REGULATION:
This is not a new issue for Tourism areas: Many Ordinances have already been successfully  
implemented by Numerous Municipalities experiencing similar issues that currently define & regulate
short term rental activity Many municipalities in WI allow rentals to transients for less than 30 days in
residential neighborhoods: click on links to see relevant documents
Wisconsin Dells (Sauk Co)  has
allowed this activity in
Residentially Zoned areas since
1968 through a board of
Adjustments Exception permit
approval.
Sante Fe New Mexico short term rental ordinance
Wisconsin dells (Sauk CO):   
7.03, see page 9
sante fe realtors short term rental document
lake tahoe short term rental ordinance
boulder colorado zoning staff report on short term rentals
town of milford ordinance
town of Otsego draft for transient rental license
Ridgeway CO short term ordinance
Stearns County Ordinance see page 114, section 6.51
ROOM TAX:
Municipalities (towns, villages, cities) can create an
ordinance to assess up to 8%room tax on short term
rental Activity in Addition to State Tax: 5%, and County
tax 0.5%
Wisconsin and Walworth County room tax info
Door County has more than 19 municipalities that allow  
more than 500  short term residential rentals  to date in
residential zoning districts as allowed use.  They are
licensed as "tourist rooming houses" with the State,   
They are required to be permitted for room tax collection
at the Tourism commission:
http://www.doorcountytourismzone.com/home/

Click here to see a summary of Door County Zoning
VACATION HOME OWNERSHIP AND VACATION RENTAL STATISTICS

  • Typical vacation home buyers: 9 in 10 vacation home buyers will use the home themselves.

  • 26% of Vacation home buyers intend to make their vacation home a full time residence.

  • 2009:  Median Age for Vacation home buyers 46.  Median Income $87,000.  51% have Children

  • Vacation rentals represented a US $25 billion market in 2008

  • 89% of Vacation rental guests intend to rent again within three years

  • 87% of vacation rental guests would recommend a vacation rental to friends or relatives

  • In 2009 14% up from 11% in 2008

  • In 2009 family reunions have seen huge growth in the past year alone, with 23 percent of leisure travelers
    having named it as the primary reason for taking one or more trips during the past year, up 13 percentage
    points since 2008.  (KEY REASONS MENTIONED, WANT TO BE UNDER ONE ROOF WITH FAMILY NOT
    SEPARATED BY ROOMS...)
  • Many families will not extend their stay unless can bring pets which are not allowed in most hotels/condos

    Sources (click on links to view documents)

         2010 NAR Investment and Vacation Home Buyers Survey   
             
       HomeAway Vacation Rental Marketplace Report
Vacation Rental Trends
Vacation Rental Industry Position Statement
Potential concerns with short term rentals:
  • Increased traffic
  • Parking problems  
  • Too many people
  • Noise ordinance violations
  • Excessive Garbage
  • Fireworks
  • Full time resident’s objections  “don’t like seeing new people in and out”
  • Competition concerns from some local lodging owners


Examples of Regulation in Ordinance to Prevent Problems       (Adapted from other ordinances)
  • ALL TRANSIENT RESIDENTIAL RENTALS (regardless of duration of rental)  MUST BE LICENSED
    as  WITH WI DOR, AND DHS State Statute 195.06 . Duration not the issue  , MUST PASS BUILDING
    INSPECTION FOR CODE COMPLIANCE
  • LINK FOR LICENSING INFORMATION LETTER:
  • Conditional Use Permit  with Public Hearing approvals neighbor notification
  • Proof of Insurance covering “rental” use.
  • Registration with Municipality and County, w/Contact Numbers of property manager
  • Notify Neighbors of Proposed Activity-give contact numbers
  • 24 Hour LOCAL Property Manager, Phone numbers Posted
  • Registration with Wisconsin Health Dept: Safety Inspection/ Health Department Inspection, including
    well and septic
  • Occupancy Restrictions showing compatibility with Septic system guidelines
  • Parking Definition
  • Limit to 7 day minimum Duration for Consecutive  Rentals, NIGHTLY RENTALS NOT ALLOWED,
    THIS IS FOR HOTELS/MOTELS AND BED & BREAKFASTS
  • Limit # of residential rentals allowed per year to 17 verses Hotels and Motels have 365 days, 52
    weekends to rent.  Will limit competition to Hotels/Motels & keep rates high.
  • Mechanism for Municipality to Revoke Privilege and Registration of Property
  • Required Lease Verbiage, showing restrictions, ordinances
  • Tenant Education on Natural Resource Protection
  • Verbiage allowing local planning commission to require buffers or conditions to protect neighbor's
    privacy. (already in many conditional use permit verbiage)
  • Draft Ordinance Giving local Police ability to enforce
  • MOST TOWNS HAVE ORDINANCES GOVERNING NOISE, PARKING, POLICE CAN ENFORCE!!!!
  • Use Common Sense: Dont rent to a group intending to cause a problem.  Take a large security
    deposit, and Keep it if problematic!
TOURISM IS MAJOR SOURCE OF
REVENUE FOR  WALWORTH COUNTY
In 2008 Walworth County ranked #7 in state.
(surpassed by Door County in 2007)  Tourism revenue
impacts all residents directly and indirectly: business,
residential property taxes, employment opportunities
(click on link to see data)
Counties in Wisconsin Tourism impact
Potential Benefits of Regulation for Municipalities:
  • Room Tax & Other sources of Revenue for Residents, Pass on Taxes to Visitors!!
  • Capitalize on Unique Direct & Indirect Revenue  Source for Communities
  • Increased revenue for Marketing Exposure for Businesses/Lodging properties
  • Natural Resource Protection Education
  • Capitalize on Growing Niche in Tourism Trends, remain competitive with other Municipalities
  • Recessionary Economy Relief, no government assistance
  • Encourages Investment in Real Estate and Responsible Property Management
  • Occupancy numbers easy to enforce for Zoning in Single Family Residential Zoning
  • Short term renters spend their money, go home, don’t increase use of municipal services such as schools
  • Ensure Safety of Visitors
  • Prevention of unfair competition to Hotels/Bed & Breakfasts

