Navigating Short-Term Rentals

By Donald Talonen
 
On August 19, 2024, the moratorium that began on February 19, 2024, came to an end, and a new moratorium began. The recently implemented moratorium set to end on February 19, 2025. The South Haven City Council unanimously passed a resolution 2024-37 during their meeting on August 5.
South Haven City Manager Kate Hosier said, “This is all part of the process of the ordinance review and amendment that council has listed as a priority for this fiscal year and the council received a lot of public comment for review,” and added, “Council took that comment at the meeting so there’s more work to be done but the priority that they’ve identified.”
The council evaluated a preliminary ordinance that will regulate short-term rentals (STRs) in the town once the moratorium on new STRs expires. During this time the new STR certificates will be suspended. They discussed aspects such as language, parking regulations, and maximum occupancy.
Council member George Sleeper said, “If you have invested in a property, you modified it, built it to have a certain occupancy, and now we’re saying you can no longer have that many people in it, I would wonder if that doesn’t sound fair.”
The council settled on a maximum occupancy of 12 with some exceptions. Instances where the maximum legal occupancy is greater than 12, the number of occupants would be reduced over a 12-month period.
The parking rules would require that on-site parking be included with STRs, although council members disagreed over how many spaces should be provided. They sent the matter back to the zoning staff for further refinement.
The city lists concerns related to the long-term residents that could have unintended consequences. Among those concerns were a decrease in long-term residents, enrolment in schools, making long-term residency less affordable, increased numbers of empty homes during the winter months, and the possibility of increased noise levels during the busy tourist season.
The City of South Haven has implemented a comprehensive STR program, requiring all STR dwelling units to be registered annually. This initiative is designed to maintain a balance between the thriving tourism industry and the residential community’s quality of life.
In conclusion, South Haven’s approach to managing short-term rentals exemplifies a thoughtful balance between fostering tourism and preserving community integrity. With clear regulations, dedicated support, and a commitment to being good neighbors, South Haven continues to be a welcoming destination for all who wish to experience its unique charm.
The council continues to refine and address concerns about the ordinance as proposed.