The La Crosse City Council meeting on December 9, 2024, sparked a heated debate over proposed regulations for short-term rentals, particularly Airbnb and VRBO properties. The discussion centered around a proposed ordinance that would impose a seven-day minimum stay requirement, which many local property owners and rental managers argue could cripple the short-term rental market in the area.
Paul, a local property owner, highlighted that the average rental cost for short-term stays far exceeds typical monthly rents, making these rentals unaffordable for low-income residents. He emphasized that the primary concerns driving the push for stricter regulations are noise and disturbances from parties, which he believes can be managed through existing complaint mechanisms rather than blanket restrictions.
Pat Smith, chair of the Home Builders Association, expressed support for licensing short-term rentals but criticized the proposed minimum stay as overly restrictive. He argued that such regulations would eliminate many rental opportunities and infringe on property owners' rights. Smith pointed out that short-term rentals cater to families and visitors seeking a home-like experience, which is distinct from traditional hotel stays.
Mary Proznik, who manages a multi-family building with short-term rentals, echoed these sentiments, stating that a seven-day minimum would be detrimental to their business model. She noted that most of their bookings are for one to two nights, catering to various events and visitors.
Gabe Larson, a former Airbnb operator, shared his experience, emphasizing that a significant portion of bookings are for short stays. He warned that the proposed regulations could force many owners to close their rentals, impacting their ability to meet mortgage payments.
In contrast, Teresa Nagel, a resident of a neighborhood with affordable housing, supported the planning division's proposal, arguing that regulations are necessary to protect community interests and manage potential disturbances. She acknowledged the profitability of short-term rentals but stressed the need to balance this with the housing needs of vulnerable populations.
The council's discussions reflect a broader tension between the interests of property owners and the need for community regulation. As the meeting concluded, it was clear that the future of short-term rentals in La Crosse hangs in the balance, with potential implications for both local businesses and residents seeking affordable housing options. The council is expected to continue deliberating on this issue in the coming weeks.