Rental Investment Guide

City of Holland


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

Updated May 2026

Area Overview


The City of Holland sits at the southeast corner of Lake Macatawa, straddling the Ottawaโ€“Allegan county line, with the bulk of its incorporated area in Ottawa County. It is the commercial, cultural, and tourism hub of the western lakeshore between Grand Haven and Saugatuck, anchored by Hope College, Holland Hospital, and a downtown that draws roughly half a million Tulip Time visitors every May. Housing stock ranges from historic single-family homes and small multifamily near downtown and Hope College to newer single-family subdivisions and mixed-use buildings.

Rental activity is significant. All long-term (30+ day) rentals must be registered with the City under Chapter 14 of the Code (Housing-Property Maintenance) and carry a Rental Certificate of Compliance [1]. Short-term rentals are split into three classes โ€” owner-occupied, investor-owned, and Tulip Time-only โ€” under Section 39-4.02.Q of the Unified Development Ordinance [2]. Investor-owned STRs in residential zone districts are capped at 25 properties citywide with a 500-foot separation requirement; the cap has been reached and the program currently has no openings [3].

Quick Status Summary


Short-Term Rentals CAPPED

Three pathways under Section 39-4.02.Q [2]. Owner-occupied STRs are allowed in any zone district (rent one room year-round, or the entire dwelling up to 60 days/year). Investor-owned (whole-home) STRs are allowed in commercial/mixed-use districts (NMU, CMU, RMU, GMU, I, PUD, F) where residential uses are permitted; in residential districts (LDR, CNR, MDR, TNR) they are capped at 25 citywide with a 500-foot separation โ€” the cap has been reached [3]. A Tulip Time exception waives inspection and certificate for up to 10 days each May. STR approval does not transfer with a sale.

Long-Term Rentals REGISTRATION REQUIRED

All rental units citywide must be registered and hold a Rental Certificate of Compliance issued under Chapter 14 [1]. Annual permit fee is $85 for the first unit and $40 per additional unit, billed annually with a December 10 due date [4]. Inspections occur on a 3-year or 6-year cycle depending on compliance history [1]. Failure to register triggers a $200 late fee and possible misdemeanor enforcement [1].

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Section 39-4.02.Q of the Unified Development Ordinance is the controlling provision for STRs [2]. It defines three STR pathways and the zones in which each is permitted.

  • Owner-Occupied STR โ€” the owner’s primary residence. Rent one room while the owner is in residence for up to 365 days per year, or the entire dwelling for not more than 60 days per year while the owner is away. Allowed in any zone district [5].
  • Investor-Owned STR (commercial/mixed-use zones) โ€” whole-home rental allowed by-right in NMU, CMU, RMU, GMU, I, PUD, and F districts where residential uses are permitted [5]. No cap in these districts.
  • Investor-Owned STR (residential zones LDR / CNR / MDR / TNR) โ€” capped at 25 properties citywide with a 500-foot separation between investor-owned STRs in residential districts [5]. The cap has been reached. The City does not maintain a public waiting list; the Rental Certification & Licensing Guide page is updated when an opening occurs [3].
  • Tulip Time Exception โ€” a dwelling offered for not more than 10 days during the designated Tulip Time festival in May requires no inspection and no certificate [3].

Verify the zoning district of a specific parcel against the City’s interactive zoning map or the PDF below before underwriting any STR-based valuation [6].

City of Holland Unified Development Ordinance (UDO) Zoning Map

Click the map to open the full PDF version.

For investors: An STR certificate does not transfer to a new owner. A buyer must reapply and meet all qualification criteria โ€” in residential zones, that means waiting for one of the 25 capped slots to open [5]. Do not underwrite an STR price into a deal based on the seller’s certificate alone.
2 Registration & Permit Process

Submit the Short Term Rental Registration Form to Community & Neighborhood Services (CNS) โ€” in person, by mail, or by email โ€” along with the appropriate worksheet for your STR class [3].

Owner-occupied worksheetOwner-Occupied Worksheet (PDF)
Investor-owned worksheetInvestor-Owned Worksheet (PDF)
Where to submitCNS, 270 S River Ave, 3rd Floor, Holland, MI 49423 โ€” cns@cityofholland.com
Liability insuranceInvestor-owned: written letter or email from your agent confirming coverage of short-term rental use [5]
TransferabilityNon-transferable โ€” STR approval does not convey with sale [5]
Inspection requiredYes โ€” before issuance of the Rental Certificate of Compliance [5]

Investor-owned applicants must also notify surrounding neighbors that the property will be used as an STR and provide them with local-agent contact information after approval [5].

