I’m Alex, a 30-year-old father of two from Grand Rapids, Michigan. I love exploring the outdoors with my family, and we often visit charming towns like Grand Haven for weekend getaways. As a small business owner myself, I’m always interested in how local economies grow and how new policies can impact businesses and residents. I believe in smart growth that balances economic opportunity with maintaining the character of our communities. *** Grand Haven Welcomes Short-Term Rentals to its Downtown Core: A Strategic Move for Economic Vitality Grand Haven, a picturesque city nestled on the shores of Lake Michigan, is making waves with a recent policy change that could significantly boost its vibrant downtown. As of August 18, 2025, the Grand Haven City Council has unanimously approved an amendment to its zoning ordinance, officially allowing short-term rentals (STRs) within the strategically important Center Town District. This isn’t just a minor tweak; it’s a thoughtful, deliberate step aimed at revitalizing the heart of the city and injecting new energy into local businesses. For those of us who love visiting Grand Haven, whether for its stunning beaches, the iconic lighthouse, or its lively downtown, this news is exciting. It signals a proactive approach by city leaders to adapt to evolving tourism trends and economic opportunities. But what exactly does this mean for the city, its businesses, and its residents? Let’s dive in and explore the details of this significant policy shift. Defining the Heart of the Matter: The Center Town District Before we get into the nitty-gritty of the regulations, it’s important to understand *where* these changes are taking effect. The new ordinance specifically targets the **Center Town District**. This isn’t just any part of Grand Haven; it’s the commercial core, the bustling hub where many of us enjoy shopping, dining, and soaking in the local atmosphere. The boundaries of this key district are clearly defined: it stretches from North 6th Street to Jackson Street, and from Franklin Street to US-31. Knowing these boundaries is crucial because it highlights the city’s intention to concentrate the benefits of short-term rentals within an area already designated for commercial activity. This strategic placement aims to enhance, rather than detract from, the existing character of downtown Grand Haven. Navigating the New Landscape: Key Restrictions and Regulations While the approval of short-term rentals in the Center Town District is a positive development, it’s not a free-for-all. The Grand Haven City Council has implemented several important restrictions to ensure that these rentals integrate smoothly into the urban fabric and support the district’s primary commercial function. These regulations are designed to maintain the unique charm and operational efficiency of downtown Grand Haven. The Ground Floor Mandate: Keeping Commerce Alive One of the most critical stipulations is the **ground floor commercial use mandate**. For any property within the Center Town District to qualify for short-term rental use, its ground floor *must* be dedicated to retail or commercial purposes. This means that properties with residential units or parking facilities on the ground level will not be eligible under this new ordinance. This is a smart move by the city. It ensures that the street-level experience in the Center Town District remains vibrant and active, encouraging foot traffic and supporting the businesses that define the area. As a business owner, I appreciate this focus on maintaining a strong commercial presence. It means that the increased visitor traffic from STRs is more likely to patronize the very businesses that make downtown Grand Haven special. Parking with a Purpose: Ensuring Accessibility Parking is always a hot topic in popular downtown areas. To address this, the new ordinance requires that any parking associated with short-term rental units must be located in the **rear of the building**. This thoughtful approach aims to preserve precious street parking for shoppers, diners, and other visitors who are coming to patronize the local businesses. By keeping parking out of sight and out of the main thoroughfares, the city ensures that the visual appeal of the commercial district is maintained, and accessibility for all visitors is prioritized. This is a practical consideration that directly impacts the day-to-day experience of both businesses and their customers. Setting the Standard: Occupancy and Noise Ordinances To ensure a positive experience for both renters and the surrounding community, Grand Haven has also put in place specific regulations regarding **occupancy limits and noise levels**. Owners and their designated local agents are responsible for making sure that advertised occupancy doesn’t exceed the limits set by city ordinances. Furthermore, strict rules are in place to manage noise. This typically includes designated quiet hours, often from 9:00 p.m. to 7:00 a.m., to maintain peace and prevent disturbances for nearby residents and businesses. These