South Haven Short-Term Rental Regulations

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Permit & Licensing

Class I License (previously "Business")

This permit type does not require primary residence. Zoning restriction: Class I (business-type, unlimited-frequency) rentals allowed on mixed-use property (RM-1, R-2, B-3) and residential property (R-1); new rentals also subject to Special Land Use review in the STR overlay district under Article V.

Class II License (previously "Personal")

This permit type does not require primary residence. Zoning restriction: Class II (personal-use, limited-days) rentals allowed on mixed-use property (RM-1, R-2, B-3) and residential property (R-1); new rentals also subject to Special Land Use review in the STR overlay district under Article V.

Application Process

Article V (current ordinance): submit a Zoning Compliance Review Application (current processing time approximately 4 months); if the property is a NEW rental in the STR overlay district, also submit a Special Land Use Application for Planning Commission review; submit the Short-Term Rental Licensing Application and an Operator Designation Form signed by a licensed broker; property must pass inspection (Inspection Checklist) and is thereafter inspected bi-annually.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 6% of gross rental income.

Filing: Monthly, quarterly, or annual returns as assigned by the Michigan Department of Treasury

Rental Limits

South Haven annual day limit: 28 days–unlimited (varies by permit type). Each individual stay must be 29 nights or fewer per stay.

Occupancy & Density Limits

Lesser of 16 total occupants or 2 occupants/bedroom + 2 per finished story (general); lesser of 12 total occupants or same per-bedroom formula for newly constructed, newly enlarged, or newly rented dwelling units on residential property; mixed-use property owners may apply to increase to a maximum of 24 total occupants (or 2/bedroom + 2/floor) subject to fire-safety upgrades and committee approval.

Zoning & Restrictions

Owner-occupied: Class II (personal-use, limited-days) rentals allowed on mixed-use property (RM-1, R-2, B-3) and residential property (R-1); new rentals also subject to Special Land Use review in the STR overlay district under Article V. STRs are permitted on residential property (R-1 zoning districts) and mixed-use property (RM-1, R-2, B-3 zoning districts) under Article X. Under the current Article V ordinance, NEW short-term rentals require Special Land Use approval (Planning Commission review) and must fall within a designated STR overlay district; the City provides an interactive overlay map for address lookup.

Insurance & Safety

Insurance

Operators must maintain at least $1,000,000 in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• Working smoke alarm installed and maintained in each bedroom, tested at least every 90 days
• Operational carbon monoxide device on each floor (per MCL 125.1504), tested at least every 90 days
• Notice posted in a prominent first-floor window (16-point type) listing local agent name, 24-hour phone number, and maximum occupancy
• Street address posted in at least two prominent locations inside the dwelling unit (near kitchen and near any telephone or pool)
• Local agent required, must live or maintain a place of business within 45 miles of the dwelling unit
• Property owner must consent to City inspections and make the unit available upon request
• Owner or local agent must provide a copy of the City's Good Visitor Guideline materials to renters each rental
• No fireworks on the premises when occupied by anyone other than the owner
• Attics/basements cannot count toward occupancy unless owner consents to City inspection verifying egress compliance
• Inspection required (Inspection Checklist) prior to registration/licensing; Article V licenses inspected bi-annually

Penalties for Non-Compliance

• Renting an unregistered dwelling unit: $750 first violation, $1,000 each subsequent violation
• Exceeding maximum occupancy: $500 first offense, $1,500 each subsequent offense
• Other violations of the STR article: $100 first offense, $500 second offense, $1,500 each subsequent offense
• Registration revocation after 3 separate qualifying incidents (on 3 separate days) within a calendar year resulting in a plea/finding of responsibility or guilt
• Revoked registration cannot be renewed for 1 year and the unit cannot be used for short-term rental until re-registered

Compliance Checklist

Follow these steps to legally operate a short-term rental in South Haven:

1. Determine your permit type. South Haven has 2 permit types. Identify which applies to your property (Class I License (previously "Business"), Class II License (previously "Personal")).
2. Meet safety requirements. Working smoke alarm installed and maintained in each bedroom, tested at least every 90 days. Operational carbon monoxide device on each floor (per MCL 125.1504), tested at least every 90 days. Notice posted in a prominent first-floor window (16-point type) listing local agent name, 24-hour phone number, and maximum occupancy. Street address posted in at least two prominent locations inside the dwelling unit (near kitchen and near any telephone or pool). Local agent required, must live or maintain a place of business within 45 miles of the dwelling unit. Property owner must consent to City inspections and make the unit available upon request. Owner or local agent must provide a copy of the City's Good Visitor Guideline materials to renters each rental. No fireworks on the premises when occupied by anyone other than the owner. Attics/basements cannot count toward occupancy unless owner consents to City inspection verifying egress compliance. Inspection required (Inspection Checklist) prior to registration/licensing; Article V licenses inspected bi-annually.
3. Obtain liability insurance. $1,000,000 minimum.
4. Apply for your STR permit. Submit application. Fees vary by type: Class I License (previously "Business") $450; Class II License (previously "Personal") $250. See permit types above to determine which applies.
5. Register for tax accounts. Set up lodging tax accounts with Michigan Department of Treasury.
6. Collect and remit taxes. 6% on all bookings.
7. Renew every 2 years. Renewal fees vary by permit type ($750 per 2-year license term / $250 per 2-year license term). See permit types above.

Frequently Asked Questions

Do you need a permit to run an Airbnb in South Haven?

Yes. South Haven requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in South Haven?

Permit costs in South Haven vary by type: Class I License (previously "Business") $450; Class II License (previously "Personal") $250.

Does South Haven require a short-term rental to be your primary residence?

No. South Haven allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in South Haven?

South Haven's annual rental limit depends on the situation: 28 days–unlimited (varies by permit type).

What taxes do you pay on a short-term rental in South Haven?

Short-term rental stays in South Haven are subject to a 6% Michigan Use Tax (Sales & Rentals) - Lodging. The host is responsible for collecting and remitting it.

What happens if you run a short-term rental without a permit in South Haven?

Operating without a permit can cost up to $1,500.