Township discussing short-term rental changes

The Laketown Township Planning Commission took a first look at possible changes to short-term rental rules at its meeting on Wednesday, Feb. 4, 2026.

The commission will address the issue at its meeting on March 4 at 6:30 p.m. at the township hall, 4338 Beeline Road.

“Put some thought into this,” commission Chairperson Chad Nienhuis told the five-member board on Feb. 4. He asked members to send their comments to Community Development Director Michelle Sall.

The proposal deals with the zoning ordinance only, that is, the basic guidelines that define short-term rentals and where they will be allowed. More specific regulations, such as noise and parking, and enforcement, including possible ticketing and fines, will be handled after the zoning is determined.

Moratorium and joint committee

A moratorium on new applications for free-standing short-term rental homes is in place until June 30 to give the township time to examine its short-term rental policies.

A special joint committee made up of the entire township board and planning commission met four times starting in August to gather information and collect public input about rentals. That special committee wrapped up its work and dissolved on Nov. 5, passing the responsibility for changes to the planning commission.

Any proposed changes will eventually go to the township board for more discussion and action.

The proposal

The proposal drawn up by Sall allows short-term rentals in mixed use zoning, and limits short-term rentals in residential zoning districts R-1, R-1.5 and R-2 to attached accessory dwelling units and detached accessory dwelling units only.  No free-standing short-term rentals are permitted.

Free-standing rentals are homes where the owner does not reside but are used solely for short-term renters.

Residents at the joint township board and planning commission meetings said places where the homeowner does not live on site have the most problems and generate the most complaints.

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. They generally include living, sleeping, kitchen, and bathroom facilities and have a lockable entrance door. The owner lives in the main house on the lot.

The proposal reduces the number of occupants in a short-term rental from the current 16 people to 10 people.

Free-standing short-term rentals would still be permitted on Mixed Use zone, located along Blue Star Highway.

The Mixed Use district is intended for a wide range of retail, office, industrial, institutional, multifamily residential, single family residential, recreation, and open space uses.

The proposal states that short-term rentals are commercial uses.

Residential character

The current ordinance and proposed changes state:

“The township is committed to preserving its neighborhoods’ residential character, minimizing potential nuisances, and maintaining its small-town character and scenic beauty,” it says. “It intends to protect its residents and visitors from the potentially negative or harmful effects that can arise from commercial rentals, including the potential impact on the appearance, tranquility, and standard of living in its prime residential areas.”

The proposed changes aim to reduce the strain on township infrastructure from having to respond to complaints regarding parking in prohibited areas, garbage, vandalism, overcrowding at parks, noise, and excessive occupancy of homes; Alleviate fire department resources spent on medical, water, and land rescue calls from increased non-resident populations; Protect residential zones from excessive noise, garbage, trespassing, air quality, and security problems, associated with transient commercial activity in residential zones; Protect residential properties from being purchased by commercial interests to establish training centers and retreats in residential zones; and protect the ability to provide affordable housing options.

The proposal and current ordinance recognize the benefits of short-term rentals including the financial benefit to property owners:

“Therefore, the township wishes to obtain a balance between these considerations and allow short-term rentals as set forth in this chapter.”

The township has about 100 registered short-term rentals and there might be another 100 unregistered units, according to township officials.