Rental Investment Guide

Niles


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

Updated April 2026

Area Overview


The City of Niles sits on the St. Joseph River at the southern edge of Berrien County, bordering Indiana. It is the second-largest city in the county by population (roughly 11,700 residents) and anchors the local long-term rental market alongside Niles Charter Township, which surrounds it [1]. Housing stock is predominantly single-family detached homes with a meaningful share of multi-family apartments and duplex conversions near downtown and the Main Street corridor.

Niles regulates rental housing through two parallel frameworks. Any dwelling unit that is not owner-occupied โ€” whether rented long-term or short-term โ€” requires a residential non-owner-occupied dwelling permit from the Building Safety Division, issued only after inspection against the Property Maintenance Code (2015 IPMC, adopted by Ordinance 476) [2]. Short-term rentals are separately addressed in Section 320 of the Zoning Ordinance (effective 8/17/2025), which permits them in every district where residential use is permitted by right or by special land use [3].

Quick Status Summary


Short-Term Rentals ALLOWED

Short-term rentals (stays of 30 days or fewer) are permitted in every zoning district where residential use is permitted by right or as a special land use, subject to nuisance, building, fire, and safety code compliance (Zoning Ordinance Section 320) [3]. A non-owner-occupied dwelling permit from the Building Safety Division is required for any rented dwelling [2].

Long-Term Rentals ALLOWED

Long-term rentals are permitted wherever the underlying residential use is allowed. Owners must hold a residential non-owner-occupied dwelling permit issued after inspection by the Housing Maintenance Code Enforcement Officer. Permit fee is $50 per unit initial and $50 per unit renewal, with adjustments for complexes exceeding 20 units [2].

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Short-term rentals are permitted in every zoning district where residential use is permitted by right or has been approved as a special land use โ€” per Section 320 of the City of Niles Zoning Ordinance (effective 8/17/2025) [3].

In practical terms, STRs are listed as a principal permitted use in the R-1 (Traditional Residential) and R-2 (Moderate Density Residential) districts, and in other districts that allow dwellings. STR definition: a residential property rented to transient occupants on a nightly or weekly basis for no more than thirty (30) days [3].

The ordinance imposes three operating conditions directly in Section 320: (A) the unit must meet all applicable building, health, fire, and related safety codes; (B) signage is subject to Article 7 of the zoning ordinance; and (C) use of outdoor yard areas, decks, or pools that produce excessive off-site noise, odor, or other disturbance is enforceable as a nuisance under Article V of the City of Niles Code of Ordinances [3].

City of Niles Zoning Map (revised 3/17/2023)

Click the map to open the full-resolution zoning map PNG.

2 Registration & Permit Process

Submission path: in person or by mail to the Building Safety Division at 1345 E. Main Street (the east end of the Niles Fire Station Complex) [4]. The City does not publish an online rental application portal. Call the division at 269-683-2374 (Executive Assistant: Monica Hibberd) to request the dwelling-permit application packet or confirm which forms apply to your unit.

No dwelling unit may be occupied by anyone other than the owner without a residential non-owner-occupied dwelling permit certifying that the property complies with the City’s Property Maintenance Code (2015 IPMC, Ordinance 476) [2]. No initial permit is issued until the Housing Maintenance Code Enforcement Officer (or designee) has inspected the unit [2].

Where to submitBuilding Safety Division, 1345 E. Main St, Niles, MI 49120
Intake phone269-683-2374
Inspection requiredYes, before initial permit issuance
STR-specific add-onNo separate STR registration found in code โ€” Section 320 operates through the dwelling permit plus zoning/nuisance enforcement [3]
For investors: Niles has not published a dedicated STR portal or STR-specific fee schedule. Confirm current application requirements directly with the Building Safety Division before underwriting an STR pro forma โ€” procedures for non-owner-occupied units are handled case-by-case through that office.
3 Fees & Penalties

The non-owner-occupied dwelling permit applies to both STRs and LTRs โ€” Niles has not adopted a separate STR fee schedule [2].

Initial permit fee$50 per dwelling unit
Renewal fee$50 per dwelling unit
Complexes > 20 unitsAlternate fee structure โ€” verify with Building Safety Division
Property Maintenance Code violationUp to $500 and/or up to 90 days (Ord. 476 ยง9) [2]
Each day of continued violationTreated as a separate offense [2]

Nuisance-style STR violations (excessive noise, odor, etc.) are enforceable under Article V of the City of Niles Code of Ordinances rather than the Property Maintenance Code [3].

