South Haven, Michigan Airbnb Rules & Investment Guide (2026)

Potentially. A dwelling rented or advertised for 28 days or less needs City zoning clearance, a current license, a passing inspection, an eligible sleeping and occupancy plan, state tax setup, insurance, and private-restriction review before bookings begin.

• Confirm the parcel is inside South Haven city limits.
• Use the City overlay map to screen zoning eligibility.
• Obtain zoning compliance or required special land use approval.
• Complete licensing and inspection before advertising.
• Review association, deed, lender, and insurance restrictions separately.
• Keep written approvals and current property records.

A new STR must be in the overlay district and receive special land use approval from the Planning Commission. A previously registered dwelling follows the zoning compliance process, which determines current compliance or lawful nonconforming status.

• Search the exact address on the City overlay map.
• Do not infer eligibility from nearby licensed rentals.
• Use the special land use application for a new rental in the overlay district.
• Request zoning compliance for an existing or transferred operation.
• Allow for the City page’s approximately four-month completed-application review time.
• Preserve the written zoning determination with acquisition records.

Applicants must demonstrate zoning compliance, submit the licensing application and attachments, designate an eligible operator when applicable, pay nonrefundable fees, and pass inspection. A passing inspection is valid for 45 days and a compliance letter for 30 days.

• Submit complete forms because incomplete applications are not processed.
• Coordinate zoning review before the licensing deadline.
• Schedule inspection after the property is ready.
• Correct deficiencies before the compliance letter expires.
• Pay the applicable application, inspection, and licensing fees.
• Keep the signed license and note every condition of licensure.

Class I covers eligible rentals that may operate more than 28 days per year. Class II is limited to six rental terms or 28 rental days per calendar year. Both licenses are valid for two years unless revoked.

• Confirm zoning eligibility for the requested class.
• Class I allows no more than two rental terms in seven consecutive days.
• Class II allows no more than six terms in a calendar year.
• Class II dates and nights must be reported before each term.
• Every rental term must be at least two nights.
• Treat the license as property- and owner-specific because transfer is prohibited.

Maximum occupancy is the lesser of the formula based on compliant bedrooms, finished stories, and sleeping areas or 12 occupants, unless a qualifying former registration authorizes more. Occupants age two or older count.

• Map every proposed bedroom and flex sleeping room.
• Verify escape openings and unobstructed travel paths.
• Keep at least one working fire extinguisher in each kitchen.
• Keep egress doors openable without keys or special knowledge.
• Use only rooms approved as sleeping areas in advertising.
• Match the listing capacity to the licensed maximum.

Parking depends on dwelling type and zoning status. The operator must be the owner or a Michigan-licensed real estate broker and must acknowledge City complaint notifications within 45 minutes. Guests must receive the Good Neighbor Guide.

• Confirm the approved parking count in the zoning determination.
• Keep a current operator designation on file.
• Train the operator to acknowledge hotline notices within 45 minutes.
• Provide the Good Neighbor Guide during booking or check-in.
• Prohibit fireworks and unapproved large social gatherings.
• Update changed application information within seven calendar days.

The current City schedule lists a $450 initial zoning determination, Class I application and inspection at $450, Class II at $250, two-year licensing at $750 or $250 respectively, and separate reinspection, late-cancellation, and appeal fees.

• Confirm the current fee schedule before submitting.
• Budget all fees as nonrefundable.
• Include a $150 reinspection allowance in downside planning.
• Include the $500 appeal fee only when an appeal becomes necessary.
• File a revocation appeal with the City Clerk within 10 calendar days.
• Do not treat an application as a vested or transferable property right.

Michigan imposes 6% use tax on rooms and lodging offered commercially to the public. No tax is due when the same tenant rents continuously for more than one month. Marketplace collection must be verified by booking channel.

• Register with Michigan Treasury when the operator has a filing duty.
• Apply the lodging rule rather than adding separate 6% sales and 6% use taxes.
• Confirm taxable charges with current Treasury guidance.
• Verify each platform’s Michigan collection and remittance report.
• Handle direct-booking collection and returns when required.
• Keep booking, tax, return, and payment records together.

Marketwide revenue, occupancy, nightly-rate, appreciation, and return figures do not establish results for a specific property. Model only the licensed capacity, rental class, lawful schedule, verified taxes, and every owner-paid cost.

• Use property-specific comparable bookings with documented filters.
• Model the Class II day and term caps when applicable.
• Include zoning, application, inspection, licensing, and renewal costs.
• Include insurance, utilities, cleaning, maintenance, and management.
• Stress-test fewer booked nights and higher repair costs.
• Keep financing, resale, appreciation, and tax-benefit assumptions separate.

The STR Program Coordinator handles applications and licensing. The inspector handles inspection questions. Michigan Treasury handles state use tax, while the City hotline receives STR complaints.

• Call Megan Blodgett at 269-637-0791 or email mblodgett@southhavenmi.gov.
• Call STR Inspector Luke Thompson at 269-637-0790 or email lthompson@southhavenmi.gov.
• Use the City STR program page for forms and current procedures.
• Submit complaints through the South Haven complaint portal; call 269-657-3101 for non-emergency police help after unresolved issues.
• Use Michigan Treasury lodging guidance for state tax registration and filing.
• STR Search can organize property due diligence and setup planning, while the City and state remain the authorities for eligibility, licensing, and taxes.