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

YES - Short-term rentals are explicitly allowed in Paw Paw Township, Michigan, as of July 1, 2024. However, they are strictly regulated under Township Ordinance #288, which went into effect on that date. ALL short-term rentals in Paw Paw Township MUST be registered with the township and comply with comprehensive licensing requirements, inspections, and ongoing compliance obligations.

How to Start a Short-Term Rental Business in Paw Paw Market

Step 1: Initial Assessment

• Verify Property Location: Confirm your property is within Paw Paw Township boundaries
• Review Zoning Compliance: Ensure the property is in a zone that permits short-term rentals
• Assess Property Condition: Evaluate readiness for health, fire, building, and safety inspections

Step 2: Application Process

1. Obtain Registration Forms: Download from township website or pick up at township office
2. Complete Application: Provide detailed property information including bedrooms, bathrooms, parking, and maximum occupancy
3. Submit Required Documents: Floor plan sketch, insurance documentation, lease templates
4. Pay Application Fee: $400.00 (non-refundable)
5. Designate Local Agent: Appoint local contact responsible for compliance and issue response

Step 3: Inspection Requirements

• Health Inspection: Required before operation
• Fire Inspection: Mandatory safety compliance check
• Building Inspection: Structural and zoning compliance verification
• Safety Inspection: Overall hazard assessment

Step 4: Insurance and Documentation

• Liability Insurance: Must cover short-term rental use and claims from occupants
• Proof of Coverage: Written letter or email from insurance provider confirming adequate coverage
• Homestead Exemption Verification: Prove lawful exemption status or confirm not claiming exemption

Required Documents, Permits, Licenses, and Guidelines

Required Documents:

1. Completed Registration Form
2. Completed Application Form with:
   • Property details (address, bedrooms, bathrooms, parking)
   • Maximum occupancy determination
   • Safety equipment verification (smoke detectors, CO detectors, fire extinguishers)
3. Floor Plan Sketch showing size and square footage of all habitable spaces
4. Lease Template containing required disclosures:
   • Maximum occupancy limits
   • Off-street parking requirements
   • Noise regulations
   • Other ordinance requirements
5. Insurance Documentation confirming liability coverage for short-term rental use
6. Homestead Exemption Proof or exemption status clarification

Required Licenses:

• STR License: Issued by Paw Paw Township under Ordinance #288
• Annual Renewal: License expires one year from issuance date
• License Display: Must be clearly displayed in all advertisements and documents

Key Guidelines:

• Maximum Occupancy: Cannot exceed inspector-approved limits
• Advertisement Requirements: Must display license # and occupancy # in ALL advertisements
• Address Sign: Maintain clearly visible address sign from road
• Local Agent: Must provide 24/7 contact capability for township, tenant, and neighbor concerns
• Property Maintenance: Continuous compliance with all township ordinances required

Specific Regulations for Short-Term Rentals

Paw Paw Township Ordinance #288 Requirements:

Operational Standards:

• License holders must maintain property in full compliance with all township ordinances
• Maximum occupancy limits must be strictly enforced
• Local contact/agent must be available to respond to violations and tenant issues
• Properties must maintain appropriate insurance coverage year-round

Compliance and Enforcement:

• Violations of any part of Ordinance #288 may result in license revocation
• Excessive police calls or code violations can trigger license cancellation
• Failure to maintain insurance or pass inspections leads to license suspension
• License does not transfer to new property owners

Advertising and Marketing:

• License number and occupancy limits must appear in all advertising materials
• All rental agreements must include mandatory disclosures
• Address signage must be maintained and visible from roadways

Transfer and Discontinuation:

• STR licenses are property-specific and non-transferable
• License expires upon property sale
• Owners must notify township of intent to discontinue STR use

Michigan State-Level Considerations:

Based on the provided content, investors should be aware that Michigan may require:

• Property registration with state agencies
• State use tax obligations (6% on rental income)
• Compliance with state-level housing and safety codes

Note: While some sources mention Michigan Department of Licensing and Regulatory Affairs registration, investors should verify current state requirements with appropriate state agencies.

Contact Information for Local Authority

Paw Paw Township

Primary Contact:

• Address: 114 N. Gremps Street, Paw Paw, MI 49079
• Phone: (269) 657-4340
• Office Hours:
  • Monday – Wednesday: 8am – 3pm
  • Thursday: 8am – 11am
• Entrance: Please use Gremps Street entrance

Department Contacts:

• Clerk's Office: For registration forms and applications
• Building Department: For inspection scheduling and permit questions
• Planning Commission: For zoning and land use inquiries
• Supervisor's Office: For ordinance interpretation and violations

Online Resources:

• Township Website: pawpawtownshipmi.gov/
• Permits Page: Available through main website navigation
• Public Notices: Check regularly for ordinance updates and enforcement actions

Links to Source Pages

Primary Regulatory Documents:

1. New Short Term Rental Ordinance (#288) Is In Effect
2. Paw Paw Township STR Registration Forms
3. Ordinance #288 Full Text

Township Resources:

• Paw Paw Township Main Website
• Township Ordinances
• Building and Land Information
• Permits and Applications

Additional Context:

• Paw Paw Village Website - For municipal services within village limits
• Van Buren County Website - For county-level considerations

Important Investment Notes:

• Operating without proper registration results in township fines and potential loss of ability to operate
• Annual renewal required with re-inspection and insurance verification
• Consider邻 property management services familiar with local ordinance requirements
• Budget for ongoing compliance costs beyond initial registration fees
• Maintain detailed records of all tenant interactions and property maintenance for compliance documentation