4 Inspections & Safety Requirements

Every new non-owner-occupied dwelling requires an inspection by the Housing Maintenance Code Enforcement Officer before a dwelling permit will issue; the City’s baseline is the 2015 International Property Maintenance Code as adopted and amended by Ordinance 476 [2].

Items actively enforced during rental inspections, per the City’s Code Enforcement Corner [5]:

  • Smoke alarms โ€” less than 10 years old, proper power source, inside each bedroom, audible outside each bedroom, and on every level. Ionization + photoelectric recommended.
  • Windows โ€” screens required spring through fall on operable windows; bedroom windows must stay open under their own weight (egress).
  • Carbon monoxide alarms โ€” required in buildings with three or more units, and in any home where renovations have taken place.
  • Exterior property maintenance โ€” grass limit 10 inches (beyond which the City mows and bills the owner), trash containers must not be at the curb more than 24 hours before pickup, vehicles must be operable and plated and parked on the driveway.
5 Operating Rules (Nuisance, Fire, Signs)

Because Niles folds most STR-specific obligations into existing general codes, the operator compliance checklist is essentially (1) pass the Property Maintenance Code inspection [2]; (2) avoid nuisance-level noise, odor, pool/deck disturbance (Section 320(C) + Code of Ordinances Article V) [3]; (3) keep signs within zoning ordinance Article 7 limits [3]; and (4) maintain fire-code compliance (smoke alarms, CO alarms, egress, addressing) [5].

  • Quiet hours / noise. No STR-specific decibel threshold โ€” off-site disturbances are enforced as a general public-nuisance matter.
  • Occupancy. Governed by the IPMC minimum-floor-area standards adopted via Ordinance 476 rather than a per-bedroom STR formula [2].
  • Parking and trash. Same exterior-property rules as any other residence in the City (see Code Enforcement Corner) [5].

Operators managing multiple Berrien-County properties should note that Niles’s regime is substantially lighter than neighboring Chikaming or New Buffalo โ€” no cap, no dedicated STR portal, no platform-based complaint hotline โ€” so in-person diligence (a pre-purchase inspection + a call to the Building Safety Division) is the primary way to surface issues before closing.

6 STR Caps, Moratoriums & Recent Changes

Niles has not adopted an STR permit cap, moratorium, or dedicated STR licensing program. Section 320 was codified in the Zoning Ordinance that took effect August 17, 2025, and treats STRs as a permitted residential use in every district that allows dwelling use [3].

The foundational rental-permit framework (the dwelling permit and inspection requirement) dates to the adoption of the 2015 IPMC under Ordinance 476 on March 27, 2017, effective April 17, 2017 [2]. No subsequent STR-specific amendment is on the City’s published ordinance list as of this guide’s last verification date.

โš  Watch-list item: Neighboring Berrien-County jurisdictions have adopted or tightened STR-specific regimes during 2024โ€“2026 (Chikaming Township’s 550-permit cap being the most prominent). If Niles follows suit, any new ordinance will appear in the City Council agenda packets and on the Community Development Department’s page โ€” worth checking quarterly.
1 Where LTRs Are Allowed (Zoning)

Long-term rentals (leases 31 days or longer) are permitted wherever the underlying residential use is permitted. Single-family, two-family, and multi-family dwellings are principal permitted uses across the R-1, R-2, and R-3 residential districts, plus limited mixed-use districts [3]. LTRs are not subject to the STR-specific framework in Section 320.

Where verification matters: For commercial, downtown, or mixed-use-zoned parcels, confirm that residential dwelling use is permitted by right (or is legally nonconforming) before closing. The Zoning Administrator (communitydevelopment@nilesmi.org) can issue a written zoning verification for any specific parcel.

City of Niles Zoning Map (revised 3/17/2023)

Click the map to open the full-resolution zoning map PNG.

2 Registration & Permit Process

Submission path: paper application in person or by mail to the Building Safety Division at 1345 E. Main Street, Niles, MI 49120 [4]. Request the non-owner-occupied dwelling permit application by calling 269-683-2374 (Monica Hibberd, Executive Assistant). The City does not publish an online rental-permit portal.