measures are crucial for fostering good neighborly relations and preserving the quality of life in the Center Town District. Transparency and Information: Displaying Ordinance Sections For clarity and compliance, owners or their local agents are required to prominently display a full-size copy of the approved certificate of compliance within each rental property. Additionally, relevant sections of the city’s ordinances—covering areas like trash disposal, noise, occupancy, and parking—must also be visibly posted. This ensures that renters are aware of the rules and can adhere to them during their stay. The city provides sample displays, making it easier for property owners to comply. Maintaining Standards: Property Maintenance and Waste Disposal Just like any responsible property owner, those operating short-term rentals must keep their properties in good condition. The ordinance emphasizes that all exterior property and premises, as well as the interior of rental structures, must be kept free from accumulated rubbish or garbage. Occupants are responsible for proper waste disposal, and owners must provide appropriate containers to ensure cleanliness and sanitation. This commitment to property upkeep is vital for maintaining the aesthetic appeal and health standards of the Center Town District. The “Why” Behind the Welcome: Rationale for the Policy Change City officials in Grand Haven haven’t made this decision lightly. The rationale behind allowing short-term rentals in the Center Town District is multifaceted, with a clear focus on **economic revitalization and community development**. Breathing New Life into Center Town A primary objective is to inject new energy into the Center Town District. By permitting STRs, city leaders anticipate an increase in visitor presence. More visitors mean more eyes on the shops, more people dining at the restaurants, and a generally more dynamic atmosphere. This is precisely what many downtown areas strive for to combat vacancies and maintain economic vibrancy. A Boost for Local Businesses The ripple effect of increased visitor numbers is expected to directly benefit local establishments. As more people explore the district, they’re more likely to discover and patronize the unique shops, cafes, and restaurants that Grand Haven has to offer. This increased foot traffic and consumer spending can be a significant boon for small businesses, fostering economic growth and supporting the commercial vitality of the area. The Economic Multiplier Effect Short-term rentals can indeed contribute positively to a city’s economy. They can generate additional tax revenues for the municipality, which can then be reinvested in public services and infrastructure. Beyond direct tax contributions, STR guests tend to spend money on local amenities, supporting sectors like hospitality, dining, and entertainment. For instance, studies have shown that visitors staying in short-term rentals often spend more in local economies compared to those staying in traditional hotels, creating a broader economic impact. Research in San Diego, for example, indicated that visitors in STRs spent substantial amounts on local amenities, contributing significantly to the overall economic impact of tourism. Grand Haven’s STR Framework: Building on Existing Regulations This new ordinance doesn’t exist in a vacuum. Grand Haven already has a framework for regulating short-term rentals, and this amendment builds upon that foundation. Understanding the existing rules provides valuable context for the recent changes. Defining a Short-Term Rental Within Grand Haven, a short-term rental is defined as a dwelling unit that provides **transient accommodations for periods of less than one month**, occurring more than three times per year. This definition clarifies what types of rental activities fall under these regulations. Where STRs Have Been Permitted Historically, short-term rentals in Grand Haven have been allowed in specific zoning districts, often with special use approvals. These have included areas like Southside (properties fronting Franklin between 5th and Harbor), parts of Old Town (with special use approval on Key Street segments), the Central Business District, Dune Residential (also requiring special use approval), and Waterfront-2. Specific developments like Grand Landing, The Elliott on Seventh, and Harbourfront Condos have also been designated as permissible locations. The new ordinance expands this to the Center Town District, but with the crucial ground-floor commercial requirement. Eligibility Requirements: The Basics Regardless of the zoning district, any property seeking to operate as a short-term rental must be a **legal, conforming use** and possess **sufficient off-street parking**. These are fundamental requirements that ensure properties meet basic legal and infrastructural standards. Annual Registration and Fees In line with City Code of Ordinance Chapter 9, Sections 201-204, all rental properties, including short-term rentals, must undergo **annual registration**. The current registration