Court rules N. Ind. town can limit home rentals

July 5, 2011

The Associated Press

(Flickr, Sheryl Jones)
A Lake Michigan town ordinance prevents homeowners from renting out their houses.

The Indiana Supreme Court has ruled that the Lake Michigan town of Ogden Dunes can keep homeowners from renting their houses to vacationers.

The Post-Tribune of Merrillville reports the high court has ruled that the town's ordinance clearly states residential homes can't be used for commercial purposes and renting a house is clearly commercial. 

The Indiana Court of Appeals previously struck down the rental ban, saying short-term rentals don't violate the zoning ordinance. A trial judge had initially ordered a couple who rented their home to pay $40,000 in fines for violating Ogden Dune's ordinance. 

The high court found the fine was too high. The Supreme Court remanded the case back to the trial court to set a fine of no more than $32,500.