Rental Investment Guide

Village of Michiana


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

Updated April 2026

Area Overview


Michiana is a small all-residential Lake Michigan beach village at the very southwest corner of Berrien County, directly on the Michiganโ€“Indiana state line and immediately north of the Town of Michiana Shores, Indiana. It is part of the Harbor Country region, surrounded by New Buffalo Township, and sits about 73 miles by road from downtown Chicago. The village is predominantly a second-home community with a small year-round population and no commercial zoning district.

Short-term rental activity in Michiana is tightly capped and very recently amended. In December 2025 the Village Council replaced the prior 2019 rental article with a new Chapter 260, Article I, effective December 31, 2025 (Ord. 2025-02, shown on the Villageโ€™s Rentals page as โ€œOrdinance 2025-01โ€) [1][2]. The new ordinance introduces a village-wide 40-permit cap with a waiting list, a $300-per-bedroom annual registration fee, a formal per-rental registration submitted to the Grand Beach/Michiana Police Department before every stay, and occupancy capped at the lesser of 16 total persons or 2 persons per bedroom [1].

Quick Status Summary


Short-Term Rentals CAPPED โ€” 40 PERMITS

STRs are permitted in Michianaโ€™s residential zoning districts (VR and LR) wherever a single-family dwelling is the lawful principal use, but total village-wide STR registrations are hard-capped at 40 under ยง 260-8 [1]. New applicants above the cap are added to a first-come, first-serve waiting list ($100 annual fee) and current permit holders have priority to renew. Registration is annual (Jan 1 โ€“ Mar 15), $300 per bedroom, and requires an inspection by the Village Code Enforcement Official. Per-rental Exhibit B forms must be emailed to the Grand Beach/Michiana Police Department no later than 24 business hours before each rental begins [1].

Long-Term Rentals ALLOWED

Long-term rentals (leases of 30 days or more) are not regulated by Chapter 260 โ€” that article applies only to rentals under 30 days [1]. LTRs in Michiana are therefore treated as ordinary single-family residential uses, permitted by right in both the Village Residential (VR) and Lakefront Residential (LR) districts under the Zoning Ordinance [3]. Operators should still confirm any building/safety registration requirements with the Village Clerk before leasing.

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Short-term rentals are allowed in both of Michianaโ€™s residential zoning districts โ€” Village Residential (VR) and Lakefront Residential (LR) โ€” wherever a single-family dwelling is the lawful principal use, subject to the village-wide 40-permit cap [1][3]. Michiana has no commercial zoning district; the only other district is Public Lands (PL), which contains the Village Hall, beach access lots, and dune/shoreline open space and does not permit dwellings [3].

Chapter 260 (Rental Property) governs the STR program itself rather than the zoning ordinance; ยง 260-5G simply requires STRs to comply with the zoning ordinance, and the zoning ordinance does not separately call out โ€œshort-term rentalโ€ as a distinct use โ€” it flows through the single-family dwelling permission [1][3]. STR permissions therefore collapse to two questions: (1) is the parcel in VR or LR (not PL)? and (2) is the village still below the 40-permit cap?

For investors: Because Michiana has no commercial district and only three zoning districts, confirm the parcel sits in VR or LR on the Official Zoning Map (held by the Village Clerk) before underwriting, and ask where the permit count stands relative to the 40-cap.
2 Registration & Permit Process

Submit the Annual Rental Registration Application (Exhibit A) to the Village Clerk between January 1 and March 15 each year, pay $300 per bedroom, and schedule an inspection with the Village Code Enforcement Official โ€” then, for each individual rental, submit a new Exhibit B registration to the Grand Beach/Michiana Police Department by email at least 24 business hours before the stay begins [1]. There is no third-party online portal (no Deckard, Granicus, or Host Compliance) โ€” all records are handled directly by the Village and the shared Police Department.

