Rental Investment Guide

Village of Grand Beach


Short-term & long-term rental regulations, fees, and investor resources for Berrien County, Michigan.

Updated June 2026

Location: Village of Grand Beach (red outline) over OpenStreetMap. © OpenStreetMap contributors.

Area Overview


Grand Beach is a small Lake Michigan beach village at the very southwest corner of Berrien County, adjacent to the Michiganโ€“Indiana state line and surrounded by New Buffalo Township. It sits in the Harbor Country region, roughly 73 miles by road from downtown Chicago, and is a predominantly second-home community with a year-round resident population of approximately 310 (2020 census).

Grand Beach is entirely residential โ€” the village has no commercial zoning district [3]. Housing stock is dominated by single-family cottages and lakefront homes. Short-term rental activity has been the subject of ongoing Council and Planning Commission attention since 2022, with three ordinance amendments tightening registration, occupancy, and life-safety requirements [2].

Quick Status Summary


Short-Term Rentals REGISTERED

Permitted village-wide under Ordinance 2022-104 (effective 1/1/2023), as amended by 2024-114 and 2025-115 [2]. All STR properties must be registered annually, at $300 per bedroom, and pass a life-safety inspection. As of Ordinance 2025-115, a dwelling qualifies for STR use only if the owner occupies it at least 28 days per calendar year. Occupancy is capped at the lesser of 16 total persons or 2 adults per bedroom meeting Michigan Residential Building Code egress. The Grand Beachโ€“Michiana Police Department administers all registrations [5].

Long-Term Rentals ALLOWED

Long-term residential rentals are permitted in both of the village’s residential districts [3]. Ordinance 2022-104 governs rental properties generally โ€” operators should confirm registration requirements for non-STR rentals directly with the Village Clerk before leasing [1].

Rental Regulations


1 Where STRs Are Allowed (Zoning)

STRs are permitted village-wide under Ordinance 2022-104, subject to annual registration and inspection [1][2]. The Village of Grand Beach has only residential zoning districts โ€” Low Density Residential (LDR) and Medium Density Residential (MDR) โ€” and no commercial zoning district anywhere within village boundaries [3]. STRs therefore operate exclusively in residentially zoned single-family properties.

Zoning controls on building footprint, lot coverage, and setbacks (e.g., minimum lot width at the setback line and maximum lot coverage in the primary residential district) apply to every STR property and are enforced by the Building Inspector / Zoning Administrator [4]. Short-term rental use itself is not regulated under the zoning ordinance โ€” it is governed separately by Ordinance 2022-104 [2].

โš  Owner-occupancy gate (new in 2025-115): A dwelling qualifies for short-term rental use only if the owner occupies it at least 28 days in each calendar year [13]. A property held purely as a non-occupied investment does not meet this eligibility test, so confirm the owner-use history before underwriting a pure-investment STR.
For investors: Because Grand Beach has no commercial district, the โ€œis this parcel zoned for STR use?โ€ question collapses to a simpler one: is the parcel a legally conforming residential dwelling? Confirm with the Zoning Administrator before underwriting.
2 Registration & Permit Process

Every home used as a short-term rental must be registered annually with the Village through the Grand Beachโ€“Michiana Police Department, which administers the application and conducts the required inspection [1][5]. Grand Beach does not use a third-party online portal (Deckard, Host Compliance, Granicus) โ€” all records are handled directly by the Village.

Governing ordinanceOrdinance 2022-104 (effective 1/1/2023), as amended by 2024-114 and 2025-115 [2]
Registration formAnnual Rental Registration Application (Exhibit A of Ordinance 2022-104)
TermAnnual
Application contactPolice Chief Ryan Layman โ€” rlayman@michianavillage.org
Annual fee & billing$300 per bedroom [12]; billed by Village Clerk Kimberly Wolnik, clerk@grandbeach.org
For investors: Confirm registration status and any outstanding inspection items with the Police Department before closing on an existing STR property. Registration is not transferable with the property automatically โ€” the new owner must register in their own name.
3 Fees & Penalties

The annual short-term rental registration fee is $300 per bedroom, and that fee covers the required annual inspection [12]. The amount is set in Ordinance 2022-104, Section 3(11). A three-bedroom cottage registers at $900 per year, a four-bedroom at $1,200.

