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SHORT TERM HELL
Short term rentals have been and have continued to be very annoying to those neighborhoods effected around the City of Lake Geneva. Lake Geneva is a tourist city and professional and amateur developers have taken advantage of the opportunity inherent where so many people want to own or rent property in the area. With more and more homes being renovated from permanent residential dwellings into beautiful vacation rentals, trouble is brewing. Neighbors located close to these rentals have commented at several city meetings and have shared their frustration of the situation and the loss of the small-town community feel their neighborhoods once had.
The renovated homes have, for the most part increased neighboring property values, which most would think was a good thing, but in reality, the increased value (for those not selling their properties) increases property tax for many already struggling homeowners and families in these challenging economic times. City officials have discussed the issue of short-term rentals at many meetings, with no real solution or plan for improvement (it does not help that some of the city leaders make decisions about this issue own short-term rentals). The regulations and ordinances at the state level have tied the city’s hands (somewhat) or at least have many feeling that way. The city has also discussed the lack of discovery, enforcement and fining for violations at these properties as well as a complete lack of a solution to improve the inherent and problematic issues.
At last week’s committee of the whole meeting Lake Geneva resident Emily Hummel, (the President of the Maple Park Historic Homeowners Association) shared some of the same concerns mentioned previously brought up, but then took it a step further and researched other municipalities to look at how they handled their own short-term rentals. Madison Wisconsin was one example.
Madison took its city’s short term rental issues seriously and while in compliance with state law was able to almost stop them all together. Madison currently allows short term rentals but only if the rental is in a permanent residence where the owner of the property resides there. This often times limits the rental to a room or portion of the home. This requirement provides management and prevents an influx of vacation rentals. Short term and vacation rentals have become very popular for many wanting to take a trip to tourist areas, especially for larger families and those vacationing on a budget.
The privacy of renting a house is another big selling point for those utilizing the abundance of rentals available. Madison’s restrictions of this may seem a little extreme to some, because renters are not as interested in sharing a home with the owners when vacationing, especially with kids. Madison’s management may not be what Lake Geneva wants or needs but it gives permanent residents of the city’s neighborhoods hope that short term rentals won’t take over.
City officials must be willing to research ideas on handling vacation rentals. Leaders must look for loopholes in state guidelines and laws, and then put in the work to make changes necessary to modify local ordinances. Hawaii now charges 15% to short-term renters and 15% to the owners renting out the property. They use that money to hire inspectors and investigators to hold down owners cheating and not paying their share. The fine for violations starts at $5,000 and goes up from there in cases where there are repeated violations. Local ordinances can have a real bite, backed by the law but only if local officials owning such rentals themselves can be objective and follow the rules themselves.
