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

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

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in Wisconsin, especially in tourist destinations like Wisconsin Dells and Door County. However, property owners looking to start a short-term rental business must navigate a complex web of state and local regulations.

Starting a Short-Term Rental Business in Wisconsin

To operate a short-term rental in Wisconsin, property owners must obtain several licenses and permits at both the state and local levels.

At the state level, all short-term rental owners must:

• Obtain a Tourist Rooming House License from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) - This requires passing a health and safety inspection and paying an annual fee of $110.
• Collect and remit state sales tax (5%) on all rental transactions - Owners must register with the Wisconsin Department of Revenue to obtain a seller's permit.

In addition to state requirements, many cities and counties in Wisconsin have their own short-term rental regulations. For example:

1. The City of Madison requires all short-term rental operators to obtain a $100 permit and limits rentals to 180 days per year.
2. Door County limits short-term rentals to only certain zoning districts and requires a 7-day minimum stay.
3. The town of Holland in Sheboygan County enacted an ordinance with provisions that prohibit excessive noise, limit occupancy, restrict outdoor events after 10 pm, and require a property manager to be available at all times unless the owner lives within 35 miles.

In summary, while Wisconsin's statewide law provides a framework for short-term rentals, navigating the patchwork of local regulations remains a complex and evolving process for property owners. Thorough research and compliance with all licensing, zoning, and operational requirements is essential to legally starting and operating a short-term rental business in the state.

Short-Term Rental Licensing Requirements in Wisconsin

To legally operate a short-term rental in Wisconsin, property owners must obtain a Tourist Rooming House (TRH) License from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). This statewide requirement applies to anyone who rents out a residential dwelling for periods of less than 30 consecutive days and for more than 10 nights per year.

To obtain a TRH license, short-term rental operators must:

1. Pass a health and safety inspection conducted by the DATCP or a local health department agent
2. Pay a one-time pre-inspection fee of $300
3. Pay an annual license fee of $110
4. Provide proof of liability insurance
5. Obtain any additional permits or licenses required by local municipalities

The TRH license application and fees must be submitted to the DATCP or the local health department that conducts inspections on behalf of the state. In Oneida County, for example, the Oneida County Health Department is the state's agent for issuing TRH licenses.

The licensing process typically takes 2-4 weeks from the time of application to the issuance of the license, assuming the property passes inspection. Inspections focus on health and safety issues such as proper egress, smoke and carbon monoxide detectors, and safe drinking water.

Failure to obtain a TRH 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. In Walworth County, the fine for violating the short-term rental ordinance is $663 per offense, and repeated violations can lead to license revocation.

In addition to the statewide TRH license, many cities, villages, and towns in Wisconsin have their own short-term rental ordinances and permitting requirements. For example:

1. The City of De Pere requires a separate "Short-Term Rental of Property" permit with a one-time $151 pre-inspection fee and an annual $129 license fee
2. The Village of Sister Bay requires a local short-term rental permit with a $1500 annual fee, in addition to holding a valid TRH license
3. Oneida County requires a "Tourist Rooming House – Administrative Review Permit" from the Planning and Zoning Department for most short-term rentals
4. Short-term rental operators must research and comply with all local regulations in addition to the state TRH license. These local requirements vary widely and may include zoning restrictions, occupancy limits, parking rules, and more.

In summary, obtaining a Tourist Rooming House license is the key statewide requirement for legal short-term rentals in Wisconsin. However, operators must also navigate a complex patchwork of local ordinances that can vary significantly by municipality. Careful research and compliance with all state and local regulations is essential to avoid fines and operate a successful short-term rental business in Wisconsin.

Required Documents for Wisconsin Short-Term Rentals

To operate a short-term rental (STR) in Wisconsin, property owners must provide several documents to ensure compliance with state and local regulations. The specific requirements may vary depending on the property's location, as cities and counties can impose additional rules beyond the state level.

