Milwaukee County, Wisconsin Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Milwaukee County, Wisconsin?

The rise of short-term rental platforms like Airbnb and VRBO has transformed the hospitality industry in Milwaukee County, Wisconsin. However, this growing trend has also raised concerns, leading local officials to implement regulations to address potential impacts on neighborhoods, housing markets, and public safety. Here's what you need to know about short-term rental regulations in Milwaukee County.

Starting a Short-Term Rental Business in Milwaukee County

To start a short-term rental business in Milwaukee County, you must first obtain a permit for each short-term rental property from the local government. This process typically involves providing information about the property, intended use, and compliance with various regulations.

In the City of Milwaukee, hosts must secure a Tourist Rooming House license through the Department of Neighborhood Services to comply with local regulations. This license ensures that short-term rental properties meet certain safety and quality standards.

Required documents for short-term rentals in Milwaukee include:

• Proof of insurance
• Proof of payment of hotel tax (10% in Milwaukee)
• Proof of compliance with zoning and building codes

Failure to provide these documents can result in fines or other penalties for hosts.

Short-Term Rental Licensing Requirement in Milwaukee County

To operate a short-term rental in Milwaukee County, hosts must obtain a Tourist Rooming House license from the City of Milwaukee Department of Neighborhood Services (DNS). The licensing process ensures that rental properties meet safety standards and comply with local regulations.

To apply for a Tourist Rooming House license, hosts need to submit the following:

1. Completed Tourist Rooming House License Application
2. Completed Fire & Safety Self-Certification Checklist
3. Floor plan of the short-term rental unit
4. Proof of ownership (deed, land contract, current property tax bill) or lease/rental agreement
5. State of Wisconsin Seller's Permit
6. Payment of the initial license fee ($100)

Applications can be submitted online through the City of Milwaukee's Land Management System (LMS) or in person at the DNS office located at 841 N. Broadway, Room 104, Milwaukee, WI 53202.

After submitting the application and required documents, DNS will review the materials and contact the applicant with instructions to pay the license fee. Once the fee is paid, an inspector will schedule a property inspection to ensure compliance with building codes and fire safety requirements.

The licensing process typically takes 2-4 weeks from application to approval, assuming all requirements are met and the property passes inspection. The Tourist Rooming House license must be renewed annually.

Failure to obtain a license before operating a short-term rental can result in fines and penalties. In Milwaukee, unlicensed operators may face fines ranging from $150-500 for first offenses. Continued non-compliance can lead to steeper fines, permit revocation, and potential legal action.

It's crucial for hosts to familiarize themselves with the licensing requirements and ensure they are operating legally. The DNS website provides detailed information and resources to guide hosts through the process. By obtaining the proper license and adhering to local regulations, short-term rental operators can provide safe accommodations while contributing positively to Milwaukee County's tourism economy.

Required Documents for Milwaukee County Short-Term Rentals

To obtain a Tourist Rooming House license and legally operate a short-term rental in Milwaukee County, hosts must submit several required documents. These documents ensure compliance with local regulations and verify the property's suitability for short-term rental use. Here's a breakdown of the necessary paperwork:

1. Tourist Rooming House License Application: This form, available on the City of Milwaukee Department of Neighborhood Services (DNS) website, collects essential information about the property and its owner or operator. It serves as the official request to obtain a license for short-term rental operation.
2. Fire & Safety Self-Certification Checklist: Hosts must complete this checklist to confirm that their rental property meets fire safety standards, such as having working smoke detectors, carbon monoxide detectors, and fire extinguishers. The checklist is part of the license application package.
3. Floor Plan: A detailed floor plan of the short-term rental unit must be submitted, showing the layout of the property and identifying the specific areas to be used for rental purposes. This helps DNS ensure that the property meets zoning and occupancy requirements.
4. Proof of Ownership or Lease/Rental Agreement: Applicants must provide documentation proving their right to use the property as a short-term rental. This can be a deed, land contract, current property tax bill, or a lease/rental agreement if the applicant is not the property owner.
5. State of Wisconsin Seller's Permit: Hosts must obtain a seller's permit from the Wisconsin Department of Revenue to collect and remit state sales taxes on their short-term rental income. A copy of this permit is required as part of the license application.
6. Proof of Insurance: Hosts are required to maintain homeowner's liability or business liability insurance for their short-term rental property. Written evidence of this insurance must be provided with the license application and renewal forms.
7. Property Manager Contact Information: If the property owner resides more than 35 miles from the short-term rental property, they must designate a local property manager. The property manager's name and contact information must be included in the license application.