Governing ordinanceChapter 260, Article I, ยงยง 260-1 to 260-10 (Ord. 2025-02, effective Dec. 31, 2025) [1]
Registration windowJanuary 1 โ€“ March 15 annually (ยง 260-9)
Village-wide cap40 permits total (ยง 260-8); waitlist $100/yr
Annual registration fee$300 per bedroom (ยง 260-6D)
TransferabilityNot transferable on change of ownership (ยง 260-3M)
Per-rental form (Exhibit B)Email to Grand Beach/Michiana Police Department at least 24 business hours before start (ยง 260-3I, ยง 260-4B)
Exhibit A/B/C/D formsOn file at the Village Clerk; request copies directly (michianaclerk@michianavillage.org)
For investors: Because the program is capped and permits donโ€™t transfer automatically with a sale, confirm before closing (a) whether the current sellerโ€™s permit is in good standing for the current calendar year and (b) whether any wait-list slot is available for a buyer who needs to re-register in their own name. A non-transferable permit + a full cap means a new owner could be boxed out until a slot opens.
3 Fees & Penalties

$300 per bedroom, per year (ยง 260-6D), plus a $100 non-refundable annual waiting-list fee if the 40-permit cap is already full (ยง 260-8). Violations are civil infractions enforced by the Grand Beach/Michiana Police Department; each day a violation continues is treated as a separate offense [1].

Annual registration inspection fee$300 per bedroom (ยง 260-6D)
Waiting-list fee (cap is full)$100 per year, non-refundable (ยง 260-8)
Unregistered STR โ€” 1st offense$1,000 (ยง 260-6A)
Unregistered STR โ€” subsequent$3,000 each (ยง 260-6A)
Over-occupancy โ€” 1st / subsequent$1,000 / $3,000 (ยง 260-6B)
Other violations โ€” 1st / 2nd / 3rd$300 / $1,000 / $2,000 (ยง 260-6C; cumulative)
Billable court time$150/hour for Code Enforcement Official testimony (ยง 260-6E)
Delinquent finesPast due after 60 days; 1%/month interest; added to tax bill (ยง 260-6F)
โš  Underwriting note: The fee is per bedroom, not flat. A 5-bedroom STR pays $1,500/year in registration alone โ€” an order of magnitude higher than many Berrien County municipalities. Build this into your year-one carrying cost model.
4 Inspections & Safety Requirements

Every STR registration requires an inspection by a Village of Michiana Code Enforcement Official, arranged and paid for by the property owner at registration and on renewal (ยง 260-3L) [1]. Life-safety equipment must be installed and tested at least every 90 days.

  • Smoke alarms: working smoke alarm in every bedroom; checked โ‰ฅ every 90 days (ยง 260-5E(1)(a)).
  • Carbon monoxide detectors: at least one per floor, per MCL ยง 125.1504; checked โ‰ฅ every 90 days (ยง 260-5E(1)(b)).
  • Fire extinguisher: one ABC-type extinguisher in the kitchen (ยง 260-5E(1)(c)).
  • Street address posted: in at least two prominent interior locations โ€” e.g., near kitchen, near any telephone or pool (ยง 260-5B).
  • Bedroom definition: attics and basements are not counted as bedrooms unless the owner gives written consent to a Village inspection confirming egress compliance with Michigan Construction, Residential, and fire codes (ยง 260-2). Berrien County Health Departmentโ€™s septic-system bedroom count is the tie-breaker when contested.
  • Local agent walk-through: the local agent must inspect the dwelling at least once every 30 days while rentals are occurring (ยง 260-5A).
For investors: Michiana explicitly defers to the Berrien County Health Departmentโ€™s septic-based bedroom count when a dispute arises โ€” so a โ€œ5-bedroomโ€ listing thatโ€™s permitted as 4 bedrooms on septic records will be underwritten as 4 bedrooms by the Village. Pull the county septic record before basing occupancy or fee math on the MLS bedroom count.
5 Operating Rules (Occupancy, Stay, Parking, Trash)

Occupancy and minimum-stay rules in Michiana are stricter than most Berrien County villages, and were rewritten in the December 2025 amendment [1].

