Rental Investment Guide

Three Oaks


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

Updated April 2026

Area Overview


The Village of Three Oaks is a small walkable downtown in southwest Berrien County, roughly 10 miles inland from the Lake Michigan shoreline and about 90 minutes from the Chicago metro. The village is a tourism anchor for the broader Harbor Country region โ€” home to the Acorn Theater, the Flag Day Parade, the Apple Cider Century ride, and an independent restaurant and retail scene centered on a few blocks of Elm Street [1].

Short-term rentals are permitted village-wide under Ordinance 210 (2016), but the R-1 Single Family Residential District is capped at 10% of developed parcels under Ordinance 228 (effective March 29, 2023) [2]. Long-term rentals are regulated separately and require a Certificate of Compliance valid for three years.

Quick Status Summary


Short-Term Rentals CAPPED

Permitted village-wide under Ordinance 210, but registrations in the R-1 Single Family Residential District will not be accepted once issued permits reach 10% of developed parcels in the district [2]. Permits are one-year, inspection-required, and may be transferred with Village consent.

Long-Term Rentals ALLOWED

Permitted. Owners must register each rental property ($35 per unit) and obtain a Long Term Rental Certificate of Compliance, which is valid for three years and requires inspection before renewal [3].

Rental Regulations


1 Where STRs Are Allowed (Zoning)

STRs are permitted village-wide under Ordinance 210, except that the R-1 Single Family Residential District is capped at 10% of developed parcels per Ordinance 228 (effective March 29, 2023) [2]. Once that threshold is reached, no new STR registration will be accepted or processed for any R-1 property until a permit is relinquished.

Ordinance 210 itself does not carve out districts โ€” the cap is the only zoning-specific STR restriction currently in the code. For any specific parcel, verify the underlying zoning district on the map below, then confirm the R-1 count status with the Village Clerk before underwriting.

Village of Three Oaks Zoning Map (adopted 11/8/2017)

Click the map to open the full Zoning Map PDF.

2 Registration & Permit Process

Submit the STR Registration form and STR Permit Application to the Village Clerk at 21 N. Elm Street, with payment payable to the Village Treasurer [4]. The Village has no online STR portal โ€” applications are paper.

Submit toVillage Clerk, 21 N. Elm St, Three Oaks, MI 49128
Required formsSTR Registration + STR Permit Application + STR Self-Inspection Form
Permit termOne (1) year from inspection date
Renewal timingSchedule inspection no later than 30 days before expiration [5]
TransferabilityTransferable to a new owner with Village Manager’s prior written consent, on full re-application [5]
For investors: Unlike many STR markets, Three Oaks permits can be transferred to a new owner โ€” but only with prior Village consent and a complete re-application meeting all current requirements. Do not assume an existing permit conveys automatically at closing.
3 Fees & Penalties

Ordinance 210 sets STR administrative fees by separate resolution of the Village Council โ€” the fee schedule is not printed in the ordinance text [5]. Current fees should be confirmed with the Village Treasurer before submitting an application.

STR administrative feeSet by Village Council resolution โ€” confirm with Treasurer
Civil infraction โ€” first offense$50 โ€“ $500 per infraction [6]
Civil infraction โ€” first repeatNot less than $250
Civil infraction โ€” second repeatNot less than $500
Permit revocation trigger3 separate incidents in a calendar year
Post-revocation re-registrationBarred for one (1) year from revocation

A “repeat offense” means a second or subsequent violation within any 3-month period where the person admits or is found responsible [6]. Triggers include this ordinance, the Village Noise & Nuisance Ordinance, and the Zoning Ordinance.

4 Inspections & Safety Requirements

Before issuing any STR permit, the Village inspects the unit for compliance with the housing and property maintenance code and the fire code [5]. For renewals, the owner must schedule the inspection no later than 30 days before the permit expires.