These documents, along with the payment of the initial license fee ($100 for the City of Milwaukee), must be submitted to the DNS either online through the Land Management System (LMS) or in person at their office (841 N. Broadway, Room 104, Milwaukee, WI 53202).

By gathering and submitting these required documents, short-term rental hosts in Milwaukee County demonstrate their commitment to operating legally and responsibly, ensuring the safety of their guests and the community at large.

Milwaukee County Short-Term Rental Taxes

Short-term rental hosts in Milwaukee County are required to collect and remit several types of taxes on their rental income. Understanding these tax obligations is crucial for operating a compliant and profitable rental business. Here's a breakdown of the key taxes that apply to short-term rentals in Milwaukee County:

1. Sales Tax: The State of Wisconsin imposes a 5% sales tax on short-term rental stays of 29 nights or less. This tax applies to the listing price, cleaning fees, and any additional guest fees.
2. County Tax: Milwaukee County charges an additional 0.5% sales tax on short-term rentals, which is added to the state sales tax.
3. Basic Room Tax: Milwaukee County also levies a 3% basic room tax on the listing price, cleaning fees, and additional guest fees for short-term rentals.
4. Additional Room Tax: The City of Milwaukee imposes a 7% additional room tax on top of the basic room tax, bringing the total room tax to 10% for short-term rentals within the city limits.

It's important to note that these taxes are the responsibility of the host to collect and remit to the appropriate authorities. Failure to comply with tax requirements can result in penalties and legal consequences.

Potential Tax Deductions and Write-Offs

While short-term rental hosts are obligated to pay various taxes, they may also be eligible for certain tax deductions that can help offset their tax liability. Some potential deductions include:

1. Mortgage interest and property taxes
2. Rental property depreciation
3. Utilities, insurance, and maintenance costs
4. Cleaning and supply expenses
5. Advertising and marketing costs
6. Professional fees (e.g., legal, accounting)
7. Mileage and travel expenses related to the rental business

To claim these deductions, hosts must keep accurate records and consult with a tax professional to ensure they are following all applicable laws and regulations.

By understanding the tax landscape and taking advantage of available deductions, short-term rental hosts in Milwaukee County can optimize their profits while staying compliant with local and state requirements. As the short-term rental industry continues to evolve, it's essential for hosts to stay informed about any changes to tax laws and regulations that may impact their business.

Wisconsin Wide Short-Term Rental Rules

In addition to local regulations in Milwaukee County, short-term rental hosts must also comply with state-level rules in Wisconsin. These statewide requirements provide a framework for the operation of short-term rentals while still allowing local governments to impose additional restrictions.

The most significant statewide law is the Right to Rent Law, enacted in 2017 as part of the state budget (2017 Wisconsin Act 59). This law prohibits cities, villages, towns, and counties from banning short-term rentals of 7 consecutive days or longer. However, local governments can still place restrictions on rentals shorter than 7 days.

Under the Right to Rent Law, if a property owner rents out their home for periods between 7 and 29 days, the local government can limit the total number of rental days within a 365-day period to a minimum of 180 days. The municipality may also require that these rental days run consecutively but cannot dictate specific dates or seasons for rentals.

Another key statewide requirement is the "tourist rooming house" license. Anyone who maintains, manages, or operates a short-term rental for more than 10 nights per year must obtain this license from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). The annual license fee is $110, with a one-time pre-inspection fee of $300.

To qualify for a tourist rooming house license, the rental property must meet certain health and safety standards. It is subject to inspection by DATCP, and the license must be prominently displayed in the rental unit.

In addition to the license, short-term rental operators must also collect and remit state sales tax (5%) and any applicable county and local room taxes on their rental income. Proper insurance coverage is also essential for short-term rentals to protect against potential liability.

While the statewide Right to Rent Law and tourist rooming house license provide a baseline for short-term rentals across Wisconsin, municipalities are still free to impose additional regulations and requirements. These may include local permits, zoning restrictions, occupancy limits, parking rules, and more.