  • Maximum occupancy (ยง 260-5C): the lesser of (i) 16 total occupants, or (ii) 2 occupants per bedroom. Children over 2 years of age count as occupants (ยง 260-2).
  • Minimum stay (ยง 260-2, MINIMUM RENTAL PERIOD): 6-night minimum May 1 through September 30; 2-night minimum the rest of the year.
  • One rental at a time (ยง 260-5D): no more than one rental on a given dwelling/property simultaneously.
  • Off-street parking (ยง 260-2): minimum 9โ€ฒ ร— 19โ€ฒ spaces; two spaces per rental plus one additional space per every four occupants. Parking beyond the Village easement on front/side yards is prohibited.
  • Garbage (ยง 260-5I): cans pulled back โ‰ฅ 10 feet from the street within 24 hours of collection. Rentals registered for more than 8 occupants must have two recycling and two non-recycling cans on site.
  • No fireworks (ยง 260-5F): never allowed on a registered STR property, and never on public property.
  • No marijuana use (ยง 260-5K): prohibited on the rental premises at all times it is rented, and on any public property.
  • Outdoor sound (ยง 260-5L): no speakers or sound-amplification devices outdoors from 10:00 PM to 10:00 AM daily.
  • Rules & Regulations (Exhibit C) acknowledgement: renters must sign that theyโ€™ve read the Villageโ€™s Rules & Regulations; local agent must file a signed copy with the Clerk โ‰ค 24 business hours before the rental starts.
โš  Investor takeaway: The high-season 6-night minimum is unusual in Berrien County (most shoreline villages allow 2โ€“3 night minimums year-round). Model revenue against a booking curve that front-loads full weeks, not weekend-heavy occupancy.
6 Local Agent & Police Contact

Every STR must designate a local agent who lives or maintains a physical place of business within 45 miles of the dwelling (ยง 260-2) [1]. The local agent inspects the property at least monthly while rented and handles renter/neighbor/Village concerns. Enforcement and the public-facing STR contact function sit with the Grand Beach/Michiana Police Department, a shared department serving both villages [5].

For operators: Because per-rental Exhibit B forms go to the Police Department (not the Clerk), build the workflow so the local agent emails Exhibit B to Chief Layman and the Clerk together at least 24 business hours before every stay begins.
7 Revocation & Enforcement

The Village may revoke an STR registration after three separate incidents, on three different days within the same calendar year, that result in a finding of responsibility or guilt by the owner, local agent, or any renter for a violation of two or more Village ordinances (ยง 260-7A) [1]. Revocation is preceded by a Code Enforcement Official notice and the owner/local agent can request a show-cause hearing within 14 days.

  • Extenuating circumstances recognized at hearing (ยง 260-7B): violation by a non-renter that the renter tried to stop; acts of God; circumstances the owner could not reasonably anticipate and control.
  • Effect of revocation (ยง 260-7D): the dwelling is restricted from the Villageโ€™s rental program waiting list for the following calendar year.
  • Proof of rental (ยง 260-7C): listing a dwelling as available, non-owner occupancy, and utilities/documents in a non-owner name are each presumptive evidence the property is being used as a rental โ€” so operating an unregistered rental quietly is a fast path to fines.
โš  Investor takeaway: Three strikes in a calendar year is an aggressive revocation trigger โ€” two minor noise/parking citations + one occupancy overage could together end a permit. Write the house rules (Exhibit C acknowledgment) into guest communications and hold the local agent accountable for documented 30-day inspections.
8 Recent Ordinance Changes

Michianaโ€™s STR framework was completely rewritten at the end of 2025 [1][2].

