Rental Investment Guide

Parchment


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

Updated May 2026

Area Overview


Parchment is one of Kalamazoo County’s smallest cities, a community of roughly 1,800 residents packed into less than a square mile along the Kalamazoo River, immediately north of the City of Kalamazoo. It earned its name and its nickname, the Paper City, from the Kalamazoo Paper Company mill that anchored the local economy for most of the twentieth century; that former mill site survives today as its own zoning category, the Mill PUD, alongside the city’s residential, commercial, and industrial districts.[4]

For rental investors, Parchment reads as an affordable-entry pocket of the greater Kalamazoo market. The housing stock is mostly older single-family homes and small multi-family buildings, and the rental activity that follows is overwhelmingly long-term tenancy rather than vacation lodging. The city actively regulates that long-term market: its Rental Housing Code requires every rental dwelling to be registered, inspected, and certified before it is leased.[3] Short-term rentals are a different story. Parchment has no STR ordinance at all, and its zoning code never defines a short-term rental or vacation rental as a use, leaving the bed and breakfast inn as the only recognized short-stay business.[5]

Parchment keeps its ordinances, fee schedule, and city forms current through its official website and the Municode code library, which was last codified through Ordinance No. 229 in October 2024.[1][9] The Rental Housing Code itself dates to Ordinance No. 207, adopted December 19, 2016, and has been the backbone of the city’s landlord oversight ever since.[3] A small staff handles rentals, zoning, and assessing from a single City Hall office at 650 S. Riverview Drive.[14] Before committing to any deal, confirm a parcel’s zoning, tax, and sewer status on the Kalamazoo County parcel viewer, and verify current rules directly with the city, since STR rules in particular should be treated as subject to change.[11][2]

Quick Status Summary


Short-Term Rentals NO STR ORDINANCE

Parchment has no short-term-rental ordinance, no STR permit, and no STR registration program. The zoning code does not define a short-term rental or vacation rental as a use; the only transient-lodging use it recognizes is a bed and breakfast inn, a permitted use in the R-A residential district subject to zoning Section 12.16.[6] Because the code is silent on conventional Airbnb-style rentals, their legal status is unsettled and should be confirmed with the city’s zoning administrator before you buy.[2]

Long-Term Rentals ALLOWED

Long-term rentals are well established and clearly regulated in Parchment. The city’s Rental Housing Code requires every rental dwelling to be registered with the city, to designate a local responsible agent, and to obtain a Certificate of Compliance for each rented unit.[3] Annual registration costs $123 per property plus $1.75 per unit, and a standard rental inspection runs $88 per unit.[7]

Rental Regulations


๐Ÿ—บ๏ธ Where STRs Are Allowed (Zoning)

Parchment’s zoning ordinance does not list short-term rentals as a use, so no zoning district explicitly permits or forbids them, and STR legality has to be verified parcel by parcel with the city.[4] The code’s only transient-lodging use is a bed and breakfast inn, and that is allowed only in the R-A One-Family Residential District as a permitted use subject to zoning Section 12.16.[6]

The city is divided into residential districts (R-C, R-A one-family, R-T residential transitional, and R-M multiple-family), three commercial districts (C-1, C-2, C-3), an I-M industrial district, and the Mill PUD on the former paper-mill site.[4] A conventional whole-house Airbnb is not named in any of those district use lists. That silence cuts two ways: the city has not banned it, but a zoning administrator could also decide it is not a permitted residential use. Before you buy, get that interpretation in writing.

To check a specific property, pull its zoning district from the official zoning map, then confirm the use directly with the zoning administrator at City Hall.[10][2]

๐Ÿ“‹ Is There a Short-Term Rental Permit or Registration?

