Wisconsin Short-Term Rental Laws: Your Guide

The state of Wisconsin offers profitable opportunities to investors looking to enter the Airbnb market. With relatively affordable home values and strong daily rates, this can be a great location for starting a vacation rental business. However, before buying an investment property to rent out on Airbnb or Vrbo, investors need to get familiar with Wisconsin short-term rental laws.

Wisconsin has statewide Airbnb laws that mostly pertain to the need to license such properties at the state level. Other than that, regulations are largely left to local governing bodies. As a result, the rules governing vacation rentals are quite diverse across the state.

This article covers the information that you need to know about Wisconsin short-term rental regulations, required documentation, obligatory taxes, and city-specific laws. Still, you should always check with a local real estate attorney or the local government as rules can and do change over time.

Understanding Wisconsin short term rental laws is crucial for navigating the market, but real success comes from staying ahead of market shifts and making informed, data-driven decisions. Summer Forecast is your go-to platform for detailed and accurate Airbnb data, actionable analytics, and potent forecasting tools that give you the power to build a top-performing portfolio that outperforms the competition.

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Wisconsin's definition of a short-term rental

The state of Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) refers to short-term rentals as tourist rooming houses. A tourist rooming house (TRH) signifies all lodging places and tourist cabins and cottages in which sleeping accommodations are offered for pay to tourists or transients. Generally, this includes vacation homes, cabins, and cottages rented out to tourists and transients for a short period of time, but the maximum stay length is not defined. The definition excludes hotels, motels, bed and breakfast establishments, and private boarding or rooming houses that do not accommodate tourists or transients.

Wisconsin cities use the same definition or very similar definitions to the same effect as local regulations cannot contradict statewide laws.

Are short-term rentals allowed in Wisconsin?

Short-term rentals, such as those rented out on Airbnb, Vrbo, and other short-term rental platforms, are allowed in the state of Wisconsin. There are no statewide rules that prohibit this type of rental activities, and Wisconsin cities do not prevent them in principle either.

However, Wisconsin Airbnb properties need to comply with state, county, and city regulations and hold multiple permits to operate legally. This doesn't impact their profitability in a major way as investors are able to find excellent opportunities throughout the state.

How to start a short-term rental business in Wisconsin

Starting an Airbnb business in Wisconsin requires obtaining a number of licenses and permits from state, county, and city authorities. Licensing and permitting details are provided in the next section.

Meanwhile, here are the most common things that Wisconsin vacation rental property owners need to take care of when first getting started:

Tax registration: Wisconsin Airbnb hosts need to get registered to pay sales and transient room taxes at the state and local level.
Short-term rental insurance: While most Wisconsin local governing bodies require proof of insurance, even if they don't, it's highly recommended for hosts to get a comprehensive vacation rental insurance policy that covers both property damage and general liability.
Zoning regulations: Some Wisconsin cities regulate STRs by zoning district, so it's important to check out local zoning ordinances to confirm that your intended investment location allows non-owner occupied Airbnb rentals.
Health and safety regulations: STR operators need to comply with statewide and local codes and ordinances related to things such as smoke detectors, carbon monoxide detectors, fire extinguishers, maximum occupancy, off-street parking, and others.
Health and fire inspections: Typically, properties need to undergo an inspection by local authorities to confirm conformity with health and safety standards before being granted a STR license.
Payment of fees: Launching a Wisconsin vacation rental business is associated with the payment of a few different fees pertaining to applying for state, county, and city licenses and permits.
Required paperwork: Property owners or agents need to present a number of documents including but not limited to property information, owner's information, contact person's information, proof of primary residence, proof of insurance, site plan, floor plan, and others.

There are variations in the steps required for starting a Wisconsin short-term rental business by city, so operators need to check out with local governments to ensure full compliance and a speedy licensing process.

Short-term rental licensing requirements in Wisconsin

Wisconsin is one of the U.S. states that demands some of the largest number of state, county, and city licenses and permits to operate a short-term rental business.