Required safety equipment per Ordinance 210:

  • Smoke alarms โ€” UL-approved, installed and working in every bedroom.
  • Carbon monoxide detectors โ€” working unit on each floor.
  • Fire extinguishers โ€” working unit in each kitchen and near each outdoor cooking device.
  • Local agent turnover inspection โ€” between each rental to a different tenant, the local agent must inspect smoke/CO detectors, common-area lighting, egress doors, and railings; sign and date a Village-designated checklist; and retain it for at least two years [5].
5 Operating Rules (Occupancy, Parking, Signage)

Ordinance 210 sets specific operating conditions on every STR [5]:

  • Maximum occupancy โ€” stated on the permit and must also appear in the lease; no more than four (4) occupants per bedroom count toward the max, regardless of bedroom size.
  • Advertising โ€” the owner may not advertise an occupancy load greater than the permit maximum.
  • Off-street parking โ€” minimum one (1) space per occupant’s vehicle, in addition to any spaces required for other uses on the premises.
  • Landline telephone โ€” each unit must have a landline with free local calls that reaches the 911 dispatch center; the unit’s street address and emergency information must be prominently displayed.
  • Permit display โ€” a full-sized copy of the STR permit must be prominently displayed inside the unit.
  • Taxes current โ€” no permit will issue while the owner is delinquent on property taxes, utilities, or any amount owed to the Village.
6 Local Agent / 24-Hour Contact Requirement

If the owner does not qualify as the local agent, the owner must designate one in writing [5]. Under Ordinance 210, the local agent must live or maintain a physical place of business within 45 miles of the rental unit, respond to calls from renters, neighbors, and Village representatives, and accept service of legal papers on the owner’s behalf.

7 Permit Caps, Moratoriums & Recent Changes

Three Oaks has adjusted its STR framework twice since Ordinance 210 was first adopted:

  • Ordinance 215 (2023): Restructured the violations/penalties section โ€” civil infractions $50โ€“$500, with escalating fines for repeat offenses and a revocation trigger at 3 incidents per calendar year [6].
  • Ordinance 228 (adopted March 8, 2023; effective March 29, 2023): Added a cap so that no new STR registration will be accepted in the R-1 Single Family Residential District once issued permits exceed 10% of developed R-1 parcels [2].
โš  Investor takeaway: The R-1 10% cap is the single biggest variable in any Three Oaks STR underwriting. Before making an offer on an R-1 parcel, call the Village Clerk to confirm the current issued-permit count and whether the cap has been reached.
1 Where LTRs Are Allowed (Zoning)

LTRs (long-term residential rentals) generally follow standard residential zoning โ€” if a parcel’s zoning district permits the residential dwelling use, LTRs are allowed at that use. Unlike STRs, LTRs are not subject to the R-1 10% cap imposed by Ordinance 228 [2].

Where verification matters: For commercial or mixed-use parcels (downtown Elm Street in particular), confirm that residential dwelling use is permitted by right (or grandfathered) at the parcel’s district classification. The Zoning Ordinance use table is the source of truth.

Village of Three Oaks Zoning Map (adopted 11/8/2017)

Click the map to open the full Zoning Map PDF.

2 Registration & Permit Process

Submit the Residential Rental Registration form (one per property) to the Village Clerk at 21 N. Elm Street, with the $35-per-unit fee [3]. Following registration and passing inspection, the Building Official/Zoning Administrator issues a Long Term Rental Certificate of Compliance โ€” which is what actually authorizes the unit to be leased.

Submit toVillage Clerk, 21 N. Elm St, Three Oaks, MI 49128
Fee$35 per rental unit [3]
Inspection cycleThree-year rotation
Certificate of Compliance termThree (3) years from signature date [7]
RenewalOwner must schedule inspection with the Building Official/Zoning Administrator before expiration
No rental without a Certificate: Ordinance provisions expressly state that no person shall lease a rental dwelling unit without a valid Certificate of Compliance issued in the owner’s name for that specific unit [7].
3 Fees & Penalties

The LTR fee is printed directly on the Residential Rental Registration form [3].

