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Short-term rental market eyed by city
Zoning changes may address issue
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MONROE — Monroe is moving to regulate its short-term rental market, as demand for such rentals — using popular tech applications like Airbnb and Vrbo — continues to soar nationwide.

It’s unclear how widespread the use of short-term rentals can be in the city, as many operate now privately or without a conditional-use permit. But officials recently received a request for city approval to operate another one at a residential property. And a recent search of Vrbo listings for an upcoming week listed dozens of properties — from a cozy one-bedroom, loft-style space on the downtown square; to a four-bedroom farmhouse in rural Monroe, with access to all of the land and toys.

Prices, meanwhile, range from less than a $100 per night to thousands for staying here for days, weeks or months.

What’s more, according to City Administrator Brittney Rindy, there exists no real language in the current city ordinances that adequately addresses the issue.

“It’s (recent zoning actions) driven by the fact our ordinance is not compliant with State Statutes,” she said, via email. “Then while reviewing it, (it) was questioned if we just require a license or registration.”

Currently, the city regulates short term rentals as a conditional use allowed in certain zone districts.

“Plan Commission was in favor so an ordinance will be drafted for their consideration in the coming months,” said Rindy.

According to the city consultants Vandewalle & Associates, changes in state law in 2017 — and subsequent Wisconsin case law — altered how communities regulate short-term rentals. For example, current state law does not allow communities to prohibit a short-term rental in a legal residence, officials said. And requiring a conditional-use permit, as Monroe’s code currently requires, has been repeatedly challenged in court.

“Though the courts have not thrown out a community’s ability to use a conditional-use permit to regulate short term rentals, doing so remains legally risky,” said the Vandewalle memo to city officials.

The consultants said that requiring a conditional-use permit creates potential for a community to deny it outright, which would then likely result in prohibiting the use of a single-family home as a short-term rental — contrary to state law.

“To better align the City’s code to current laws, the city should consider eliminating the requirement for a conditional-use permit for short-term rentals,” said the memo — and the Plan Commission concurred. “The City should further consider making a short-term rental a permitted use by right.”

Indeed, if the Common Council approves such a measure, it would allow short-term rentals “by-right” in all residential districts. In response to a question from the Plan Commission during its regular meeting October 14, Rindy said there likely could be a small fee or licensing scheme for the short-term rental zoning designation.

But, she added, the city wouldn’t likely get itself into any kind of inspection process of all the short-term rental properties, she added. The changes, she said, are likely to have the added benefit of letting city leaders know exactly how many short-term rentals exist throughout Monroe, and exactly where.

“It’s important for us to know where these are,” said Rindy. “It gives us some avenue for checks and balances and regulations …”