Annual registration fee$300 per bedroom, includes the annual inspection [12]
Operating without registrationFine of 3x the registration fee (first offense), 6x (subsequent) [12]
Code officer court time$150 per hour, charged to the violator [12]
General ordinance fines$500 first offense, $1,000 second, $2,000 third and beyond [12]

Ordinance 2025-115 (effective 12/31/2025) replaced Section 7(1), Offenses Warranting Revocation, and sets the current procedure for suspending or revoking a registration [13].

For investors: Budget the fee per bedroom, not as a flat rate. Because the unregistered-operation penalty is a multiple of that same per-bedroom fee, a larger home carries proportionally larger exposure if it runs a season without registering.
4 Inspections & Safety Requirements

Every STR registration requires an inspection by the Code Enforcement Official (Police Chief or designee) before the permit is issued, and maximum occupancy is calculated on the initial registration and confirmed at inspection [1][5].

Life-safety requirements established or revised by recent amendments [2]:

  • Kitchen fire extinguisher. Added by Ordinance 2024-114 โ€” every STR must have a fire extinguisher in the kitchen.
  • Egress. Any bedroom counted toward maximum occupancy must meet egress requirements under the Michigan Residential Building Code (per Ordinance 2025-115).
  • Liability insurance and landline telephone. Ordinance 2024-114 eliminated the prior liability-insurance and landline-telephone requirements that appeared in the original 2022-104 text.
  • Smoke & CO detectors. Expected standard life-safety complement; verified at inspection.
For investors evaluating an existing STR: Ask the seller for the most recent inspection report. If the property last passed inspection before the 2025-115 amendment, underwriting an occupancy figure greater than the new cap is risky โ€” the next inspection will re-score the bedroom count against egress compliance.
5 Operating Rules (Occupancy, Trash, Parking)

Occupancy is the tightest operating rule โ€” revised downward by Ordinance 2025-115 effective 12/31/2025 [2]. The number of occupants during an STR stay shall not exceed the lesser of:

  • 16 total occupants, including children; or
  • 2 adult occupants per bedroom that meets Michigan Residential Building Code egress requirements.

Additional operating rules:

  • No hotel use. The 16-person cap reflects the NFPA 101 Life Safety Code threshold โ€” occupancy above 16 is considered hotel use and is not permitted in the village.
  • No owner’s-story bonus. A prior provision allowing additional adult occupants per finished story was removed in 2025.
  • Trash (Ordinance 2022-103). Residential trash receptacles must be removed from the curb or edge of the street after collection; they cannot be left at the curb between pickups.
  • Parking & noise. Governed by general village ordinances. STR operators are responsible for communicating rules to guests and remain liable for guest violations.
โš  Investor takeaway: Occupancy math for STR underwriting should use the post-2025-115 cap (lesser of 16 or 2 adults/bedroom). Older pro-forma listings that assumed โ€œ2 per bedroom plus 2 per finished storyโ€ no longer reflect the current ordinance.
6 Local Agent / 24-Hour Contact Requirement

Enforcement and the local point-of-contact function are handled jointly by the Grand Beach / Michiana Police Department โ€” a shared department that patrols both villages [5]. The Police Chief serves as the Code Enforcement Official for the rental ordinance.

Operators managing a property remotely should designate a responsive local agent so the Police Department can reach someone promptly about complaints, occupancy violations, or emergencies.

7 Recent Ordinance Changes

Grand Beach’s STR framework has been amended twice since its original 2023 adoption [2].

