Who has authority re: rules around STR?

Question

My husband and I have a STR in a rural part of Wisconsin (we live in CA, but I'm from the area and my whole family lives there). The property is located on a lake with a Lake Association that does not want us to be operating a STR. This was not disclosed when we bought the property, the previous owners basically told us the association had zero authority in the matter, and we never signed anything with the lake association agreeing to not use the property as we choose.

The lake association threatened to sue us for the vacation rental, and so we backed off on hosting.

From what we can tell, the lake association is not like a homeowners association, so I am wondering what authority they have to tell us what we can do with our property?

To broaden that a bit, the property is located in a township, which does have regulations around owning and operating a STR. We've looked into the regulations the township has established, and now, frankly, i'm wondering what authority the township has over our property. Some of the rules seem a little unrealistic (like requiring we have ADA-compliant ramps...in a lake house...) but more troubling is that the township requires STR owners to submit an application that the board must approve, and then that must be renewed/reviewed/approved annually. Ok, that's fine, I guess, until i realized that when looking at the membership of the township board - two of them are also members of our lake association! So... no, i don't see that application getting approved.

While a friend who lives in the area made the point that 'sure, they can make rules, but they can't enforce them,' (something about there not being a judicial branch of the township?) we're trying to be better humans than operating this under the radar and ticking off all our neighbors, not to mention potentially opening ourselves up to lawsuits or hefty fines.  But then again, I really don't like other people telling me what I can do with my property if they don't have the right to do so.

Who has the authority to make and enforce STR rules in this situation (lake association? township? the county?) and how do we find out for certain? Is this under the purview of a real estate lawyer? Does anyone have experience with this situation or recommend a lawyer with experience in this situation?

Michael Baum · Answer

Hey @Mary Flynn Maes, that is a tough situation, but first thing I would do is ask for that Lake Associations bylaws or regs that prevent it. Do they even exist or is just some busy bodies getting in the way. Find that out first.

Next you want to comply with the municipalities regs for sure. They do have a process in place.

Get an attorney to hash it out.

Next you want to comply with the municipalities regs for sure. They do have a process in place.

Get an attorney to hash it out.

Brandon Vanderford · Answer

Here in North Carolina, an association can put restrictions on STRs (most commonly by requiring a minimum lease term). These rules can be enforced by fines, which, if unpaid, can lead to a lien being placed on your property.If the governing documents for the association do not prohibit STRs, then consider discussing the matter with a lawyer. Sometimes an association *wants* to prohibit STRs, but never legally does so. If this is the case, you might be able to continue operating your STR.

Carolyn Fuller · Answer

If the lake association doesn't have the authority, the township probably does. Most towns and cities can regulate STRs. I think there is at least one state that has passed regulations saying that towns and cities can't regulate STRs but that is an exception to the norm.

I found an article on the web discussing a Wisconsin case: https://www.lwm-info.org/Docum...

Andrew Steffens · Answer

Every state is unique and most likely you will need an attorney IMO

To my knowledge (limited to FL experience) associated can regulate you if they have it in the HOA bilaws that you would have signed.  There are also deed restrictions if applicable which can regulate you without an HOA.  Lastly, towns can usually do it through ordinance and/or states with laws.

I imagine there are STR experience RE attorneys in the state and although I do not love cutting lawyers checks I think a consult with a well regarded attorney with experience in STR or at least HOA law should help you out a lot.

Mark S. · Answer

@Mary Flynn Maes Lake associations are generally not governing bodies like an HOA is. Not sure how they could take any action against you.

Rebecca E. · Answer

Can I ask where in WI your place is located?  There was a state regulation recently, well described in Carolyn Fuller's link, that lake associations/HOA CANNOT prohibit STR but they can restrict them.  We elected not to run an STR in a nearby area because they required the owner to live or have an agent within 30 minutes.  If you had family in the area, that could work for you.

Ryan Seib · Answer

Good afternoon,

Municipalities in WI can regulate STRs. However there are limitations:

https://www.wisbar.org/NewsPub...

Jerry W. · Answer

@Mary Flynn Maes  At this point you need an attorney, not advice from well intentioned people.  With your investment it is too important to do it otherwise.  You could face fines, or other issues if you just guess.

John Underwood · Answer

The township and HOA can both enforce their rules if you are in their jurisdiction.

This is something that should have been thoroughly researched before purchasing a property that was intended to be a STR.

John Underwood · Answer

There may be recorded HOA rules that your realtor should have made you aware of. They are public record. When you buy in a HOA neighborhood you are by default agreeing to the HOA rules.

Who has authority re: rules around STR?

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