Here are the key documents typically required for STRs in Wisconsin:

Wisconsin Tourist Rooming House License Application

• All STRs in Wisconsin must obtain a Tourist Rooming House License from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).
• The application requires information about the property, owner, and local contact person.
• A license fee of $110 and a one-time pre-inspection fee of $300 must be submitted with the application.

Local Zoning Permit or Conditional Use Permit

• Many cities and counties require STRs to obtain a local zoning permit or conditional use permit to ensure compliance with land use regulations.
• In Wisconsin Dells, a Conditional Use Permit from the City is required for STRs in certain zoning districts.
• In Oneida County, most townships require a "Tourist Rooming House – Administrative Review Permit" from the Planning and Zoning Department.

Room Tax Permit and Registration

• STR operators must register with their local municipality or county to collect and remit applicable room taxes.
• In Milwaukee County, hosts must obtain a State of Wisconsin Seller's Permit to collect state sales taxes.
• Many towns in Oneida County collect separate room taxes and require registration.

Proof of Insurance

1. STR operators are typically required to maintain liability insurance and provide proof of coverage with their license application.
2. In Milwaukee County, hosts must provide written evidence of homeowner's or business liability insurance.
3. The City of Green Bay requires proof of insurance with the STR permit application.

Property Manager Designation Form

1. If the STR owner does not reside nearby, they must designate a local property manager to respond to issues.
2. Milwaukee County and Wisconsin Dells require the property manager's contact information to be provided.
3. The Village of Lake Delton requires a separate Property Manager Permit.

Floor Plan or Site Plan

1. Some municipalities require a detailed floor plan or site plan of the STR to ensure compliance with occupancy limits and safety requirements.
2. Milwaukee County and the City of Green Bay require a floor plan with the license application.

Inspection Reports

1. Before issuing a license, many jurisdictions require the STR to pass fire, building, and health inspections.
2. Inspection reports may need to be submitted with the license application to demonstrate compliance.

Register of Guests

1. The City of Wisconsin Dells requires STR operators to maintain a register of all guests, including names, addresses, and dates of stay.
2. This register must be available for city officials to inspect upon request.
3. In addition to these common requirements, some jurisdictions may have other unique documents, such as a Property Rules list in Sister Bay or a lease agreement example in Green Bay.

STR operators should carefully review the requirements in their specific location and work closely with local officials to ensure they have all necessary documents for compliance. Failing to obtain required permits or licenses can result in fines, penalties, and the inability to legally operate a short-term rental.

Wisconsin Short-Term Rental Taxes

Short-term rental owners in Wisconsin are required to collect and remit several taxes on their rental income. These taxes apply to any residential dwelling rented for periods of less than 30 consecutive days, including rentals through platforms like Airbnb and VRBO.

The main taxes that STR owners must collect are:

Wisconsin State Sales Tax

• Wisconsin's state sales tax rate is 5% on all short-term rental transactions.
• STR owners must register with the Wisconsin Department of Revenue to obtain a seller's permit and remit the collected sales tax on a quarterly basis.

County Sales Tax

• Certain counties in Wisconsin impose an additional 0.5% sales tax on short-term rentals.
• This tax is collected in conjunction with the state sales tax and remitted to the Department of Revenue.

Local Room Tax

• Many cities, villages, and towns in Wisconsin impose a local room tax on short-term rentals.
• The room tax rate varies by municipality but is typically between 0-10% of the total rental amount, including cleaning fees and other charges.
• For example, the City of Wisconsin Dells imposes a 5% room tax on all short-term rentals.
• STR owners must register with their local municipality to collect and remit the room tax, usually on a monthly or quarterly basis.

Premier Resort Area Tax

• A few select tourist destinations in Wisconsin have an additional Premier Resort Area Tax ranging from 0.5% to 1.25%.
• This tax applies to short-term rentals in the City of Wisconsin Dells, Village of Lake Delton, and several other resort communities.

In total, guests staying at short-term rentals in Wisconsin can expect to pay a combined tax rate ranging from 5% to over 15%, depending on the exact location. For example, a rental in Wisconsin Dells would have a total tax of 11.25% (5% state + 0.5% county + 5% local room tax + 1.25% premier resort tax).

