Short-Term Rentals
A short-term rental is a sleeping accommodations rental unit used for fewer than 30 nights. In Wisconsin law, it is called a "Tourist Rooming House." Residents who want to rent out units on sites like Airbnb or VRBO must get all necessary licenses and permits before listing their units.
Why does Madison regulate short-term rentals?
Websites such as Airbnb and VRBO connect homeowners with people who need a place to stay when traveling. Many homeowners use these platforms for intermittent, on-the-side rentals. Some property owners, though, have gone far beyond this modest ideal. These owners use the web platforms to operate de facto hotels. Others are buying property with the sole purpose of using it as a short-term rental. Taken to the extreme, short-term rentals affect neighboring property owners. They can change a neighborhood's character and limit the stock of affordable housing.
Madison's ordinances strive to balance the competing rights of property owners. Under city ordinance, homeowners or renters can earn some extra money renting out space in the dwelling they occupy. Reasonable restrictions ensure that neighbors retain the right to control the type of neighborhood they are living in.