Douglas, Michigan

Douglas, officially the City of the Village of Douglas, explicitly permits short-term rentals of under 31 days in all zoning districts that allow residential use. Operators must register with the City Clerk, pay a $350 registration fee, and obtain a Rental Occupancy Certificate. The certificate is valid for three years, so it is renewed every three years rather than annually.

Before a certificate issues, the property must pass a Saugatuck Township District Fire Department inspection confirming compliance with building, health, fire and safety codes. Reinspection is required at least every 36 months. The ordinance allows only whole-unit rentals, and renting individual rooms to separate parties is prohibited.

There is no owner-occupancy requirement, no primary-residence requirement, and no annual night cap found in the ordinance, which makes Douglas relatively friendly to non-resident investors compared with stricter Michigan resort towns. Enforcement is rated moderate. Multiple ordinance violations or findings of responsibility involving a short-term rental in a single calendar year can lead the City Zoning Administrator to revoke the rental occupancy certificate.

Michigan applies a statewide 6% lodging tax to stays under 30 days, and platforms such as Airbnb collect and remit it. The city maintains an updated registration packet (2025 edition), and neighboring Saugatuck changed its own separate ordinance in April 2025. No major Douglas-specific overhaul, such as caps or owner-occupancy mandates, was identified. Fees are set by City Council and can change, so confirm current fees and inspection scheduling with the City Clerk.