Board passes new short-term rental ordinance

The Laketown Township Board of Trustees on Wednesday, May 13, 2026, approved a new zoning ordinance that puts limits on short-term rentals. The board also started the next step – specific regulations to address issues such as noise and enforcement.

The new zoning rules go into effect May 26, about a month before a moratorium on certain rentals was to expire.

 “I think it’s well thought out,” said Treasurer Jim Johnson. “I also agree that the enforcement piece, regulating, making sure people are following the rules, is super important.”

The board directed Manager Stephanie Fox to work with the township attorney on regulations and enforcement rules and have information in preparation for the June 3 planning commission meeting.

Regulations include issues such as noise control and parking. Enforcement includes possible ticketing and fines.

To watch the meeting, visit here.

The new ordinance

The ordinance passed on May 13 deals with the zoning ordinance only, that is, the basic guidelines that define a short-term rental and where the use will be allowed.

The new ordinance prohibits all stand-alone homes from being used as short-term rentals in all residential zoning districts.

Currently existing registered, licensed stand-alone short-term rentals are allowed to continue operation and follow the rules under which they were approved.

The new ordinance states:

All short-term rentals in the AG Agricultural District are prohibited.

In R-1 Rural Estate District and R-1.5 Very Low-Density Residential District, the proposal allows short-term rental use in an attached or detached accessory dwelling unit. Only one unit may be rented.

An attached accessory dwelling unit is a room or set of rooms in a single-family dwelling that has been designed or configured to be used as a separate dwelling unit and is subordinate in size to the principal dwelling unit on the same lot. The owner lives in the house.

A detached accessory dwelling unit is a room or set of rooms in a separate building that has been configured to be used as a separate dwelling unit and is subordinate in size to the principal dwelling unit on the same lot. The owner lives in the main house on the lot.

To become a short-term rental, an attached or detached accessory dwelling unit needs approval in advance from the planning commission as a special use.

In R-2 Low Density Residential District, and R-3 Medium Density Residential District, short-term rentals are an allowed use in an attached accessory dwelling unit only. Only one unit may be rented. 

In MU Mixed-Use District, short-term rentals are an allowed use in a stand-alone home, or an attached accessory dwelling unit.  Only one unit may be rented.

The ordinance limits the number of renters to the rules of the International Property Maintenance Code which sets standards for bedrooms including square footage for occupancy.

The ordinance caps the number of visitors to a short-term rental. From 10 a.m. to 10 p.m., a short-term rental may have on the lot a total of up to 150 percent of the occupancy limit unless approved as a special use. For example, if four people are staying at a short-term rental, two outside visitors are allowed on the property for a total of six people.

Long journey

In May 2025, the township enacted a moratorium on all free-standing short-term rentals until June 30, 2026.

“It’s been a long journey,” said Supervisor Steven Ringelberg at this month’s meeting. He and other members thanked the planning commissioners and Community Development Director Michelle Sall for their work.

The planning commission has been working on changes to the ordinance since the end of last year after a special joint committee made up of the entire township board and planning commission met four times starting in August 2025 to gather information and collect public input. That special committee wrapped up its work and dissolved on Nov. 5, passing the responsibility for changes to the planning commission which discussed the issue at several meetings and held a public hearing on April 1 during which 15 people spoke about short-term rentals.

The ordinance passed 4-1 on May 13. Supporting the new ordinance were Ringelberg, Johnson, Clerk Jim Delaney and Trustee Mark Timmerman, who is also the board’s representative on the planning commission.

Trustee Mike Koeman opposed the new rules, saying the ordinance does not fix bigger problems.