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

YES, short-term rentals are explicitly allowed in Pentwater, Michigan, but they are heavily regulated under Chapter 153 of the Village Code of Ordinances (Ordinance No. 04 of 2019). However, investors should note that in August 2022, the Village Council placed a six-month moratorium on new STR licenses, limiting the total number of licensed properties to 67 while the village conducted further study on the impact of STRs on the community. This moratorium was implemented to address concerns about parking, noise, and enforcement issues.

The regulatory environment is characterized by strict licensing requirements, occupancy limits, safety standards, and ongoing compliance monitoring. While this creates additional administrative burden, it also provides a structured framework for legitimate operators and helps maintain community standards.

How to Start a Short-Term Rental Business in Pentwater

Step 1: Determine Property Eligibility

Before pursuing licensing, verify that your property meets the following criteria:

• Must be a single dwelling unit on a parcel (only one STR per parcel, unless the parcel lawfully contains multiple dwelling units, each requiring separate licensing)
• Must comply with Village of Pentwater Zoning Ordinance
• Must meet all state building, mechanical, plumbing, electrical, and fire codes
• Maximum of 5 bedrooms or sleeping rooms
• Must provide adequate parking per code requirements

Step 2: Prepare for Application Requirements

• Obtain proof of ownership or legal right to rent the property
• Ensure compliance with all safety standards (smoke alarms, emergency egress, fire extinguishers)
• Identify a designated representative who can be available within a one-hour drive during rental periods
• Prepare to certify compliance with all applicable standards

Step 3: Submit License Application

Applications are submitted to the Village Manager or designee with the required fee. The application must include:

• Complete property information
• Proof of ownership or rental rights
• Certification of compliance with all standards
• Designated representative contact information

Step 4: Display License and Operate

Once approved, display the license prominently on the front door or facade within 5 feet of the front door. The license must display maximum occupancy and designated representative information.

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements

Short-Term Rental License (Annual)

• Required: YES
• Duration: Calendar year (January 1 - December 31)
• Not transferable between properties
• Fee: Determined by Village Council resolution (enhanced fees may apply for previously unlicensed operations)

Compliance Certifications

Required certifications as part of application:

• Zoning compliance certification
• State Building Code compliance
• State Mechanical Code compliance
• State Plumbing Code compliance
• National Electrical Code compliance
• Michigan Fire Prevention Code compliance

Safety and Operational Requirements

Fire Safety Equipment (mandatory):

• UL-approved smoke detectors/alarms in each rental unit
• Smoke detectors in each bedroom/sleeping room
• Detectors outside sleeping areas and on each story
• Emergency egress windows meeting current fire/building codes
• No basement bedrooms unless direct outside doorway or compliant emergency window
• Operable fire extinguisher mounted at exit doors on each floor level

Application Forms

Available Forms:

• 2025 Short Term Rental Application (PDF)
• Short Term Rental - Good Neighbor Guide (PDF)
• STR Committee Minutes and Documentation

Specific Regulations: Village, County, and State

Village of Pentwater STR Regulations (Chapter 153)

Occupancy Limits:

• Maximum: 2 persons per sleeping room/bedroom + 2 additional persons per property
• Absolute maximum: 12 persons (excluding children under 3 years)
• No individual room rentals permitted
• No subletting of portions of dwelling units

Property Limits:

• Maximum 5 bedrooms or sleeping rooms per property
• Only one dwelling unit per parcel may be used as STR (with exceptions for lawful multiple-unit parcels, each requiring separate licensing)

Parking Requirements:

• 1-2 bedrooms: 1 on-site parking space
• 3-4 bedrooms: 2 on-site parking spaces
• Larger units: Minimum 3 on-site parking spaces

Designated Representative:

• Must provide local address and 24-hour working phone number
• Must be available within one-hour drive during rental periods

Zoning Compliance:

• Property must comply with Village of Pentwater Zoning Ordinance
• No exemptions from zoning requirements

Penalties and Enforcement

Municipal Civil Infractions:

• Class C violations
• First offense: $100
• Second offense within 1 year: $200
• Third offense and subsequent within same year: $500
• Each day of violation constitutes separate offense

License Revocation:

• Automatic revocation after 3 separate incidents/violations within calendar year
• Violations include Village Code, Zoning Ordinance, Construction Codes, or Fire Prevention Code violations
• 36-month prohibition on new license after revocation

Oceana County Regulations

No specific county-level STR regulations were identified in the provided materials. County ordinances focus on general welfare, property maintenance, zoning, and municipal civil infractions rather than specific STR frameworks.

State of Michigan Regulations

State Code Compliance Requirements:

• Michigan Residential Code
• Michigan Construction Code
• Michigan Mechanical Code
• Michigan Plumbing Code
• Michigan Fire Prevention Code
• National Electrical Code

State Enabling Authority:

• Ordinance enacted pursuant to Public Act No. 3 of 1895, MCL 67.1, as amended
• Authority to permit and regulate STRs to ensure public health, safety, and welfare

Contact Information for Local Authority

Village of Pentwater - Primary STR Authority

• Address: 65 S. Hancock Street, P.O. Box 622, Pentwater, MI 49449
• Phone: (231) 869-8301
• Fax: (231) 869-5120
• Hours: 8:00 AM to 4:00 PM, Monday - Friday
• Website: pentwatervillage.org
• Primary Contact: Village Manager (licensing authority)

Village Manager's Office

• Function: License application processing and enforcement
• Role: Reviews applications, issues licenses, conducts inspections, handles violations

Key Department Contacts:

• Village Clerk: Rande S. Listerman (clerk@pentwatervillage.org)
• Village Treasurer: Finance and fee collection
• Ordinance Enforcement Officer: Code compliance enforcement
• Police Department: Emergency response and nuisance enforcement

Planning and Zoning Department

• Function: Zoning compliance verification
• Role: Ensures STR properties meet all zoning requirements

Important Links to Source Pages

Primary Regulatory Documents

• Village of Pentwater STR Ordinance (Chapter 153)
• Village of Pentwater STR Information Page

Application and Compliance Forms

• 2025 Short Term Rental Application
• Short Term Rental - Good Neighbor Guide
• 2025 STR License List
• 2024 STR License List

Supporting Documentation

• STR SWOT Analysis
• STR Committee Minutes 05/02/23

News and Updates

• Oceana's Herald Journal: Pentwater Places Moratorium on STRs

Township Information

• Pentwater Township Ordinances

Market Analysis

• AirROI Pentwater STR Market Report

Key Considerations for STR Investors

Market Conditions

• Current Status: 67 licensed STR properties (as of August 2022 moratorium)
• Moratorium: Six-month study period imposed in 2022, may affect new license availability
• Competition: Low regulatory environment suggests opportunity but check current license availability

Investment Risks

• License Limitations: Potential cap on total number of STR licenses
• Strict Enforcement: Three-strike revocation policy
• High Compliance Standards: Extensive safety and operational requirements
• Limited Flexibility: No room rentals or subletting permitted

Success Factors

• Property Standards: Larger properties (3+ bedrooms) better suited for market
• Location: Downtown, lakefront, and harbor areas show strong performance
• Compliance: Proactive approach to safety and operational standards
• Designated Representative: Essential for maintaining license and responding to issues

This comprehensive regulatory framework provides clear guidelines for legitimate STR operations while maintaining community standards. Success in this market requires thorough understanding of and compliance with all applicable regulations, as well as proactive relationship-building with local authorities.