No. Parchment has no short-term-rental permit, no STR ordinance, and no STR-specific registration program, so there is nothing to apply for and no STR fee to pay.[4][13]

That does not always mean do nothing. Parchment’s Rental Housing Code applies to any rental dwelling, and the city defines that term broadly enough that a property rented to non-owner-occupants can fall under it.[3] If your short-term rental is operated without the owner living on site, expect the city to treat it as a rental dwelling that must be registered, given a local responsible agent, and issued a Certificate of Compliance, the same path long-term landlords follow. A genuine bed and breakfast is named explicitly in the Rental Housing Code and must register as well.[3]

Because this is an interpretation question, the safe move is a short call to City Hall: ask whether your specific STR plan triggers Rental Housing Code registration before you list the property.[2]

๐Ÿ›๏ธ The Bed & Breakfast Inn Option

A bed and breakfast inn is the one transient-lodging business Parchment’s zoning code actually recognizes, and it is a permitted use in the R-A One-Family Residential District subject to zoning Section 12.16.[6] If you want a clearly legal short-stay operation in Parchment, this is the established route.

The defining condition is owner-occupancy. The code treats a bed and breakfast inn as a use subordinate to an owner-occupied single-family dwelling, not a standalone hotel.[5] In practice that means you live in the home and rent rooms to guests, rather than renting the entire house while living elsewhere. A bed and breakfast must also register under the Rental Housing Code and carry a Certificate of Compliance like any other rental.[3]

Confirm the Section 12.16 conditions, typically items such as off-street parking, signage limits, and the number of guest rooms, against the zoning text and with the zoning administrator before committing.[4][2]

๐Ÿ’ต Fees & Penalties

There is no short-term-rental fee in Parchment, because there is no STR program. But if your STR is treated as a rental dwelling or a bed and breakfast, the Rental Housing Code fee schedule applies.[7] The figures below come from the city’s published 2026 fee schedule:

  • Annual rental registration: $123 per property, plus $1.75 per unit.[7]
  • Bed & breakfast / hotel-type inspection: $121 per building, plus $16 per guest room.[7]
  • Standard rental inspection: $88 per unit, or $61 per unit if you schedule early, before the certificate expires.[7]
  • Operating an unregistered rental: $234 violation; failing to update a registration is $78.[7]

Penalties escalate quickly if they are ignored. Rental Housing Code violations are municipal civil infractions carrying fines of up to $500 per day, with minimum fines rising to $150 for a repeat within a year and $250 after two prior offenses.[3] Code-enforcement letters for an expired rental certificate run a graduated $78 to $255.[7]

๐Ÿ” Inspections & Safety Requirements

Any Parchment rental that falls under the Rental Housing Code, including a bed and breakfast and an STR the city treats as a rental dwelling, must pass a city inspection and meet the 2015 International Property Maintenance Code, which Parchment adopted by reference in that code.[3] You cannot get the required Certificate of Compliance without it, and the city’s standalone Property Maintenance Code sets the underlying upkeep standards every dwelling must meet.[8]

Inspections are not on a fixed yearly calendar. The Rental Housing Code makes them complaint-driven and event-driven: an inspection is triggered by a change of ownership or by a tenant complaint, and the city can pursue an administrative search warrant if access is refused.[3] One catch worth knowing before closing is that the Certificate of Compliance will not be issued until every city debt on the property, including taxes, special assessments, water and sewer charges, and fines, is paid in full.[3]

Building, electrical, mechanical, and plumbing permits for any renovation are handled by the Kalamazoo Area Building Authority rather than the city directly, and application forms are posted on the city’s forms page.[13] If the property is not on city sewer, septic permitting runs through Kalamazoo County Environmental Health.[12]

โœ… Operating Rules & Practical Steps for STR Owners

Because Parchment has no STR rulebook, your operating checklist is mostly about pinning down the gray areas before money is on the line. Here is the practical sequence experienced investors follow:

  1. Confirm the zoning use in writing. Ask the zoning administrator whether a non-owner-occupied short-term rental is permitted on your specific parcel, or whether only a bed and breakfast is.[2]
  2. Register if the city says to. If your operation counts as a rental dwelling, complete Rental Housing Code registration and name a local responsible agent who can answer a complaint quickly.[3]
  3. Pass the inspection. Meet the property-maintenance standards, clear any city debts on the parcel, and obtain the Certificate of Compliance.[3][8]
  4. Be a good neighbor. Parchment’s general property-maintenance rules, covering noise, trash, parking, and upkeep, apply to everyone, and an STR that generates complaints is the fastest way to invite both inspections and a future STR ordinance.[8]

