Property owners sue Sister Bay over rental bedroom limits

In Sister Bay, Wisconsin, four property owners have initiated a lawsuit against the village over newly imposed restrictions on short-term rental properties. The village board approved these limits last year, which restrict rentals to a maximum of four bedrooms, and the law was enacted in the summer of 2023. The plaintiffs argue that their properties were either already operating as short-term rentals or were under construction when the new zoning ordinance was implemented. They contend that such changes should not apply retroactively, as established property law typically allows existing properties to be 'grandfathered' in under previous regulations. The attorney representing the property owners, Luke Berg from the Wisconsin Institute for Law and Liberty, emphasizes that the lawsuit does not seek to increase the occupancy limit of 12 people set by the village. Instead, the property owners wish to allow their renters to utilize all available rooms in their homes without violating the new ordinance. Berg argues that this should not negatively impact the community or the village's interests. The property owners attempted to engage with the village to clarify whether they would face penalties for allowing renters to use more than the four bedrooms permitted. However, their requests for assurance were met with refusal from the village officials, leaving them concerned about potential enforcement actions due to steep penalties. As the lawsuit unfolds, the village administrator has yet to review the legal documents, and the village attorney has not provided any comments on the matter. The outcome of this case could have significant implications for short-term rental regulations in Sister Bay and similar communities.