Madison allows long-term rental of legal ADUs without special licensing. Short-term rentals (under 30 days) require a Tourist Rooming House license under MGO Chapter 9 and Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) ATCP 72 license. Wisconsin Act 59 (2017) preempts outright STR bans but allows reasonable regulation. Madison's STR ordinance limits non-owner-occupied STRs.
Long-term rental of a legal ADU is permitted in Madison without special licensing beyond standard rental property registration through the Building Inspection Division. Wisconsin Statute 66.0436 (Local Property Inspection Programs) limits routine municipal rental inspections to targeted programs. Short-term rentals (defined as fewer than 30 consecutive days) are regulated under MGO Chapter 9 (Tourist Rooming House) which requires city licensing through the City Clerk's Office and a state ATCP 72 license from Wisconsin DATCP. Madison's STR regulations impose stricter rules on non-owner-occupied STRs: non-owner-occupied rentals are limited to 30 days per calendar year in many residential districts, while owner-occupied rentals (homestays) may operate year-round. Wisconsin Act 59 (2017) and Wis. Stat. 66.1014 preempt outright STR bans but allow reasonable regulation including licensing, occupancy limits, parking, and basic safety standards. Madison room tax (Wis. Stat. 66.0615) is 9 percent plus state sales tax. Wisconsin Statute 66.1015 prohibits local rent control; Madison cannot cap ADU rents. Wisconsin ATCP 134 governs lease terms.
Operating an unlicensed STR violates MGO Chapter 9 with forfeitures of $100 to $1,000 per offense and may trigger license revocation. Non-owner-occupied STRs exceeding 30 days per year face escalating fines and possible nuisance property designation. Unremitted room tax accrues with city and state collection actions, including liens under Wis. Stat. 66.0703. Repeat violations may result in license suspension or revocation by the City Clerk.
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See how Madison's adu rental restrictions rules stack up against other locations.
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