Two Rivers debates short-term rental changes: occupancy limits, enforcement and possible caps

The Two Rivers City Council devoted extensive discussion on Jan. 27 to possible changes to city ordinances and policies governing short-term rentals (STRs). Staff presented legal background, enforcement options and a menu of changes for the council to consider; council provided direction but did not adopt ordinance amendments at the meeting.

Attorney Andrew (city attorney) told the council that state law constrains municipal authority over certain stays and noted Wisconsin Statutes §66.1014 as the dividing line: “66.1014 of the statutes prohibits a ban on short term rentals — rentals of 7 days or more,” he said. That statutory line means municipalities have greater discretion to regulate rentals shorter than seven days, while rentals of seven nights or longer are largely protected from outright bans under state law.

Staff and council discussed several clarifying and enforcement-focused options:

- Occupancy limits: staff proposed enforceable occupant caps tied to unit size — examples included a fire-code style standard (50 square feet first occupant, 100 square feet per additional occupant) and a simpler rule used by other municipalities: two people per bedroom plus two (some council members discussed two per bedroom plus four to allow extra flexibility). Council voices showed general support for an…