No dwelling may be occupied by a non-owner without the permit, and no permit is issued without a passing inspection under the Property Maintenance Code (2015 IPMC, Ord. 476) [2].

Permit nameResidential non-owner-occupied dwelling permit
Issuing officeBuilding Safety Division, 1345 E. Main St
SubmissionIn person or by mail
Inspection before issuanceRequired
3 Fees & Penalties
Initial permit fee$50 per dwelling unit
Renewal fee$50 per dwelling unit
Complexes > 20 unitsAlternate fee structure โ€” verify with Building Safety Division [2]
Operating without a permitViolation of the Property Maintenance Code; up to $500 and/or 90 days, per day of violation [2]

Fee structure confirmed via Chapter 18 of the City of Niles Code of Ordinances (Housing Maintenance Code). Because the Municode text for Chapter 18 is JavaScript-rendered and not extractable in bulk, investors should confirm current fees with the Building Safety Division before budgeting.

4 Inspections & Safety Requirements

The 2015 International Property Maintenance Code (IPMC), adopted by Ordinance 476 on 3/27/2017, defines the minimum condition standard for every rental unit in the City of Niles [2]. The Housing Maintenance Code Enforcement Officer inspects each unit before the initial dwelling permit issues, and re-inspects on renewal as scheduling permits [2].

Active enforcement priorities from the City’s Code Enforcement Corner [5]:

  • Smoke alarms < 10 years old, inside each bedroom, audible outside each bedroom, and on every level.
  • Operable windows with screens spring through fall; bedroom egress windows that stay open under their own weight.
  • Carbon monoxide alarms in 3+ unit buildings and in any renovated home.
  • Main electrical service not less than 60 amperes (IPMC minimum) [2].
  • No peeling paint, no exposed electrical wiring, no missing panel covers.
5 Tenant Rights & Eviction Resources

Michigan landlord-tenant law (MCL 554.601 et seq.) and the summary proceedings act govern eviction statewide; Niles has no separate tenant-protection ordinance. The State Bar of Michigan’s free Practical Guide for Tenants and Landlords covers leases, security deposits, repairs, and the eviction process and is the canonical starting reference [6].

Small-claims and summary-proceedings matters for Niles are handled by Berrien County’s Fifth District Court (Niles division). Tenants seeking legal aid can contact Legal Services of South Central Michigan, which serves Berrien County.

Official Resources


Property Tax Treatment


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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.

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Sources & Downloads


  1. 1
    U.S. Census Bureau QuickFacts โ€” Niles city, Michigan
    https://www.census.gov/quickfacts/fact/table/nilescitymichigan/PST045224
    Population and basic demographics
    Verified: 2026-04-20
  2. 2
    City of Niles Ordinance 476 โ€” Property Maintenance Code (PDF)
    https://mcclibraryfunctions.azurewebsites.us/api/ordinanceDownload/13852/826074/pdf
    Adopts 2015 IPMC as the Property Maintenance Code; enacted 3/27/2017, effective 4/17/2017. Penalty section 9 governs violations.
    Verified: 2026-04-20
  3. 3
    City of Niles Zoning Ordinance (effective 8/17/2025) โ€” Section 320 Short-Term Rentals
    https://cms3.revize.com/revize/nilesmi/FINAL%20City%20of%20Niles%20Zoning%20Ordinance%20%5BEFFECTIVE%208-17-25%5D.pdf
    STR definition (Art. 2), Section 320 operating conditions, R-1/R-2 use lists
    Verified: 2026-04-20
  4. 4
    City of Niles โ€” Community Development Department / Zoning page
    https://www.nilesmi.org/departments_and_divisions/zoning.php
    Staff contact emails (Zoning Admin, Building Official, Fire Marshal); Building Safety Division address and phone
    Verified: 2026-04-20
  5. 5
    City of Niles โ€” Code Enforcement Corner
    https://www.nilesmi.org/departments_and_divisions/building_safety_division/code_enforcement_corner.php
    Inspection focus areas โ€” smoke alarms, windows/egress, CO alarms, exterior maintenance
    Verified: 2026-04-20
  6. 6
    Michigan Legislature โ€” A Practical Guide for Tenants & Landlords
    https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide landlord-tenant law, leases, eviction process
    Verified: 2026-04-20
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.