The News: The Wisconsin Institute for Law & Liberty (WILL) has filed a lawsuit against the village of Sister Bay for an irrational rule that limits the number of bedrooms vacationers can use in a rental home and restricts where they can sleep. Our clients do not seek to exceed the Village’s 12-person capacity limit, but want to allow their guests to use the whole space however they see fit. The Village’s attempt to limit how private properties can use their rooms and sleeping arrangements is unlawful for many reasons, including that it’s arbitrary and unreasonable.

The Quotes: WILL Deputy Counsel, Luke Berg, stated, “The Village cannot dictate where vacationers can sleep within a private home, especially in homes that existed prior to the four-bedroom limit. We have tried repeatedly to work with the Village, but so far it has refused to be reasonable. We hope this lawsuit will restore the basic rights that Sister Bay property owners have under Wisconsin law and provide clear, common-sense limits to the Village’s authority.”

WILL Client, Hunter Clinton, stated, “All we want to do is provide our guests with the best experience when renting from us. So why would we lock away areas of our house that were specifically designed to give guests the most comfort and flexibility? This is an unnecessary and unreasonable rule.”

Additional Background: Wisconsin law gives homeowners the right to rent their home on a short-term basis. Wis. Stat. § 66.1014. Property owners also have a right under Wisconsin law to continue a non-conforming use after a change to local zoning laws, preventing municipalities from retroactively applying zoning changes to existing properties.

Despite these laws, Sister Bay has repeatedly taken the position that properties lose any vested non-conforming features of their property, merely by applying for a short-term-rental license. Property owners who violate the rules risk penalties from $500 to $5,000 per day.

In its latest effort, Sister Bay amended its zoning ordinances to limit short-term rentals to four bedrooms. Even though existing properties should be grandfathered, the Village has thus far refused to honor any exceptions. The Village has also told short-term rental owners that guests cannot use pullout couches, futons, or other sleeping arrangements outside of the four approved bedrooms during their stay.  And the Village has even suggested that properties with more than four bedrooms should lock or restrict access to the extra bedrooms.

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• Complaint, September, 17th 2024