Executive Overview

Yes, short-term rentals are explicitly allowed in Two Rivers, Wisconsin under Chapter 6-13 of the City Code of Ordinances, subject to licensing requirements and compliance with all applicable regulations. The city has established a formal licensing process that requires both city and county approvals, with strict operational standards to ensure community standards are maintained.

How to Start a Short-Term Rental Business in Two Rivers

Step 1: Pre-Application Preparation

Before submitting your city license application, you must first secure the required county-level approvals:

1. Obtain a Tourist Rooming House License from Manitowoc County Health Department under Wisconsin Statute Section 254.64
2. Schedule and pass a Lodging Inspection Report from Manitowoc County Health Department (must be dated within one year of your city application)
3. Secure appropriate insurance coverage meeting the city's minimum requirements

Step 2: City License Application Process

1. Complete the official STR application - available on the city website
2. Pay the application fee - $150 for initial licensing
3. Submit all required documentation (detailed requirements below)
4. Undergo criminal background check - conducted by the Police Chief or designee
5. Submit application to City Clerk at 1717 E. Park Street, Two Rivers, WI 54241

Step 3: Operational Requirements

Upon license approval, operators must:

• Maintain compliance with all city, county, and state regulations
• Display required information prominently
• Keep detailed guest registers
• Collect and remit room taxes
• Ensure 24/7 availability of property manager or owner

Required Documents, Permits, and Licenses

County-Level Requirements (Must be obtained FIRST)

• Tourist Rooming House License from Manitowoc County Health Department
• Current Lodging Inspection Report from Manitowoc County Health Department (dated within one year of application)

City-Level Requirements

• Short-Term Rental License Application (Form available on city website)
• $150 application fee (payable to City of Two Rivers)
• Proof of casualty and liability insurance with minimum coverage of:
  • $300,000 per individual occurrence
  • $1,000,000 aggregate
• Criminal background check (conducted by city)
• Property manager information (if owner not acting as property manager)

State-Level Requirements

• STRs must comply with Wisconsin Statute § 66.0615(1)(dk) definition
• Insurance company must be authorized to do business in Wisconsin by the Office of the Commissioner of Insurance
• Property must comply with Chapter SPS 321 of Wisconsin Administrative Code (smoke/carbon monoxide detectors)

Specific Regulations for Two Rivers STRs

Operational Standards

• Maximum rental term: Fewer than 30 consecutive days
• Annual operation limit: No license required if operating fewer than 10 nights per year
• Noise compliance: Must comply with Section 9-2-5 of city ordinances
• No on-site signage: Property cannot display advertising signs (off-site advertising permitted after licenses obtained)

Accommodation Restrictions

• No RVs, campers, or tents allowed on property for additional guests
• No grills on balconies/decks: Prohibits hibachi, gas grills, charcoal grills, or similar devices on balconies, decks, or within 10 feet of any structure
• Outdoor cooking restrictions: Must comply with Section 3-1-3

Safety and Building Requirements

• Minimum one off-street parking space (except in downtown area per Section 10-1-14.A.(2)(c))
• Fireplace restrictions: Accessible wood-burning fireplaces require inspection certificate from licensed inspector dated within 30 days of application
• Parking surfaces: Must be paved or gravel (Chapter 8-2)
• Egress requirements: Safe, unobstructed means of egress to ground level
• Detector requirements: Functional smoke and carbon monoxide detectors per Chapter SPS 321

Capacity and Guest Management

Current ordinance does not specify capacity limits, though city council has discussed implementing a "maximum capacity" definition of "two individuals for every bedroom plus four" with children under age two excluded. This proposal is under development and not yet enacted.

