Appeals court overturns Sister Bay short-term rental policy after homeowner lawsuit

Sister Bay water tower. PC: Fox 11 Online

DOOR COUNTY, WI (WTAQ-WLUK) – A state appeals court overturned Sister Bay’s short-term rental policy, which was challenged by several homeowners.

In 2022, Sister Bay adopted a short-term rental ordinance. It was later amended to limit rentals to using only four bedrooms. Several property owners sued, challenging that limit.

In August, a Door County judge sided with the village. But the homeowner’s appealed.

In an 18-page decision issued last week, the appeals court said since the law allows homeowners to rent their entire homes, the ordinance is void.

In summary, we conclude that the Village’s four-bedroom limit is in logical conflict with the plain language of WIS. STAT. 66.1014, Wisconsin’s “Right to Rent” law, and, therefore, the four-bedroom limit within the definition of short-term rental in 66.2100 of the Village’s zoning code is void as preempted by state law. Accordingly, we reverse the circuit court’s grant of summary judgment in favor of the Village and remand for the circuit court to issue a revised judgment declaring that provision preempted and therefore void,” the decision states.