As part of the Budget Bill for the State of Wisconsin, there was a Right to Rent Provision that now allows homeowners in the state of Wisconsin to rent their homes out for 7 days or more at a time. This is a big WIN for the short-term rental industry and means that as a homeowner you can maximize your earning potential, and as a guest to renters you will have more opportunities to explore and experience our beautiful properties. The details of this bill are as follows:
- Minimum of a 7-night rental or more in the State of Wisconsin.
- Requires anyone renting their home to register with the Department of Revenue for a license to collect sales tax, use tax, and room tax. The person or entity collecting these taxes is required to forward the sales and use tax to the DOR and the room tax to the local municipality.
- Local municipalities and counties cannot limit the total number of days a person or entity can rent within a 365-day period to no fewer than 180 days.
- Owners must obtain a license as a tourist rooming house from the Department of Agriculture, Trade and Consumer Protection.
- Under the proposed legislation, local municipalities (Towns, Cities & Municipalities) cannot prohibit the rental of single-family homes for seven days or longer, but they could still (a) ban the rental of homes for less than seven days, and/or (b) allow municipalities to impose reasonable regulations on all rentals regardless of the rental period. Examples of such regulations are registration requirements, fees, inspections or nuisance regulations, number of occupants based on bedrooms, parking inspections of property, noise issues, or a 24-hour contact person.
- Properties located within an association (condominium or homeowner’s association) can make restrictions to limit rentals to any amount of time and are exempt from the rule.
Keefe Vacation Rentals can help you through the licensing and permitting process to make sure you are compliant with the recent updates. If you have any questions, want to learn more about our Vacation Rental Management Program or are interested in renting one of our properties – contact us today!
CLICK HERE or contact Garner McClayton at [email protected] or call (262) 822-3505.