Short-term vacation rentals and homeowners` rights In Walworth

Short-term vacation rentals
and homeowners’ rights
In Walworth County
…a little background
In the Fall and early Winter of 2014 the Walworth
County Board (Board) of Supervisor’s considered an
amendment intended to clarify language in the
ordinance covering vacation home rentals.
issue of whether or not Walworth County should permit
short-term rentals and if so what regulatory
requirements might be advisable to address neighbor
concerns.
The amendment was prompted by a recent court
decision that found language in the existing ordinance
too vague. Residents opposed to short-term vacation
rentals called for language that would prohibit rentals of
less than 30 days. Those affected by the ordinance urged
the Board to consider the important property rights and
economic issues that could be adversely affected by the
proposed language.
In December 2014, the Board decided to deal with the
first issue - i.e., clarification of the existing ordinance –
and passed an amendment prohibiting rentals of less
than 30 days. Now, the County Zoning Committee will
address the more complex and far reaching underlying
issue of whether or not Walworth County should permit
short-term rentals and if so what regulatory
requirements might be advisable to address neighbor
concerns.
As the deliberations unfolded in both the County Zoning
Committee and the Board, Supervisors gradually
appeared to have concluded that there were two issues
on the table. The first was what some members
perceived as a need created by the recent court decision
to clarify the language in the existing ordinance. The
second was perceived as a need to address the larger
The Walworth County Good Neighbors Association has
prepared the following information in an effort to assist
the County Zoning Committee, other Board members
and the citizens of Walworth County as they explore the
important questions that must be addressed in this
process.
1 in 4 Wisconsin Adults
prefer to rent a home, cabin
or cottage for their vacations
When you are on
vacation in Wisconsin,
which of the following
types of rental options
do you prefer?
100%
75%
50%
25%
0%
…a little information about the people who rent vacation homes in
Wisconsin
Vacation home renters tend to
be older rather than younger.
q  52% are 45 and older.
q  76% are 35 and older
Vacation home renters
understand the importance of
protecting property values.
q  More than 80% of
vacation home renters
own their own homes.
Vacation home renters are more
likely to be families.
q  60% are married with or without children under 18
q  10%+ are divorced, in a partnership or single with children under 18
Vacation home renters are short-term renters.
q  63% stay less than a week
q  30% stay less than two weeks
Source: Wisconsin REALTORS® Association 2015 Wisconsin Consumer Survey
Short-term vacation rentals and homeowners’ rights in Walworth County
…a look at some of the issues
Four specific issues surfaced during the recent Walworth County Board deliberations, including: 1) the rights of homeowners
to do what they want with their property so long as their actions do not threaten public health and safety; 2) the need to respect
the concerns of neighbors related to noise, traffic, and inappropriate behavior; 3) the affect of proposed regulations or the lack
thereof on the local public and private revenues generated by the rentals; and 4) the affect of the proposed regulations or the
lack thereof on local hotel and motel business.
What about the homeowners’ rights?
More than 300 Walworth County homeowners rent
their homes out to short-term vacation renters. They do
so for a variety of reasons, but foremost among those
reasons is economic necessity – i.e., the need to pay
the mortgages, cover the property taxes, help pay the
bills and fund their retirement.
Nearly all homeowners understandably believe that as
long as they are not hurting or endangering others or
violating environmental laws they should be able to do
what they want to with their own property.
Walworth County Good Neighbors Association
Position: Our members believe that property owners’
rights must be respected; that short-term rentals should
be allowed; and that arbitrary time limitations should
not be used to effectively stop homeowners from
exercising their rights.
What about rental generated revenues?
The 300+ vacation home rental properties generate
both public and private revenues. Homeowners who
rent their homes as vacation properties, for example,
pay (we need examples and some amounts here).
Many of the owners employ management companies
who in turn employ local businesses and individuals
who pay taxes. Those who rent the properties purchase
groceries and gas, dine out and buy items in the area’s
restaurants and shops.
Walworth County Good Neighbors Association
Position: Our members believe that all contributions
to the local economy are important and do not believe
that sufficient justification has been presented for
putting needed public and private revenues at risk.
What about the neighbors’ concerns?
For every one of the 300+ homeowners who rent
their homes out to short-term rentals, there could
be as many as two to six neighbors who might be
affected by the behavior of the renters; so
somewhere between 600 and 1,800 Walworth
County residents could have standing as
neighbors.
Walworth County Good Neighbors Association
Position: Our members believe that our
neighbors should not be put at risk or
inconvenienced by inappropriate behavior. We
believe that effective regulation rather than
prohibition is the right approach and would point
out that during the past three years – a time when
thousands of rentals occurred next to hundreds of
neighbors – fewer than a hanfull of formal
complaints were lodged.
What about the hotel/motel business?
Approximately one out of four Wisconsin adults
indicated in a recent survey that when vacationing
in Wisconsin they would “prefer” to rent a
vacation home, cabin or cottage. One in six of
this population indicated a preference for hotels,
motels and resorts as well.
Walworth County Good Neighbors Association
Position: Our members believe that consumer
preferences and options should be respected. We
do not believe that the rights of 8.6 out of 10
consumers who want to rent vacation properties
should be sacrificed to protect the market for
motel owners. We believe that arbitrary time
limitations should not be used to effectively stop
consumers from exercising market preferences.
If you’d like more information about these and others issues related to short-term vacation rentals and/
or if you’d like to help the Walworth County Good Neighbor Association work to develop a regulatory
environment that works for our homeowners, neighbors, communities and renters, please contact us at
www.walworthgoodneighbor.com.