Registration fee$35 per unit
Inspection cycleThree-year rotation per ordinance
Certificate of Compliance term3 years [7]
Penalty for non-complianceFines, penalties, or revocation of the Certificate

Failure to maintain compliance with safety, maintenance, and zoning conditions listed on the Certificate may result in penalties, fines, or revocation โ€” renting without a valid Certificate is prohibited [7].

4 Inspections & Safety Requirements

Inspection by the Building Official/Zoning Administrator is required before a Certificate of Compliance will issue [7]. If the owner or representative refuses to permit an inspection after 10 days’ notice of intent to inspect, the property cannot be rented.

The Certificate certifies compliance with the 2021 International Property Maintenance Code across five areas:

  • Safety features: working smoke detectors in each unit and common area; working CO detectors where applicable; accessible fire extinguishers.
  • Exterior maintenance: landscaping, walkways, and parking areas free from hazards.
  • Interior maintenance: each unit free from safety hazards.
  • Plumbing and electrical: systems function properly and meet code.
  • Structural integrity: building is sound.

The Certificate also certifies the property is not being used as a short-term or vacation rental โ€” a single property cannot carry both a LTR Certificate and an STR permit simultaneously.

5 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 [8]. These rules apply equally in Three Oaks Village and are not modified by local ordinance.

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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Thinking about a Three Oaks rental investment?

The R-1 10% cap and the STR/LTR permit split make Three Oaks one of Berrien County's more nuanced markets. Let's walk the numbers together before you write an offer.

Sources & Downloads


  1. 1
    Village of Three Oaks โ€” Official Website
    https://www.threeoaksvillage.org/
    Community, tourism, and government overview
    Verified: 2026-04-20
  2. 2
    Village of Three Oaks โ€” Ordinance 228 (R-1 10% STR Cap)
    https://www.threeoaksvillage.org/ORDINANCE%20228.pdf
    Adopted March 8, 2023; effective March 29, 2023. Caps STR registrations in R-1 Single Family Residential District at 10% of developed parcels.
    Verified: 2026-04-20
  3. 3
    Village of Three Oaks โ€” Residential Rental Registration Form
    https://www.threeoaksvillage.org/Document_Center/Government/Ordinances/RESIDENTIAL%20RENTAL%20REGISTRATION.pdf
    $35 per-unit fee printed on form; three-year inspection rotation
    Verified: 2026-04-20
  4. 4
    Village of Three Oaks โ€” STR Registration Form
    https://www.threeoaksvillage.org/STR%20-%20Registration%20-%20Revised%203-21-23.pdf
    STR registration; submission to Village Clerk
    Verified: 2026-04-20
  5. 5
    Village of Three Oaks โ€” Ordinance 210 (Short-Term Rentals)
    https://www.threeoaksvillage.org/Document_Center/Government/Ordinances/ORD%20210.pdf
    Full STR ordinance: definitions, registration, rental requirements, inspections, safety equipment, permit term and transfer rules
    Verified: 2026-04-20
  6. 6
    Village of Three Oaks โ€” Ordinance 215 (Penalties Amendment)
    https://www.threeoaksvillage.org/ORDINANCE%20215.pdf
    Civil infraction fines ($50-$500; $250 first repeat; $500 second repeat) and revocation at 3 incidents/calendar year
    Verified: 2026-04-20
  7. 7
    Village of Three Oaks โ€” Long Term Rental Certificate of Compliance
    https://www.threeoaksvillage.org/Long%20Term%20Rental%20Certificate%20of%20Compliance.pdf
    Three-year certificate; IPMC compliance; inspection required before renewal; no rental without a valid Certificate
    Verified: 2026-04-20
  8. 8
    Michigan Legislature โ€” A Practical Guide for Tenants & Landlords
    https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide landlord-tenant law, leases, and 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.