Even though there are some regional differences, most Wisconsin markets require:

Tourist Rooming House License from the State Department of Agriculture, Trade and Consumer Protection: Statewide Wisconsin Airbnb laws demand all STRs with 1-4 rooms to get a Tourist Rooming House License from the State Department, while properties with 5+ rooms need to get a hotel license. TRH licenses are valid for one year, from July 1 to June 30. The annual license fee is $110, and there is a pre-inspection fee of $300.
County Tourist Rooming House License by Public Health: In the vast majority of markets, Airbnb rentals need to have a TRH license issued by the county department of public health.
Seller's Permit: Unless they list exclusively on Airbnb and Vrbo, hosts need to have a State Seller's Permit.
Local Short-Term Rental or Tourist Rooming House License: In most Wisconsin cities, vacation rentals need a local license registration which is valid for one year, from July 1 to June 30 and is not transferable in case of change of ownership and property management company. Applying for the local license is usually the last step, after the operator has obtained all other necessary licenses and permits.
Local Room Tax Number Permit: Wisconsin Airbnb hosts need to register with the city where their property is located in order to pay local transient room tax.
Conditional Use Permit: Some jurisdictions require a Conditional Use Permit (CUP) in certain cases.

As licensing, permitting, and registration requirements can and do vary from one place to another, it is the responsibility of the owner to check with local authorities or a legal expert what exactly is needed in their particular market and situation.

License renewals for short-term rentals in Wisconsin

Many of the necessary licenses and permits need to be renewed on an annual basis. They are usually valid from July 1 to June 30. Annual renewal fees vary widely, from $100 to a few hundred dollars. Hosts need to make sure that all their documents are always valid and up-to-date to avoid hefty fines as well as the shutdown of their Wisconsin Airbnb business.

Required documents for short-term rentals in Wisconsin

The main documents that investors need to present when applying for different Wisconsin STR permits and licenses include:

Driver's license
Federal EIN
Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
Proof of ownership and/or primary residence
Proof of payment of fees
Site plan
Floor plan
Proof of property damage and liability insurance
Inspection reports

It's important to have all documents prepared in advance and in full when submitting an application to ensure approval.

Wisconsin short-term rental taxes

Based on Wisconsin short-term rental regulations, property owners need to pay the following taxes:

State Sales Tax: 5%
Local Sales Tax: Applicable county and city rates
Local Room Tax: Applicable county and city rates
Income Tax: Applicable federal and local rates
Property Tax: Applicable state and municipal rates

With multiple taxes pertaining to Airbnb hosts in the state of Wisconsin, the combined effect can have a sizable impact on net revenue. That's why it's important for property owners to be familiar with applicable deductions that can help minimize their taxable income.

The following business operating expenses can be used as deductibles:

Property tax
Mortgage interest
Mortgage insurance premium (MIP)
Real estate appreciation (perform a short-term rental cost segregation study to maximize tax benefits)
Airbnb insurance
Cost to furnish the house for Airbnb and provide appliances and electronics
Airbnb property manager charges
Maintenance costs
Utility bills
Cleaning and housekeeping costs
Accounting, legal, and other professional service fees
Home office expenses
Business travel costs

As a savvy investor, you should make sure you apply all available deductibles to reduce your taxable income and boost cash flow and profit from your STR business.

Statewide short-term rental laws in Wisconsin

Unlike some other U.S. states, Wisconsin has statewide Airbnb rules and regulations, to some extent. These mostly relate to the need to obtain a TRH license from the State DATCP. In addition, state rules allow local governing bodies to enact their own regulations and impose certain limits on short-term rentals in line with the needs of each market and each community. One thing that local authorities are not permitted to do is to limit the allowed rental days to fewer than 180 days per 365 days.

Short-term rental laws by Wisconsin city

Wisconsin Airbnb laws are not detailed enough to regulate the quickly spreading short-term rental industry. Thus, the state allows local authorities to impose their own rules as long as they don't contradict with statewide requirements. So, most cities have enacted their own ordinances pertaining to short-term rentals to reflect each specific situation.

Following are the vacation rental regulations in the most popular Airbnb destinations across the state of Wisconsin.

