Penn Township
Short-term & long-term rental regulations, fees, and investor resources for Cass County, Michigan.
Area Overview
Penn Township is a 36-square-mile civil township in central Cass County, Michigan, with a 2020 Census population of 1,755 [1]. The township surrounds and includes the Village of Vandalia and is home to two of southwest Michigan’s most recognized inland lake communities: Diamond Lake and Donnell Lake. Both lakes have substantial seasonal and year-round housing stock and are the focus of most rental investment in the township [2]. The township also has notable historic significance: the Bonine House and the Bogue House were both stops on the Underground Railroad and remain standing in Penn Township today [2].
Township government is administered from the Penn Township Hall at 60717 S Main Street in Vandalia, with the office staffed part-time. Day-to-day questions are routed to the elected officials directly: Supervisor Oli Olafsson, Clerk Rhonda Barnett, Treasurer Paul Rutherford, and Trustees Roger Leach and Scott Peters [2]. Building, mechanical, plumbing, and electrical permits run through the Penn Township Inspection Departments, with applications listed on the Forms page [3].
What this means for rental investors and homeowners: Penn Township does NOT have a dedicated short-term rental ordinance, a long-term rental registration program, a permit cap, a rental inspection schedule, or a 24-hour-local-agent requirement. STR and LTR activity is governed by (a) the Penn Township Zoning Ordinance, which establishes the use districts but does not separately regulate transient lodging in residential dwellings [4], (b) the Michigan Residential Building Code for the dwelling itself, (c) Van Buren / Cass District Health Department rules for septic and well [5], and (d) state-level landlord-tenant law for long-term leases [6]. There is no codified rental fee schedule and no rental-program point of contact at the township; verification questions go to the Clerk or to Trustee Roger Leach for zoning topics.
Quick Status Summary
Permitted with no STR-specific ordinance, no registration, and no permit cap at the township level. STR use sits inside the standard residential dwelling permission of the Penn Township Zoning Ordinance (Articles 11-13 and the Lake Commercial/Residential District) [4]. Operators must comply with the Michigan Residential Building Code, Van Buren/Cass DHD septic/well rules [5], the State of Michigan 6% Use Tax on transient lodging [7], and applicable Cass County property tax obligations. Lake associations on Diamond Lake and Donnell Lake may impose their own private rental restrictions enforced separately.
Permitted with no LTR-specific ordinance, no rental registration, and no inspection program at the township level. Single-family and two-family dwelling rentals are permitted by right wherever the Zoning Ordinance permits residential dwelling use [4]. Landlord-tenant relationships are governed by Michigan state law (MCL 554.601 et seq.) [6]. Health-related rental complaints are handled by the Van Buren/Cass District Health Department under the District Environmental Health Code [8].
Rental Regulations
Where STRs Are Allowed (Zoning)
STRs are permitted wherever the Penn Township Zoning Ordinance permits a single-family or two-family dwelling [4]. The ordinance does not separately list “short-term rental,” “transient lodging,” or “vacation rental” as a regulated use; transient occupancy of a residential dwelling falls inside the standard residential dwelling permission for the district.
Penn Township is divided into the following zoning districts where residential dwelling use (and therefore STR use) is permitted [4]:
- A — Agricultural District (non-farm residential by right with limits on density)
- A-R — Agricultural-Residential District (single-family dwellings by right; max 2-3 dwelling units per acre depending on sewer)
- R-1 — Low Density Residential District (single-family and two-family dwellings, min 950 sq ft per unit)
- R-2 — High Density Residential District (single-family, two-family, and multi-family)
- R-3 — Mobile Home Park District (mobile/manufactured home sites)
- Lake Commercial/Residential District (R-1 uses permitted by right around Diamond and Donnell Lakes; commercial uses such as marinas and restaurants require a conditional use permit) [4]
Hotels, motels, lodging houses, tourist homes, and boarding houses are listed as their own use category in the Zoning Ordinance parking requirements section [4]; an investor planning a true commercial-lodging operation (multiple rental units in a converted house, signage, on-site reception) should treat that as a separate use and contact Trustee/Zoning Roger Leach before pulling permits.
Registration & Permit Process
There is no STR registration or permit process at the township level. A short-term rental operator does not file an application with Penn Township, does not pay a registration fee, and does not undergo a township STR inspection [3][4].