It's important for STR owners to carefully track and remit all required taxes to avoid penalties and interest. Failure to comply can result in fines up to 25% of the unpaid tax amount, plus 1% monthly interest.

Tax Deductions for Short-Term Rentals

Short-term rental owners in Wisconsin may be able to deduct certain expenses from their rental income to reduce their tax liability. Some common deductible expenses include:

• Mortgage interest and property taxes
• Utilities, such as electricity, gas, water, and internet
• Cleaning and maintenance costs
• Supplies and linens
• Insurance premiums
• Repairs and renovations
• Depreciation of furniture and appliances

STR owners should keep detailed records of all rental-related expenses and consult with a tax professional to ensure they are claiming all eligible deductions. By carefully tracking income and expenses, owners can minimize their tax burden and maximize the profitability of their short-term rental business.

Does Wisconsin Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on forums like BiggerPockets and Reddit, it appears that enforcement of short-term rental regulations varies significantly across different cities and counties in Wisconsin. While the state has a relatively Airbnb-friendly framework that prohibits local bans on rentals over 7 days, individual municipalities still have substantial leeway to impose their own restrictions and licensing requirements.

In major cities like Milwaukee and Madison, hosts report stricter enforcement and more hoops to jump through. One Milwaukee host on Reddit described their experience operating an "illicit Airbnb," constantly trying to avoid detection by neighbors and building management. They noted that the city requires permits and the majority of STRs are likely operating illegally. However, they also suggested that enforcement is largely complaint-driven, stating that management "could barely be bothered to maintain the illusion of caring."

On the other end of the spectrum, hosts in vacation destinations like Wisconsin Dells characterize a more lax regulatory environment. While the city requires STR licenses and permits, the process is seen as relatively painless. "As long as you get your licenses and pay your taxes, they mostly leave you alone," opined one Wisconsin Dells host on Reddit.

However, this doesn't mean STR operators in tourist hubs have free reign. Another host on BiggerPockets cautioned, "Don't think you can just ignore the rules in the Dells. I know of one guy who thought he could skirt the licensing requirements, and he ended up getting hit with a big fine from the city."

Across different Wisconsin cities, a common refrain among hosts is that enforcement primarily targets the most egregious violations and is often triggered by neighbor complaints rather than proactive investigations. Many hosts seem to operate in a legal gray area, not fully licensed but not brazenly flouting the rules.

One key challenge noted by hosts, especially in Milwaukee and Madison, is navigating restrictions imposed by condo boards and homeowners associations. Hosts lament the difficulty of operating STRs in buildings that explicitly ban them in the bylaws.

So is Wisconsin Airbnb friendly compared to other states? While the state's preemption of local rental bans does provide a more permissive foundation than some states, the patchwork of municipal regulations still creates substantial headaches and gray areas for hosts. Wisconsin is more welcoming to STRs than states that allow cities to wholly prohibit them, but it's a far cry from states like Florida that have eliminated virtually all local restrictions. The Badger State falls somewhere in the middle of the regulatory spectrum.

In summary, while Wisconsin's state-level policies are somewhat Airbnb-friendly, the realities of operating STRs vary significantly by location. Hosts in major cities navigate strict permits and condo board restrictions, while those in vacation towns like the Dells enjoy a bit more freedom as long as they obtain licenses. Enforcement focuses on blatant, repeat violators and complaint response. Plenty of hosts operate without full licensing, but it's a legal gray zone rather than an overt snubbing of the rules. Wisconsin's regulatory framework is more welcoming than some states but still presents a maze of local requirements for Airbnb hosts to navigate.

