South Haven Considers Conditional Licenses for Some Short-Term Rentals

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The city of South Haven, Michigan is creating a new mechanism to help owners of short-term rentals register and operate their properties while waiting for city approval of their licenses. Under the proposed rules, short-term rental owners who were registered as of March 17, 2025 can receive a conditional license, allowing them to operate temporarily while the city catches up on processing the backlog of applications.

Why it matters

South Haven has seen a rise in short-term rental properties, leading the city to implement a new registration system. However, the city is struggling to process all the applications before the May 1 deadline, creating a bottleneck for rental owners. The conditional license system is an attempt to balance the need for regulation with allowing existing rental owners to continue operating.

The details

The proposed conditional license would be available to short-term rental owners who were registered in the city as of March 17, 2025, submitted a complete licensing application and zoning compliance determination, and paid the required fee. This would allow city staff to administratively issue a temporary license while the full application is processed. The conditional license could last up to two years. The city would also have the ability to terminate a conditional license if the rental falls out of compliance with local rules or fails an inspection.

• The May 1 deadline for all short-term rentals to be registered under the new scheme is approaching.
• As of March 17, 2025, the city had only processed about 20% of the short-term rental registrations.

What they’re saying

What’s next

The South Haven City Council voted to introduce an ordinance amendment to allow for the conditional license system.