Therefore, it's crucial for Milwaukee County hosts to understand both the state-level requirements and their local ordinances to ensure full compliance and avoid penalties. By adhering to these regulations, short-term rental operators can provide safe, quality accommodations while contributing positively to Wisconsin's thriving tourism economy.

Does Milwaukee County Strictly Enforce STR Rules?

Based on discussions among hosts on forums like Bigger Pockets and Reddit, it appears that Milwaukee County does not strictly enforce short-term rental regulations compared to some other major cities. While the county requires hosts to obtain licenses and pay taxes, many hosts report operating without major issues or crackdowns from local authorities.

One host on Reddit shared their experience running an "illicit Airbnb" in Milwaukee, stating that the apartment complex management "could barely be bothered to maintain the illusion of caring" even when a guest mistakenly mentioned the Airbnb directly to the leasing office. The host believes they would have only faced consequences if a guest had explicitly complained to the office about the short-term rental.

This anecdote suggests a relatively lax enforcement environment in Milwaukee County compared to stricter cities that proactively seek out and penalize unlicensed short-term rentals. The county's attitude seems to be one of tolerating Airbnbs as long as hosts are discreet and rentals do not generate complaints from neighbors or guests.

That said, Milwaukee County is not a total free-for-all for short-term rentals. Hosts are still expected to obtain a tourist rooming house license, pay applicable taxes, and follow other regulations like occupancy limits. But active, systematic enforcement appears limited, likely due to strained municipal resources and other priorities.

Overall, while not officially endorsed, short-term rentals in Milwaukee County seem to operate with minimal day-to-day interference from local authorities as long as hosts avoid egregious violations and blatant non-compliance. The county is relatively Airbnb-friendly in practice, though hosts should still understand and follow the rules to avoid potential issues. Operating "by the book" is always the wisest approach, but many Milwaukee hosts get by with looser adherence to STR regulations compared to other major cities with heavier enforcement.

How to Start a Short-Term Rental Business in Milwaukee County

Starting a short-term rental business in Milwaukee County requires careful planning and adherence to local regulations. Follow these steps to successfully launch your venture:

Research local regulations: Familiarize yourself with Milwaukee County's short-term rental laws, including zoning restrictions, licensing requirements, and tax obligations. Visit the City of Milwaukee's Department of Neighborhood Services website for detailed information.

Choose a property: Select a property that meets local zoning requirements and is well-suited for short-term rentals. Consider factors like location, amenities, and potential guest appeal. Ensure the property is safe, clean, and well-maintained.

Obtain necessary licenses and permits: Apply for a Tourist Rooming House license through the City of Milwaukee's Department of Neighborhood Services. Submit the required documents, including proof of ownership or lease agreement, floor plan, and fire safety checklist. Pay the applicable fees and schedule any required inspections.

Register for taxes: Obtain a Wisconsin Seller's Permit to collect and remit state sales tax on your rental income. Register with the City of Milwaukee Treasurer's Office to pay local room taxes.

Secure insurance: Purchase appropriate insurance coverage for your short-term rental property. Consider a policy that includes liability protection and coverage for potential property damage.

Prepare your property: Furnish and equip your rental property with essential amenities, such as comfortable furniture, linens, kitchenware, and Wi-Fi. Create a welcoming atmosphere that appeals to your target guests.

Create a listing: Develop an attractive and informative listing on popular short-term rental platforms like Airbnb or VRBO. Include high-quality photos, detailed descriptions, and accurate information about your property's features and location.

Set competitive rates: Research similar listings in your area to determine competitive nightly rates. Consider factors like seasonality, events, and demand when setting your prices.

Establish house rules: Develop clear house rules that outline expectations for guests, such as quiet hours, maximum occupancy, and pet policies. Communicate these rules in your listing and rental agreement.

Manage bookings and communication: Respond promptly to guest inquiries and booking requests. Maintain a professional and friendly demeanor in all interactions. Use a calendar system to avoid double bookings and ensure smooth transitions between guests.

Arrange cleaning and maintenance: Develop a reliable system for cleaning and maintaining your rental property between guests. Consider hiring a professional cleaning service or managing the process yourself to ensure consistent quality.

Comply with ongoing regulations: Stay informed about any changes to Milwaukee County's short-term rental regulations and maintain compliance with all licensing, safety, and tax requirements. Renew your licenses and permits as needed.