Potential Benefits of Regulation to Neighbors/Full-time Residents:
  • Regulation/control of what goes on at your Neighbor's house.
  • 24 Hour Contact Mechanism for complaint resolution, immediate complaint resolution. long term renters cant
    be resolved so quickly, compared to a 30 day eviction process.
  • Transparency creates good behavior
  • Ensures Occupancy Limits Observed
  • Provides mechanism to shut down properties operated in an irresponsible manner
Shortage of full-time single family residents in Walworth County that can afford to pay $1000+ per
month for housing expenses!!!!

Source 2035 Wa Co Comprehensive Plan:
  • 2000: less than 3% of residents paid gross rent including utilities of  $1,000 or more. The median gross rent for
    renter occupied housing units in the County was $588 in 2000.
Source: Fed Stats.gov:
  • 2006 per capita income: $30,688 vs WI $34,405  (affordable housing is 30%= $767)        
  • Average Adj income of non-migrant tax payers in 2005: $55,766  (affordable housing is 30%=$1394)
  • Median household income: $54,084 vs WI $50,567
Walworth County Housing and employment Demographics
WI Room Tax Statute: 6.0615
Some example ordinances outside of Wisconsin in other Resort Areas that regulate short term
rentals:
Walworth County Economic Development
Study
Litigation and Media

Sedona Gets Slapped with Lawsuit over short term rental ban


Short term rental ban overturned by Indiana Appeals court
Second Home Ownership and Interest in Vacation Rentals Continue to Remain Strong Through Economic
Recession, According to New HomeAway Report.   http://www.homeaway.com/info/media-center/press-
releases/2010_pressreleases/q110-vrmr

Vacation Home Sales Up but Investment Sales Down, NAR.COM, Natl Assoc Realtors, March 31, 2010 http://www.
realtor.org/press_room/news_releases/2010/03/invest_vac_2009

Frustrated Homeowners turn homes into vacation rentals, Housing Watch, AOL.COM July 23, 2010 http://www.
housingwatch.com/2010/07/23/frustrated-sellers-turn-homes-into-vacation-rentals

Homeowners using “Air bnb room renting site to pay Mortgage”, Bloomberg.com July 18,2010 http://www.
bloomberg.com/news/print/2010-07-18/homeowners-use-airbnb-room-renting-site-to-pay-mortgage-dodge-
foreclosure.html
“Rent out your home as a vacation property and make Money”, AOL Real Estate July 16, 2010 http://realestate.
aol.com/blog/2010/07/16/rent-out-your-home-as-a-vacation-property-and-make-money/

“How To Hunt  A Midwest Vacation Rental”, CHICAGO TRIBUNE APRIL 14 2010  http://articles.chicagotribune.
com/2010-04-18/travel/ct-trav-0418-midwest-rentals-20100416_1_vacation-rental-managers-association-
vacation-home-family-vacation

HomeAway Launches iPhone Application to Search for Vacation Rentals, Home Away, Aug 9, 2010 http://www.
homeaway.com/info/media-center/press-releases/2010_pressreleases/iphone-app