City Watch
Short-term rental rules in Saugatuck, MI
How Saugatuck regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Hard numeric cap on STR licenses in each R-1 district (~20% of dwelling units)
- Per-district ceilings (67/10/7/11/3/2); city stops accepting applications once a district's cap is met
- Licenses non-transferable and void on transfer of ownership
- STR license required citywide with annual fire inspection
Based on: City of Saugatuck Code of Ordinances Ch. 99.5 (Short-Term Rentals), § 99.55(F) Maximum limits on short-term rental
Summary of the rule
Verbatim § 99.55(F)(1): 'The city therefore finds that the public health, safety, and welfare will be best served by a maximum limit on the number of short-term rental licenses that may be approved in its R-1 zoning districts initially equal to approximately 20% of the total dwelling units in each R-1 district. It is the city's intent for this maximum limit to operate prospectively and to allow existing short-term rental licenses and certificates to continue ... and to achieve such limits through attrition ...' § 99.55(F)(2): 'The initial maximum number of short-term rental licenses that may be issued in each R-1 zoning district shall be established as follows: (a) Community Residential R-1: No more than 67 licenses. (b) Peninsula West R-1: No more than ten licenses. (c) Maple Street R-1: No more than seven licenses. (d) Peninsula South R-1: No more than 11 licenses. (e) Peninsula North (Duneside) R-1: No more than three licenses. (f) Peninsula North (Riverside) R-1: No more than two licenses.' § 99.55(F)(3): 'When the number of short-term rental licenses and short-term rental certificates in a zoning district meets or exceeds the maximum number of licenses established for that district, the city shall not accept any additional applications for short-term rental licenses in that district until the number of active ... short-term rental licenses and/or short-term rental certificates in that district falls below the maximum number...'
View the ordinance source ↗✓ Verified
Last reviewed Sep 17, 2026 · Sources · Report an error
Pending legislation
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