Everything you need to legally operate a short‑term rental in Middleton (and, where relevant, in Dane County and the State of Wisconsin). All information is drawn directly from the city, county, and state documents supplied; the source links are listed at the end.

1. Overview – Are Short‑Term Rentals Allowed in Middleton?

Yes. Short‑term residential rentals are allowed in the City of Middleton only as an accessory land use to a residential dwelling. They are regulated by the City’s Zoning Ordinance (Section 10.03.28(26)) and must obtain an annual City of Middleton Short‑Term Residential Rental License.

Key points investors must understand upfront:

| Requirement | What it means for you | |-------------|-----------------------| | Location | Must be on a property zoned for residential use; STR cannot be a stand‑alone commercial lodging facility. | | Operator | Only the property owner may operate the STR, unless the lease explicitly permits a tenant to do so. A condominium owner must have explicit permission from the association. | | Use type | STR is permitted as an accessory use (i.e., the primary function of the dwelling remains residential). | | Maximum stay | Depends on stay length (see Section 3 – City Regulations). | | Compliance | Violations are enforced under § 10.10.60 and can result in fines, revocation of the license, and legal action. |

Bottom line: If you own a single‑family home, condo, or apartment in a residential zone and can meet all licensing and operational rules, you can legally run an STR in Middleton.

2. How to Start a Short‑Term Rental Business in Middleton

The following 10‑step process consolidates the city, county, and state requirements. Treat each step as a mandatory checkpoint before you list the property.

| Step | Action | Where / Who | |------|--------|--------------| | 1. Confirm Zoning Eligibility | Verify the parcel’s zoning (Residential). Use the City’s zoning map or contact Planning. | Planning Dept – planning@cityofmiddleton.us | | 2. Owner‑Authorization Check | If you are a tenant, obtain written permission from the landlord. If a condo, get written approval from the condo association. | Property owner / Condo board | | 3. Obtain a Building‑Code Inspection Report | Schedule an inspection with the City’s Building Inspection Division. | Jim Sjolander – jsjolander@cityofmiddleton.us – 608‑821‑8397 | | 4. Secure Proof of Insurance | Provide proof of property & liability insurance that covers short‑term lodging activities. | Your insurance agent | | 5. Apply for City STR License | Complete the Short‑Term Residential Rental application (page 3 of the city PDF). Include all supporting documents (see Section 3). Submit electronically to planning@cityofmiddleton.us (paper copies accepted). | City of Middleton Planning Dept | | 6. Pay City Fees | Application fee $100 (set by City code) + any annual administrative fee. Fees are payable when the license is issued. | City of Middleton Treasury | | 7. Obtain State‑Level Licenses | • Wisconsin Tourist Rooming House License (DATCP) – required if you rent > 10 nights per year. <br>• Wisconsin Seller’s Permit (Dept. of Revenue) – required to collect sales tax. | DATCP – datcp.wi.gov <br>Dept. of Revenue – revenue.wi.gov | | 8. Register for Municipal Room Tax | Middleton imposes a room tax on transient stays. Register with the City Treasurer (often handled together with the City license). | City of Middleton Treasurer | | 9. Set Up Guest‑Tracking Records | Create a Guest Register (names & addresses) and a Business Record (rental dates & consideration). Keep both for ≥ 1 year. | Internal record‑keeping system | | 10. List & Operate | Once all approvals are in hand, publish your listing (Airbnb, Vrbo, etc.). Ensure you comply with occupancy limits, stay‑length caps, and record‑keeping requirements. | – |

Timeline:

• Pre‑inspection & city license: 2–4 weeks typical (depends on building inspection scheduling).
• DATCP tourist‑rooming‑house license: 2–3 weeks (includes pre‑inspection).
• Seller’s Permit: Immediate (online).

Plan at least 6–8 weeks from first contact to go live.

3. Required Documents, Permits, Licenses & Guidelines

| Category | Document / Permit | Who Issues It | Cost (typical) | Key Details | |----------|-------------------|---------------|----------------|-------------| | City License | Short‑Term Residential Rental License (annual) | City of Middleton Planning Dept | $100 application + annual admin fee (set by City) | Must be renewed each calendar year; only valid while the license is current. | | Building‑Code Inspection | Building Inspection Report | City Building Inspection (Jim Sjolander) | No fee listed; inspection required before license issuance | Verifies fire safety, smoke/CO detectors, egress, etc. | | Insurance | Property & Liability Insurance proof | Private insurer | Varies (typical $150‑$300/yr for $1 M liability) | Must cover short‑term lodging activity. | | Owner‑Consent (if applicable) | Written consent from landlord or condo association | Property owner / Condo board | N/A | Explicit permission required per city code. | | State Tourist‑Rooming‑House License | DATCP Tourist Rooming House License | Wisconsin Dept. of Agriculture, Trade & Consumer Protection (DATCP) | $110 annual + $300 one‑time pre‑inspection fee | Required if you rent > 10 nights per year (most STRs). | | Seller’s Permit | Wisconsin Sales Tax Seller’s Permit | WI Dept. of Revenue | $20 (one‑time) | Needed to collect 5 % state sales tax + 0.5 % Dane County sales tax. | | City Room‑Tax Permit | Middleton Room‑Tax Registration | City of Middleton Treasurer | Registration fee (often $2‑$10) | Must collect & remit municipal room tax on each stay. | | Guest Register | Guest‑name & address log | Host (self‑maintained) | N/A | Must be available for City inspection for ≥ 1 year. | | Business Record | Rental‑date & consideration log | Host (self‑maintained) | N/A | Must be kept for ≥ 1 year. | | Dane County Health License (required for all STRs < 30 days) | Tourist Rooming House License (county) | Public Health Madison & Dane County (PHMDC) | $535 (includes $375 pre‑inspection) + $160 renewal | Pre‑inspection verifies health/safety standards (smoke detectors, fire extinguisher, etc.). |

Important: The city’s checklist explicitly states that all of the above items must be supplied annually before the City STR license can be issued. Missing any component will delay or prevent licensing.

4. Specific Regulations – City, County & State

4.1 City of Middleton (Zoning Ordinance § 10.03.28(26))

| Regulation | Details | |------------|---------| | Eligibility | STR allowed only as an accessory use to a residential dwelling. | | Operator | Owner must be the operator, unless the lease explicitly allows a tenant. Condo owners need explicit association approval. | | Stay Length & Day Caps | <ul><li>6‑29 consecutive days: May operate up to 180 consecutive days in any 365‑day period (per Wis. Stat. § 66.1014(2)(d)). Must notify Zoning Administrator of the first rental of each 365‑day period.</li><li>1‑6 days: If the STR is the operator’s primary residence and the operator is present during the stay, there is no day‑limit for the year‑round operation.</li><li>1‑6 days (non‑primary residence): May operate no more than 30 days per permitting year (July 1 – June 30). Cannot rent to multiple unassociated parties at the same time.</li></ul> | | Occupancy Limit | Maximum tourist/transient occupancy = the lesser of (2 × # of legal bedrooms) or 12. Children under 12 years are not counted toward the limit. | | Guest Register | Must record true names & addresses of all guests before occupancy; keep for at least 1 year. | | Business Record | Must record guest names, rental dates (minimum 1 day), and monetary consideration; keep for at least 1 year. | | Insurance | Proof of valid property and liability insurance covering the dwelling unit. | | Renewal | License must