Wisconsin keeps voiding municipal rental limits. None of it reaches your declaration
Wisconsin keeps voiding municipal rental limits. None of it reaches your declaration
2026-09-21 · Wisconsin · Courts
Between July 2025 and July 2026 the Wisconsin Court of Appeals published three decisions striking down municipal short-term-rental rules. Owners are citing them to their boards. The statute behind all three does not mention associations.
The three decisions
Wildwood Estate, LLC v. Village of Summit, 2025 WI App 47, decided July 9, 2025. The Village's ordinance required a licence and a guest register and prohibited rentals of six consecutive days or fewer. Held void as an improperly enacted zoning ordinance, with a 42 U.S.C. § 1988 attorney-fee award affirmed — the circuit court awarded $54,439.00 in fees plus $648.95 in costs, a total judgment of $55,087.95 against the village.1
Wisconsin Realtors Ass'n v. City of Neenah, 2025 WI App 49, decided the same day. Neenah's tourist housing ordinance provided that “The tourist housing property shall be the primary residence of the applicant.” Reversed, with directions to declare the ordinance preempted and void.2
Clinton v. Village of Sister Bay, Appeal No. 2025AP1825, decided July 14, 2026 and published. The Village capped short-term rentals at four bedrooms. ¶3: “We conclude that the Village's four-bedroom limit on short-term rentals logically conflicts with the plain language of WIS. STAT. § 66.1014, which language we have previously interpreted, in Wisconsin Realtors Ass'n v. City of Neenah … to bar restrictions on short-term rentals beyond timing limits alone.”3
What the statute actually says
Wis. Stat. § 66.1014 is titled “Limits on residential dwelling rentals.” Its operative prohibition, at § 66.1014(2)(a), is directed at one class of actor: “A political subdivision may not enact or enforce an ordinance that prohibits the rental of a residential dwelling for 7 consecutive days or longer.”4
“Political subdivision” means a city, village, town or county. Where a dwelling is rented for more than 6 but fewer than 30 consecutive days, a political subdivision may limit the total to no fewer than 180 days in any 365-day period.
The statute does not mention covenants, declarations, bylaws, homeowners associations or condominium associations.
Why the argument does not carry across
The cases are preemption cases. Preemption is a doctrine about the relationship between a state legislature and the local governments that derive power from it. A recorded declaration is not an exercise of delegated governmental power; it is a private instrument binding the land through the chain of title, and the Condominium Ownership Act expressly contemplates that it will restrict use — Wis. Stat. § 703.09(1)(g) requires a declaration to state the purposes for which units are “intended and restricted as to use.”
Wisconsin's own municipal-law literature treats the question as purely public. The Wisconsin Towns Association's August 2025 guidance restates § 66.1014 for town officials and does not mention private covenants, condominium declarations or association rules anywhere.5 That silence is consistent: nobody drafting on the municipal side understands this statute to reach associations.
And Wisconsin's most recent published condominium decision points the other way entirely. In Munnik v. Blue Harbor Resort Condominium Association, 2026 WI App 39, the Court of Appeals upheld a declaration provision barring any individual from continuously occupying a unit for more than 29 days — a far sharper occupancy restriction than anything the three municipal ordinances imposed — because the language was unambiguous and therefore never had to be reasonable.
The one genuine crossover
There is a place where these cases touch association life, and it is procedural rather than substantive. Wildwood turned on the Village having adopted under its police power an ordinance that functioned as zoning, without following zoning procedure. The Wisconsin Towns Association's summary records the reasoning: the ordinance “makes certain use of the land—namely short-term rentals for periods shorter than six days—prohibited” (¶31), and because it was a zoning ordinance adopted without zoning procedure it “was declared void and unenforceable” (¶¶37–38).
The fee award is the part local governments noticed. A § 1988 award turns a losing ordinance into a five-figure judgment, and that has visibly changed how Wisconsin municipalities approach rental regulation — which in turn changes what an association's neighbours and its municipality will and will not do.
A fourth case, on standing
Wisconsin Realtors Ass'n v. Polk County, 2026 WI App 12, decided February 3, 2026, is worth knowing for a different reason. The trade association challenged county shoreland-zoning amendments covering “high density use, common open space, short-term rentals, easements, condominiums, and the sale or exchange of parcels between abutting property owners” (¶1). It won on the short-term-rental amendments, following Neenah — and lost the rest for lack of associational standing.6
The amendments that fell outside the win expressly reached condominiums and common open space. Any Wisconsin association contemplating an organisational challenge to county land-use rules is looking at that standing analysis first.
Where the rental restriction actually lives
In Wisconsin the enforceable limit on renting a unit in a common-interest community is the recorded declaration, not the municipal code — and the municipal code is, at present, the less durable of the two. Our Wisconsin short-term rentals page sets out how the two layers interact, and fining authority covers the enforcement side.
What to watch next
Both Wildwood and Polk County carry petition-for-review notations, so the Wisconsin Supreme Court has been asked to take this line. Meanwhile two of the state's largest cities are running rules that sit uneasily with Neenah: Madison requires a short-term rental to be the host's primary dwelling, and Milwaukee has a pending ordinance on operator residency plus a resolution asking the Legislature to require Milwaukee-resident ownership. No reported case has yet tested either. Nothing in the 2025-26 legislative session amended § 66.1014.
Related Wisconsin HOA Topics
- Wildwood Estate, LLC v. Village of Summit, 2025 WI App 47, No. 2024AP178 (Wis. Ct. App. July 9, 2025) — official opinion PDF ↩
- Wisconsin Realtors Ass'n, Inc. v. City of Neenah, 2025 WI App 49, No. 2024AP994 (Wis. Ct. App. July 9, 2025) — official opinion PDF ↩
- Clinton v. Village of Sister Bay, No. 2025AP1825 (Wis. Ct. App. July 14, 2026) — official opinion PDF ↩
- Wis. Stat. § 66.1014, Limits on residential dwelling rentals (Wisconsin Statutes) ↩
- Wisconsin Towns Association, "Short-Term Rental Regulations—Review and Update" (August 2025) ↩
- Wisconsin Realtors Ass'n, Inc. v. Polk County, 2026 WI App 12, No. 2024AP1638 (Wis. Ct. App. Feb. 3, 2026) — official opinion PDF ↩
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