3 Fees & Penalties

The City uses a single rental fee schedule for all rental certificates (STR and LTR) [4]. Renewals are billed annually with a December 10 due date [1].

Annual permit (first unit)$85.00
Annual permit (each additional unit)$40.00
Initial inspectionNo charge
First re-inspection (per unit)$50.00
Second re-inspection (per unit)$100.00
Third re-inspection (per unit)$150.00
Complaint inspection$50.00
Attorney warning letter$600.00
Late registration fee$200.00
Renting without a certificateMisdemeanor violation [1]

Outstanding utility balances (Holland BPW 616-355-1500, Chef Container 616-795-4723, City of Holland 616-355-1330) can become a lien on the property โ€” verify before returning tenant security deposits [4].

4 Inspections & Safety Requirements

Every STR must pass a Housing-Property Maintenance Code inspection before a Rental Certificate of Compliance is issued, and is re-inspected on a 3-year or 6-year cycle depending on compliance history [1].

Common inspection items pulled from the City’s Housing Inspection Checklist [7]:

  • Smoke detectors: Properly installed, working, current batteries.
  • Deadbolts: Required on all exterior entry doors.
  • Egress: Graspable handrails on stairs of 5+ steps; guardrails on porches/balconies over 30″ tall.
  • Electrical: Cover plates on outlets/switches/junctions; GFI protection where required; 100-amp service with breakers.
  • Heating: Licensed mechanical contractor inspection report from the past 12 months (electric heat pumps exempt).
  • Egress windows: Glass; basement plexi-glass acceptable; no boards over windows.
  • Occupancy: 7-foot minimum ceiling height; 7-foot minimum room width; sleeping in basements prohibited.
5 Operating Rules (Occupancy, Insurance, Neighbor Notice)

Investor-owned STR operators sign a binding Worksheet & Agreement at registration that controls day-to-day operation [5]:

  • One STR per owner. An owner may hold an ownership interest in only one STR dwelling unit in the City.
  • One family at a time. The entire dwelling may be rented to one family at a time โ€” no co-occupancy by unrelated parties.
  • Occupancy. Cannot exceed the maximum stated on the Rental Certificate of Compliance.
  • Liability insurance. Maintain coverage for short-term rental use; provide written confirmation from your insurance agent.
  • Neighbor notice. Notify surrounding neighbors that the property will be used as an STR; provide them with the owner’s or local agent’s contact information.
  • Certificate number in ads. The STR certificate number must appear in all advertisements (Airbnb, VRBO, etc.).
  • Crime-Free Lease Addendum. Must be included with all rental agreements [8].
  • Discontinuance. Owner must notify CNS in writing if they stop operating the property as an STR.
Revocation grounds: Excessive police calls or code violations under ยง 14-4.27.2; failure to obtain inspections or pay fees; failure to maintain insurance; failure to maintain the property in code compliance [5].
6 Local Agent / 24-Hour Contact Requirement

Every investor-owned STR must designate the owner or a local agent who lives within 35 miles of the property and is available 24 hours a day, 7 days a week to respond to and mitigate complaints [5].

  • Residency. Owner or designated agent must reside within 35 miles of the rental property.
  • Availability. 24/7 contact during every rental period.
  • Duty to mitigate. Must respond to and resolve complaints regarding noise, conduct, parking, or code violations.
  • Renter disclosure. Contact information for the owner or local agent must be provided to all renters.
  • Neighbor disclosure. Same contact information must be provided to surrounding neighbors.
For out-of-area owners: If you live more than 35 miles from Holland, you’ll need a qualifying local property manager whose response capability you can document at registration. Build that cost into underwriting.
7 Permit Caps, Investor Limits & Tulip Time Exception

The City of Holland’s STR framework is built around three hard limits that decide whether a property can operate.