1. Madison, WI short-term rental laws

The City of Madison refers to short-term rentals as tourism rooming houses, like the rest of Wisconsin, and defines them as a rental for fewer than 30 nights of any partial or whole structure for sleeping accommodations. Madison zoning allows TRHs in all residential dwelling units. However, they need to be the primary residence of the STR operator during permitting and for the prior 12 months, which means that this is their true, fixed, and permanent home for at least 183 days in a calendar year. It's important to note that in the case of multi-unit buildings and properties with an accessory dwelling unit, the rental can happen only within the same unit as the host's residence.

Nevertheless, Madison short-term rentals don't have to be hosted. If the operator is present on site during guest stays, there's no upper limit on the number of rental nights per year. When the host is not present on site, the TRH can operate for up to 30 nights per licensing year, from July 1 to June 30.

Madison Airbnb rental properties need to have:

Public Health Madison & Dane County (PHMDC) Tourist Rooming House License (step one)
City of Madison Transient Room Tax Permit (step two)
Wisconsin's Seller Permit (if renting outside Airbnb and Vrbo)
Zoning Tourist Rooming House Permit (ZTRHP) (step three)

Applying for a ZTRHP requires the following:

Application form (ZTRHP1-A)
Property's location and number of bedrooms
Operator's name, company, address, phone number, and email
Property owner's name, company, address, phone number, and email
Tourist Rooming House License from Public Health for the current licensing year. As required by Dane County, STRs need to be licensed and inspected each year to confirm compliance with Wisconsin's laws pertaining to general public health. The initial licensing fee is $535.
Transient Room Tax Permit
Signed and notarized residence affidavit for each host and co-host (ZTRHP1-B)
Condominium association approval if applicable (ZTRHP1-C)
Advertising locations (ZTRHP1-D)
Guest registry (ZTRHP1-E)
Floor plans showing all habitable space with labeled and numbered bedrooms (ZTRHP1-F)
Notice to property owners for tenant operators only (ZTRHP1-G)
Lease attachment for tenant operators only (ZTRHP1-G)
Home visit by the City Building Inspection
Application fee of $100

Madison Zoning Tourist Rooming House Permits are non-transferable, and they are valid for one year, from July 1 to June 30. The annual permit fee is $100.

Madison, Wisconsin short-term rentals need to abide by the following requirements:

Have a valid ZTRHP
Display a valid ZTRHP number in all advertising
May host 2+ individuals who separately book accommodations in the same TRH on a shared date if the host remains on site
Be operated by a property owner or renter as long as the lease explicitly allows a TRH
Host a home visit by City Building Inspection staff to review floor plans, verify bedroom count, and discuss TRH regulations and expectations
Post the Permit holder's name on all advertising
Limit maximum occupancy to the lesser of two guests (12+ years of age) per legal bedroom and 12
Have a guest registry on site available for inspection including the name and contact information of the guest making the reservation, dates of the stay, and acknowledgement of the host's presence or absence, for the two past years
Complete quarterly reporting to City Zoning

In addition to Wisconsin sales tax, Madison Airbnb hosts need to pay Dane County sales tax of 5.5% and City of Madison transient room tax of 10%.

While Madison's short-term rental regulations are rather strict in protecting neighborhoods' character, safeguarding neighbors, and securing affordable housing, local investors are able to find profitable opportunities. Importantly, Airbnb rental arbitrage is a feasible strategy for those looking for ways to start a vacation rental business without owning a property. Consulting with a local agent or property manager can help you locative lucrative deals to benefit from what Madison has to offer to Airbnb hosts.

According to data from Summer Forecast, the average performance of the Madison Airbnb market includes:

Gross Revenue: $49,283
Daily Rate: $265
Occupancy Rate: 73%
Short-Term Rentals: 71
Listing Price: $417,500
Active Listings for Sale: 46

2. Lake Geneva, WI short-term rental laws

In Chapter 98 of the Municipal Code, the City of Lake Geneva defines short-term rentals as all lodging places and cabins and cottages in which sleeping accommodations are offered for pay to tourists and transients for more than six but fewer than 29 consecutive days. This excludes hotels, motels, private boarding houses and rooming houses not accommodating tourists and transients, and bed and breakfast establishments. In terms of zoning, STRs are allowed in all zoning districts where residential dwellings are permitted.