  • 2019-04 (superseded). Original Short-term Rentals article, adopted 11-9-2019. Amended once by 2023-02 on 11-9-2023. No longer in effect.
  • 2025-02 (current; shown on the Villageโ€™s Rentals page as โ€œOrdinance 2025-01โ€). Adopted 12-12-2025; effective 12-31-2025. Replaces Article I in its entirety. Introduces the 40-permit village-wide cap with waitlist (ยง 260-8), $300/bedroom annual registration fee (ยง 260-6D), formal revocation procedure with show-cause hearing (ยง 260-7), 6-night minimum stay in the Mayโ€“September peak season, per-rental Exhibit B filing to the Grand Beach/Michiana PD, and the โ€œlesser of 16 or 2/bedroomโ€ occupancy ceiling.
โš  Active flags: ordinance_recently_amended and permit_cap_in_effect โ€” the 40-permit cap is brand new and the ordinance is less than 5 months old at verification. Expect cleanup amendments, a published fee resolution, and possibly a dedicated STR application PDF to follow. Re-check before every closing.
1 Where LTRs Are Allowed (Zoning)

Long-term rentals (leases of 30 days or more) are a permitted residential use in both Village Residential (VR) and Lakefront Residential (LR) districts, wherever a single-family dwelling is the lawful principal use [3]. The Public Lands (PL) district covers the Village Hall, parks, and shoreline/dune open space and does not permit dwellings, so LTRs do not exist there [3].

Chapter 260 (Rental Property) โ€” including the 40-permit cap, the $300/bedroom fee, and the per-rental police registration โ€” explicitly applies only to rentals of less than 30 days, so LTRs are governed by the zoning ordinance alone and by standard Michigan landlord-tenant law [1].

2 Registration & Permit Process

Long-term rentals in Michiana are not regulated by the Villageโ€™s rental ordinance โ€” Chapter 260 applies only to rentals under 30 days [1]. There is no village-level LTR registration, no fee, and no inspection requirement separate from the general building and zoning ordinances that apply to any occupied dwelling. Operators should still confirm this with the Village Clerk before marketing a lease, in case of future amendments.

Village ClerkAnne Heywood โ€” michianaclerk@michianavillage.org
Village TreasurerTracey McCay โ€” michianatreasurer@michianavillage.org
Office4000 Cherokee Drive, Michiana, MI 49117 ยท (269) 469-4600 ยท Mโ€“F 9:00โ€“4:00 ET [6]
For operators: If the stay drops to 29 days or fewer for any reason (an extension, a corporate relocation, an insurance displacement), Chapter 260 applies and the property must be a registered STR under the 40-permit cap. Keep lease terms unambiguous.
3 Tenant Rights & Eviction Resources

Michigan landlordโ€“tenant relationships are governed by state law (MCL 554.601 et seq., Truth in Renting Act) 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 [7]. These rules apply in Michiana and are not modified by local ordinance.

Special Regulations


Michiana sits directly on Lake Michigan and contains actively eroding shoreline and designated dune land. Rental investors evaluating any lakefront or bluff-adjacent property should layer these state and county requirements on top of Chapter 260 and the zoning ordinance.

โ˜… High Risk Erosion Area & Critical Dunes

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

Portions of the village may also 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 [9]. Critical-dune matters in Michiana are typically routed through the Village Building Inspector and EGLEโ€™s Kalamazoo District Office (contact J. Bayha, P.E., bayhaj@michigan.gov) [10].

โš  Underwriting note: HREA setbacks can render significant portions of a beachfront parcel effectively unbuildable. Do not rely on the current footprint to estimate rebuild rights after a loss โ€” pull the HREA map and Critical Dune overlay before offering, and price the shoreline-protection liability into your repair reserve.
โ˜… Septic & Well (Berrien County Health Department)

Many Michiana properties rely on private septic systems and/or private wells, and Chapter 260 defers to the Berrien County Health Departmentโ€™s septic-system bedroom count when a bedroom count dispute arises (ยง 260-2) [1][11]. The Health Department regulates on-site sewage disposal and new well installations countywide and maintains records of prior inspections and failures.

