” Julie DeHaan: Property-tax payments; rental income may shift the parcel’s taxable status if homestead exemption is affected [4].
  • Planning Commission Chair โ€” Scott Boeve: SUP review and recommendations [4].
  • Building Department โ€” Professional Code Inspectors (PCI) of Dorr: (616) 877-2000. Issues all building, electrical, mechanical and plumbing permits in the township [2].
  • Allegan County Environmental Health: 269-673-5415. Septic and well permits and existing-system evaluations [5].
  • Allegan County Equalization / Property Records: Parcel lookup and assessment history via the Allegan County Parcel & Tax Map Viewer [6].

All township office visits are by appointment only โ€” contact the appropriate officer to set up a meeting [4]. As of May 2026, board and Planning Commission meetings are held at the Monterey United Methodist Church (3022 130th Ave.) until repairs to the Township Hall are complete (target: June 1, 2026) [4].

1 Where LTRs Are Allowed (Zoning)

Long-term rentals (30+ days) are allowed wherever the Zoning Ordinance permits residential dwelling use [1]. Monterey Township’s residential districts include R-1 Rural Estate, R-2 Low Density Residential, R-3 Medium Density Residential, and R-4 Mobile Home Park. The AG-1 Agricultural District also permits single-family dwellings. There is no separate long-term-rental licensing classification; LTRs follow the same use rules as owner-occupied dwellings in the same district.

What to verify before underwriting: Confirm the parcel’s district on the Zoning Map below, then confirm with the Supervisor or Zoning Inspector that the structure is a legally established dwelling (no open building permits, no use grandfathering issues, septic and well capacity matches the bedroom count).

Monterey Township Hall โ€” open Zoning Map PDF

Click to open the official Monterey Township Zoning Map (PDF).

2 Registration & Permit Process (LTR)

Monterey Township does not operate a stand-alone long-term-rental registration or licensing program. There is no annual application, no per-unit registration fee, and no scheduled rental inspection [1]. The operational compliance path for an LTR landlord in Monterey Township is:

  1. Confirm zoning: Verify the parcel permits residential dwelling use in its district (AG-1, R-1, R-2, R-3, or R-4).
  2. Building permits closed: Make sure there are no open or expired building permits on the parcel via PCI Dorr [2].
  3. Septic & well capacity: For properties not on public utilities, confirm the existing system is sized for the intended bedroom count via Allegan County Environmental Health [5]. A lender-required septic evaluation is the most common trigger.
  4. Property tax / homestead: If the property had a Principal Residence Exemption (PRE), rescind it within 90 days of the property no longer being the owner’s principal residence via the Allegan County Equalization Department [7].
  5. Lease & tenant disclosures: Follow Michigan Truth in Renting Act and standard lease-disclosure requirements (lead-based-paint disclosure for pre-1978 housing, security-deposit notice, etc.).

Tenant complaints about habitability or property maintenance are handled on a complaint-driven basis by the township-contracted code official (PCI Dorr) and, where applicable, by the Allegan County Health Department.

3 Inspections & Safety Standards

There is no routine LTR inspection cycle in Monterey Township. Inspection authority is complaint-driven and exercised under the Michigan Building Code and Michigan Residential Code, enforced locally by PCI Dorr [2]. Common LTR baseline obligations that still apply:

  • Working smoke alarms in every sleeping area, outside each sleeping area, and on every floor [8].
  • At least one carbon-monoxide alarm on each floor with fuel-burning appliances [8].
  • Code-compliant emergency egress window or door from each sleeping room.
  • No peeling lead-based paint in pre-1978 dwellings (EPA RRP and federal disclosure rules apply).
  • Functioning heat, hot water, plumbing, and electrical systems.
  • Septic system sized to the bedroom count and not in failure (Allegan County Health Dept. enforcement) [5].
  • Closed building permits โ€” no open or expired permits on the property.
4 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 & Landlords covering leases, security deposits, repairs, and the eviction process [9]. Monterey Township does not modify these rights by local ordinance, but PCI Dorr enforcement actions (property-maintenance code, blight, nuisance) can run in parallel with civil landlord-tenant proceedings [2].

Eviction cases for Monterey Township properties are heard in the 57th District Court in Allegan [10]. Tenants and landlords without counsel can access self-help resources through the Allegan County Legal Assistance Center (ACLAC).

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.

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STRs Capped/Limited
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Buying, selling, or investing in Monterey Township?

I help investors and homeowners navigate short-term and long-term rental rules across Allegan County and the rest of southwest Michigan โ€” including the Special Use Permit pathway that decides whether a Monterey Township property pencils out as an STR.

Sources & Downloads


  1. 1
    Monterey Township Zoning Ordinance (Revised July 2024) https://www.montereytownship.org/resources/ordinance_2024.pdf
    Section 3.02 (Bed-N-Breakfast Inn definition, 14-day max stay); Section 4.01 (district list); Section 5.03 / 6.03 (Tourist home or B&B as Special Use, 6-bedroom cap in AG-1 and R-1); Section 10.18 (Special Use standards); Section 10.32 (violations & penalties)
    Verified: 2026-05-12
  2. 2
    Monterey Township Zoning/Permits Page https://www.montereytownship.org/zone.html
    Confirms building/zoning permits are handled by Professional Code Inspectors (PCI) of Dorr at (616) 877-2000
    Verified: 2026-05-12
  3. 3
    Official zoning districts map referenced from the township Zoning/Permits page
    Verified: 2026-05-12
  4. 4
    Monterey Township Boards & Officials https://www.montereytownship.org/board.html
    Confirms township phone 269-793-2014, identifies Supervisor Henry Reinart, Clerk Megan Frank, Treasurer Julie DeHaan, Planning Commission chair Scott Boeve; lists meeting schedule and current meeting location at Monterey UMC during hall repairs
    Verified: 2026-05-12
  5. 5
    Allegan County Environmental Health โ€” Forms & Permits https://www.allegancounty.org/health/environmental-health/forms-permits
    Septic and well construction permits, existing-system evaluations; office at 3255 122nd Ave., Suite 200, Allegan, MI 49010; phone 269-673-5415
    Verified: 2026-05-12
  6. 6
    Authoritative parcel boundary, ownership, and tax viewer maintained by Allegan County GIS
    Verified: 2026-05-12
  7. 7
    Online access to township property records, assessment data, and PRE history
    Verified: 2026-05-12
  8. 8
    Michigan Smoke Alarm & CO Detector Requirements (LARA MI Prevention) https://www.michigan.gov/lara/bureau-list/bfs/miprevention/alarms
    Michigan Bureau of Fire Services โ€” smoke alarm and carbon-monoxide alarm placement requirements for dwellings
    Verified: 2026-05-12
  9. 9
    Michigan Practical Guide for Tenants & Landlords https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Michigan Legislature publication summarizing landlord-tenant rights, security deposits, and the eviction process
    Verified: 2026-05-12
  10. 10
    Court of jurisdiction for summary-proceedings evictions on Monterey Township properties
    Verified: 2026-05-12
  11. 11
    Monterey Township, Michigan โ€” Wikipedia https://en.wikipedia.org/wiki/Monterey_Township,_Michigan
    Township area (36.0 sq mi), 2020 population (2,436), ZIP codes (49010 / 49328 / 49419), area code 269
    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.