Short-Term Rental Investment Guide: Wisconsin Dells, Wisconsin

Overview: Are Short-Term Rentals Allowed in Wisconsin Dells?

Yes, short-term rentals are explicitly allowed in Wisconsin Dells, WI. The city operates under Wisconsin's "Right to Rent" law (2017), which prohibits municipalities from banning STRs entirely. Wisconsin Dells has established a specific regulatory framework that distinguishes between two types of overnight lodgings:

1. Tourist Rooming Houses (TRH): Zoned Commercial. Do not need to be the owner's primary residence. Can operate year-round.
2. Short-Term Rentals (STR): Zoned Residential. Must be the owner's primary residence. Can be rented for up to 180 consecutive days per year.

This dual approach caters to the city's tourism-driven economy while maintaining neighborhood stability.

How to Start a Short-Term Rental Business in Wisconsin Dells

Starting an STR in Wisconsin Dells requires a multi-step licensing process, often taking 60-90 days. Sequence is critical. Always begin at the state level, then proceed to county health, and finish with city licensing.

1. Secure Property Zoning: Verify zoning with the city planning department. TRHs require Commercial zoning, while STRs require Residential zoning where the owner can establish primary residency.
2. Obtain State-Level Licensing: Apply for a Wisconsin Tourist Rooming House (TRH) License from the Department of Agriculture, Trade and Consumer Protection (DATCP).
3. Complete County Health Licensing: Apply for a county-level TRH license from the appropriate public health department (e.g., Sauk County Health Department).
4. Acquire State Tax Registration: Register for a Wisconsin Seller's Permit with the Department of Revenue.
5. Obtain Local Permits:
   • Conditional Use Permit (CUP): Often required for STRs in residential zones.
   • City of Wisconsin Dells Overnight Lodging License: The primary local license.
   • Room Tax Permit: Register to collect and remit local room taxes.
   • Premier Resort Tax Number: For properties in designated areas.
6. Meet Insurance & Safety Standards: Obtain comprehensive liability and property insurance. Complete required fire and safety inspections.
7. Submit Final Application: File the completed Overnight Lodging License application with all supporting documents and fees ($500 application fee).

Required Documents, Permits, Licenses, and Guidelines

The application process requires meticulous documentation. Key items include:

• Licenses & Permits:
  • Wisconsin Tourist Rooming House (TRH) License (State DATCP)
  • County Tourist Rooming House License (e.g., Sauk County Health Dept.)
  • Wisconsin Seller's Permit
  • Conditional Use Permit (CUP)
  • City of Wisconsin Dells Overnight Lodging License
  • City Room Tax Permit
  • Premier Resort Tax Number
• Application Documents:
  • Completed application forms
  • Property deed or lease agreement
  • Proof of primary residence (for STR)
  • Site plan showing parking
  • Floor plan with room dimensions and max occupancy
  • Fire inspection report
  • Proof of insurance ($300,000 liability minimum)
  • Property manager's information and background check date (if applicable)
• Guidelines: Compliance with Wisconsin Administrative Code ATCP 72 (Health & Safety for Tourist Rooming Houses) and local municipal codes.

Fees: State TRH License ($110), State Pre-inspection ($300), City Overnight Lodging License ($500 annual renewal).

Specific Regulations for Short-Term Rentals

Regulations vary by license type but share core requirements:

• Zoning:
  • TRH: Permitted in Commercial zones; no owner residency requirement.
  • STR: Permitted in Residential zones; must be owner's primary residence.
• Operational Limits:
  • TRH: No limit on rental days.
  • STR: Maximum 180 consecutive days per year. Must cease operations for the remainder of the year.
• Owner/Manager Requirements:
  • STRs must have a designated local contact (property owner or manager) capable of responding within 24 hours.
  • Property managers operating 3+ units must obtain a separate Property Manager License.
• Occupancy Limits:
  • Generally limited to 2 guests per bedroom plus 2 additional occupants, as dictated by state health code.
  • Properties with fireplaces must provide a compliance certificate.
• Taxes: Operators must collect and remit:
  • Wisconsin State Sales Tax (5%)
  • Local Room Tax (varies by jurisdiction, often 8-10%)
  • Premier Resort Tax (where applicable)
• Inspections: Mandatory initial inspections by state and county health officials, with periodic renewals. Annual fire inspections are required.

Contact Information for Local Authority

For specific questions and applications, contact the following authorities:

• State Licensing (DATCP):
  • Website: Wisconsin DATCP Tourist Rooming Houses
  • Phone: (608) 224-5012
  • Email: [email protected]
• Sauk County Health Department (Licensing for Wisconsin Dells/Lake Delton Area):
  • Website: Sauk County Health - Lodging
  • Phone: (608) 355-3290
  • Email: [email protected] (Attn: Environmental Health Manager)
• City of Wisconsin Dells (Licensing & Permits):
  • Website: Wisconsin Dells City Government
  • Phone: (608) 254-2018
  • City Hall: 550 Mill Street, Wisconsin Dells, WI 53965

Links to Source Pages

The information in this guide is sourced from the following documents and websites:

1. Wisconsin Short-Term Rental Laws: gosummer.com
2. Short Term Rentals Guide: Wisconsin Dells: Easy Street Capital
3. Wisconsin Hotel & Lodging Association (WHLA) Resources: WHLA Short-Term Rentals
4. Village of Lake Delton (Adjacent Municipality with Similar Regulations): Lake Delton - Tourist Rooming House
5. Wisconsin Dells STR Regulations Overview: The Offer Sheet - Legal Guide

Disclaimer: This guide is for informational purposes only. Regulations can change. Always confirm current requirements with local authorities and consult a legal professional before investing.