What an operator does need:
- Building / electrical / plumbing / mechanical permits for any work performed on the dwelling. Penn Township Inspection Departments administer these locally; applications are linked from the township Forms page [3].
- Health Department permits for any new septic system, well, or pool from the Van Buren / Cass District Health Department [5]. The DHD also offers an STR-specific well/septic inspection if a buyer or insurer requires one [9].
- Michigan Use Tax registration with the Michigan Department of Treasury — the State of Michigan imposes a 6% use tax on transient lodging (defined as rental for less than 30 days) [7].
- Lake-association approvals on Diamond Lake or Donnell Lake if the property is subject to private deed restrictions or HOA covenants. The township does not enforce those; lake associations enforce them by lawsuit.
Fees & Penalties
Because Penn Township does not maintain an STR fee schedule, every cost above sits with the township’s Building Department, the county/state agency named, or the Zoning Ordinance enforcement section.
Inspections & Safety Requirements
Penn Township does not conduct rental inspections. Habitability complaints are routed to the Van Buren / Cass District Health Department, which has authority under the District Environmental Health Code to investigate sewage, water-supply, and unsafe-housing complaints and to conduct rental housing inspections when triggered [5][8].
Practical safety duties that still apply to STR operators:
- Smoke and CO alarms. Required by the Michigan Residential Building Code; replace 10-year sealed alarms before they expire and document.
- Egress windows in sleeping rooms. Every bedroom must have a window or door meeting the Michigan emergency-escape-and-rescue requirement.
- Septic capacity. A 3-bedroom septic system rated for ~6 occupants is not designed to support a 12-person STR weekend. Diamond Lake and Donnell Lake cottages are commonly older, with original septic fields sized for seasonal use; pumping intervals and the field’s ability to absorb peak loads matter. Get the most recent inspection records from Van Buren/Cass DHD before underwriting [5].
- Well water quality. Test for nitrates and bacteria before guests arrive; a documented test protects you. The DHD Cass office administers well sampling [5].
- Lead-based paint disclosure. The federal Lead Disclosure Rule (Title X) applies to any pre-1978 dwelling; provide the EPA pamphlet and a written disclosure at booking and at lease.
- Pool fencing. Required by Michigan Building Code if the property has a pool.
Operating Rules (Quiet Hours, Trash, Lake Use)
Penn Township does not publish a stand-alone noise or short-term-rental operating ordinance, so daily-operation rules sit in three places: the township Zoning Ordinance (which controls signs and accessory use), county-level ordinances (recreational marihuana, ORV, golf cart), and state law.
- Signs. Property advertising signs must comply with the Zoning Ordinance sign provisions (Sections 6.21-6.22 for residential and commercial districts) [4]. STR operators with a yard sign or directional signage should keep the sign on-property and within size limits.
- Golf carts & ORVs. Penn Township operates under the Cass County ORV Ordinance and a township Golf Cart Ordinance with a designated road list (Appendix A) — relevant for STR guests who bring or rent recreational vehicles for lake-area transportation [12][13].
- Trash. STR turnover trash is the operator’s responsibility. Penn Township does not provide municipal trash service; arrange private hauler service before listing the property.
- Lake-association rules. Diamond Lake and Donnell Lake associations may have their own rules on dock use, boat launch access, beach use, and noise. Check the property’s lake-association bylaws separately from township ordinances.
- Cass County Sheriff Non-Emergency Dispatch: 269-445-4911 — for noise or disturbance complaints, since Penn Township does not maintain its own noise enforcement.
- Penn Township Volunteer Fire Department: staffed locally; 911 for emergencies.
Local Agent / 24-Hour Contact Requirement
There is no local-agent or 24-hour-contact requirement in Penn Township because there is no STR ordinance to impose one. Out-of-state owners can self-manage or hire a manager without township paperwork.
That said, three practical reasons to designate a local contact anyway:
- Insurance. Most short-term rental insurance carriers want a local contact named on the policy and reachable within 60 minutes of the property.
- Sheriff dispatch. If the Cass County Sheriff is dispatched on a noise or nuisance complaint to a Diamond Lake or Donnell Lake property, having a local agent who can show up shortens the incident.
- Septic and freeze-up risk. Inland-lake cottages on private wells and septic are susceptible to frozen pipes; a manager who can reach the property within 30-60 minutes during a winter shutdown is worth the management fee.
