Overview: Are Short-Term Rentals Allowed in Verona, WI?

YES, short-term rentals are explicitly allowed in Verona, Wisconsin, with specific regulations in place. The City of Verona adopted its first short-term rental regulations in May 2021, with revisions in March 2022. Under Verona's current zoning ordinance, short-term rentals are permitted as a temporary use in residential districts, subject to strict requirements that the property serve as the owner's primary residence and comply with minimum and maximum stay requirements.

How to Start a Short-Term Rental Business in Verona, WI

Step 1: Verify Property Eligibility

• Confirm the property is zoned for residential use
• Ensure the property will serve as your primary residence (not an investment property)
• Verify compliance with minimum stay requirements (7 consecutive days minimum)

Step 2: Obtain Required Licenses and Permits

• Dane County Tourist Rooming House License (required for all STRs in Dane County)
• Room Tax Registration with local authorities
• Wisconsin Seller's Permit (unless renting exclusively through Airbnb/VRBO)

Step 3: Complete Health and Safety Inspections

• Schedule pre-inspection with Public Health Madison & Dane County
• Address any compliance issues before operating

Step 4: Register for Applicable Taxes

• Wisconsin state sales tax (5%)
• Dane County sales tax (0.5%)
• Local room tax rates

Required Documents, Permits, Licenses, and Guidelines

City of Verona Requirements

Memorandum from Community Development Specialist (November 2024) indicates the following requirements:

Zoning Requirements (Section 13-1-133(e)):

1. The residential dwelling must be the primary residence of the property owner
2. Short-term rental period must be:
   • Minimum: 7 consecutive days
   • Maximum: 180 consecutive days in any one visit

Key Regulatory Points:

• STRs included in Zoning Ordinance adopted May 2021, revised March 2022
• City has fielded inquiries from speculative home buyers but most walk away when they learn about primary residence requirement
• City receives room taxes from STRs but is unsure if all STRs are properly registered

Dane County Licensing Requirements

From Public Health Madison & Dane County:

Tourist Rooming House License:

• Required for all short-term rentals in Dane County (including Verona)
• Licensing year: July 1 to June 30
• Annual health inspection required
• Pre-inspection required before operations begin

Application Requirements:

• Completed lodging license application
• Payment of license fees
• Proof of zoning compliance
• Wisconsin Seller's Permit (unless using only Airbnb/VRBO)
• Room tax registration

Wisconsin State Requirements

Tourist Rooming House License from State DATCP:

• Required for properties with 1-4 sleeping accommodations
• Annual license fee: $110
• Pre-inspection fee: $300
• Valid from July 1 to June 30

Specific Regulations: City, County, and State Level

City of Verona Specific Regulations

Primary Residence Requirement:

• Property must be the owner's primary residence
• This is a significant limitation for investors, as it excludes pure investment properties
• City staff have requested proof of residency but lack formal affidavit process

Stay Duration Limits:

• Minimum stay: 7 consecutive days
• Maximum stay: 180 consecutive days
• This effectively prohibits weekend rentals of less than one week

Enforcement Challenges:

• City has received complaints about properties not being occupied as residences
• Difficulty verifying compliance with minimum stay requirements
• Need for improved enforcement mechanisms

Dane County Regulations

Health and Safety Standards:

• Annual health inspections mandatory
• Compliance with Wisconsin Administrative Code ATCP 72 (Hotels, Motels, and Tourist Rooming Houses)
• Requirements include smoke detectors, carbon monoxide detectors, fire extinguishers
• Maximum occupancy limits based on bedroom count

Licensing Process:

• Tourist Rooming House License required
• Pre-inspection before operations
• Annual renewal process
• Non-transferable licenses

Wisconsin State Regulations

State-Level Requirements:

• Tourist Rooming House classification for STRs
• Maximum rental day limits: State law prevents local authorities from limiting rentals to fewer than 180 days per 365-day period
• Sales tax obligations (5% state rate)
• Seller's permit requirements (with Airbnb/VRBO exception)

Contact Information

City of Verona

Community Development Department

• Contact: Katherine Holt, Community Development Specialist
• For questions about zoning requirements and local regulations
• Address: Verona City Hall
• Phone: (608) 848-9941
• Email: Contact through city hall main number

Dane County Public Health

Environmental Health Division

• Phone: (608) 242-6515
• Email: str@publichealthmdc.com (for short-term rental inquiries)
• Main Phone: (608) 266-4821
• Fax: (608) 266-4858
• Address: 2306 S. Park Street, Madison, WI 53713

Wisconsin Department of Agriculture, Trade and Consumer Protection

• For Tourist Rooming House licensing
• Website: datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx

Verona City Council Developments (2025)

March 2025 Meeting Highlights:

• Council discussed implementing stricter licensing system
• Estimated annual licensing fees could range from $500 to $1,000
• Concerns over enforcement of primary residence requirement
• Discussion of improving coordination between Dane County and City
• Consideration of formal affidavit process for primary residence verification

Source Pages

• City of Verona Zoning Ordinance Article 4 - Temporary Uses - Primary source for Verona STR regulations
• City of Verona Plan Commission Memorandum (November 2024) - Primary source for current enforcement challenges and proposed changes
• Public Health Madison & Dane County - Places to Stay - Primary source for county licensing requirements
• Wisconsin Short-Term Rental Laws Guide - Secondary source for state-level requirements
• City of Madison STR Regulations (Reference) - Reference only - different from Verona requirements

Important Considerations for Investors

Primary Residence Limitation: The requirement that the property be the owner's primary residence significantly limits investment opportunities in Verona. This regulation excludes traditional investment properties where the owner does not reside.

Enforcement Uncertainty: The city acknowledges challenges in enforcing the primary residence requirement and is considering improvements, suggesting current compliance monitoring may be limited.

Future Regulatory Changes: The City Council is actively discussing stricter enforcement mechanisms and potential licensing fee increases, indicating the regulatory environment may become more restrictive.

Compliance Strategy: Given the primary residence requirement, viable STR investments in Verona would need to be owner-occupied properties or involve relocating to the property as a primary residence.