  • 25-property cap (residential zones). Investor-owned STRs in LDR, CNR, MDR, and TNR districts are capped at 25 properties citywide. The cap has been reached [3]. The City does not maintain a public waiting list; the Rental Certification & Licensing Guide page is updated when an opening occurs.
  • 500-foot separation (residential zones). Investor-owned STRs in residential districts must be at least 500 feet apart [5]. Even if the cap reopens, a new STR may be denied if it falls within 500 feet of an existing one.
  • One STR per owner. An owner may hold only one STR ownership interest citywide [5]. Buying a second STR-eligible property does not authorize a second permit.
  • Owner-occupied alternative. Renting one room of your primary residence is allowed in any zone with no cap. Renting the entire primary residence is limited to 60 days/year.
  • Tulip Time exception. Up to 10 days each May during the designated Tulip Time festival โ€” no inspection, no certificate required [3]. This is the only STR pathway not subject to the cap.
Investor takeaway: Today, the practical paths into Holland STR ownership are (a) commercial/mixed-use-zoned property (no residential cap), (b) buying an existing residentially-zoned STR that is for sale and obtaining a new certificate at sale (subject to the 25-property cap reopening or a 500-foot variance being met), or (c) owner-occupied operation. Confirm cap status with CNS before underwriting.
1 Where LTRs Are Allowed (Zoning)

Long-term rentals (30+ day occupancy by the same tenant) are permitted in every residential and mixed-use zone district in the City [1]. Chapter 14 of the City Code governs registration and inspection, not zoning permission โ€” if a parcel allows residential dwelling use, the LTR is allowed.

The STR rules under ยง 39-4.02.Q (caps, 500-foot separation, local agent) do not apply to long-term leases. LTRs and STRs are regulated as separate use categories [2].

For commercial, agricultural, or mixed-use-zoned parcels, confirm that residential dwelling use is permitted by-right (or grandfathered) before underwriting โ€” verify the parcel’s district on the zoning map below and confirm with the Zoning Administrator.

City of Holland Unified Development Ordinance (UDO) Zoning Map

Click the map to open the full PDF version.

2 Registration & Permit Process

All rental units in the City must be registered with Community & Neighborhood Services and hold a current Rental Certificate of Compliance [1]. Submit the online Property Registration form, or update an existing record when ownership or property changes occur.

AuthorityChapter 14, Division 10 (ยงยง 14-4.26 โ€“ 14-4.38) [9]
Billing cycleAnnual โ€” invoices due no later than December 10
Inspection frequencyEvery 3 or 6 years depending on compliance history
EnforcementFailure to pay annual fee is a misdemeanor [1]

Owner-occupied non-rental properties are not required to register but are subject to complaint-based enforcement under the Housing-Property Maintenance Code [1].

3 Fees & Penalties

The City uses a single rental fee schedule โ€” the same amounts apply to long-term and short-term rental certificates [4].

Annual permit (first unit)$85.00
Annual permit (each additional unit)$40.00
Initial inspectionNo charge
First / Second / Third re-inspection$50 / $100 / $150 per unit
Complaint inspection$50.00
Late registration fee$200.00
Attorney warning letter$600.00
Renting without a certificateMisdemeanor [1]
4 Inspections & Safety Requirements

All LTR units are inspected on a 3-year cycle by default, dropping to a 6-year cycle for properties with a consistent clean compliance record [1]. Initial inspections are no-charge; re-inspections after failed items run $50/$100/$150 (1st/2nd/3rd).

The City publishes a public inspection checklist [7]. High-frequency failure items investors should pre-check before scheduling:

  • Smoke detectors installed and working in every required location.
  • Deadbolt locks on all exterior doors.
  • Handrails and guardrails on porches/decks and stairs of 5+ steps.
  • Heating system inspection report from a licensed contractor within the past 12 months (not required for electric heat pumps).
  • Electrical: Cover plates on every outlet, switch, and junction box; GFI where required.
  • Adequate egress windows in bedrooms; basement sleeping prohibited.
5 Tenant Rights & Eviction Resources

Michigan landlordโ€“tenant relationships are governed by state law (MCL 554.601 et seq.) and the Summary Proceedings Act for evictions โ€” not by local Holland ordinances. The Michigan Legislature publishes a free Practical Guide for Tenants & Landlords covering leases, security deposits, repairs, and the eviction process [10].

The City of Holland also operates a Crime-Free Lease addendum program that landlords may incorporate into their leases; participation is voluntary for LTRs but required for investor-owned STRs [8].

Special Regulations


Holland sits at the mouth of Lake Macatawa with Lake Michigan beach frontage at Holland State Park. Investors evaluating shoreline or older downtown properties should layer the following on top of the standard rental rules.

โ˜… Bed & Breakfast (Special Public Lodging License)

An owner-occupied single-family home making guest rooms available to non-residents is regulated as a Bed & Breakfast, not an STR. B&Bs require an annual Public Lodging License and inspection separate from the rental certificate framework [11].

