Any members with STR properties in Wisconsin Dells area?

Question

Hi all, I'm new to the short-term rental business. Currently in search of my first investment property around Wisconsin Dells area. As you know, in order for me to purchase a place, I need a clear understanding on local laws and regulations. And here is the part where I'm asking for your help. Is there anyone in this group, who owns any properties in that location, and would be willing to provide assistance on finding or would like to share their knowledge, on the most current situation with zoning rules, permits, and laws, pertinent to short-term rental in this part of Wisconsin. I have been trying to look up information online, but I found it to be really difficult to locate the right information for this subject. I really appreciate your input. Thank You.

Mike B. · Answer

I've been recently researching STRs in the Dells/Lake Delton area and I may be able to add some value to this thread as I've spoken to the Village Zoning office multiple times recently.  Within the Village of Lake Delton as a non resident the only way to functionally have a self managed AirBNB is to acquire what they define as a class B license.  This license allows a person or corporation to rent a STR for a period of 7-29 days.  You, your corporation, or an appointed "resident agent" needs to reside or have an office within 30 minutes of the Village.  The usage of such a property is also subject to conditional use approval by the Village, however I was assured by Zoning that it's reasonable to assume one could obtain this approval, unless one has a history of criminality, tax delinquencies w/the village, etc.  Here's the link to the regs if anyone wants more information:

https://lakedelton.org/wp-cont...

The trick as I see it is that I have no interest in purchasing a home w/o the ability to use it as an STR but I'm not sure they'll grant you the approvals without owning the home.  A little bit of chicken/egg I think

Ben Anderson · Answer

@Karol Chmara

I did forget to mention that if you live outside of 25 miles you have to have a resident agent living within that 25 miles managing your property. Both cities require it.

Ben Anderson · Answer

@Karol Chmara

Hello,

We currently have two STR in Lake Delton.  There is a sunset clause in 2023 that you cannot get licenses unless you are a property manager and have 3 properties.

Wisconsin Dells is a little less strict, you can have them inside commercially zoned properties provided you get a conditional use permit through the city.

In residential areas, you can only rent for 6 consecutive months out of the year.  Which is tough because you have to miss spring breaks or the fall which are good money makers. Winter you’re hoping to cover expenses.

Hope this helps,

Ben

Brandon Pellmann · Answer

Hey Ben,

Wisconsin Dells Ordinance 16.35(2k) defines a short-term rental as: A residential dwelling offered or occupied for rent for a fee or similar consideration for more than six but fewer than 29 consecutive days.

My question is, if you rent for only 5 days in a row, with one day breaks in between do you even have to follow the STR rules defined under 16.35?

Mike B. · Answer

Sorry for the double post (above).  Jennifer you want to speak with Jeremy Peach at the Village of Lake Delton.  He's very helpful and can answer your questions

Jennifer Ingiald · Answer

Hi Ben - we are in the process of purchasing a condo on Canyon Rd right now that I would like to manage myself.. the HOA allows for short term rentals so I know I'm OK there, but now I'm worried about the Village! I found this thread so thank you for all the info you've all provided! Curious - do you know of the newest Village of Lake Delton restrictions?  Are you still able to apply for a Class A or B permit this year, or are they no longer accepting? And the Sunset Clause you refer to, if you apply and get it now, are you then grandfathered in after 2023?  Or are they going to not renew anyone who manages under 3 properties? I plan on calling the Village tomorrow, but curious of your first hand knowledge.  Thank you!

Adam Kindwall · Answer

@Karol Chmara

Hi Karol

I am also looking intensely at STRs in Wisconsin.  I have been digging into the AirDNA data for areas all over The state. The most obvious vacation destinations being the Dells and Door county seem to be flirting with new restrictions and regulations that give me pause. Ive hosted a property in Madison since 2016 but the regulations are not ideal. Milwaukee seems to have fairly favorable regulations, and there are definitely spots in the city with potential.

From what I have found, most lake homes all over the state have a lot of potential for good revenue as well. I think vacationers are looking for any rural getaway.

I am hoping to purchase an STR property in the next 12 months and also possibly cohost for other investors. Hoping to find a secluded gem that could be an STR year round.

If you are curious about the AirDNA data I’m happy to share.

Best of luck in your search.

Adam

Karol Chmara · Answer

@Laura Rolerat and @Ben Anderson

Hey guys welcome and Thank You for your response to this post. As of today I'm still looking, and learning new things about this business. Laura how's the situation with you?  Were you able to find anything and begin your operation ? Ben Thanks for your valuable input. I did find out just recently after reviewing Adams county ordinance that in this particular county, just like you mentioned Dells and Lake Delton, you need to have a on site manager / resident agent, if you live 25 miles or more from the property you own. My question to this now is, how or were can you find someone who can be your agent for the particular property   you own. Also I was told that STR properties are in specific zones, and I'm not talking here about residential or commercial. What specific zones are this and are any of you familiar with this? Also Ben do you use managing company for your properties and if not how did you end up finding someone to be your agent for you. Guys thank you again for any help, looking forward to talk to you again soon.

Karol

Laura Rolerat · Answer

Hi Karol. Looks like you haven’t had any luck finding anyone on BP investing in this area. We are also interested in this buying a STR in this area. Wondering if you were able to find anything out in your research.

Laura Rolerat · Answer

@Ben Anderson great info! Thanks!!

Any members with STR properties in Wisconsin Dells area?

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