Overview: Are Short-Term Rentals Allowed in Delavan, WI?

Yes—short-term rentals (STRs) are allowed in the Town of Delavan, but they are tightly regulated. State law (Wis. Stat. 66.1014) prohibits municipalities from banning rentals of seven consecutive days or longer, while allowing local rules for shorter stays. In Delavan, you may rent for 7–28 consecutive days subject to a local “rental season” limit and a separate cap for stays of fewer than seven days. Investors must obtain three overlapping licenses each year and remit room taxes and sales/use taxes. Noncompliance is penalized, and violations can lead to license suspension or revocation.

Summary of operating thresholds:

• You may rent for 7–28 consecutive days within a 180-day “rental season” in any 365‑day period.
• You may rent for fewer than 7 days, but only up to 10 nights per year unless you obtain all required licenses; once licensed, you may still rent for fewer than 7 days only within your 180‑day rental season window.
• Rentals of 29+ consecutive days are generally not considered short‑term rentals under Town code.

Note: The Town’s regulations apply to residential dwellings offered for fewer than 29 consecutive days. This investor guide covers Town of Delavan rules, Walworth County requirements, and Wisconsin state law.

How to Start a Short-Term Rental Business in Delavan

Step 1: Confirm zoning, HOA, insurance, and property condition

• Verify zoning allows STRs and that you meet any health/safety standards.
• Review any homeowner association (HOA) covenants; HOAs can restrict or ban STRs.
• Confirm your insurance covers transient lodging. Some carriers do not.
• Inventory any unique county/state rules for lakes, wells, and septic systems.

Step 2: Obtain required licenses—sequence matters

1. Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) Tourist Rooming House License

• Fees: $300 one-time pre‑inspection (new) + $110 annual license (renewals $110). If previously licensed elsewhere in Wisconsin, the pre‑inspection may be waived.
• Renewal window aligns with the state’s licensing year (renew by June 30).
• Inspections typically focus on life safety and sanitation.

2. Walworth County STR License

• Applies to rentals of 7–28 consecutive days (not to rentals fewer than 7 days) and is required in all townships countywide.
• Fees: $500 initial; $200 annual renewal. Licenses expire June 30 each year.
• Licenses are non‑transferable and become void upon sale.

3. Town of Delavan Residential Rental License (STR)

• Fees: $500 new; $250 renewal; $50 late fee if paid within 30 days after expiration; new license required after 30 days.
• Annual expiration: August 31 (except new licenses issued June 1–August 31, which expire August 31 of the following year).

Step 3: Business registration and room tax

• Complete the Town’s General Business Registration for STRs ($25).
• Complete the Town’s Room Tax Permit ($10).
• Enroll in quarterly room tax filings (Town rate: 8% of gross room receipts).

Step 4: Administrative approval and display

• Submit all paperwork and fees to the Town Clerk. Approval occurs monthly via the Administrative Committee.
• Display your Town license on or near the main entrance.

Step 5: Establish tax workflows

• Sales and use taxes: Register with the Wisconsin Department of Revenue (DOR) and report/collect applicable taxes. Marketplace platforms (Airbnb, VRBO) may collect and remit on your behalf, but you remain responsible.
• Room taxes: File quarterly using the Town’s Short‑Term Rental Room Tax & Calculation Form:
  • Q1: due April 30
  • Q2: due July 31
  • Q3: due October 31
  • Q4: due January 31

Step 6: Maintain compliance—ongoing obligations

• Keep a guest register/records (names, dates, receipts) for at least one year and produce upon request.
• Comply with parking, noise, nuisance, and quiet‑time rules; provide the required minimum off‑street parking.
• Ensure any short‑term stays (under 7 days) only occur within your 180‑day rental season.
• Track rental days to avoid exceeding caps.

