A LOCAL COALITION SUPPORTING SENSIBLE SHORT TERM RENTAL REGULATIONS
SIGN our Letter of Support!
OVERVIEW
The City of Milwaukee is currently considering additional regulation of short term rental properties, potentially including an owner-occupancy requirement. Our coalition aims to work with the city to come up with a set of regulations that protect the interests of all stakeholders and the community.
It is evident that the primary goal of municipal officials is protecting neighborhoods and residents from problems that have repeatedly arisen at some short term rental properties. City officials need to know that operators will do a better job of preventing problems, and they want better regulatory mechanisms to be able to penalize those bad actors. We believe we that together we can create a very effective regulatory framework that accomplishes both.
WHAT OFFICIALS AND RESIDENTS NEED TO KNOW
Short Term Rentals are good for Milwaukee.
One of Milwaukee’s most endearing attributes is our neighborhoods - the architecture, the history, the walkability, the fun-loving and down-to-earth vibe that feels like authentic Milwaukee. That neighborhood experience represents a significant draw for many people who want to visit our city.
Without short term rental homes available in desirable locations throughout Milwaukee, we lose the chance to build and strengthen an authentic connection with many thousands of visitors each year. This is irreplaceable organic PR for our city.
Our properties foster unforgettable experiences and sow seeds of goodwill and endearment throughout the region as our guests take their fond memories of Milwaukee home with them and begin to look forward to their next opportunity to visit. We should keep our doors open and lean into the image of Milwaukee as an incredibly fun and welcoming place to be.
We are part of the solution.
As professional managers and responsible hosts, we desire to be part of the solution alongside the Zoning Committee, Common Council, DNS, and other City officials. It is incumbent upon us as leaders in our local market to help raise the bar to ensure the future of short term rentals in our city. We want officials to know that we’re on board with measures that ensure responsible operations and protect residents because ultimately we believe it will be to the benefit of all stakeholders and to Milwaukee's future as a destination city.
WHAT SHORT TERM RENTALS MEAN TO MILWAUKEE
By the numbers.
Tourism and hospitality are a key pillar of Milwaukee’s economic future. Tourism spending contributed $4.167 Billion in Milwaukee County and $6.388 Billion in the four-county metro. (per Visit Milwaukee) Tourism spending has been increasing steadily over the last 20 years as Milwaukee continues to become more and more well known as a great place to visit. Continuing to support and grow Milwaukee’s tourism sector represents an important diversification of the city’s economy.
Note: research is ongoing and these numbers are preliminary but considered to be conservative estimates. Based on data from Airbtics.com, AirDNA, Visit Milwaukee, and other sources, we can estimate the following:
2024 Taxable Bookings and Fees from STRs in the City of Milwaukee
$38,701,144
City Room Tax (7%)
$2,709,080
County Room Tax (3%)
$1,161,034
State Sales Tax (5%)
$1,935,057
New City Sales Tax (2%)
$774,023
New County Sales Tax (0.9%)
$348,310
2024 Total Direct Visitor Spending of STR Guests in the City of Milwaukee
(Lodging accounts for about 25% of direct visitor spending.)
$154,804,576
State Sales Tax (5%)
$7,740,229
New City Sales Tax (2%)
$3,096,092
New County Sales Tax (0.9%)
$1,393,241
City of Milwaukee Population
563,305
Direct Visitor Spending of STR Guests per City Resident
$275
Estimated # of Guests (Total spending / avg spend per guest)
158,223
Ratio of annual STR Guests to City population
28.1%
- Analysis of actual reservation data showed that nearly 40% of guests were traveling with children, pets, or both.
- 37% of Active properties are 3 Bedrooms +
- 69% of Active properties are 2 Bedrooms +
- All of these scenarios are not good candidates to be replaced by hotels or any other accommodation type.
Capacity analysis.
Based on the number of active short term rental properties in the city, and the average number of guests occupying those properties, we have calculated the following:
- During peak season surge events, when the market is at a virtual 100% occupancy across hotels and short term rentals, the City of Milwaukee would need 2180 additional hotel rooms to replace the capacity currently served by short term rental properties.
- Potawatomi Hotel, one of the city’s largest, has 500 rooms. The newly built Trade Hotel has 207 rooms. The increase needed to replace STR capacity at peak demand would be another 4 Potowatomis or 10-11 Trade Hotels.
- This would represent a 27% increase in the supply of hotel rooms in the City.
- Even during more modest demand periods when short term rentals currently experience 50% occupancy, the city would need a 13% increase in hotel room supply to make up for the capacity currently served by short term rentals.
This capacity need is something that hotels cannot fulfill, either because they are not a realistic choice for a large portion of travelers who currently choose short term rentals, or because the creation of extra capacity required to meet peak season demand would in turn be detrimental to the hotel industry throughout the rest of the year.
Negative impacts.
If the majority of short term rentals in the city were to be eliminated, we could expect:
- The livelihoods of countless cleaning staff, managers, maintenance and other contractors would be impacted as many would lose their jobs.
- A large portion of those travelers would would seek out a short term rental in a nearby municipality rather than staying in a hotel in the city. Others may choose not to make the trip to Milwaukee at all.
- Loss of tax revenue, plus increased City overhead to enforce regulations that yield no return on that expense, as opposed to sensible regulations that can be funded by permit fees and allow our industry to continue generating much needed revenue for the City.
- Responsible operators would be driven out of business, while those who disregard the law will continue to do so. Regulations should be focused on promoting good operators, not shutting them down.
- Short term rentals are an unmatched vehicle for injecting visitor spending directly into our neighborhoods and local business. Without short term rentals, the majority of that hyper-local visitor spending goes away.
- The hard work, passion, and major investment that short term rental owners and managers have poured into their properties would be wiped away.
CONCLUSION
Short term rentals are good for the city when they are managed by responsible hosts. Our coalition supports collaborating with the city to establish clear rules and regulations that ensure licensed short-term rentals operate safely and legally.
Fill out the form below to add your name to our Letter of Support!
This website uses cookies.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.