Overview and legality

• Short-term rentals are allowed in Mellen, Wisconsin. Mellen does not have a separate municipal STR ordinance. All STRs in Mellen are regulated under Wisconsin state statutes and Bayfield County rules and permitting. As a result, every STR operation in Mellen must comply with state health and safety standards for tourist rooming houses and must obtain the required county-level licenses and permits.

How to start a short-term rental business in Mellen, WI (step-by-step)

1. Confirm zoning and site feasibility

• Confirm the subject property is zoned to allow residential use and short‑term rental activity. In Bayfield County, 1–4‑unit STRs are treated as residential dwelling rentals; 5+ units are treated as lodging (hotel/motel) and require commercial zoning. Work with Bayfield County Planning & Zoning to verify that the parcel is suitable for an STR.

2. Obtain the Wisconsin DATCP Tourist Rooming House (TRH) license

• Apply through Bayfield County Health Department (the county is the issuing authority for the state DATCP TRH license). The TRH license is required annually for STRs with 1–4 rooms.

3. Obtain the Bayfield County Short‑Term Rental (STR) Zoning Permit

• Submit a complete application to Bayfield County Planning & Zoning. The $500 STR permit fee is a one‑time county fee for new STRs or for STRs without an existing permit on file. If you previously held a permit and it remains valid, the fee is not re‑charged; however, if the permit has expired or there has been a significant change (e.g., ownership), a new application and fee are required.

4. Register for room tax and sales tax

• Register for Wisconsin sales tax and the applicable county/city room tax accounts through the Wisconsin Department of Revenue (DOR). Collect and remit local room taxes (Bayfield County and the municipality where the property is located) and state sales tax as required.

5. Secure insurance and prepare the property

• Carry appropriate property damage and general liability insurance. Equip the unit with pressurized potable water, a flush toilet, sink, and shower or bathtub within the structure. Comply with smoke and carbon monoxide detector requirements and have a fire extinguisher on site.

6. Plan operations and guest safety

• Establish standard operating procedures, guest screening, check‑in instructions, house rules, and emergency contacts. Maintain a guest register on site. Plan for off‑street parking and noise management.

7. Inspections and final approvals

• Expect inspections by the county Health Department (for TRH) and by Planning & Zoning (for the STR zoning permit). Address any corrections before hosting guests.

Licenses, permits, registrations, and guidelines

• Wisconsin DATCP Tourist Rooming House (TRH) License (1–4 rooms)
  • Administered by Bayfield County Health Department.
  • Annual license; TRH license fees are established by DATCP; confirm current fees when applying.
• Bayfield County Short‑Term Rental (STR) Zoning Permit
  • Issued by Bayfield County Planning & Zoning.
  • One‑time $500 county fee for new STR permits or for STRs without an existing permit on file; separate from the DATCP TRH license.
• Sales tax registration
  • Wisconsin Department of Revenue (DOR) Seller’s Permit; required to collect/remit sales tax.
• Room tax registration
  • Register with DOR for room tax collection and remit to the state; also register with the relevant county and municipality for local room tax (Bayfield County and City of Mellen, if applicable).
• Conditional Use Permit (CUP), if required
  • Some STRs may require a CUP or other land use approvals depending on zoning or parcel characteristics. Confirm with Planning & Zoning.
• Inspections
  • Health and safety inspections may be required prior to approval and at renewal.

Specific regulations for STRs in Mellen (city) and Bayfield County (no conflicting city ordinance)