  • Ordinance 2022-104 โ€” โ€œAn ordinance to provide for the registration and regulation of rental properties for the benefit of the health, safety, and welfare of the general public.โ€ Adopted 2022; effective January 1, 2023. Established the annual registration framework, inspection requirement, and Exhibit A application form.
  • Ordinance 2024-114 โ€” Amendment to 2022-104. Added the kitchen fire-extinguisher requirement; eliminated the liability-insurance and landline-telephone requirements.
  • Ordinance 2025-115 (effective December 31, 2025). Clarifies the definition of โ€œDwelling,โ€ adds a 28-day owner-occupancy requirement for STR eligibility [13], sets maximum occupancy at the lesser of 16 total persons or 2 adults per bedroom meeting Michigan Residential Building Code egress, and replaces Section 7(1) (โ€œOffenses Warranting Revocationโ€) to establish current revocation terms and procedures.
โš  Active flag: ordinance_recently_amended โ€” the 2025-115 amendment is less than six months old at the time of this verification. Expect further cleanup amendments; re-check ordinance page before closings.
1 Where LTRs Are Allowed (Zoning)

Long-term rentals (leases of 30 days or longer) are a permitted residential use in both of Grand Beach’s residential zoning districts โ€” Low Density Residential (LDR) and Medium Density Residential (MDR) [3]. Because the village has no commercial district, there are no purpose-built multifamily or mixed-use buildings within village limits. The LTR inventory is effectively single-family cottages and year-round homes rented on standard leases.

The same zoning controls on footprint, lot coverage, and setbacks apply to LTRs as to owner-occupied residences [4]. LTRs are not subject to the occupancy cap that applies to STRs under Ordinance 2022-104 โ€” they follow standard residential occupancy norms and Michigan Residential Building Code requirements.

2 Registration & Permit Process

Ordinance 2022-104 is titled โ€œRegistration and Regulation of Rental Propertiesโ€ โ€” the title applies to rental properties generally, not only short-term rentals [2]. LTR operators renting a Grand Beach property should confirm the current registration and inspection requirements for non-STR rentals directly with the Village Clerk before advertising a lease.

Village Clerk-TreasurerKimberly Wolnik โ€” clerk@grandbeach.org
Village Office48200 Perkins Boulevard, Grand Beach, MI 49117 ยท (269) 469-3141
For investors: Even if a property is only held for annual-lease use, the Village Clerk’s office is the authoritative source on whether registration is required. Do not assume LTR = โ€œno paperworkโ€ without checking.
3 Tenant Rights & Eviction Resources

Michigan landlord-tenant relationships are governed by state law (MCL 554.601 et seq.) and the summary proceedings act for evictions. The State Bar of Michigan publishes a free Practical Guide for Tenants and Landlords covering leases, security deposits, repairs, and the eviction process [10]. These rules apply in Grand Beach and are not modified by local ordinance.

Special Regulations


Grand Beach sits directly on Lake Michigan and is designated as a High Risk Erosion Area by the Michigan Department of Environment, Great Lakes, and Energy (EGLE). Rental investors evaluating any lakefront or bluff-adjacent property should layer these state requirements on top of the village’s rental ordinance.

โ˜… High Risk Erosion Area & Critical Dunes

The Village of Grand Beach shoreline is identified as a High Risk Erosion Area (HREA) by EGLE, meaning the shoreline is receding at an average annual rate of at least one foot per year [7][8]. New structures along HREA shorelines must meet setback distances calculated from the erosion hazard line for the projected 30-year and 60-year recession of the shoreline. Shoreline protection structures (seawalls, revetments, sandbags, geotubes) also require state permits in addition to any local approvals.

Portions of the village may additionally lie within Michigan Critical Dune Areas under Part 353 of the Natural Resources and Environmental Protection Act, which requires an EGLE permit for earthmoving, vegetation removal, or construction that significantly alters the dune [11].

โš  Underwriting note: HREA setback can render significant portions of a beachfront parcel effectively unbuildable. Do not rely on the current structure footprint to estimate rebuild rights after a loss. Pull the HREA map and Critical Dune overlay before offering.
โ˜… Septic & Well (Berrien County Health Department)

Many Grand Beach properties rely on private septic systems and/or private wells [9]. The Berrien County Health Department regulates on-site sewage disposal systems and new well installations countywide and maintains records of prior inspections and failures.

Buyers of any Grand Beach property served by septic should request current inspection records from the Health Department before closing. Older cottage septic systems on small beach lots are a common surprise and can be expensive to remediate, particularly where setback requirements limit the ability to replace a system in its original footprint.

