Short-Term Rentals Around Saugatuck: Three Jurisdictions, Three Rulebooks

The City of Saugatuck's licensing ordinance

The City of Saugatuck regulates short-term rentals under its own Chapter 99.5, created by Ordinance No. 240229-B (adopted February 29, 2024) and amended by a further ordinance in April 2025 that added late fees for late applications, updated violation penalties, and authorized certain rental-license transfers. Under the city's occupancy rule, maximum occupancy is two people per bedroom plus two additional occupants per finished floor (provided adequate sleeping space exists), capped at 12 total occupants -- and the maximum number of visitors allowed on top of that is capped at 1.5 times the occupant count, with visitors permitted only between 7:00 a.m. and 11:00 p.m. The city's Fire District performs the inspection that actually sets a specific property's occupancy number.

Every licensed short-term rental also needs a local agent -- either the owner personally, if they qualify, or a designated agent authorized in writing to act on the owner's behalf -- for handling complaints and access. Confirm the current fee schedule and application requirements directly with the city, since the April 2025 amendment specifically touched fees and penalties and further changes are plausible.

Saugatuck Township and Douglas: separate rules, same general area

Saugatuck Township -- the unincorporated area surrounding the city -- requires its own Rental Certificate covering both short-term and long-term rentals, a broader net than the city's short-term-rental-specific ordinance. Douglas, the small city just south of Saugatuck across the Kalamazoo River, separately allows vacation rentals under its own similar framework. None of these three jurisdictions' rules are interchangeable: a property just outside Saugatuck's city limits in the township, or across the river in Douglas, is not covered by the city's Chapter 99.5 occupancy formula or licensing process at all.

For any Saugatuck-area parcel, confirm which of the three jurisdictions actually governs it before assuming a specific rule (occupancy cap, licensing fee, inspection requirement) applies -- a property's mailing address alone doesn't reliably indicate which government has jurisdiction in this closely-packed resort area.

What to verify before counting on short-term rental income here

• Whether the parcel sits within Saugatuck city limits, Saugatuck Township, or Douglas -- each has its own separate short-term rental rules.
• If in the city, the current occupancy calculation for the specific structure (bedrooms plus finished floors, capped at 12) and whether the property has had its required fire inspection.
• Whether a local agent is already designated, or who will serve in that role, since a licensed short-term rental cannot operate without one.
• The current license fee and any recent ordinance amendments -- Saugatuck's ordinance was amended as recently as April 2025, so confirm you're working from the current version.