🎯 STRisker: Bulletin - Benton Harbor, MI
Benton Harbor Freezes New Short‑Term Rentals: City commissioners impose a pause on approvals while they draft clear rules for density, zoning, and operations.
Benton Harbor Pauses New Short‑Term Rentals to Draft Clear Rules
Photo by nextdoor.com
City officials have hit the brakes on new short‑term rental approvals, voting to impose a moratorium until clear guidelines are written into the zoning code.
âś‹ Why the Pause
At its April meeting, the planning commission approved a moratorium on new STRs, citing the absence of language in the city’s most recent zoning ordinance. City Manager Alex Little said the lack of clarity could create problems if investors begin buying up properties.
“We’ll need to be more specific in terms of short‑term rentals,” Little said. “If we start getting individual residential units in the central part of the city, that suddenly winds up with 40 cars parked on everybody in the neighborhood’s parking lot, up in their yards and everything else and noise all night – we’re going to have troubles.”
Zoning Administrator Justin Barden said he was recently contacted by a Realtor representing a Chicago client interested in purchasing properties for STR use. The inquiry highlighted the uncertainty in Benton Harbor’s code. Past ordinances defined STRs as rentals of 30 days or less, but the 2023 master plan left them out entirely.
⚖️ Legal Concerns
Rich Hensel, vice chair of the planning commission, explained that STRs were intentionally omitted from the latest ordinance to avoid costly litigation. “Multiple communities have enacted ordinances and then spent tens of thousands of dollars trying to defend them only to have the state Supreme Court overturn them one by one,” Hensel said.
Instead, the ordinance introduction states that anything not listed is not allowed. Hensel argued that if Benton Harbor does adopt STR language, it should be modeled after an ordinance that has already survived court challenges.
Despite his concerns, Hensel was the only commissioner to vote against the moratorium.
🏢 Existing Rentals
Officials estimate there are already eight to ten STRs operating in Benton Harbor. Those properties will be grandfathered in under the moratorium, meaning they can continue to operate while new applications are paused.
Commissioner Ambie Bell proposed the moratorium, saying the city needs time to establish density limits, zoning parameters, and operational standards. “Until the commission has created clearer guidelines including density limits, zoning parameters, and operational standards,” Bell said, “we need to pause.”
➡️ What Comes Next
The next month will be used to draft guidelines for STR applications. Commissioners say they want to avoid a free‑for‑all that could overwhelm neighborhoods, while also recognizing the potential economic benefits of STRs.
Barden said the Realtor’s inquiry underscored the urgency. Without clear rules, investors may push for STRs in areas ill‑suited for them, creating conflicts with residents.
〰️ Other Zoning Issues
The commission also discussed fences in the downtown area. Little said the current ordinance does not address fence height, raising concerns about aesthetics. “Downtown isn’t a place where you want 6‑ and 8‑ and 10‑foot fences,” he said. “It starts to look like a prison if you’re doing that. It’s counter to what we’re trying to accomplish.”
No action was taken on fences, but commissioners acknowledged the need for future discussion.
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