fee is $160.00 per short-term rental unit. It’s important to note that failure to submit registration fees and forms by the February 15th deadline incurs a late fee of $50.00 per rental unit, per month. These fees help cover the administrative costs associated with managing the rental housing program. Transferability of Certified Rentals Existing certified short-term rentals are permitted to continue their operation and can be transferred to new owners. This provides a degree of stability for those already operating legally within the city’s framework. Broader Implications: STRs in the National Conversation Grand Haven’s decision is part of a larger, ongoing conversation happening in municipalities across the country regarding the regulation of short-term rentals. These discussions often involve a delicate balancing act between harnessing economic opportunities and safeguarding community well-being. Impact on Housing Markets One of the most frequently cited concerns about the proliferation of short-term rentals, particularly those managed as businesses rather than occasional rentals by homeowners, is their potential impact on local housing markets. In popular tourist destinations, a significant number of properties being used for short-term rentals can reduce the availability of long-term housing. This reduction in supply can, in turn, drive up rents and exacerbate affordability issues for local residents. Preserving Community Character Cities also grapple with how short-term rentals might alter neighborhood character. Issues such as increased noise, traffic, and a more transient population can sometimes disrupt the quality of life for permanent residents. Regulations are often implemented to mitigate these effects, aiming to preserve the unique character and residential feel of communities. The Economic Benefits vs. Community Concerns Debate The debate surrounding short-term rentals frequently centers on weighing the potential economic benefits—like increased tourism revenue and income opportunities for property owners—against concerns about housing availability, affordability, and neighborhood quality of life. Grand Haven’s approach, by focusing on a specific commercial district and imposing strict ground-floor requirements, appears to be a strategic attempt to capture economic benefits while minimizing potential negative impacts on residential areas. It’s a way to encourage tourism and economic activity in a controlled, targeted manner. Looking Ahead: Monitoring and Evolution of the Ordinance The implementation of this new ordinance in Grand Haven will undoubtedly be followed by a period of observation and potential adjustments. City officials will be closely monitoring the effects of this policy to ensure it achieves its intended goals. Enforcement and Compliance The city’s planning and community development department, along with code enforcement, will play a vital role in ensuring compliance with the new regulations. Adherence to the specified rules—regarding ground-floor use, parking, occupancy, noise, and property maintenance—will be crucial for the successful integration of short-term rentals into the Center Town District. The Potential for Ordinance Evolution As with many new regulations, there’s always the possibility that the ordinance may evolve based on practical experience and feedback from the community and stakeholders. Ongoing assessment will inform any necessary revisions to optimize the policy’s effectiveness and address unforeseen challenges. This adaptive approach is key to ensuring the long-term success of the initiative. Conclusion: A Strategic Step for Grand Haven The Grand Haven City Council’s decision to permit short-term rentals in the Center Town District represents a strategic and forward-thinking move to foster economic vitality within a key commercial area. By carefully crafting restrictions, including mandates for ground-floor commercial use and specific parking requirements, the city aims to strike a balance. They are seeking to capitalize on the opportunities presented by the short-term rental market while diligently preserving the character and functionality of its beloved downtown district. This development is a notable example of how municipalities are adapting their zoning and regulatory frameworks to address the evolving landscape of the hospitality and tourism sectors. It’s a move that could bring increased visitors, support local businesses, and contribute to the overall economic health of Grand Haven, all while maintaining the charm that makes this lakeside city so special. For property owners considering short-term rentals in the Center Town District, it’s essential to thoroughly understand and comply with all the new regulations. For visitors, this change offers more options for experiencing the best of Grand Haven. And for the community as a whole, it’s an exciting development that promises to enhance the vibrancy of our downtown. *** **What are your thoughts on Grand Haven’s new short-term rental policy? Share your opinions in the comments below!**