If you buy a home in Lakeside, Harbert, Union Pier or Sawyer this fall that rented by the night all summer, you can't keep renting it the day you close. Under Chikaming Township's Ordinance 164, a short-term rental permit "will automatically terminate on the date of transfer," and the new owner may not use or advertise the home as a short-term rental until they have applied for and obtained a new permit. You can't get one right now. The Township's rental permits page says the cap has been reached, no more applications will be accepted, and no waiting list will be set up.
That changes how a lake-country house should be priced. Booking calendars, gross rental figures and a strong review history describe how the seller used the home. In Chikaming they no longer describe anything a buyer can take over.
How the cap filled
The Chikaming Township Board adopted the ordinance at a February 12, 2026 special meeting. In a separate 5–0 vote, it capped permits at 550. At the time the Township counted an estimated 435 licenses plus 82 up for renewal, 517 in all. According to the Township, demand for licenses had grown from 308 in 2018 to 517 by early 2026. Noise, parking and trash complaints were part of what led to the rules.
New applications opened at 9 a.m. on March 23, 2026, first come, first served. In a notice dated March 20, the Township estimated about 90 permits would be available. It also said late renewals could change that number. Those openings are gone now. The Township hasn't said exactly when the 550th permit was issued.
What comes next is spelled out on the Township's site. Any available permits will be announced after the renewal period ends on February 1, 2027. Until then, applicants "may need to wait until the next permit cycle in 2027." The ordinance says that once the cap is reached, the Township won't accept new applications until an existing permit expires or is revoked or voided. The February resolution told Township staff to write a policy for reissuing permits and bring it to the Board. The Township hasn't published an approved version of that policy on its rental permits page, which says only that there will be no waiting list and that available permits will be announced after renewals.
Put those rules together and you get the mechanism. A sale ends a permit, and a buyer who wants it back competes for whatever opens up in 2027. That buyer gets no head start for buying a house that already rented. A seller's permit leaves the system at closing, and the buyer starts over with everyone else.
What changes at the closing table
For a buyer, the main effect is on underwriting. If you're counting on rental income to carry part of the cost of a Chikaming second home, that income depends on getting a new permit in a cycle with no published count or date yet. Money already set aside for next summer's bookings is exposed for the same reason.
Getting a permit takes more than an application, too. The fee is $500 for the first bedroom and $250 for each additional bedroom. The owner or a designated local agent must live within 30 miles, be reachable 24 hours a day while guests are there, and respond to complaints within 60 minutes. Guest vehicles, boats and trailers have to park on the property, not on public roads. A house with a narrow driveway may have rented under the old system and still have trouble meeting the parking rule under the new one.
For a seller, the rental history works differently in a listing. It still tells buyers the home is in demand and books well. It can't be offered as income that transfers, because under the ordinance it doesn't. Sellers whose pricing assumes buyers will pay for an operating rental business should expect buyers' agents to raise the transfer rule early.
People raised these concerns before the vote. Nichole Rarigh, who owns an inn and a gelato business in Union Pier, told the Board that some local owners can only afford their family time at the lake because rental income helps cover it, and she asked the Board to think carefully before capping permits. Jason Sutton argued permits should be transferable. The Board kept the non-transfer language. Officials noted they can adjust the cap in the future.
The same question a few miles away
Harbor Country is several separate jurisdictions, and each answers the question "does the rental right survive a sale?" in its own way. Two homes with identical booking histories can be worth very different amounts to a buyer who plans to rent.
| Jurisdiction | Can a new owner get a permit? | What happens at sale | Number that matters |
|---|---|---|---|
| Chikaming Township | Cap of 550 reached; no waiting list; next cycle after Feb. 1, 2027 | Permit terminates automatically on transfer | $500 first bedroom, $250 each additional |
| City of New Buffalo | The City of New Buffalo's adopted zoning ordinance allows new short-term rentals only as special uses in the Central Business, General Commercial and Waterfront Marina districts | Zoning right for units registered by Nov. 23, 2021 survives a sale; new owner must obtain a renewal permit | Right is lost after 12 months unrented or 12 months without a valid permit |
| New Buffalo Township | No numeric cap found in the posted 2019 ordinance | New Buffalo Township's ordinance allows a license to transfer only with prior Township approval | The Township's information page lists a $500 fee; the license term is 36 months |
| Village of Three Oaks | The Village of Three Oaks' Ordinance No. 228 bars new R-1 registrations once permits exceed 10% of developed R-1 parcels | Transfer terms not stated in the 2023 amendment | Close to 70 R-1 permits when the cap passed |
The City of New Buffalo has the most layered setup. Its adopted zoning ordinance, posted in July 2025, leaves the R-1, R-2 and R-3 residential districts blank. Units that were registered by November 23, 2021 may continue as nonconforming uses. The code says a transfer of ownership does not impair that right, but new owners are responsible for getting renewal permits. The right counts as abandoned if the unit isn't rented for 12 months, or if the permit lapses and isn't renewed within 12 months. So a grandfathered home in a residential district can lose its rental status for good if a buyer takes a year off from renting it. City permits run one year, require an annual inspection, and need a local agent within 20 miles who can respond within 30 minutes.
New Buffalo Township adopted its ordinance August 19, 2019, giving buyers another set of rules to check alongside Chikaming's. In Chikaming, the permit simply ends at sale, which makes the two neighbors' approaches markedly different.
The Village of Three Oaks passed Ordinance No. 228 on March 8, 2023, effective March 29, 2023. Harbor Country News reported that the Village already had close to 70 R-1 permits when the cap was adopted, which was well over 10%. Existing registrations were not canceled. The amendment doesn't say what happens to a permit when a home sells. Ask the Village about that before you rely on it.
What to confirm before an offer
- Which jurisdiction the parcel is in. A Union Pier or Lakeside mailing address doesn't tell you whether the lot is in Chikaming, New Buffalo Township or the City. The tax bill does.
- Permit status in the seller's name. Ask for the current permit and its expiration date, and in New Buffalo city, ask whether the unit is registered as a nonconforming rental.
- Whether you could meet the rules yourself. Look at on-site parking, how far your local agent lives, and response times, since a new owner applies under the current ordinance.
- Timing. In Chikaming, that means the post-February 1, 2027 announcement. In New Buffalo city, it means the 12-month abandonment clock.
- The contract. Talk with your attorney about whether rental contingencies or representations make sense for this property. This article isn't legal or tax advice.
A short FAQ
Does a 2026 permit on the listing mean I can rent next summer? In Chikaming, no. The permit ends at transfer, and the Township says available permits will be announced after renewals close on February 1, 2027.
Will the state legislation change this? Maybe, but nothing has passed. House Bill 6026, introduced June 2, 2026, would create a statewide rental registry and a 6% excise tax. House Bill 6027 would bar local governments from banning short-term rentals entirely. Both were referred to committee and are still proposals. Neither one would require a township to let permits transfer.
Can the Chikaming cap change? Yes. The ordinance lets the Board review and amend the cap each year, and any change can't be used to terminate or refuse renewal of a permit already issued.
If you're weighing a Harbor Country home that rents today, or planning to list one, Heidi Picard Properties can help you value it in a way that matches your township's permit rules. Request a free home valuation and consultation, and we'll go through the permit questions before you make an offer or set a price.