  • 1โ€“4 guest rooms: Approved administratively by the Zoning Administrator.
  • 5โ€“8 guest rooms: Special Exception approval required from the Zoning Board of Appeals.
  • Cooking facilities may not be available to guests.
  • Allowed in residential zones (owner-occupied requirement).
โ˜… Hotels, Motels & Boarders

Buildings offering rooms to travelers/non-residents in commercial zones are regulated as hotels/motels and require an annual Public Lodging License and inspection [11]. A single-room rental to one boarder in addition to the resident family is governed by ยง 39-9.11 (Boarders) [12] โ€” a separate compliance check, distinct from STR and LTR programs.

Official Resources


Property Tax Treatment


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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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Buying, selling, or investing in Holland?

Holland's three-class STR framework, 25-property residential cap, and citywide LTR registration make zoning verification a deal-make-or-break. I help investors and homeowners read the right districts off the map and confirm certificate status with CNS before underwriting.

Sources & Downloads


  1. 1
    City of Holland โ€” Rental Housing Program (Chapter 14 overview) https://www.cityofholland.com/243/Rental-Housing-Program
    Citywide rental registration, December 10 billing deadline, $200 late fee, 3- or 6-year inspection cycle, misdemeanor penalty for non-payment.
    Verified: 2026-05-14
  2. 2
    City of Holland โ€” ยง 39-4.02.Q Short-Term Rental Standards https://ecode360.com/33653215
    Defines owner-occupied, investor-owned (commercial & residential), and Tulip Time STR pathways and the zone districts where each is permitted.
    Verified: 2026-05-14
  3. 3
    City of Holland โ€” Rental Certification & Licensing Guide https://www.cityofholland.com/848/Rental-Certification-Licensing-Guide
    Plain-English summary of all rental license types. Confirms 25-property residential STR cap has been reached and the page is updated when openings occur. Tulip Time 10-day exception described here.
    Verified: 2026-05-14
  4. 4
    City of Holland โ€” Rental Inspection Fee Schedule & Information Brochure (PDF) https://www.cityofholland.com/DocumentCenter/View/345/Rental-Inspection-Fee-Schedule-and-Information-Brochure
    Official fee list: $85 first unit / $40 each additional / $50-$100-$150 re-inspections / $600 attorney warning letter / $50 complaint inspection.
    Verified: 2026-05-14
  5. 5
    City of Holland โ€” Investor-Owned Short-Term Rental Worksheet (PDF) https://www.cityofholland.com/DocumentCenter/View/2927/Investor-Owned-Short-Term-Rental-Worksheet-
    Binding owner agreement. Lists 25-cap, 500-foot separation, one-STR-per-owner, 35-mile local agent, liability insurance, neighbor notice, crime-free lease, revocation grounds.
    Verified: 2026-05-14
  6. 6
    City of Holland โ€” Article 39-2 (Zone Districts) https://ecode360.com/37642039
    Zone-district definitions including LDR, CNR, MDR, TNR (residential) and NMU, CMU, RMU, GMU, I, PUD, F (mixed-use/commercial).
    Verified: 2026-05-14
  7. 7
    City of Holland โ€” Housing Inspection Checklist (in Fee Brochure PDF) https://www.cityofholland.com/DocumentCenter/View/345/Rental-Inspection-Fee-Schedule-and-Information-Brochure
    Inspection prep checklist: smoke detectors, deadbolts, GFI, handrails/guardrails, heating system contractor report, basement sleeping prohibited, etc.
    Verified: 2026-05-14
  8. 8
    City of Holland โ€” Crime-Free Lease Program https://www.cityofholland.com/242/Crime-Free-Lease
    Addendum required for investor-owned STRs and offered to all landlords.
    Verified: 2026-05-14
  9. 9
    City of Holland โ€” ยง 14-4.26 et seq. (Registration & Certification of Rental Dwellings) https://ecode360.com/27622604
    Division 10 of Chapter 14 โ€” authority for the citywide rental certificate program.
    Verified: 2026-05-14
  10. 10
    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: 2026-05-14
  11. 11
    City of Holland โ€” Rental Certification & Licensing Guide (B&B / Hotel licensing) https://www.cityofholland.com/848/Rental-Certification-Licensing-Guide
    Bed & Breakfast (owner-occupied, 1-4 by Zoning Admin, 5-8 by ZBA Special Exception) and hotel/motel Public Lodging License rules.
    Verified: 2026-05-14
  12. 12
    City of Holland โ€” ยง 39-9.11 (Boarders) https://ecode360.com/37643818
    One-room boarder compliance separate from STR/LTR programs.
    Verified: 2026-05-14
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.