Tips for success:

1. Provide exceptional customer service to encourage positive reviews and repeat bookings
2. Maintain open communication with neighbors to address any concerns and foster good relationships
3. Continuously improve your property based on guest feedback and market trends
4. Consider partnering with local businesses to offer unique experiences or discounts for your guests
5. Stay organized with bookkeeping and tax obligations to ensure a smooth operation

By following these steps and prioritizing guest satisfaction, you can build a thriving short-term rental business in Milwaukee County.

Who to Contact in Milwaukee County about Short-Term Rental Regulations and Zoning?

For more information about short-term rental regulations and zoning in Milwaukee County, you can contact the Milwaukee Department of Neighborhood Services (DNS). They are the primary point of contact for short-term rental hosts in the county and can provide guidance on the licensing and permitting process, answer questions about regulations, and assist with compliance issues.

Milwaukee Department of Neighborhood Services
841 N. Broadway, Room 104
Milwaukee, WI 53202
Phone: (414) 286-2268
Email: dns@milwaukee.gov
Website: https://city.milwaukee.gov/DNS

The DNS website provides detailed information about Milwaukee's short-term rental regulations, the permit application process, and other relevant requirements.

In addition to contacting DNS directly, short-term rental hosts in Milwaukee may find the following resources helpful:

1. Wisconsin Hotel & Lodging Association: Offers information and resources for short-term rental operators in Wisconsin. Website: https://www.wisconsinlodging.org/
2. Airbnb Milwaukee Host Community: A Facebook group where Milwaukee Airbnb hosts can connect, share experiences, and ask questions. URL: https://www.facebook.com/groups/1958319494410001/
3. Milwaukee Short Term Rental Alliance: An organization that advocates for fair and reasonable short-term rental regulations in Milwaukee. Website: https://www.milwaukeestralliance.org/
4. Milwaukee Airbnb Hosts Forum on BiggerPockets: A discussion forum where Milwaukee Airbnb hosts can ask questions, share advice, and network with other local hosts. URL: https://www.biggerpockets.com/forums/530-airbnb-hosts

By utilizing these resources and maintaining open communication with the Department of Neighborhood Services, short-term rental hosts in Milwaukee County can ensure they are operating in compliance with local regulations and have the support they need to run a successful business.

What Do Airbnb Hosts in Milwaukee County on Reddit and Bigger Pockets Think about Local Regulations?

Milwaukee County Airbnb hosts have shared their experiences and thoughts on local short-term rental regulations in various online forums. Here are some key insights from verified discussions on Reddit and BiggerPockets:

Navigating HOA Restrictions: In a BiggerPockets forum post titled "Has anyone fought an HOA's ruling against AirBNB," a Milwaukee condo owner sought advice after their HOA banned short-term rentals, threatening a $500/day fine. The host wondered about legal recourse for lost income. Responses highlighted the challenges of operating Airbnbs in properties with restrictive HOA bylaws.

Balancing Regulations and Profitability: Another BiggerPockets thread, "Airbnb in Wisonsin [sic] and Milwaukee?", discussed the potential of the Milwaukee short-term rental market. The original poster, an experienced Madison host, noted that while Milwaukee seems to have favorable regulations, lake homes in central Wisconsin could also be profitable. Commenters emphasized the importance of researching local regulations before investing.

Keeping a Low Profile: In a Reddit post on r/AirBnB, a guest shared their experience with a Milwaukee host who asked them not to mention Airbnb to anyone, likely to avoid issues with neighbors or building management. Several hosts chimed in, confirming that this is a common request in properties where short-term rentals are restricted. One host even shared their story of running an "illicit Airbnb" in Milwaukee, trying to keep it discreet to avoid consequences.

Concerns about Over-Regulation: On the r/airbnb_hosts subreddit, a weekly roundup of short-term rental news sparked a discussion about proposed regulations in various cities, including Milwaukee. Hosts expressed concerns that overly strict rules, such as requiring a parking space per bedroom or notifying all neighbors within 500 feet, could make it difficult for some rentals to operate legally.

Overall, Milwaukee County Airbnb hosts seem aware of the regulatory landscape and try to navigate local rules while still running successful short-term rentals. Many hosts emphasize the importance of researching regulations, communicating with guests about any necessary discretion, and balancing compliance with profitability. While some express frustration with restrictions, most seem committed to operating responsibly within the legal framework.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.