One forward-looking note: small Michigan cities have been adopting STR ordinances steadily, and the state legislature has repeatedly debated bills that would reshape local STR authority. Treat Parchment’s current silence as a snapshot, not a guarantee, and re-verify with the city before each season.[2]

๐Ÿ—บ๏ธ Where LTRs Are Allowed (Zoning)

Long-term rentals are allowed throughout Parchment’s residential districts. The R-A One-Family Residential District, the R-T Residential Transitional District, and the R-M Multiple-Family Residential District all permit dwellings that can be leased.[4] Single-family and duplex rentals are the norm, while larger multi-unit buildings belong in R-M, where multiple-family dwellings are a permitted use.[4]

Unlike short-term rentals, long-term tenancy is a normal, fully recognized residential use here. The zoning code treats a leased home the same as an owner-occupied one. What changes by district is the building type allowed: a fourplex that is fine in R-M will not be permitted on a standard R-A lot, so match your investment to the district.[4]

To verify a specific property, read its district off the official zoning map and confirm density and setback limits in the zoning ordinance’s Schedule of Regulations; the zoning administrator at City Hall can settle any edge case.[10][2]

๐Ÿ“‹ Registration & Certificate of Compliance Process

Register the rental in person or by mail with the City of Parchment at City Hall, 650 S. Riverview Drive, since there is no online rental portal and no registration form is posted on the city website; the practical first step is to call City Hall and request the current packet.[13][2] Every rental dwelling must be registered before it is offered for lease.

Parchment’s Rental Housing Code, adopted as Ordinance No. 207 on December 19, 2016, sets three core obligations.[3] First, register the property and keep that registration current. Second, designate a local responsible agent, a person within reach of the city who can respond to problems; out-of-area owners typically name a local property manager. Third, obtain a Certificate of Compliance for each rented unit and display it in the building, because a unit may not be lawfully rented without one.[3]

The Rental Housing Code also requires specific lease language: every lease must include a provision notifying the tenant that the dwelling is subject to the city’s housing code.[3] Build that clause into your standard lease so it is never missed.

๐Ÿ’ต Fees & Penalties

Annual rental registration in Parchment costs $123 per property plus $1.75 per unit, and a standard rental inspection is $88 per unit.[7] The full picture from the city’s 2026 fee schedule:

  • Annual rental registration: $123 per property, plus $1.75 per unit.[7]
  • Standard inspection / reinspection: $88 per unit, or $61 per unit if scheduled early, before the certificate expires.[7]
  • Residential pre-sale inspection: $88 per dwelling unit, worth budgeting for if you are buying or selling.[7]
  • Missed inspection (no-call/no-show): $57, then $78, then $104 for repeat offenses; late cancellation with under three days’ notice starts at $41.[7]
  • Unregistered-rental violation: $234; failure to update a registration: $78.[7]

Beyond those fixed fees, Rental Housing Code violations are municipal civil infractions with fines up to $500 per day, escalating to minimums of $150 for a repeat within a year and $250 after two priors.[3] Property Maintenance Code violations carry $200 to $500 per day.[8] A Certificate of Compliance is also withheld until all city debts on the property are cleared, so unpaid water bills or taxes can quietly block your ability to rent.[3]

๐Ÿ” Inspections & Safety Requirements

A Parchment rental inspection checks the unit against the city’s property-maintenance standards and the 2015 International Property Maintenance Code, which the city adopted by reference in its Rental Housing Code; a passing inspection is what unlocks the Certificate of Compliance.[3][8] Expect the inspector to look at heating, electrical and plumbing condition, smoke and carbon-monoxide alarms, egress, weatherproofing, and general structural upkeep.

