Overview: Are Short-Term Rentals Allowed in Kalamazoo, MI?

Yes, short-term rentals are allowed in Kalamazoo, MI, but with specific restrictions and requirements. Short-term rentals (properties rented for less than 30 consecutive days) are explicitly included in the city's rental registration program and are subject to the same inspection and certification requirements as traditional long-term rentals. However, they are considered a commercial enterprise and are only permitted in certain zoning districts. Properties listed on platforms like Airbnb, VRBO, and similar services must comply with both city regulations and county accommodation tax requirements.

How to Start a Short-Term Rental Business in Kalamazoo

Step 1: Verify Zoning Compliance

Before purchasing or listing a property, confirm it is located in a zoning district that permits short-term rentals. Short-term rentals are considered commercial enterprises and are only allowed in commercial zoning districts and some residential districts with appropriate zoning approvals. Properties not in compliant zones may face enforcement action.

Step 2: Register Your Property

All rental properties, including short-term rentals, must be registered with the City of Kalamazoo. This includes hotels, motels, bed and breakfasts, rooming houses, and properties listed on online platforms.

Step 3: Designate a Local Agent

Property owners must designate a responsible local agent who will serve as the primary contact for all city communications and ensure compliance with housing codes. The local agent must live or work within approved zip code ranges or obtain city approval for exceptions.

Step 4: Complete Inspections and Certification

Properties must pass inspection before receiving a Certificate of Compliance, which is valid for 28-52 months depending on the property's compliance history.

Step 5: Set Up Accommodation Tax Collection

Implement systems to collect and remit the 5% Kalamazoo County Accommodation Tax, as online platforms do not automatically handle this requirement.

Required Documents, Permits, Licenses, and Guidelines

City of Kalamazoo Requirements

Rental Registration Application

• Required for all rental properties, including short-term rentals
• Must designate a local agent
• Registration fee applies (see CPED Fee Schedule)

Certificate of Compliance

• Properties must pass inspection before leasing
• Initial and renewal inspections required
• Valid for 28-52 months based on compliance history

Local Agent Requirements

• Must live or work within approved zip codes: 49001-12, 49014-20, 49024, 49026, 49034-35, 49041, 49045-46, 49048, 49050, 49052-53, 49055, 49060, 49062, 49065-67, 49070-72, 49074, 49077-84, 49087-88, 49097
• Exceptions require city approval

Kalamazoo County Requirements

Accommodation Tax Registration

• 5% tax on total charges for accommodations
• Monthly reporting required by 15th of each month
• Must report even with no rental activity

Specific Regulations for Short-Term Rentals

City-Level Regulations (Kalamazoo)

Zoning Restrictions

• Short-term rentals considered commercial enterprise
• Only permitted in commercial zoning districts
• Some residential districts may allow with appropriate approvals
• Properties must comply with zoning designations

Registration and Inspection Requirements

• All rental properties must be registered and certified
• Inspections required every 28-52 months
• Properties with 30 or fewer units: all units inspected
• Properties with 30+ units: sample inspection formula applied
• Conditional certificates may be issued for non-life/safety items

Occupancy Limitations

• Must comply with city's limits on unrelated adult occupants in residential zones
• Zoning restrictions may apply to maximum occupancy

Certificate Duration Options

• 28-month certificate (standard)
• 40-month certificate (for properties renewing prior to expiration with no violations)
• 52-month certificate (for properties with two previous 40-month certificates and excellent compliance history)

County-Level Regulations (Kalamazoo County)

Accommodation Tax

• 5% excise tax on total accommodation charges
• Applies to all short-term rentals (less than 30 consecutive days)
• Monthly filing and payment required by 15th of each month
• Separate from state and local lodging taxes

Reporting Requirements

• Must report all gross rental revenue
• Zero-activity reports required if no rentals occurred
• Records must be maintained for audit purposes

State-Level Regulations (Michigan)

Sales and Use Tax

• 6% Michigan sales tax applies to short-term rentals
• Airbnb and similar platforms may collect this automatically
• Additional local taxes may apply

Contact Information

City of Kalamazoo

Rental Registration & Certification Program

• Phone: 311 or (269) 337-8000
• Email: 311@kalamazoocity.org
• Address: 241 W South Street, Kalamazoo, MI 49007
• Website: www.kalamazoocity.org/rentalregistration

Inspection Scheduling

• Phone: (269) 337-8026
• Required for all inspections and reinspections

City Assessor (for address changes)

• Phone: (269) 337-8011
• Email: cokassessor@kalamazoocity.org

Kalamazoo County

Treasurer's Office - Accommodation Tax

• Phone: (269) 384-8111
• Email: trwhit@kalcounty.com, pafarm@kalcounty.com
• Address: 201 W. Kalamazoo Ave., Kalamazoo, MI 49007
• Office Hours: Monday-Friday, 8 AM to 4:30 PM

Online Tax Filing Platform

• Website: kalcountyaccommodations.munirevs.com
• GovOS Support: blt.str.support@govos.com, (888) 751-1911

Important Compliance Notes

Enforcement Actions

• Properties more than 4 months past certificate expiration may face vacate orders
• Properties with documented noncompliance limited to 16-month certificates
• Zoning violations subject to enforcement action
• Failure to pay accommodation taxes can result in misdemeanor charges

Financial Implications

• Late accommodation tax payments incur 5% monthly penalty (max 25%)
• Interest charges of 1% per month on delinquent taxes
• Registration and inspection fees apply
• Properties may be audited for tax compliance

Best Practices for Compliance

• Maintain detailed records of all rental activity
• Monitor certificate expiration dates proactively
• Ensure local agent contact information remains current
• Complete all required inspections before certificate expiration
• File accommodation tax returns even with zero activity

Links to Source Pages

• City of Kalamazoo - Rental Registration Rules and Responsibilities
• City of Kalamazoo - Rental Housing Main Page
• Kalamazoo County - Short-Term Rentals Accommodation Tax
• Kalamazoo County Accommodation Tax FAQ
• MLive - Airbnb and Kalamazoo Zoning Article (2017)

Disclaimer: This guide is based on available information as of the provided sources. Regulations can change, and investors should verify current requirements with the city and county before making business decisions. Professional legal and tax advice is recommended for complex situations.