What Short-Term Rentals Are
Short-term rentals (STRs), often listed on Airbnb or VRBO, allow property owners to host guests for shorter stays—typically less than 30 days. They differ from long-term rentals, which run on six-month or year-long leases and follow traditional landlord-tenant rules. STRs act more like flexible lodging options, filling the gap between hotels and private housing.
For hosts, STRs can generate income, but they also come with responsibilities. Owners must register properties, comply with safety inspections, and in many cases, collect lodging taxes just like hotels. Guests, meanwhile, enjoy clean, comfortable, and often unique spaces, while supporting local businesses during their stay.
Why STRs Matter in Montague and Whitehall
Montague and Whitehall thrive on seasonal tourism. Visitors come for Lake Michigan, White Lake, the Hart-Montague Trail, and beloved events like festivals and markets. Yet, these lakeshore communities have limited hotel and motel capacity. Without enough places to stay, tourists are often forced to book in Muskegon or Grand Haven, taking their spending power away from our towns. STRs help solve this problem by providing much-needed lodging that keeps visitor dollars local.
When guests book Airbnbs, they don’t just stay overnight—they dine in local restaurants, shop in local stores, and participate in local attractions. This creates a ripple effect of economic benefit. In a region where tourism fuels small businesses, STRs play a critical role in keeping our communities vibrant.
Myths vs. Reality
STRs sometimes get a bad reputation, but the facts tell a different story:
- “STRs attract parties and trouble.”
Platforms like Airbnb and VRBO operate on two-way review systems where both hosts and guests are rated. Problem guests get flagged quickly, making repeat bad behavior nearly impossible. Studies show that these peer review systems effectively self-police the marketplace.
- “STRs don’t contribute to the local economy.”
In Muskegon County, STRs are taxed at 5% accommodation tax, plus Michigan’s 6% use tax on stays under 30 days. These are automatically collected by platforms and remitted, just like hotels. On top of that, visitors spend heavily at local shops and restaurants, multiplying the benefit.
- “STRs are unregulated.”
Both Montague and Whitehall already require rental registration, inspections, and compliance with building codes and parking rules. In fact, STRs are often held to stricter standards than long-term landlords.
- “STR properties are poorly maintained.”
A neglected property cannot survive in the STR marketplace. Hosts are incentivized to keep rentals clean, safe, and attractive because guest reviews directly affect bookings. Research shows that STRs are often maintained at higher levels than even owner-occupied homes.
Local Rules and Responsibilities
Running an STR here is not as simple as listing your home online. Property owners in Montague must register rentals with the city, keep all taxes and fees current, and display certificates for guests. Rentals under 120 days are considered short-term and must meet parking and safety standards.
In Whitehall, rental registration is also required, and city leaders are actively developing new rules to strengthen oversight. Proposals include requiring a local 24/7 contact person, notifying neighbors within 300 feet, and restricting STRs to certain zones. Regardless, Muskegon County’s 5% accommodation tax and Michigan’s 6% use tax already apply. STR operators must also ensure their properties comply with inspections, fire safety, and parking requirements.
The Danger of Overregulation
It is important to strike a balance. Reasonable rules around safety, inspections, and accountability protect both guests and neighbors. But heavy-handed restrictions—like blanket bans or overreaching zoning limits—can backfire. When cities push STRs underground, owners often continue renting without using platforms like Airbnb. That eliminates safeguards such as guest reviews, automatic tax collection, and clear accountability. Smart regulation keeps rentals visible, taxable, and safe.
Conclusion: A Community Asset
Short-term rentals are not the enemy of Montague and Whitehall. They are a vital piece of the local economy and tourism system. With limited hotel space, STRs provide the beds visitors need to enjoy our festivals, lakeshore, and small-town charm. They are already regulated, taxed, and self-policing in ways that protect both hosts and guests. Most importantly, they keep visitor spending here at home, supporting small businesses and strengthening community life.
Note to Readers: Information on how to run an Airbnb or other rental can vary for every person depending on location, property type, and changes in local laws. Montague and Whitehall continue to review and adjust their rules, so details may shift over time. If you know of updates or corrections, please share them so we can keep this information accurate and helpful for the community.
