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

Yes, short-term rentals are explicitly allowed in Eau Claire, Wisconsin. However, the city has recently implemented a new licensing framework as of December 2024 that significantly changes how STRs are regulated. The City Council voted to create Chapter 5.66, establishing a Short-Term Rental License to replace the previous conditional use permit system.

How to Start a Short-Term Rental Business in Eau Claire

1. Research and Compliance Foundation

Before establishing your STR business, thoroughly research the local regulatory environment. Wisconsin follows a localized approach to STR regulation, meaning requirements vary significantly by municipality. Eau Claire has moved from a conditional use permit system to a streamlined licensing process.

2. Application Process

The city will provide an online application system for short-term rental licenses. The application process requires several key components:

• Health Department License: Proof of obtaining a license from the Eau Claire City-County Health Department
• Property Details: Maximum number of allowed vehicles based on available off-street parking spaces
• Property Specifications: Number of guest rooms and detailed building plans demonstrating available areas and amenities
• Owner Information: Complete owner identification and contact details

3. Operational Timeline

Under the new ordinance, short-term rental operators can operate year-round without minimum stay requirements. A license obtained between the effective date and June 30, 2025, remains valid until June 30, 2026.

Required Documents, Permits, Licenses, and Guidelines

City of Eau Claire Requirements

1. Short-Term Rental License (Chapter 5.66)

   • Initial review fee: $700
   • Annual renewal fee: $300
   • Current property owners with Conditional Use Permits are exempt from the initial review fee

2. Health Department License

   • Required from the Eau Claire City-County Health Department
   • Separate licensing process for lodging establishments

3. Supporting Documentation

   • Proof of property ownership (deed or tax statement)
   • Detailed property information including address, bedrooms, and floor plans
   • Owner identification and contact information
   • Local contact information if owner is not locally based
   • Proof of adequate insurance coverage
   • Safety compliance certifications

Wisconsin State Requirements

1. Tax Registration

   • Wisconsin Department of Revenue registration for state and county sales taxes
   • Local room tax registration with municipal authorities

2. Federal Requirements

   • Federal and state income tax obligations
   • Potential business license requirements depending on operation structure

Specific Regulations for Short-Term Rentals

City of Eau Claire Regulations (Effective December 2024)

• Definition: STRs are residential dwellings offered for rent for fewer than 30 consecutive days
• Licensing: Administrative licensing process replaces conditional use permits
• Operating Period: Year-round operation permitted with no minimum stay requirements
• Fees: $700 initial review fee, $300 annual renewal fee
• Enforcement: City uses software to monitor STR databases and cross-reference with licensed operators

County-Level Regulations (Eau Claire County)

• County sales tax applies to short-term rentals
• Health department licensing requirements for lodging establishments

State-Level Regulations (Wisconsin)

• Wisconsin Statute 66.0615 provides statutory authorization for municipalities to regulate STRs
• No comprehensive statewide STR legislation
• State sales tax requirements apply
• Municipalities cannot ban STRs entirely or limit based on density or owner-occupancy
• State law allows municipalities to regulate availability time (up to 180 days maximum) and/or require minimum stay requirements

Zoning and Operational Restrictions

• STRs are subject to local zoning regulations
• Properties must comply with safety standards including working smoke detectors, carbon monoxide alarms, and fire extinguishers
• Occupancy limits and parking requirements apply
• Noise restrictions and waste management regulations must be followed

Contact Information for Local Authority

Primary Contacts

City of Eau Claire Planning Department

• Website: EauClaireWI.gov/Planning
• Phone: Contact through main city directory
• Location: City Hall, 203 S. Farwell St., Eau Claire, WI

Eau Claire City-County Health Department

• Website: EauClaireWI.gov/Health
• Responsible for health licensing requirements for lodging establishments
• Phone: Contact through main city directory

City of Eau Claire Licensing Division

• Website: EauClaireWI.gov/Licensing
• Handles business licensing and renewals
• Phone: Contact through main city directory

Additional Resources

• City Hall Address: 203 S. Farwell St., Eau Claire, WI 54701
• Main City Phone: Contact through city directory
• Online Services: Available through city website citizen self-service portal

Links to Source Pages

1. City of Eau Claire Official STR Ordinance Update
2. WEAU News Coverage - City STR Rule Changes
3. Wisconsin STR Laws - General Overview
4. Volume One - STR Rule Change Analysis
5. Eau Claire Health Department - Hotel and Lodging Inspections

Important Notes for Investors

The regulatory landscape in Eau Claire has recently changed, moving from a restrictive conditional use permit system to a more accessible licensing framework. The removal of durational requirements (7-day minimum stay and 180-day maximum usage) represents a significant victory for STR operators and investors. However, the $700 initial fee and ongoing compliance requirements should be factored into investment calculations.

The city estimates approximately 23 licensed STRs currently exist, with about 40 operating illegally, indicating potential market opportunities for compliant operators. The streamlined licensing process and year-round operating allowance create a more favorable environment for STR investment compared to the previous regulatory framework.