Douglas Airbnb Rules & Investment Guide (2026)

A dwelling is not ready for short stays until the City confirms zoning eligibility, registration, fire inspection, and a valid rental occupancy certificate.

• Confirm that residential use is permitted by right or approved as a special land use in the property’s zoning district.
• Budget the current registration and inspection charges, state lodging tax, insurance, management, maintenance, and reserves from written quotes.
• Review parking, outdoor-area, noise, sign, fire-safety, and private association requirements against the intended guest capacity.
• Keep a lawful 31-day-or-longer rental or owner-use fallback that works without short-term rental revenue.

Douglas permits an STR in zoning districts where residential use is allowed by right or approved as a special land use, subject to the City’s operating rules.

• Confirm the parcel’s zoning, lawful dwelling status, prior approvals, and open code cases with Planning and Zoning.
• The ordinance defines an STR as a dwelling rented or advertised for less than 31 consecutive days.
• The ordinance allows a non-family group to rent the unit but prohibits renting individual rooms separately and renter subletting.
• Check condominium, deed, lender, and insurance restrictions independently because City approval does not override private rules.

The owner must register with the City, pay the required fee, pass the fire inspection, and receive a rental certificate before short-term rental occupancy.

• The 2025 packet directs the owner or authorized agent to submit the application and $375 registration fee to the Planning and Zoning Administrator.
• The Fire Department contacts the owner or agent to schedule inspection and reports compliance to the City.
• The packet states that certification is valid for three years and identifies a $175 fee after a failed inspection.
• Provide the rental address, owner and agent details, local emergency contact, off-street parking count, bedrooms, and sleeping capacity.

A seller’s rental occupancy certificate does not survive a sale or transfer of the property.

• The ordinance makes the existing certificate null and void at transfer and requires the new owner to apply for a new certificate.
• Obtain the City file for registration, inspection results, violations, complaints, special land use conditions, and certificate dates.
• Confirm that the advertised bedroom count, sleeping capacity, parking, floor plan, and fire-safety features match current conditions.
• Make new-owner approval and inspection deadlines explicit contract conditions rather than assuming uninterrupted operation.

The property must continue to meet building, health, fire, safety, parking, sign, and nuisance requirements after certification.

• Post fire-safety plans on each level near the main egress path with the address, exits, evacuation routes, extinguishers, and emergency contact.
• Maintain visible address numbers, compliant smoke and carbon-monoxide alarms, required extinguishers, clear exits, and safe electrical conditions.
• Control outdoor areas, decks, pools, parking, trailers, and recreational equipment to avoid code and nuisance violations.
• Keep the local emergency contact, maintenance records, inspection documents, and guest rules current.

Michigan generally imposes a 6% use tax on commercial lodging available to the public, while City registration and inspection charges are separate.

• Michigan Treasury states that taxable lodging includes accommodations offered to the public as a commercial or business enterprise.
• Treasury generally exempts lodging rented continuously to the same tenant for more than one month.
• The City’s current packet lists $375 for registration and initial inspection and $175 for reinspection after a failed inspection.
• Confirm registration, filing cadence, marketplace collection, taxable charges, and any business obligations with Michigan Treasury before launch.

Repeated code violations involving an STR can jeopardize the rental occupancy certificate.

• More than one finding of responsibility or conviction for a City Code violation in a calendar year may result in certificate revocation.
• A revocation may be appealed to City Council for good cause by filing written notice within 10 days of the revocation date.
• Document responses to noise, odor, parking, outdoor-use, fire-safety, occupancy, and property-condition complaints.
• Stop short-term occupancy if the certificate is revoked, expires, becomes void at transfer, or no longer matches the property.

Model the exact registered dwelling instead of relying on unsupported citywide revenue, occupancy, nightly-rate, or return claims.

• Build revenue from legal comparables with similar zoning, bedroom count, parking, capacity, amenities, seasonality, and management model.
• Quote insurance that expressly covers transient occupancy and include utilities, turnover, repairs, taxes, platform fees, and professional management.
• Budget fire-safety corrections, reinspections, weather exposure, exterior maintenance, reserves, and downtime around certificate transfer.
• Calculate cash flow and return under conservative occupancy and rate scenarios, then test the lawful long-term fallback.

Use the responsible office for each decision, and retain written answers in the acquisition and operating file.

• Contact Douglas Planning and Zoning at pzadmin@douglasmi.gov or 269-857-1438 ext. 107 for eligibility, applications, certificates, renewals, and appeals.
• Contact the Saugatuck Township Fire District at info@saugatuckfire.org or 269-857-3000 for inspections and fire-safety questions.
• Confirm lodging-tax registration and filing with the Michigan Department of Treasury.
• For property selection and setup support, plan a Douglas property strategy call. The City remains the authority for legal eligibility and certificate approval.

The City and state sources below were checked September 28, 2026. Rules, fees, staff assignments, and forms can change. Recheck the property and current materials before filing, closing, or advertising.

• Douglas 2025 Short-Term Rental Packet
• Douglas Forms and Permits
• Douglas Planning and Zoning
• Douglas Fire Department contacts
• Douglas 2026/2027 fee schedule
• Michigan Treasury use-tax guidance