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South Haven City Council Crafting Ordinance to Regulate Short-Term Rental Properties

The South Haven City Council is currently in the process of drafting an ordinance to regulate short-term rental properties within the city.

At a recent meeting, attorney Cliff Bloom discussed the draft language that has been put together so far. He mentioned that the ordinance would allow some short-term rentals to operate as commercial operations in residential areas, with certain limitations in place. Bloom also noted that while the city may not be able to reduce the number of existing short-term rentals significantly, they can control and limit the number of new ones.

With potential legal challenges in mind, Bloom stated, “I don’t think the courts will allow us to do that. I think the courts will allow us to add restrictions, including potentially more parking, maybe tighter occupancy and so on. But the idea of using the regulatory ordinance to really drop the numbers dramatically, I suspect the courts would not allow that.“

One of the key objectives of the ordinance is to restrict the growth of new short-term rentals in the city.

Bloom highlighted a contentious aspect of the ordinance, mentioning, “I think probably one of the more contentious parts of that were the additional short-term rental licenses that would be allowed for the business units, and one of the components of this proposed amendment would be to essentially remove those extra lottery-driven ones for a cap.“

Another issue addressed in the draft language is the presence of unregistered short-term rentals operating illegally. Bloom emphasized that the city would need to allocate resources towards identifying and addressing these properties.

The ordinance also includes provisions for existing short-term rentals that were in operation as of December 31 of the previous year. A cap on the number of these properties will be set, with the possibility of fewer short-term rentals existing once the new rule comes into effect.

Following further review by the planning commission, the draft language will be revisited by the city council at a future date for final consideration.

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