Inspections in Parchment are event-driven rather than on a fixed annual cycle. The Rental Housing Code triggers an inspection on a change of ownership and in response to tenant complaints, and the city can seek an administrative search warrant if an owner refuses access.[3] Scheduling early, before your certificate expires, drops the inspection fee from $88 to $61 per unit, so it pays to be proactive.[7]

If an inspection result goes against you, appeals are heard by the city’s Housing Board of Appeals, a role filled by the Zoning Board of Appeals.[3] Renovation permits for building, electrical, mechanical, and plumbing work are issued through the Kalamazoo Area Building Authority, and properties off the municipal sewer system fall under Kalamazoo County Environmental Health for septic.[13][12]

โš–๏ธ Tenant Rights & Eviction Resources

Landlord-tenant relationships in Parchment are governed mainly by Michigan state law rather than city ordinance; evictions, security deposits, notice periods, and habitability all run through the state framework and the Kalamazoo County courts. The city’s own contribution is the Rental Housing Code’s tenant-protection layer: it requires every lease to tell the tenant the unit is subject to the city housing code, and it gives tenants a complaint path that can trigger a city inspection.[3]

A few practical anchors for both sides. Michigan law limits the size of a security deposit and sets strict deadlines for returning it. Evictions must go through the district court, which means self-help lockouts and utility shutoffs are illegal. Summary-proceedings eviction cases for Parchment are heard in Kalamazoo County’s district court. For habitability disputes, a tenant’s strongest local tool is the same city inspection process landlords must already satisfy.[3]

Landlords should keep registration current and the Certificate of Compliance displayed. Tenants who want to confirm a rental is properly registered, or report a maintenance problem, can contact City Hall directly or file the city’s property-maintenance complaint form.[2][13]

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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Sources & Downloads


  1. 1
    City of Parchment official website https://parchment.org/
    Official city site, homepage
    Verified: 2026-05-20
  2. 2
    Contact the City of Parchment https://parchment.org/contact/
    City Hall address, phone 269-349-3785, hours Mon-Fri 9am-4pm
    Verified: 2026-05-20
  3. 3
    Ord. No. 207, adopted Dec. 19, 2016: registration, responsible agent, certificate of compliance, inspections, fines
    Verified: 2026-05-20
  4. 4
    Parchment Zoning Ordinance (Code of Ordinances Appendix A) https://library.municode.com/mi/parchment/codes/code_of_ordinances?nodeId=COOR_APXAZO
    Full codified zoning ordinance with district list and use schedules
    Verified: 2026-05-20
  5. 5
    Defines bed and breakfast inn; contains no short-term-rental or vacation-rental definition
    Verified: 2026-05-20
  6. 6
    Parchment Zoning Ordinance Article 5 โ€” R-A One-Family Residential District https://library.municode.com/mi/parchment/codes/code_of_ordinances?nodeId=COOR_APXAZO_ART5OMIREDI
    Bed-and-breakfast operations permitted subject to Section 12.16
    Verified: 2026-05-20
  7. 7
    Annual rental registration $123/property + $1.75/unit; rental inspection $88/unit; violation fees $78-$255
    Verified: 2026-05-20
  8. 8
    Parchment Property Maintenance Code (Code of Ordinances Ch. 14, Art. III) https://library.municode.com/mi/parchment/codes/code_of_ordinances?nodeId=COOR_CH14BUBURE_ARTIIIPRMACO
    Minimum property maintenance standards; penalties $200-$500 per day
    Verified: 2026-05-20
  9. 9
    City of Parchment Code of Ordinances (Municode library) https://library.municode.com/mi/parchment
    Official online code, codified through Ordinance No. 229, October 2024
    Verified: 2026-05-20
  10. 10
    Official 18×24 zoning district map hosted on the city website
    Verified: 2026-05-20
  11. 11
    Interactive county parcel viewer with parcels, aerials, soils, and wetlands
    Verified: 2026-05-20
  12. 12
    Kalamazoo County Environmental Health โ€” Sewage Treatment https://www.kalcounty.gov/295/Sewage-Treatment
    On-site septic permitting and evaluations for non-sewered properties
    Verified: 2026-05-20
  13. 13
    City of Parchment Forms & Documents https://parchment.org/forms/
    Downloadable city forms, applications, and ordinances; building permits run through KABA
    Verified: 2026-05-20
  14. 14
    City of Parchment Administration & Staff https://parchment.org/administration/
    City Hall staff directory and contact information
    Verified: 2026-05-20
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.