Quick cost snapshot (new STR, first year)

• DATCP: $410 (one-time pre‑inspection $300 + annual license $110)
• Walworth County: $500
• Town of Delavan: $500 license + $25 business registration + $10 room tax permit = $535
• Total first‑year fees: approximately $1,445
• Ongoing annual fees: ~$985 (if pre‑inspection was previously paid)

Required Documents, Permits, Licenses, and Guidelines

Town of Delavan (annual requirements)

• Residential Rental License Application (with ordinance) ($500 new; $250 renewal)
• General Business Registration for Short‑Term Rentals ($25)
• Room Tax Permit Application ($10)
• Short‑Term Rental Room Tax & Calculation Form (quarterly filings)
• STR Brochure (informational)
• Evidence of compliance: State TRH license, County STR license, and any inspections/records required

Walworth County (annual requirements)

• Walworth County STR License (Initial or Annual Renewal)
  • Initial: $500
  • Renewal: $200
• Property rules and any required health/safety documentation (see County STR ordinance for specifics)

State of Wisconsin (DATCP)

• Tourist Rooming House License Application (one-time pre‑inspection $300 + $110 annual license; renewals $110)

Guidance and policies

• Town STR brochure and ordinance (see “Links to Source Pages” for document links)
• Complaint hotline: 1‑866‑257‑0149 or online tip form (Harmari)

Specific Regulations: Delavan (Town), Walworth County, and Wisconsin State

Wisconsin State law (Wis. Stat. 66.1014 “Right to Rent”)

• Defines STRs as residential dwellings rented for fewer than 30 consecutive days.
• Municipalities cannot prohibit rentals of 7+ consecutive days, but can regulate rentals under 7 days.
• Municipalities may regulate rentals of 7–28 days but must allow at least 180 days of rental within a 365‑day period.
• Licensing and inspections are permitted; each municipality may set its own requirements.

Town of Delavan (Ordinance §10.20 Residential Rental Licensing)

• License required to rent more than 10 nights per year (rental of fewer than 29 consecutive days).
• State license and County license must be in place before Town approval.
• Fees: $500 new; $250 renewal; $50 late fee within 30 days; otherwise new license required after 30 days.
• Annual expiration: August 31.
• License must be displayed at the main entrance.
• License non‑transferable; void upon property sale.
• Non‑renewal/appeals process: 10 business days to file objection with Town Clerk; appeal heard at next Town Board meeting.
• Display/posting requirements and revocation triggers (fraud, fee nonpayment, state license revocation) apply.
• Occupancy and unit restrictions: No specific occupancy limit in the Town code excerpt; follow state TRH limits and local health/safety rules.
• 180‑day “rental season” requirement (7–28 consecutive days): In any 365‑day period, you may rent your STR for at most 180 consecutive days. If you conduct rentals for 7–28 consecutive days, they must occur within this 180‑day window.
• Fewer than 7 days: You may rent for up to 10 nights per year without a license. With a Town STR license, rentals for fewer than 7 days are allowed only within the 180‑day rental season.
• Long‑term rentals (29+ consecutive days): Not treated as STRs under the Town code.
• Parking: County requires at least two off‑street parking spaces; on‑street parking by renters is prohibited. Confirm Town minimums in your license review.
• Records: Maintain a guest register and rental records for at least one year and make available to authorities upon request.
• Tax obligations: File quarterly room tax returns regardless of whether you use a marketplace provider; you are responsible for submitting reports and taxes on time.

Walworth County STR Ordinance

• Applies countywide in townships; requires a County STR License for rentals of 7–28 consecutive days.
• Fees: $500 initial; $200 annual renewal; expiring June 30.
• Licenses non‑transferable; void at sale.
• Parking: Minimum two off‑street spaces; off‑street spaces may be off‑site; on‑street parking by renters prohibited.
• Records: Guest registry and business records must be maintained for at least one year.
• Violations: $663 per offense; unresolved issues may trigger license revocation proceedings.

Room tax obligations

• Town of Delavan room tax: 8% of gross room receipts, paid quarterly (due April 30, July 31, October 31, January 31).
• Sales and use taxes: Collect and remit via Wisconsin DOR or through marketplace platforms. You remain responsible even if a marketplace collects on your behalf.