Where LTRs Are Allowed (Zoning)
LTRs (31+ day leases) are permitted wherever the Penn Township Zoning Ordinance permits a single-family or two-family dwelling. Long-term residential leasing is the default residential use; no separate use category applies and no separate township permission is required [4].
Where verification matters — for properties zoned Agricultural (A), Lake Commercial/Residential, Commercial (C), or Industrial Park (I-1, I-2), confirm the underlying residential use is permitted by right or grandfathered before relying on rental income in your underwriting:
- A — Agricultural: non-farm residential is permitted but subject to density limits.
- A-R — Agricultural-Residential: 2-3 dwelling units per acre depending on sewer service.
- R-1 / R-2: standard single-family and two-family dwelling districts — no zoning friction for LTR use [4].
- R-3 — Mobile Home Park: manufactured-home rentals are permitted; rentals also subject to Michigan Mobile Home Commission rules.
- Lake Commercial/Residential: R-1 uses permitted by right; LTR is permitted [4].
- Commercial / Industrial: residential use generally not contemplated — verify with the Zoning Trustee before assuming an LTR conversion is permitted.
Registration & Permit Process
There is no LTR registration program in Penn Township. A landlord renting a single-family or two-family dwelling for 30 days or longer does not register with, license through, or obtain a permit from the township [3][4].
What is required:
- A written lease compliant with Michigan landlord-tenant law (MCL 554.601 et seq.), governing security deposits, repairs, and entry [6].
- Building / electrical / plumbing / mechanical permits for any work performed on the property; applications are on the Penn Township Forms page [3].
- Septic and well compliance per Van Buren / Cass District Health Department rules; if a property changes hands, request the most recent septic evaluation records (the DHD also offers a Home Loan Inspection Application) [5].
- Land Division Application from the township if a parcel is being split prior to development for rental use [3].
- State and federal disclosures — lead-based paint disclosure for pre-1978 dwellings; Truth in Renting acknowledgement; Michigan security-deposit disclosure (a single bank where the deposit is held).
Fees & Penalties
Because Penn Township does not publish a codified rental fee schedule, every applicable cost above sits with the township’s Building Department, the county or state agency named, or the court system.
Inspections & Safety Requirements
The township does not conduct LTR habitability inspections. Tenant-driven housing complaints are routed to the Van Buren / Cass District Health Department under the District Environmental Health Code [8] and are investigated when triggered [5].
Practical implications for landlords:
- Pre-rental due diligence: verify septic-system age and capacity, check well water for nitrates and bacteria, and confirm working smoke and CO detectors. The DHD’s complaint pathway is real; a sewage backup report will trigger a county inspection.
- Lead-based paint: federal Lead Disclosure Rule (Title X) applies to any pre-1978 dwelling regardless of whether the township inspects.
- Egress from sleeping rooms: the Michigan Building Code requires every sleeping room to have a window or door that meets emergency-escape-and-rescue requirements.
- Smoke / CO alarms and electrical panels: tenants who report missing detectors or visible electrical hazards can trigger DHD action.
- Lake-association covenants: Diamond and Donnell Lake associations may impose pre-rental requirements (boat slip use, dock storage) enforced separately from any township process.
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, not by Penn Township ordinance. The State Bar of Michigan publishes a free Practical Guide for Tenants and Landlords covering leases, security deposits, repairs, and the eviction process [6].
- Security deposits: capped at 1.5x monthly rent; landlord must provide written itemization within 30 days of move-out and disclose the bank where the deposit is held.
- Repairs: Michigan law implies a covenant of habitability; tenants can pursue rent escrow or self-help in narrow circumstances after written notice.
- Evictions: filed in Cass County 4th District Court, 60296 M-62, Cassopolis. A judgment of possession requires a court order, not a township action.
- Lockouts and utility shutoffs: are illegal in Michigan; a landlord cannot self-help-evict.
Official Resources
Property Tax Treatment
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Buying or investing in Penn Township?
Penn Township covers Vandalia, Diamond Lake, and Donnell Lake with no STR ordinance, no rental registration, and no permit cap at the township level. That makes it attractive for cabin and lake-house investors, and it also means you have to do the diligence yourself on zoning, septic, building permits, and lake-association covenants. I help investors and homeowners pencil out the right way through it.