Official Resources


Property Tax Treatment


i
Important for investors: A property used as a rental in Michigan is generally classified as non-homestead, which is taxed at the full local millage rate (no Principal Residence Exemption). Short-term rental income may also be subject to the Michigan Use Tax on transient accommodations. Consult a CPA before underwriting any deal โ€” these are not opinions, they are starting points for your own tax research.

Explore Rental Guides โ€” Berrien County


Every municipality in Berrien County. Click any to view its rental guide โ€” or request one if itโ€™s not yet live. View the Berrien County hub โ†’

STRs Allowed
STRs Capped/Limited
STRs Heavily Restricted
STRs Not Allowed
Unverified
Guide Coming Soon

Thinking about an investment in Grand Beach?

I help investors evaluate short-term and long-term rental opportunities across Harbor Country and the Lake Michigan shoreline โ€” including the village-specific nuances that decide whether a property pencils out.

Sources & Downloads


  1. 1
    Village of Grand Beach โ€” Short Term Rental Information https://www.grandbeach.org/short-term-rental-information
    Registration procedure, inspection contact (Chief Ryan Layman), Exhibit A application reference
    Verified: 2026-04-18
  2. 2
    Village of Grand Beach โ€” Village Ordinances & Charter https://www.grandbeach.org/village-ordinances-and-charter
    Ordinance 2022-104, 2024-114, 2025-115 source page
    Verified: 2026-04-18
  3. 3
    Village of Grand Beach โ€” Zoning Ordinance (Ord. 2010-80) https://www.grandbeach.org/zoning-ordinance
    LDR and MDR districts; no commercial zoning in village
    Verified: 2026-04-18
  4. 4
    Village of Grand Beach โ€” Building & Zoning Department https://www.grandbeach.org/building-and-zoning-department
    Zoning Administrator and building permit contact
    Verified: 2026-04-18
  5. 5
    Grand Beach / Michiana Police Department https://michianavillage.org/police
    Shared department administering STR registration and inspections
    Verified: 2026-04-18
  6. 6
    Village of Grand Beach Code (eCode360) https://ecode360.com/GR6723
    Full searchable code including Chapter 450 Zoning and rental regulation provisions
    Verified: 2026-04-18
  7. 7
    Official HREA boundary for Grand Beach shoreline
    Verified: 2026-04-18
  8. 8
    HREA program, setback methodology, shoreline protection permitting
    Verified: 2026-04-18
  9. 9
    Berrien County Environmental Health https://www.berriencounty.org/753/Environmental-Health
    Countywide septic and well regulatory authority; inspection records
    Verified: 2026-04-18
  10. 10
    State Bar of Michigan โ€” Practical Guide for Tenants and Landlords https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide landlord-tenant law, leases, eviction process
    Verified: 2026-04-18
  11. 11
    Michigan NREPA Part 353 โ€” Sand Dunes Protection and Management https://www.michigan.gov/egle/about/organization/water-resources/sand-dunes/critical-dunes
    Critical Dune Area regulatory framework for construction and vegetation disturbance
    Verified: 2026-04-18
  12. 12
    Village of Grand Beach: Short-Term Rental Ordinance 2022-104 (full text) https://www.grandbeach.org/s/Ordinance_2022-104_short_term_rental.pdf
    Section 3(11) sets the $300-per-bedroom annual registration fee; also specifies the unregistered-operation, court-time, and general fine schedule
    Verified: 2026-06-26
  13. 13
    Village of Grand Beach: Ordinance 2025-115 (rental amendment) https://www.grandbeach.org/s/Ord2025-1151.pdf
    Adds the 28-day owner-occupancy eligibility requirement, sets the occupancy cap, and replaces the Section 7(1) revocation procedure
    Verified: 2026-06-26
How this guide is produced. This rental guide is researched and drafted with assistance from Claude, an AI model made by Anthropic, working from the official municipal sources linked in this page. AI can make mistakes โ€” any fact that would materially affect a purchase or rental decision should be verified against the official source cited above and confirmed directly with the municipality. See an error? Email a correction.