Overview: Are Short-Term Rentals Allowed?

Yes. Short-term rentals (STRs) are permitted in Balsam Lake, Wisconsin, under county and state rules. STRs operating fewer than 29 consecutive days are treated as “tourist rooming houses” under Wisconsin law and must be licensed and operated in compliance with state statutes, Wisconsin Administrative Codes ATCP 72 and ATCP 73, Polk County zoning and health requirements, and applicable local building, addressing, and driveway standards.

At a glance, a compliant operation in Balsam Lake requires:

• Wisconsin DATCP recreational facility/lodging license for tourist rooming houses.
• Polk County Tourist Rooming House Land Use Permit and annual renewal.
• Septic system inspection/approval and ongoing maintenance reporting.
• Determination of legal bedroom count by the local building inspector.
• Property boundary survey and clear staking.
• Onsite parking on impervious surfaces contained on the property; quiet hours; fire rules; and advertising that includes permit and license numbers.

If an STR operates without required licensing or in violation of conditions, the county can revoke the land use permit and require a shutdown period before reapplying.

How to Start an STR Business in This Market

Polk County is an unincorporated municipality with shoreland and non-shoreland zoning districts; zoning rules govern where and how STRs can operate. Balsam Lake also lies within shoreland areas adjacent to Balsam Lake and related waterways, and setbacks and shoreland standards apply.

A practical path to compliance:

1. Confirm zoning eligibility and setbacks.

   • Check zoning and shoreland status via the Polk County Zoning District Map and the interactive beacon portal (Polk County Beacon Land Records Online Portal).
   • Verify minimum setback compliance from roads, lot lines, and ordinary high water mark (OHWM), especially for waterfront properties.
   • Confirm that parking, accessory building restrictions, and height limits can be met.

2. Verify addressing and driveway access.

   • Obtain a rural address if applicable (Chapter 28, Article III) and ensure driveway access meets state, county, or town requirements before building or hosting.

3. Secure state lodging licensing.

   • Apply for the Wisconsin DATCP Recreational Facility and Lodging license for tourist rooming houses. This is the foundational license required for STRs renting fewer than 29 days to transients.

4. Complete county-level land use approval.

   • Apply for a Polk County Tourist Rooming House Land Use Permit. This county permit is specific to STR operations and has explicit operating conditions. The zoning office typically processes applications within 1–2 weeks once all prerequisites are satisfied.

5. Satisfy health and building prerequisites.

   • Septic system inspection and approval (POWTS). Submit maintenance reports through the Ascent Permit Management Suite.
   • Determine legal bedroom count with the local uniform building inspector. Additional annual inspections may be required at the operator’s expense.

6. Implement operating controls.

   • Enforce quiet hours (11:00 p.m.–7:00 a.m.), prohibit RV/camper overnight stays, keep pets contained, ensure all fires are extinguished by 11:00 p.m., and display a 24-hour contact number.

7. Prepare guest information and advertising.

   • Include DNR lake regulations and local lake association rules in rental materials.
   • List the land use permit number and health department license number in all advertisements.

8. Track permits and compliance.

   • Use the Ascent Permit Management Suite to monitor land use and sanitary permits; maintain clean records to avoid citations.

Required Documents, Permits, Licenses, and Guidelines

State-level licensing and codes:

• Wisconsin DATCP Recreational Facility and Lodging license (tourist rooming house).
• Wisconsin Administrative Code ATCP 72 (lodging safety/operations).
• Wisconsin Administrative Code ATCP 73 (campgrounds; relevant where campground-style facilities or bunkhouses are part of the property use).

County-level zoning and health requirements:

• Polk County Tourist Rooming House Land Use Permit and annual renewal.
• Tourist Rooming House Cleaning Checklist (county environmental health).
• Septic system (POWTS) inspection approval and annual maintenance reporting.

Local building and infrastructure:

• Town Building Inspector determination of legal bedrooms and any Uniform Dwelling Code (UDC) permits required for dwellings or accessory structures.
• Driveway permits when accessing U.S./State highways (WisDOT), county highways (Polk County Highway Department), or certain town roads.
• Rural address assignment (if in the county’s rural numbering system).

Key operational documents:

• Property boundary survey with boundaries clearly staked by a professional land surveyor.
• Guest information package covering DNR lake rules, lake association rules, fireworks regulations, quiet hours, and pet policies.
• Parking plan demonstrating impervious surface, onsite containment, and compliance with setbacks.

Advertising requirements:

• Include the land use permit number and the health department license number in all advertisements.

Specific Regulations: City (Balsam Lake), County (Polk County), and State (Wisconsin)

State (Wisconsin):

• STRs renting fewer than 29 consecutive days must be licensed as tourist rooming houses.
• ATCP 72 establishes minimum standards for lodging safety and operation.
• ATCP 73 may apply where campgrounds or bunkhouses are integrated into a lodging operation.