Airbnb properties need to have a short-term rental license issued by the City of Lake Geneva. Getting a license requires:

Application form
Property owner's name, address, and phone number
Designated operator's name, address, and phone number
Period of operation of up to 180 consecutive days in a 365-day period
Floor plan
Site plan
Official General Building Code inspection report
Proof of valid property and liability insurance
state of Wisconsin tourist rental house license
City of Lake Geneva room tax permit
City of Lake Geneva general business license
Administrative fee of $400

Lake Geneva STR licenses are non-transferable and valid for one year. The annual license fee is $400.

In addition, Lake Geneva, Wisconsin Airbnbs need to follow these requirements:

Not operate for more than 180 consecutive days per 365-day period
Have a minimum rental period of seven days per party
Impose maximum occupancy to the lesser of two occupants per bedroom plus two additional occupants and the state of Wisconsin total licensed number
Be operated by the property owner or an explicitly designated Airbnb manager
Maintain up-to-date name, address, and 24/7 phone number of the property owner and the designated operator
Have a designated operator located within 25 miles
Maintain a guest register including the names and addresses of guests that are obtained before allowing occupancy
Maintain written business record of each rental including the renter's name and address, the dates of the rental, and the monetary compensation amount
Post the short-term rental license and emergency contact information in a conspicuous place within the property
Post inside the property Requirements for Short-Term Rental Guests form provided by the City summarizing the City requirements and the site plan
Provide a minimum of two off-street parking spaces
Not have any evidence of the property being used as a STR on the exterior of the property
Not have any outdoor activity between 10 P.M. and 7 A.M.
Not have any noise, lighting, odor, or other impacts detectable at the property line exceeding regulations
Not post outdoor advertising on the property
Authorize the City to conduct inspections
Consider adopting the City's Knox-Box key box system to provide keys that allow access to the property

In Lake Geneva, STR property owners need to pay a local sales tax of 5.5% and local bed tax of 3.0%.

In sum, since Lake Geneva Airbnb laws prevent rentals of less than one week, investors can focus on longer-term Airbnb rentals of one week or more, which are popular in this resort city. Indeed, extended Airbnb stays come with major benefits for hosts, such as higher occupancy, less cleaning and housekeeping, and a more relaxed marketing strategy. It's worth consulting with a local real estate broker to help you find an Airbnb property for sale with strong potential to operate a weekly rental business from, taking into account the excellent monthly short-term rental revenue in the resort.

Below you can check out the performance of the Lake Geneva vacation rental market, on average, based on data from Summer Forecast:

Gross Revenue: $51,313
Daily Rate: $340
Occupancy Rate: 62%
Short-Term Rentals: 134
Listing Price: $494,500
Active Listings for Sale: 4

3. Green Bay, WI short-term rental laws

The City of Green Bay defines a short-term rental as an accommodation for transient guests where a residential dwelling unit is provided for lodging for a period of less than 28 consecutive days in exchange for compensation. The city does not impose a limit on the number of days for which a property can be rented out on a short-term basis per year as long as all requirements are met.

According to Ordinance 44-1580, before starting an Airbnb business, a host needs to obtain:

Proof of registration with the City of Green Bay Treasurer for Brown County room tax requirements
Proof of registration with the Brown County Health Department
City of Green Bay Short-Term Rental Permit (STRP)

To apply for a STR permit, it's necessary to submit:

Completed application
Proof of insurance
Proof of registration with the City of Green Bay Treasurer
Proof of registration with the Brown County Health Department
Lease agreement example including language that specifies the need to comply with parking, noise, and other applicable City ordinances
Proof of condominium association approval if applicable
Proof of property owner approval in case of an application submitted by the local representative
Application fee of $500

Green Bay short-term rental permits are non-transferable and are valid for one year from July 1 to June 30. The annual renewal fee is $250. Each dwelling unit used as an Airbnb needs to have a separate permit, and a single operator can hold multiple permits. A permit holder can be the property owner or a local representative.