Guest Register Requirements

• Maintain guest register for two years containing:
  • Full name and current address of all renters
  • Rental dates
  • Monetary consideration paid
• Make register available upon city request
• Quarterly reporting: Draft ordinance proposes quarterly submission of guest register to city within one month of quarter end

Financial Obligations

• Room tax collection and remittance required (Chapter 6-11)
• Insurance maintenance: Continuous compliance with minimum coverage requirements
• Fee schedule:
  • Initial license: $150
  • Late fee: $100 (for renewals not filed by December 1)
  • Renewal fee: $75

Property Manager Requirements

If owner is not managing the property:

• 24/7 availability: Property manager must be accessible by phone or in person
• Designated authority: Must be authorized to act as owner's agent for:
  • Emergency response
  • Receiving violation notices
  • Accepting service of process
  • Allowing city entry for inspections

Zoning Compliance

• Sexual offender residency restrictions: Must comply with Title 9, Article 9 (Sections 9-9-3.A. and 9-9-3.C.)
• All applicable zoning regulations must be observed (Chapter 6-10 and Chapter 10)

License Duration and Renewal

• Annual license term: January 1 to December 31
• Renewal deadline: December 1 for continued operation
• License lapses upon ownership change
• Outstanding obligations: Cannot be renewed if fees, taxes, or forfeitures are owed to city

Enforcement and Appeals

Grounds for License Denial, Suspension, or Revocation

• Material omissions or inaccurate statements in application
• Repeated complaints from other jurisdictions where applicant conducted similar business
• Criminal convictions materially related to services provided
• Failure to comply with application requirements
• Two or more police/fire service calls within 12 months for criminal, nuisance, or code violation activities
• Outstanding fees, taxes, or forfeitures
• Non-compliance with building inspection requirements
• Failure to maintain required licenses
• Zoning violations
• Violations that harm residential neighborhood character

Appeals Process

• Written appeal request must be filed with City Clerk within 10 days of denial
• City Council hearing will consider appeal
• Due process hearing for suspension, revocation, or non-renewal

Penalties

• License revocation for violations
• Additional penalties as provided in Section 1-1-5 of City Code

Contact Information for Local Authority

City of Two Rivers - Planning, Zoning & Building Inspection

• Phone: (920) 793-5566
• Economic Development: (920) 793-5564
• Fax: (920) 793-5512
• Address: 1717 E. Park Street, Two Rivers, WI 54241
• Business Hours:
  • Monday-Thursday: 7:30 AM - 5:00 PM
  • Friday: 7:30 AM - 11:30 AM

Manitowoc County Health Department

• Contact for Tourist Rooming House License and Lodging Inspection Report
• [Contact information available through county website]

City Clerk

• Phone: (920) 793-5523
• Address: 1717 E. Park Street, PO Box 87, Two Rivers, WI 54241

Source Links and References

1. City STR License Application Page: www.two-rivers.org/planning/page/short-term-rental-license-application
2. Two Rivers Code of Ordinances - Chapter 6-13: library.municode.com/wi/two_rivers/codes/code_of_ordinances?nodeId=CD_ORD_TIT6LI_CH6-13LISHRMRE
3. 2025 STR Application Form: www.two-rivers.org/sites/default/files/fileattachments/community_development_services/page/6318/two_rivers_short_term_rental_application_final-2025-1.pdf
4. Citizen Portal - Council Meeting Coverage: citizenportal.ai/articles/6313521/Two-Rivers/Manitowoc-County/Wisconsin/Council-reviews-draft-short-term-rental-ordinance-consensus-on-capacity-lighting-rules-to-be-reworked
5. Draft STR Ordinance (March 2022): mccmeetingspublic.blob.core.usgovcloudapi.net/tworivrswi-meet-dfe72ece7ea04b8d9d75e6945209f455/ITEM-Attachment-001-fb97cb71c51048dd92c5a74997b0a909.pdf

Important Notes for Investors

• Enacted vs. Proposed: The ordinances referenced above are the current enacted regulations. The draft amendments discussed in council meetings (capacity limits, lighting restrictions, quarterly reporting) are proposals under development and may change before enactment.
• County Requirements: Always secure county approvals before applying for city licensing, as city license issuance depends on valid county documentation.
• Timeline Planning: Plan for 6-8 weeks minimum to complete all requirements, including background checks and document processing.
• Professional Assistance: Consider engaging local legal counsel or property management companies familiar with Two Rivers regulations for guidance through the process.

This guide reflects regulations as of the latest available information. Always verify current requirements with the city before proceeding with licensing.