How to Start a Short-Term Rental Business in Wisconsin

Starting a short-term rental (STR) business in Wisconsin can be a lucrative venture, but it requires careful planning and compliance with various state and local regulations. Here's a step-by-step guide to launching your STR business in the Badger State:

Research local regulations and zoning requirements

1. Familiarize yourself with Wisconsin's statewide short-term rental law and any additional ordinances in your specific city, village, or town.
2. Determine if your property is located in a zone that allows STRs and if there are any restrictions on rental frequency or occupancy.
3. Consult with your local zoning department and municipal clerk to understand all applicable rules and permitting requirements.

Obtain necessary licenses and permits

1. Apply for a Wisconsin Tourist Rooming House (TRH) License from the Department of Agriculture, Trade and Consumer Protection (DATCP) or your local health department.
2. Obtain any required local permits, such as a conditional use permit or room tax permit, from your city or county.
3. Secure a seller's permit from the Wisconsin Department of Revenue to collect and remit state sales taxes.

Prepare your property for rental

1. Ensure your property meets all health and safety requirements, including smoke detectors, carbon monoxide detectors, and fire extinguishers.
2. Consider any renovations or upgrades that could make your property more attractive to guests, such as fresh paint, new furnishings, or updated appliances.
3. Develop a comprehensive set of house rules and rental agreement that clearly outlines guest expectations and responsibilities.

Create a compelling listing

1. Take high-quality photos that showcase your property's best features and amenities.
2. Write an engaging description that highlights your property's unique selling points and local attractions.
3. Be transparent about your rental's location, size, and any quirks or limitations to manage guest expectations.

Set competitive rates

1. Research similar STRs in your area to determine a competitive nightly rate.
2. Consider adjusting your rates seasonally to maximize occupancy and revenue during peak travel periods.
3. Factor in additional costs like cleaning fees, taxes, and platform commissions when setting your rates.

Automate your operations

1. Utilize STR management software or tools provided by platforms like Airbnb to streamline booking, communication, and pricing.
2. Consider investing in smart home technology, such as keyless entry systems and noise monitoring devices, to simplify property access and ensure guest compliance with house rules.

Develop a robust cleaning and maintenance plan

1. Establish a thorough cleaning checklist and protocol to ensure consistent cleanliness between guests.
2. Hire a reliable cleaning service or individual cleaners to turnover your property efficiently.
3. Conduct regular maintenance and inspections to identify and address any issues proactively.

Promote your listing and build your brand

• Optimize your listing on major STR platforms like Airbnb and VRBO to maximize visibility and bookings.
• Develop a separate website and social media presence to showcase your property and build brand recognition.
• Encourage satisfied guests to leave positive reviews and recommendations to attract future bookings.

Comply with ongoing requirements

• Maintain accurate records of all rental transactions and tax payments.
• Renew your licenses and permits annually and stay up-to-date with any changes in local regulations.
• Regularly communicate with your neighbors and address any concerns promptly to maintain positive community relations.

By following these steps and prioritizing compliance, customer service, and operational efficiency, you can build a successful short-term rental business in Wisconsin. While the state's regulatory landscape can be complex, diligent research and adherence to local requirements can help you navigate the process smoothly and reap the rewards of this growing industry.

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

If you have questions about short-term rental regulations or zoning in Wisconsin, here are the key state and local departments to contact:

1. State Licensing: Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP)
2. Phone: (608) 224-4923
3. Email: datcpdfslicensing@wisconsin.gov
4. Website: https://datcp.wi.gov/Pages/Licenses_Permits/RecFacLicenses.aspx

DATCP handles the statewide Tourist Rooming House licensing program. They can guide you through the application process and answer questions about health and safety standards.

Madison Zoning: City of Madison Zoning

1. Phone: (608) 266-4551
2. Email: zoning@cityofmadison.com
3. Website: https://www.cityofmadison.com/development-services-center/zoning

Madison's zoning department can help determine if your property is eligible for STR use and answer questions about building codes and occupancy requirements.

Milwaukee Licensing: City of Milwaukee Department of Neighborhood Services

1. Phone: (414) 286-2268
2. Website: https://city.milwaukee.gov/DNS

Milwaukee's Department of Neighborhood Services is the primary point of contact for STR licensing and regulation in the city. Their website provides detailed information about the permit application process.