Vacation rental properties in Green Bay, Wisconsin need to comply with the following requirements:

Not exceed the maximum number of occupants stipulated by relevant Wisconsin laws
Not advertise availability to the public on site
Have a STRP placard visible from the street displaying the local representative's name and phone number
Not violate applicable conditions, covenants, and restrictions
Not sell alcohol on site
Not use recreational vehicles, campers, tents, or other temporary lodging arrangements on site for providing accommodations to guests
Comply with all applicable City codes

In terms of taxing Airbnb rentals, Green Bay has a minimum combined sales tax rate of 5.5% and a room tax of 10.0%.

With regards to the legal framework, Green Bay is one of the best cities for Airbnb in the state of Wisconsin. While operators need to obtain a number of documents, short-term rentals are virtually unrestricted. Considering the affordable property price (much below the national average) and the strong average daily rate (ADR), even beginner investors can find top-notch opportunities in Green Bay.

Following is a quick summary of the performance of the Green Bay short-term rental market based on Summer Forecast data:

Gross Revenue: $35,509
Daily Rate: $345
Occupancy Rate: 46%
Short-Term Rentals: 170
Listing Price: $259,900
Active Listings for Sale: 36

4. Wisconsin Dells, WI short-term rental laws

The City of Wisconsin Dells generally uses the Wisconsin state-level definition of short-term rentals and distinguishes between:

TRH: These overnight lodgings are Zoned Commercial, do not have to be a primary residence of the owner, and can be operated for an unlimited number of days per year.
STR: These overnight lodgings are Zoned Residential, have to be the owner's primary residence, and can be rented for up to 180 days per year, which have to be consecutive.

Wisconsin Dells demands from operators to obtain:

City of Wisconsin Dells Overnight Lodging License
City of Wisconsin Dells Room Tax Permit

Applying for an overnight lodging license requires:

Application form
Lodging facility's address and maximum occupancy based on Conditional Use Permit (CUP)
180-day rental period for STRs
Property owner's name, business name, address, phone number, and email
Property manager's name, address, phone number, email, and Police Department background check date
Proof of insurance
Seller's Permit
Room Tax Number
Premier Resort Tax Number
State Lodging License
Conditional Use Permit
Site plan with available on-site parking
Floor plan with room dimensions and maximum occupancy
Fire inspection report
Proof of primary residence for STR
Application fee of $500

Wisconsin Dells, Wisconsin STR permits are non-transferable and remain valid for one year. The annual renewal fee is $500.

Wisconsin Dells short-term rental regulations allow investors to make money from Airbnb though they have to comply with certain requirements and limitations. The lake, the forested reserve, the nature trails, the theme parks, and the entertainment centers attract 4-5 million tourists every year, many of whom prefer the comfort of vacation rentals over hotels and motels. Meanwhile, investors can handle the 180-rental-day limitation by focusing on the peak season in Wisconsin Dells to maximize profits. Interested investors should connect with a local real estate lawyer or property manager for help in understanding the details of local ordinances and getting started with the right locations.

Below you can find the key numbers that describe the Wisconsin Dells Airbnb market based on analytics from Summer Forecast:

Gross Revenue: $38,307
Daily Rate: $328
Occupancy Rate: 41%
Short-Term Rentals: 63
Listing Price: $419,999
Active Listings for Sale: 5

5. Sheboygan, WI short-term rental laws

Short-term rentals in the City of Sheboygan are governed by a mix of state, county, and city regulations. Sheboygan County used the Wisconsin State's definition of transient rooming houses.