County (Polk County, unincorporated areas):

• Zoning compliance is mandatory in shoreland areas (within 1,000 feet of lakes/ponds/flowages; 300 feet of rivers/streams) and in specified non-shoreland towns including Balsam Lake.
• Tourist Rooming House Land Use Permit Conditions (selected highlights):
  • Accessory buildings may not provide sleeping accommodations.
  • No RVs or campers allowed for overnight stays.
  • All parking must be on impervious surfaces and contained on the property.
  • Annual land use permit renewal required.
  • Quiet hours from 11:00 p.m. to 7:00 a.m.
  • Fires and embers extinguished by 11:00 p.m.; no unattended fires.
  • Pets must be contained on the rental property unless on public property.
  • Property lines must be surveyed and clearly staked.
  • Existing septic system must be inspected and approved; inspections may be required annually.
  • Legal bedroom count must be determined by the local building inspector; additional annual inspections may be required at operator expense.
  • Advertising must display the land use permit number and the health department license number.
  • Maximum rental of 180 consecutive days per year, minimum rental period of seven consecutive days.
  • Operation without a valid permit triggers mandatory cessation for three months before applying; after-the-fact fees apply.
• Shoreland setbacks (selected, applies to structures near water):
  • Dwellings: 75 feet from OHWM; side setbacks vary by zoning class (e.g., 10–25 feet).
  • Accessory buildings: 75 feet from OHWM; side setbacks may be 5–25 feet depending on class.
  • Boathouses: 10 feet from OHWM.
  • Road setbacks: e.g., 63 feet from centerline of town roads; 75 feet from county road centerline; 110 feet from state/US highway centerline (greater of centerline or ROW setback applies).
• Sanitary system (POWTS) compliance and maintenance reporting via the Ascent Permit Management Suite.

Local (Balsam Lake context):

• The Village of Balsam Lake operates its own addressing system; for county rural addresses outside villages, the rural numbering ordinance applies.
• Driveway permits may be required depending on road jurisdiction (state, county, town); consult the appropriate authority before hosting.
• STRs must respect DNR lake regulations and local lake association rules; include these in guest materials.

Contact Information

Polk County Health Department (licensing and environmental health for lodging):

• Address: 100 Polk County Plaza, Balsam Lake, WI 54810
• Phone: 715-485-8400
• Hours: M–F, 8:30 AM–4:30 PM

Polk County Zoning Division (land use permits and zoning compliance):

• Address: 100 Polk County Plaza, Balsam Lake, WI 54810
• Zoning Phone: 715-485-9226
• Hours: Monday–Friday, 8:30 AM–4:30 PM

Town Building Inspectors (determination of legal bedrooms; UDC-related inspections):

• Balsam Lake: William Koepp – 715-790-3688

Polk County Highway Department (driveway access on county roads):

• Phone: 715-485-8700

Wisconsin Department of Transportation (driveway access on state/US highways):

• Regional contact: 715-635-5059

Sanitary Districts (for public sewer questions; STR licensing remains county/state):

• Village of Balsam Lake Sanitary District: 715-485-3424

State agency:

• Wisconsin DATCP Licensing (recreational facility/lodging licenses)
  • Website: See DATCP Recreational Facility and Lodging Licenses (source link below)

Links to Source Pages (for verification and downloads)

• Polk County Health Department – Lodging (Hotel, Motel, Tourist Rooming Houses) and licensing overview:
  • www.polkcountywi.gov/polkcountyhealth/_hotel,_motel_and_tourist_rooming_houses/index.php
• Polk County Zoning – FAQs and Tourist Rooming House Permit Conditions:
  • www.polkcountywi.gov/government/divisions_and_departments/environmental_services_division/faqs_-_zoning.php
• Wisconsin Administrative Code ATCP 72 (Lodging):
  • docs.legis.wisconsin.gov/code/admin_code/atcp/055/72
• Wisconsin Administrative Code ATCP 73 (Campgrounds):
  • docs.legis.wisconsin.gov/code/admin_code/atcp/055/73
• Wisconsin DATCP Recreational Facility and Lodging Licenses:
  • datcp.wi.gov/Pages/Licenses_Permits/RecFacLicenses.aspx
• Polk County Beacon Land Records Online Portal (Zoning District Map):
  • beacon.schneidercorp.com/Application.aspx?App=PolkCountyWI
• Ascent Permit Management Suite (land use and sanitary permit tracking):
  • ascent.co.polk.wi.us/Ascent/PermitManagement

Practical Implications for STR Investors

• Treat licensing and permit conditions as core operations—not “checkboxes.” Compliance is ongoing (annual renewals, septic reporting, inspections), and violations can trigger permit revocation and forced shutdown periods.
• Shoreland setbacks and OHWM standards are strictly enforced. Confirm setbacks before you finalize acquisition or design plans.
• Invest early in a professional boundary survey, proper impervious parking, and a compliant septic system. These items are frequently cited in enforcement actions.
• Build guest-facing policies that reflect local rules—quiet hours, fireworks, lake regulations, and pet containment. Include permit/license numbers in all ads and listings.
• Use the Ascent portal to track county permits and maintenance records; proactive documentation reduces inspection friction and preserves permit standing.

This guide reflects county and state sources provided and is intended for investors evaluating STR opportunities in Balsam Lake and surrounding shoreland areas within Polk County. Where municipal (village) specifics may apply, confirm directly with the Village of Balsam Lake for any additional requirements.