Overview: Are short-term rentals allowed in Elkhart Lake?

Yes. Short-term rentals (STRs) are allowed in the Village of Elkhart Lake and are explicitly regulated under Village Ordinance Chapter 31 (effective 2025). The ordinance defines an STR as a residential dwelling offered for rent for a fee for fewer than 29 consecutive days, consistent with Wis. Stat. §66.0615(1)(dk). Operating more than 10 nights per year requires a Short-Term Rental License from the Village. STRs must also maintain a State of Wisconsin Tourist Rooming House License and a Village Room Tax Permit.

• 10-night threshold: No person may maintain, manage, or operate an STR for more than 10 nights per year without a Village STR license.
• License term: May 1 through April 30; annual renewal required by April 30.
• Core requirements: State Tourist Rooming House License; Village Room Tax Permit; Village STR License; inspections; insurance; local contacts; and compliance with state uniform dwelling code and village ordinances.

How to start a short-term rental business in Elkhart Lake

A practical, step-by-step approach:

1. Confirm eligibility and zoning

• Verify the property is a residential dwelling and the proposed use aligns with zoning (consult Village Zoning Administrator).
• Confirm you can operate as owner or via a designated property manager.

2. Secure required state and county approvals

• Obtain a State of Wisconsin Tourist Rooming House License (Wis. Stat. §254.64) through the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). This requires passing a health and safety inspection.
• Complete a State Lodging Establishment Inspection form dated within one year of issuance or renewal. DATCP or the County Health Department may conduct inspections depending on property classification.

3. Obtain the Village STR license and room tax permit

• Apply to the Village Administrator/Clerk for an STR License on Village forms.
• Obtain a Village Room Tax Permit (Municipal Code Chapter 3.06) to collect and remit room tax.

4. Insurance

• Maintain appropriate property insurance for STR use and provide proof with the application and renewal.

5. Inspections and safety standards

• Ensure compliance with the Wisconsin Uniform Dwelling Code (SPS 379.09) for occupancy limits and with SPS 321 for smoke and carbon monoxide detectors.
• Meet all sanitation and fire safety requirements per state and county inspection criteria.

6. Local contacts

• Designate a local contact and a backup contact with phone and email on file. Notify the Village of any changes within 24 hours.

7. Submit and pay

• File a complete application with all required documents and fees:
  • Initial application fee: $50
  • Renewal fee: $25
  • Late fee: $100 (after May 1)
• Licenses run May 1–April 30; submit annually by April 30.

8. Display and ongoing compliance

• Visibly display the STR license/permit on the premises.
• File and remit room tax returns as required; comply with all state, county, and village codes.

Required documents, permits, licenses, and guidelines

• Village Short-Term Rental License (Chapter 31).
• State of Wisconsin Tourist Rooming House License (Wis. Stat. §254.64) issued by DATCP.
• State Lodging Establishment Inspection form dated within one year.
• Village Room Tax Permit (Municipal Code Chapter 3.06).
• Proof of property insurance suitable for STR use.
• Designation of a property manager (if applicable).
• Local contact and backup contact information (24-hour phone and email).
• Evidence of county health inspection and approval before issuance.
• Documentation demonstrating compliance with:
  • Wisconsin Uniform Dwelling Code (occupancy limits by bedrooms; SPS 379.09).
  • Smoke and carbon monoxide detectors (SPS 321).
  • Fire safety, egress, and sanitation requirements.
  • Village noise, nuisance, and zoning ordinances.

Specific regulations for STRs: city, county, and state

• Occupancy: Must not exceed limits set in the Wisconsin Uniform Dwelling Code (SPS 379.09) based on the number of bedrooms; ensure adequate sanitation and detector coverage.
• Noise and nuisance: No excessive noise, fumes, glare, or vibrations. Outdoor events at STRs (e.g., weddings) may last no longer than one day, must occur between 8:00 a.m. and 10:00 p.m., and comply with village noise regulations.
• Camping prohibitions: No RVs, campers, tents, or other temporary lodging may be used on site to provide additional accommodations for paying guests.
• Grills and fire devices:
  • No hibachi, gas-fired grill, charcoal grill, or similar devices on any balcony, deck, or within ten feet of any structure.
  • No fire pit or similar device on any balcony, deck, or within twenty feet of any structure or neighboring lot line.
• Room tax: All rentals are subject to Elkhart Lake room tax at the current rate; permit holders must comply with Municipal Code Chapter 3.06 and applicable state confidentiality protections.
• Inspections: Pass county/state lodging inspections; maintain compliance with all applicable codes.
• License term and renewal: One-year license (May 1–April 30); renewal by April 30. The Administrator/Clerk reviews applications and coordinates with departments. Renewal may be denied for incomplete applications, outstanding fees or taxes, or documented complaints/violations.
• Appeals and revocation: Applicants may appeal denials to the Village Board within ten days. Licenses may be revoked for nonpayment of taxes, fraudulent room tax reports, multiple violations in a twelve-month period, failure to comply with inspection or licensing requirements, zoning violations, or conduct that substantially harms the residential character of the neighborhood.
• Penalties: $500 per incident plus court costs and forfeitures per Village bond schedule; penalties are in addition to other remedies.

Local contacts and authorities

• Village Administrator/Clerk (primary authority for STR licensing and room tax)
  • Address: 40 Pine Street, Elkhart Lake, WI 53020
  • Phone: (920) 876-2122
  • Email: clerk@elkhartlakewi.gov
  • Website: elkhartlakewi.gov
• Building Permits & Inspections (Village)
  • Phone: (920) 876-2122
  • Website: Building Permits & Inspections (Village Services)
• Zoning & Conditional Use Permits (Village)
  • Phone: (920) 876-2122
  • Website: Zoning & Conditional Use Permits (Village Services)
• Wisconsin DATCP (Tourist Rooming House Licensing and inspections)
  • Phone: Not provided in sources
• Sheboygan County (health inspection coordination)
  • Phone: Not provided in sources
• Elkhart Lake Chamber of Commerce (tourism/business support)
  • Address: 41 East Rhine Street, PO Box 425, Elkhart Lake, WI 53020
  • Phone: (920) 876-2922
  • Toll-Free: (877) 355-3554

Source links

• Village of Elkhart Lake Short-Term Rental Ordinance (Chapter 31, 2025): elkhartlakewi.gov/wp-content/uploads/2025/06/CH-31-Short-Term-Rental-Ordinance.pdf
• Village Municipal Code/Ordinances portal: elkhartlakewi.gov/government/municipal-codeordinances/
• Local STR regulation overview (market commentary, The Offer Sheet): local.theoffersheet.com/legal/elkhart-lake-wi/
• Vacation rental management overview (SummerOS): www.gosummer.com/vacation-rental-management/elkhart-lake-wisconsin
• News coverage of STR ordinance adoption (Plymouth Review): www.plymouth-review.com/articles/village-adopts-short-term-rental-ordinance/
• STR market data (AirROI, 2025): www.airroi.com/report/world/united-states/wisconsin/elkhart-lake

Notes for investors

• The ordinance is explicit and investor-friendly, but enforcement focuses on health, safety, taxes, and neighborhood impacts. Plan for county/state inspections, annual renewals, and robust guest operations, especially during high-demand race weekends and lake season.
• Maintain detailed records for room tax, insurance, inspections, and guest stays to ensure smooth renewals and reduce compliance risk.