Sources & Downloads
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1Penn township, Cass County, Michigan – Data Commons profile https://datacommons.org/place/geoId/26027634602020 Census population (1,755) and demographic data for Penn Township.Verified: 2026-05-09
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2Penn Township – Official Website (Home, About, Officials) https://www.penntwpmi.org/Township office address (60717 S Main Street, Vandalia), general phone 269-476-2173, elected officials directory (Olafsson, Barnett, Rutherford, Leach, Peters), historical context (Bonine House, Bogue House, Underground Railroad).Verified: 2026-05-09
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3Penn Township – Forms (Building, Electrical, Plumbing, Mechanical, Land Division) https://www.penntwpmi.org/formsTownship forms index. Confirms there is no STR or LTR registration form on the township site; only building, mechanical, electrical, plumbing, plan review, and land division applications.Verified: 2026-05-09
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4Penn Township Zoning Ordinance (PDF) https://www.penntwpmi.org/_files/ugd/3a17dc_785abe60641249fb8679378d300c7213.pdfAdopted 1976, revised 1983, amended as listed in Appendix A. Establishes A, A-R, R-1, R-2, R-3, C, I-1, I-2, and Lake Commercial/Residential districts. Does not separately regulate short-term rental of residential dwellings; transient lodging falls inside the standard residential dwelling permission for the district.Verified: 2026-05-09
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5Van Buren / Cass District Health Department – Water & Septic page (with STR Inspection) https://vbcassdhd.org/environmental-health/water-septic/Septic permitting, well inspections, short-term rental inspection program (where required by local code), home loan inspections; serves Cass County via the Dowagiac office at 269-782-0064.Verified: 2026-05-09
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6Michigan Legislature – A Practical Guide for Tenants & Landlords https://www.legislature.mi.gov/publications/tenantlandlord.pdfStatewide landlord-tenant law, lease requirements, security deposit cap and itemization timing, eviction summary proceedings, repairs and habitability.Verified: 2026-05-09
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7Michigan Department of Treasury – Use Tax https://www.michigan.gov/taxes/business-taxes/sales-use-tax/use-tax-1Statewide 6% Use Tax on transient lodging (rental for less than 30 days) applies to STR operators in Penn Township.Verified: 2026-05-09
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8Van Buren / Cass District Environmental Health Code https://vbcassdhd.org/wp-content/uploads/2024/11/Environmental-Health-Code_VBCDHD.pdfDistrict health code rules enforced for septic, water, sewage, and unsafe-housing complaints in Cass County, including those at rental properties.Verified: 2026-05-09
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9Van Buren / Cass DHD – Apply & Pay Online (Environmental Health Forms) https://vbcassdhd.org/environmental-health-form/Online application for short-term rental well/septic inspections, residential well permits, and septic system construction permits.Verified: 2026-05-09
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10Penn Township Building Permit Fee Schedule (PDF) https://www.penntwpmi.org/_files/ugd/3a17dc_a1b290ca7dca4894b76e07aa02d2aa98.pdfPenn Township building permit fee schedule covering construction, electrical, mechanical, and plumbing work.Verified: 2026-05-09
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11Van Buren / Cass DHD – Cass Office Contact https://vbcassdhd.org/about/locations/Cass County DHD office in Dowagiac at 302 S. Front Street, phone 269-782-0064; primary intake for septic/well permits and rental-related complaints in Penn Township.Verified: 2026-05-09
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12Cass County ORV Ordinance https://www.casscountymi.org/1394/Cass-County-ORV-OrdinanceCass County off-road vehicle ordinance; relevant to STR guests bringing or renting ORVs around Diamond Lake / Donnell Lake.Verified: 2026-05-09
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13Penn Township Golf Cart Ordinance & Approved Roads (Appendix A) https://www.penntwpmi.org/_files/ugd/3a17dc_cddfc567a0f2494aa7303df148f7f267.pdfTownship golf cart ordinance plus designated road list (Appendix A) for legal golf cart operation.Verified: 2026-05-09
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14Penn Township Land Division Application (PDF) https://www.penntwpmi.org/_files/ugd/3a17dc_725aaa8f6ad7464bbd592d67d4ff2f52.pdfTownship application required to split a parcel; fee per township schedule.Verified: 2026-05-09
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15Cass County, MI – Property Tax Search https://www.casscountymi.org/1347/Property-Tax-SearchCounty property tax search portal; Cass County Treasurer at 269-445-4468 handles delinquent property taxes.Verified: 2026-05-09

