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

Yes, short-term rentals are explicitly allowed in Elkhorn, Wisconsin, which is located within Walworth County. STRs are permitted for stays of 7 days or more in unincorporated areas of Walworth County, including Elkhorn. The county adopted a comprehensive licensing framework on April 19, 2018, following changes to Wisconsin state law (Act 59) that prohibited local jurisdictions from banning stays between 7 and 29 days.

While Elkhorn itself does not have city-specific STR regulations, Walworth County's licensing requirements apply to all properties within the county, including those in Elkhorn. This creates a consistent regulatory environment for investors operating in the Elkhorn market.

How to Start a Short-Term Rental Business in Elkhorn

Step 1: Understand Regulatory Requirements

Before purchasing or converting a property, verify that your intended use complies with Walworth County zoning requirements. STRs are subject to specific occupancy limits, infrastructure requirements, and operational standards.

Step 2: Secure State License First

The state license must be obtained before county approval. Wisconsin requires a Tourist Rooming House license for any property rented for more than 10 nights per year. Contact the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) to begin this process.

Step 3: County Licensing Application

Submit your application to Walworth County Land Use and Resource Management Department, including all required documentation outlined below.

Step 4: Infrastructure Compliance

Ensure your property meets health and safety standards, including:

• Well water testing (if using private well)
• Septic system evaluation (if not on public sewer)
• Occupancy compliance based on infrastructure capacity

Step 5: Ongoing Compliance

Maintain annual license renewals, comply with operational requirements, and respond promptly to any code enforcement issues.

Required Documents, Permits, Licenses, and Guidelines

State Level Requirements

1. Wisconsin Tourist Rooming House License (Required before county approval)
   • Contact: DATCP
   • Annual fee approximately $110
   • One-time inspection fee approximately $300 (for new properties)
   • Subject to penalties for non-compliance

County Level Requirements

1. Walworth County STR License Application

   • Initial licensing application (PDF)
   • Annual renewal application (PDF)
   • Instructions for completing applications provided on page 2

2. Site Plan

   • Hand-drawn or professional survey acceptable
   • Must show property boundaries, structures, and improvements
   • Use County's Geographic Information System (GIS) to find existing surveys

3. Well Water Testing (Required for properties served by private wells)

   • State of Wisconsin requirement for license
   • Can use private testing company or Walworth County Health Department services

4. Septic System Documentation

   • For properties with Private Onsite Wastewater Treatment System (POWTS)
   • Sanitary Permit verification
   • Professional evaluation if permit lacks necessary information
   • Septic Inspection Report by licensed professional
   • Form: Existing POWTS Inspection Report (PDF)

5. Responsible Party Contact Information

   • Required for emergency contacts and complaint resolution
   • Must identify local contact person

Specific Regulations for Short-Term Rentals

County-Level Regulations (Walworth County)

Stay Requirements:

• Minimum stay: 7 days (consistent with state law)
• Stays of less than 7 days are prohibited in unincorporated areas
• No limit on maximum stay within annual licensing period

Occupancy Limits:

• Public Sewer Properties: Occupancy determined by Wisconsin Administrative Code ATCP 72.14(2)(b)
  • Every sleeping room must provide at least 400 cubic feet of air space per occupant over 12 years
  • Minimum 200 cubic feet for each occupant 12 years and under
  • Minimum ceiling height of 7 feet required
• Septic System (POWTS) Properties: Maximum occupancy of 2 people per bedroom
  • Based on 75 gallons per person per day design standard
  • 150 gallons per day per bedroom capacity
  • Systems may be oversized, allowing greater occupancy

Operational Requirements:

• Parking compliance
• Garbage pickup arrangements
• Quiet hours enforcement
• Responsible party contact availability
• Annual license renewal required

Enforcement and Penalties

County Enforcement:

• Citations for unlicensed operation: $663 per day
• Operating without proper licenses results in enforcement action
• Non-compliance with well or septic requirements may prevent license approval

State Penalties:

• Tourist Rooming House license violations subject to state penalties
• Continued non-compliance can result in legal action

Zoning Considerations

Permitted Areas:

• STRs allowed in appropriate zoning districts
• Properties must comply with residential use standards
• Contact county planning staff for zoning verification

Bed & Breakfast Exception:

• Different regulations apply if owner resides on property during guest stays
• Discuss options with Senior Planner at 262-741-4972

Contact Information

Walworth County Land Use and Resource Management Department

Physical Address: 100 W. Walworth Street Elkhorn, WI 53121

Mailing Address: P.O. Box 1001 Elkhorn, WI 53121

Phone: 262-741-4972 Fax: 262-741-4973

Code Enforcement

Michael Siciliano, Code Enforcement Officer-LTE

• Phone: 262-741-7902
• Email: msiciliano@co.walworth.wi.us

State Licensing

Wisconsin DATCP - Tourist Rooming Houses

• Website: datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx

Additional Resources

Walworth County Health Department

• Well water testing services
• Contact through main county number

Important Links to Source Pages

County Information

• Walworth County Short-Term Rentals Overview
• Chapter 26 - Article VII - STR Licensing Ordinance
• Chapter 74 - Zoning Code

Application Forms

• County Initial Licensing Application (PDF)
• Annual License Renewal Application (PDF)
• Short-Term Rental FAQs (PDF)

Inspection and Environmental

• POWTS Inspection Form (PDF)
• Septic Installers (PDF)
• Soil Testers (PDF)
• Well/Septic Inspectors (PDF)

Additional Resources

• County Geographic Information System
• Instructions for Using Walworth County GIS (PDF)
• Walworth County Health Department - Well Testing

State Resources

• Wisconsin Tourist Rooming Houses

Strategic Considerations for Elkhorn Investors

Market Position: Elkhorn benefits from being in Walworth County, which has clear, established STR regulations. The consistent county-wide framework provides regulatory certainty compared to jurisdictions with fragmented local rules.

Infrastructure Impact: Properties on public sewer have more flexibility in occupancy calculation, while septic system properties face stricter limits. This creates different investment opportunities based on property type and infrastructure.

Compliance Costs: Factor in initial licensing, potential well testing, and septic evaluation costs when calculating investment returns. Properties with existing compliant infrastructure offer lower compliance barriers.

Enforcement Environment: The county actively enforces licensing requirements with daily penalties for non-compliance. This creates a level playing field for licensed operators while deterring unlicensed competition.

State Pre-Authorization: The requirement to obtain state licensing before county approval creates a two-tier verification process, ensuring both state and local compliance standards are met.

This comprehensive regulatory framework provides Elkhorn STR investors with clear pathways to legal operation while maintaining community standards through systematic licensing and enforcement.