• Allowed uses and definitions
  • Bayfield County regulates short‑term rentals (1–4 units) as residential dwellings rented for fewer than 29 consecutive days.
  • Properties with 5 or more lodging units are classified as hotel/motel uses (commercial zoning and separate permitting).
• Licensing and permits
  • STRs must hold both:
    • A state DATCP TRH license (issued via Bayfield County Health Department).
    • A Bayfield County STR zoning permit (issued by Planning & Zoning).
  • The STR zoning permit fee is a one‑time $500 fee for new permits or STRs without a permit on file; renewals and continuing operations are subject to county ordinances and fee schedules.
• Health, sanitation, and safety requirements
  • Pressurized potable water must be available within the structure.
  • Indoor sanitary facilities must include a flush toilet, sink, and shower or bathtub within the structure.
  • Smoke and carbon monoxide detectors are required; maintain a fire extinguisher and clearly marked emergency egress.
  • Maintain a guest register on site with guest information and dates of stay.
  • Property must meet applicable Wisconsin commercial building and fire safety codes as administered by county/state authorities.
• Occupancy and operations
  • Occupancy must not exceed the limits established by county/state standards. County guidance indicates maximum occupancy is generally calculated per bedroom, with appropriate safety measures (e.g., egress, detector placement).
  • Off‑street parking is required and must be demonstrated on the site plan.
  • Outdoor activity, noise, lighting, and other impacts must remain within county ordinance limits at all times; keep exterior signage low‑profile and compliant with county rules.
  • Advertising must include the permit holder’s contact and any required identifiers.
  • Annual license renewals and compliance checks may be required for both TRH and local zoning permits.
• Room and sales taxes
  • Collect and remit Wisconsin sales tax (state rate 5% plus any applicable local sales tax).
  • Collect and remit local room taxes for Bayfield County and the municipality where the property is located.
  • Maintain records of all tax filings and receipts.

County-level contact information (authorities in charge of STRs)

• Bayfield County Health Department (DATCP TRH licensing and inspections)
  • Address: 117 E. Sixth Street, Annex Building, Washburn, WI 54891
  • Phone: (715) 373‑6109
  • Email: Inquiries regarding licensing, inspections, and environmental health can be directed via the Health Department’s contact channels at the above address/phone.
  • Notes: Health Department issues the DATCP Tourist Rooming House license on behalf of the state and administers health and sanitation requirements for lodging properties.
• Bayfield County Planning & Zoning (STR zoning permit and land use)
  • Address: 117 E. Fifth Street, P.O. Box 58, Washburn, WI 54891
  • Phone: (715) 373‑6138
  • Email: planning@bayfieldcounty.wi.gov
  • Website: www.bayfieldcounty.wi.gov/134/Planning-and-Zoning
• Municipal contact for room tax administration (City of Mellen)
  • Address: P.O. Box 257, Mellen, WI 54546
  • Phone: (715) 274‑2150
  • Website: www.cityofmellen.org
• State-level guidance
  • Wisconsin Department of Revenue (tax registration and filing): www.revenue.wi.gov
  • Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) Tourist Rooming House information: datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx

Source pages

• Bayfield County Planning & Zoning – STR permitting and zoning ordinance guidance: www.bayfieldcounty.wi.gov/134/Planning-and-Zoning
• Bayfield County – STR definitions and ordinance notes (including the $500 permit fee, occupancy, sanitation, and zoning context): Bayfield County Planning & Zoning FAQ (STR definitions, fee, and process context)
• City of Mellen official site (municipal contact and local room tax administration): www.cityofmellen.org
• Wisconsin DATCP – Tourist Rooming House licensing: datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx
• Wisconsin Department of Revenue – room tax and sales tax registration: www.revenue.wi.gov

Notes for investors

• Mellen’s STR market is governed by Bayfield County rules and Wisconsin state statutes rather than a city‑specific ordinance, so successful operations depend on county zoning approval, DATCP licensing, and diligent compliance with health, safety, and tax obligations.
• The $500 county STR permit fee is one‑time for new permits or where no prior permit exists; the DATCP TRH license is annual. Ensure both approvals are in place before marketing your property.
• Given the requirement for pressurized potable water and full indoor sanitary facilities, older or seasonal cabins may require upgrades prior to licensing. Budget for those improvements early in underwriting.

This guide is informational and not legal advice. Rules can change; verify current requirements with the county Health Department, Planning & Zoning, and the Wisconsin DOR before proceeding.