Inspections and transfers

• DATCP conducts life‑safety inspections for the Tourist Rooming House License.
• Walworth County and the Town may require property documentation/inspections consistent with their ordinances.
• All licenses are property‑specific and non‑transferable; property changes invalidate licenses.

Contact Information

Town of Delavan (Licensing and Room Tax)

• Address: 5621 Town Hall Rd, Delavan WI 53115
• Phone: (262) 728‑3471
• Fax: (262) 728‑3473
• Email: clerk@townofdelavan.com
• Office hours: Mon–Fri 8:30 am–4:30 pm

Walworth County Licensing (County STR License)

• County STR License links and information: see Walworth County STR pages in “Links to Source Pages”
• Point of contact referenced in county outreach: Walworth County Land Use & Resource Management Department (see county STR materials)

Wisconsin DATCP (Tourist Rooming House License)

• Phone: (608) 224‑4923
• Email: datcpfslicensing@wi.gov
• Program details: DATCP Tourist Rooming Houses program page

Wisconsin Department of Revenue (Sales/Use Tax Registration and Guidance)

• Registration portal: Wisconsin DOR Business Tax Registration (BTR) portal
• STR guidance: DOR guidance page on selling short‑term lodging

Complaint Reporting (Town of Delavan)

• Hotline: 1‑866‑257‑0149
• Online tip form: Harmari STR tip form

Links to Source Pages

• Town of Delavan – Short-Term Rentals Overview and Licensing Steps: townofdelavan.com/short-term-rentals/
• Town of Delavan – STR Licensing Application (with ordinance excerpts): cdn.townweb.com/townofdelavan.com/wp-content/uploads/2025/05/Short-term-Application-with-ordinance-5.25.pdf
• Town of Delavan – Room Tax Forms: cdn.townweb.com/townofdelavan.com/wp-content/uploads/2022/06/Room-Tax-Forms.pdf
• Town of Delavan – Room Tax Calculation Form: cdn.townweb.com/townofdelavan.com/wp-content/uploads/2022/06/Short-Term-Rental-Room-Tax-Calculation-Form-1.pdf
• Town of Delavan – General Business Registration (Short-Term Rentals): cdn.townweb.com/townofdelavan.com/wp-content/uploads/2025/02/Business-Registration-Short-Term-Rental-2.25.pdf
• Wisconsin DATCP – Tourist Rooming House License: datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx
• Walworth County – STR License Initial Application (PDF): www.co.walworth.wi.us/DocumentCenter/View/5123/STR-License-Initial-Application---Fillable-PDF
• Walworth County – STR Annual License Renewal (PDF): www.co.walworth.wi.us/DocumentCenter/View/5124/STR-Annual-License-Renewal---Fillable-PDF
• Walworth County – STR Ordinance (Municode): library.municode.com/wi/walworth_county/codes/code_of_ordinances?nodeId=WACOCOOR_CH26EN_ARTVIIOFREDWSHTERE
• Wisconsin DOR – Homeowners and Individuals Selling Short-Term Lodging Guidance: www.revenue.wi.gov/Pages/TaxPro/2021/Homeowners-and-Individuals-Selling-Short-Term-Lodging.aspx
• Airbnb – Wisconsin Occupancy Tax Collection and Remittance: www.airbnb.com/help/article/2337
• VRBO – Wisconsin Lodging Taxes Collection and Remittance: help.vrbo.com/articles/vrbo-stay-taxes-lodging-taxes-united-states-n-z#Wisconsin
• Town of Delavan – STR Complaint Form (Harmari Tip Form): www.harmari.com/tipform-delavan

Key Takeaway for Investors Delavan is an active STR market with layered oversight: state-level “Right to Rent” protections, a County license regime tailored for 7–28 day rentals, and a Town license framework that adds licensing, a “rental season” limit, and ongoing room tax obligations. New investors should budget roughly $1,400+ in first‑year license fees and maintain robust documentation and tax workflows to avoid penalties and ensure long‑term license stability.