Wisconsin Dells Zoning: City of Wisconsin Dells Planning Commission

1. Phone: (608) 254-2012
2. Email: jmiller@dellscitygov.com
3. Website: https://www.citywd.org/short-term-rentals.html

The Wisconsin Dells Planning Commission handles conditional use permits for STRs in the city. They can provide guidance on the application process and local zoning requirements.

Oneida County Zoning: Oneida County Planning and Zoning Department

1. Phone: (715) 369-6130
2. Email: kdesmet@co.oneida.wi.us
3. Website: https://www.co.oneida.wi.us/departments/planning-and-zoning/

Oneida County requires an administrative review permit for most STRs in addition to state licensing. The Planning and Zoning Department can assist with this process.

In addition to these official contacts, Wisconsin STR hosts may find it helpful to connect with local host groups and online communities for support and advice:

1. Airbnb Hosting Forum - Wisconsin: https://community.withairbnb.com/t5/Hosting/ct-p/host-US-WI
2. Wisconsin Dells Area Cabin Owners Association: https://www.wdacoa.com/
3. Wisconsin Vacation Rental Managers Facebook Group: https://www.facebook.com/groups/1092991657440148/

These groups can provide valuable insights into navigating Wisconsin's STR landscape and connect you with experienced hosts in your area. Building relationships with fellow operators and staying engaged with local officials is key to running a successful and compliant short-term rental business in the Badger State.

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

Wisconsin 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 Inconsistent County Rules: In a BiggerPockets forum post titled "Short Term Rental Regulations," a prospective investor asked about the strictness of Wisconsin's STR ordinances, particularly in the Madison area. One host replied, "Definitely check with the local municipality...Even areas of northern Wisconsin are restrictive. Thankfully mine is zoned recreational, so I was able to get permitting that allows less than 7 day rentals year round, but still need someone within 25 miles." This highlights the patchwork of regulations across different counties and the importance of researching zoning before buying.

Balancing Compliance and Practicality: On the r/AirBnBHosts subreddit, a host with a Wisconsin lake house shared their dilemma of an expiring rental license and a broken safety railing. With repairs unlikely before the license renewal inspection, the host wondered, "Does Airbnb report the rentals to the state licensing body? Does the reporting include the date of the stays?" Fellow hosts advised prioritizing guest safety over licensing, with one suggesting, "Most inspectors are pretty nice and understanding...Some inspectors are even willing to delay submitting the paperwork until you provide proof of repairs which is sometimes just a picture sent to them via text." This thread illustrates hosts grappling with the realities of maintaining compliance.

Concerns about Strict Local Rules: In another BiggerPockets thread about Wisconsin regulations, an experienced host cautioned, "Madison and many of the communities in Dane County are pretty restrictive (the 7 day min and 180 day max). It's been clear to me in conversations with some of these municipalities that some of the administrators are very anti vacation rental and will restrict as much as the Wisconsin law allows them too." This sentiment suggests some hosts find certain local regulations overly burdensome and politically motivated.

Advice for New Hosts: When a new investor asked about skirting STR ordinances on BiggerPockets, seasoned hosts urged them to "abide by the regulations or have a backup plan when you are forced to abide by the regulations." Another advised, "I would follow the regulations. The fines aren't worth the risk since in most cases they can be pretty hefty." This guidance reflects the general consensus among experienced hosts to operate above board and mitigate legal risks.

Overall, Wisconsin Airbnb hosts on forums like BiggerPockets and Reddit express a mix of frustration with complex local rules and determination to operate legally and professionally. While some vent about inconsistent or strict regulations, most seem committed to understanding and complying with their local ordinances. The prevailing advice is to thoroughly research county-specific requirements, communicate proactively with officials, and prioritize guest safety over cutting corners. These real-world insights paint a nuanced picture of the challenges and best practices for navigating Wisconsin's short-term rental regulatory landscape.

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 area 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.