Buyers of any Michiana 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 โ€” and because the Countyโ€™s septic bedroom count also drives the Villageโ€™s registration fee math, a 5-bedroom MLS listing thatโ€™s permitted as 4 on septic will lower both the fee and the lawful occupancy cap.

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


All 39 municipalities in Berrien County. Click any to view its rental guide โ€” or request one if itโ€™s not yet live.


Thinking about an investment in Michiana?

With only 40 STR permits in the entire village and a waitlist the day the cap fills, Harbor Country investors need to know exactly where a parcel sits relative to the cap before writing an offer. I help buyers and sellers navigate Michianaโ€™s 2025 ordinance in real time.

Sources & Downloads


  1. 1
    Village of Michiana โ€” Chapter 260, Rental Property (eCode360)
    https://ecode360.com/37939279
    Art. I Short-term Rentals, adopted 12-12-2025 by Ord. 2025-02, eff. 12-31-2025. Fees, 40-permit cap, occupancy, stay minimums, revocation.
    Verified: 2026-04-19
  2. 2
    Village of Michiana โ€” Rentals Page
    https://michianavillage.org/rentals
    Links the current rental ordinance PDF (shown as โ€œOrdinance 2025-01โ€ effective 1/1/2026) and the Annual STR List 2026.
    Verified: 2026-04-19
  3. 3
    Village of Michiana โ€” Ch. 360 Zoning, Art. IV Zoning Districts (eCode360)
    https://ecode360.com/28815138
    Establishes VR (Village Residential), LR (Lakefront Residential), and PL (Public Lands) districts; permitted-use table for single-family dwellings.
    Verified: 2026-04-19
  4. 4
    Ordinance 2025-01 (Rental) โ€” PDF on Village site
    https://img1.wsimg.com/blobby/go/df96a4df-c3ae-4ae1-afa6-4562caf979db/downloads/e06f3a56-32e4-4f3f-90d8-21a889564dfe/Ordinance2025-01.pdf
    Signed ordinance PDF as linked from the Rentals page. The codified version appears in eCode360 as Ord. 2025-02.
    Verified: 2026-04-19
  5. 5
    Grand Beach / Michiana Police Department
    https://michianavillage.org/police
    Shared department administering STR registration/enforcement. Chief Ryan Layman โ€” rlayman@michianavillage.org; direct 269-757-1458; non-emergency 269-469-1884.
    Verified: 2026-04-19
  6. 6
    Village of Michiana โ€” Main Municipal Site
    https://michianavillage.org/
    Village office 4000 Cherokee Drive, (269) 469-4600, Mโ€“F 9โ€“4 ET. Department directory.
    Verified: 2026-04-19
  7. 7
    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: 2026-04-19
  8. 8
    EGLE โ€” Shoreland Management / High Risk Erosion Areas
    https://www.michigan.gov/egle/about/organization/water-resources/shoreland-management
    HREA program, setback methodology, shoreline protection permitting.
    Verified: 2026-04-19
  9. 9
    EGLE โ€” Critical Dune Areas (NREPA Part 353)
    https://www.michigan.gov/egle/about/organization/water-resources/sand-dunes/critical-dunes
    Critical Dune Area regulatory framework for construction and vegetation disturbance.
    Verified: 2026-04-19
  10. 10
    Village of Michiana โ€” Building & Zoning
    https://michianavillage.org/building-%26-zoning
    Building Inspector William Lambert (269-208-9544); contractor registration; EGLE Critical Dune contact (John Bayha, P.E., bayhaj@michigan.gov).
    Verified: 2026-04-19
  11. 11
    Berrien County โ€” On-Site Septic Program
    https://www.berriencounty.org/760/On-Site-Septic
    Countywide septic permitting, inspection, and records. ยง 260-2 of Michianaโ€™s rental code defers to Berrien County septic records for bedroom-count disputes.
    Verified: 2026-04-19
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.