Short-term rental operators need to hold Sheboygan County Recreational License. Applying for this license entails:

Application form
Information about the establishment
Information about the legal entity
Contact person's name, phone number, and email
Water source information
Waste water information
Pool information if applicable
Pre-inspection fee of $250
License fee of $172

According to rules imposed by the Sheboygan County Division of Public Health, Health and Human Services Departments, all Sheboygan, Wisconsin Airbnb properties need to meet the following regulations:

Post the license in public view
Comply with all statewide commercial building and fire safety codes
Screen windows and doors
Ensure handrails and guards are in compliance
Comply with water and sewage requirements
Comply with certain standards within bathrooms
Maintain guest register with each guest's name and address
Provide garbage leak-proof, non-absorbent containers with tight fitting covers that are regularly cleaned inside and outside
Have carbon monoxide and smoke detectors
Comply with specific safety and hygiene standards within the kitchen
Ensure compliance with detailed standards within sleeping rooms

In addition, Sheboygan Airbnb hosts need to hold a City Room Tax Permit and to pay Sheboygan County sales tax of 5.5% and Sheboygan City room tax of 8.0%.

All in all, Sheboygan, WI laws regarding short-term rentals are some of the most lenient across the state. While owners need to hold a couple of permits, there are no restrictions related to zoning, primary residence, owner occupancy, and number of days rented. Coupled with the below-average property prices and the good revenue, Sheboygan could make for a great place to invest in an Airbnb property for savvy investors.

Following is a summary of the key data on the Sheboygan vacation rental market based on Summer Forecast data:

Gross Revenue: $30,719
Daily Rate: $268
Occupancy Rate: 46%
Short-Term Rentals: 80
Listing Price: $262,000
Active Listings for Sale: 12

6. Milwaukee, WI short-term rental laws

The City of Milwaukee uses the terms short-term rentals and tourist rooming houses interchangeably to refer to the renting of a partial or entire residence for less than one month.

In compliance with the state of Wisconsin short-term rental regulations, the City of Milwaukee Department of Neighborhood Services administers and inspects TRHs to provide them with mandatory operational licenses.

Applying for the license requires:

Application form
Licensee's name, agent, address, phone number, and email
Establishment's name, number of rooms, address, phone number, and emergency phone number
Reinspection fee of $300
Permit fee of $121

Milwaukee short-term rental permits are non-transferable and are valid for 12 months.

Additionally, Milwaukee Airbnb hosts need to comply with the following requirements:

Have a liability insurance
Hold a State Seller's Permit
Keep grounds clean
Prevent noise issues
Provide adequate indoor and outdoor trash cans
Provide on-site parking spaces
Provide for guest safety and security
Have smoke and carbon monoxide detectors
Provide water supply and waste disposal
Keep furnishings, equipment, and utensils clean and properly stored
Maintain rooms in a clean and sanitary condition
Apply effective measures to minimize the presence of rodents, flies, cockroaches, and other insects on the property

In Milwaukee, vacation rental property operators need to pay a combined sales tax of 7.9% and a local room tax of 3.0%.

Even as the largest city in the state of Wisconsin, Milwaukee short-term rental regulations are reasonable without major impact on the feasibility and profitability of conducting an Airbnb business there. This could be a good market for investors who want to focus on business travelers and digital nomads rather than vacationing families.

Below is a summary of the average performance of the Milwaukee, Wisconsin Airbnb market based on Summer Forecast data:

Gross Revenue: $26,970
Daily Rate: $166
Occupancy Rate: 62%
Short-Term Rentals: 608
Listing Price: $222,500
Active Listings for Sale: 148

Do Airbnbs do well in Wisconsin?

Starting an Airbnb business in the state of Wisconsin can be an excellent way to supplement your income or launch a full-scale real estate investment career. As demonstrated by Summer Forecast data above, many different cities yield strong returns as the result of high daily rates and above-average Airbnb occupancy rate. Meanwhile, property values are well below the national average in a number of markets, which makes Wisconsin an ideal location for beginner investors with limited financing resources.

Nevertheless, Wisconsin has rather demanding short-term rental laws that require multiple licenses and permits to be renewed on an annual basis. However, non-owner Airbnb rentals are generally legal and can be turned into profitable endeavors.

Ready to get started? Get in touch with one of the best Airbnb property management companies in Wisconsin to discuss your investment goals and explore opportunities.

Once you're good to go, check out Summer Forecast, your all-in-one STR analysis platform. Our institutional-quality data, analytics, and forecasting tools help you make smarter, data-informed investment decisions based on daily rates, occupancy, revenue, comps, and market trends.

Unlock Wisconsin insights with Summer Forecast