Otsego

Otsego’s zoning ordinance does not define a distinct “Short-Term Rental” use — STR feasibility is parcel-specific and turns on whether the zoning district treats transient stays as a permitted residential use ^[4].

The City’s residential districts are RA, R-B, RC, and MHP; non-residential districts include PO, C-1, CBD, GI, and PUD ^[4]. Whether overnight transient rental activity is allowed by right in any of these districts is not stated in machine-readable form on the City’s site, so for any specific property, verify the zoning district on the map below and confirm with the City Manager that an STR-style operation is acceptable before underwriting an STR strategy.

Click the link to open the full Zoning Map PDF.

Whether operating short- or long-term, every rental property in Otsego must register with the City and pass an inspection cycle ^[2][3]. Otsego has no STR-only permit, so the path is the same as the LTR registration:

• Submit the Rental Registration / Licensing form to City Hall at 117 E. Orleans Street, Otsego, MI 49078 ^[5].
• Schedule an inspection with Professional Code Inspections (PCI) when the City sends you an inspection-cycle letter ^[3].
• Keep registration current with the owner’s contact information — ownership changes require an updated registration.

Otsego does not publish a specific dollar-amount rental registration or inspection fee schedule on its website ^[3][5]. Inspections are conducted by Professional Code Inspections (PCI) under contract with the City, and fees are invoiced directly by PCI based on the inspection scope and any re-inspections required.

For confirmed pricing, contact PCI at the number below before scheduling. Property owners who ignore a registration letter or refuse inspection are in violation of the ordinance and will be issued a municipal civil infraction citation ^[2][3].

Otsego rental inspections use the 2012 International Property Maintenance Code (IPMC) checklist, adopted by reference under Ord. 155 ^[6]. The inspection checklist covers exterior structure, interior structure, light/ventilation/occupancy limits, plumbing, mechanical, electrical, and fire safety ^[7].

Common pass/fail items include working smoke and carbon monoxide detectors on each floor, GFCI protection in bathrooms and kitchens, intact stair handrails and guardrails, weatherproof exterior, no peeling lead-era paint on pre-1978 homes, and unobstructed egress windows in basement bedrooms. Inspections are conducted by Professional Code Inspections (PCI) under contract with the City, on a 3-year cycle ^[3].

All rentals in Otsego are bound by the City’s general ordinances on noise/nuisance, blight, fireworks, dangerous buildings, and parking ^[1]. The City does not maintain a separate STR-specific rule set.

• Fireworks (Ord. 165 and Ord. 153) regulate ignition, discharge, and hours of consumer fireworks within city limits ^[8][9].
• Blight ordinance (Ord. 161) covers exterior property maintenance, junk, and unlicensed/inoperable vehicles ^[1].
• RV parking (Ord. 170) limits where and how recreational vehicles can be parked on residential property ^[1].
• Front-yard parking (Ord. 169) restricts parking surfaces and locations in residential front yards ^[1].
• Outdoor burning is prohibited within city limits except for cooking fires and supervised recreational fires (5 PM-midnight) in fireproof containers no larger than 3 feet across ^[1].

Otsego’s rental ordinance requires the property owner’s current contact information stay on file with the City at all times ^[2][3]. If the owner is out of state or unreachable in person, designating a local property manager or agent (in writing, with phone and email) is the practical way to keep registration in good standing and to receive inspection notices.

• City Hall (rental questions): 269-692-3391
• City Manager (Aaron Mitchell): amitchell@cityofotsego.org
• Otsego Police (non-emergency): 269-692-6111
• Police / Fire emergencies: 911

Otsego has no permit cap and no STR moratorium. The only recent change of consequence is the 2025-2026 restart of the Rental Registration & Inspection program after a roughly 10-year pause ^[3]. Key dates and context:

• July 1, 2014: Ordinance 156 (rental registration & inspection) and Ordinance 155 (adoption of IPMC 2012) took effect ^[2][6].
• ~2014–2024: The program was paused after a Michigan Supreme Court ruling added procedural requirements the City needed to revise its program to meet ^[3].
• Late 2025: The City partnered with Professional Code Inspections (PCI) and began notifying rental property owners that the program was restarting ^[3].
• 2026 onward: Rental owners are receiving registration and inspection notices on a rolling basis; ignoring a letter from PCI will result in a citation under Ord. 156.