Madison Short-Term Rental Permit and Quarterly Reporting Guide for Hosts

Madison allows qualifying short-term rentals, but hosts cannot publish an Airbnb or Vrbo listing before securing the required approvals.

A legal Madison short-term rental generally needs three separate approvals:

• A City of Madison Transient Room Tax Permit
• A Tourist Rooming House license from Public Health Madison & Dane County
• A Zoning Tourist Rooming House Permit, known as the ZTRHP1 permit

The City of Madison will not issue the ZTRHP1 permit until the other two approvals are in place. Once approved, hosts must maintain accurate guest records, file quarterly zoning reports and renew the permit every year.

This guide explains the Madison Short-Term Rental Permit process, application documents, operating limits, reporting deadlines and common mistakes that put a permit at risk.

Important: Regulations, fees and procedures can change. Confirm property-specific requirements with Madison Zoning, Public Health Madison & Dane County and the City of Madison Finance Department before advertising or accepting reservations.

Table of Contents

1. What counts as a short-term rental in Madison?
2. Are Madison short-term rentals legal?
3. Primary-residence requirements
4. Hosted and unhosted rental limits
5. The three required permits and licenses
6. How to apply for a ZTRHP1 permit
7. Home visits, occupancy and inspection requirements
8. Permit fees
9. Guest-registry requirements
10. Quarterly reporting deadlines
11. Zoning reports versus room-tax returns
12. Penalties and permit revocation
13. Annual permit renewal
14. Practical compliance calendar
15. How Kingdom Hospitality supports Madison hosts
16. Frequently asked questions

What Counts as a Short-Term Rental in Madison?

Madison defines a short-term rental as the rental of part or all of a structure for sleeping accommodations for fewer than 30 consecutive nights.

Wisconsin law refers to this type of operation as a Tourist Rooming House, often shortened to TRH. Airbnb and Vrbo are only advertising and booking platforms. A listing on either platform does not replace city zoning approval, health licensing or tax registration.

The main city zoning approval is the Zoning Tourist Rooming House Permit, or ZTRHP1.

Madison issues each ZTRHP1 permit to:

• A named operator
• For a specific dwelling unit
• At a specific property
• Under defined operating conditions

The permit is not transferable. The name used as the host in advertisements must also match the permit holder’s name.

Are Short-Term Rentals Legal in Madison?

Yes. Short-term rentals are legal in Madison when the property and operator satisfy the city’s rules.

Madison Zoning allows Tourist Rooming Houses in residential dwelling units, including qualifying apartments. However, city approval does not override a lease, condominium declaration, cooperative agreement or homeowners’ association restriction.

A condo owner near Capitol Square, for example, may qualify under city zoning but still face a building rule that prohibits stays under 30 nights. A tenant near the UW–Madison campus may qualify only when the lease expressly permits Tourist Rooming House activity.

Check both public regulations and private property agreements before paying application fees.

Does a Madison Short-Term Rental Have to Be Your Primary Residence?

In most standard cases, yes.

The short-term rental must be the operator’s primary dwelling while it operates as a Tourist Rooming House. It must also have served as the operator’s primary dwelling during the 12 consecutive months before operations begin.

Madison defines a primary residence as a person’s true, fixed and permanent home for at least 183 days in a calendar year.

The city may look at:

• The address on state-issued identification
• Where the operator receives mail
• Where the operator registers to vote
• Where household utilities are paid
• Whether the operator intends to return after an absence

A person can have only one primary residence.

This rule matters for investors. Buying a separate Madison property and immediately operating it as a full-time Airbnb will not normally satisfy the standard primary-residence requirement.

What about stays lasting 7 to 29 nights?

Madison notes that operators who exclusively offer stays between seven and 29 consecutive nights may have additional options.

Do not assume that a seven-night minimum automatically removes the primary-residence or permit requirements. Contact Madison Zoning and explain the exact operating model before publishing the listing.

Hosted and Unhosted Rental Limits

Madison treats hosted and unhosted stays differently.

Hosted stays

A hosted stay occurs when the permit holder remains at the property overnight while guests are there.

When the operator stays on-site, Madison does not impose the standard annual limit on rental nights. Being in the same neighborhood or sleeping at another nearby property does not count. The operator must remain at the licensed dwelling through the night.

Unhosted stays

When the operator does not remain at the property overnight, the Tourist Rooming House may generally operate for no more than 30 days during the licensing year.

The licensing year runs from July 1 through June 30.

This limit can disappear faster than inexperienced hosts expect.

Suppose a host leaves town during three Badger football weekends and accepts three-night reservations each time. Those stays would use nine of the available unhosted nights. Camp Randall attracts large game-day crowds, but strong demand does not change the city’s operating limit.

Track each night, not just each reservation.

The Three Approvals Madison Hosts Need

A Public Health license alone is not enough. A zoning permit alone is not enough.

Hosts need all three approvals before advertising or operating.

1. City of Madison Transient Room Tax Permit

Anyone furnishing lodging within the City of Madison must complete the applicable room-tax registration process for each place of business.

The City of Madison Finance Department handles this permit and the related room-tax returns.

Airbnb and Vrbo may collect and remit certain room and sales taxes for qualifying bookings. Public Health states that operators using only Airbnb or Vrbo may qualify for specific registration exceptions, but the host must still complete the correct forms and disclose that operating model.

Direct bookings can create different responsibilities. Do not assume that a marketplace has handled taxes on reservations taken through your own website, social media or another platform.

2. Tourist Rooming House License

Public Health Madison & Dane County licenses and inspects Tourist Rooming Houses across Dane County.

Before renting sleeping accommodations, the host must complete the lodging-license process, arrange a pre-inspection and receive approval. Public Health also conducts an inspection during each licensing year, which runs from July 1 through June 30.

The inspection addresses health and life-safety conditions. Current inspection materials cover items such as smoke alarms, carbon-monoxide protection where required, sleeping-room exits and other standards under Wisconsin Administrative Code ATCP 72.

3. ZTRHP1 Permit

Madison Zoning issues the ZTRHP1 permit.

You need the current Public Health Tourist Rooming House license and the City of Madison Transient Room Tax Permit before completing the zoning approval. The ZTRHP1 number must then appear in every short-term rental advertisement.

Do not publish a temporary or “test” listing while waiting for approval. Madison requires the permit before advertising, not merely before the first guest arrives.

How to Apply for a Madison ZTRHP1 Permit

Applications may be submitted online, by mail or in person at the Zoning Counter.

Submit a complete packet. Missing signatures, floor plans or supporting approvals can delay the application.

Step 1: Confirm eligibility

Before applying, confirm that:

• The unit is your qualifying primary residence
• You have occupied it for the required period
• Your lease explicitly permits TRH activity when you are a tenant
• Your condo association permits short-term rentals when applicable
• You understand the hosted and unhosted limits
• The proposed sleeping rooms are legal bedrooms

Step 2: Obtain the tax permit and health license

Apply for the Transient Room Tax Permit and complete the Public Health licensing and pre-inspection process first.

You will need the related permit and license numbers when completing the online ZTRHP1 application.

Step 3: Prepare the ZTRHP1 documents

The application packet may require:

• ZTRHP1-A Application: Main operator and property information
• ZTRHP1-B Residence Affidavit: A separate notarized affidavit for every host and co-host
• ZTRHP1-C Condominium Association Approval: Required for condo units
• ZTRHP1-D Advertising Locations: Current and intended listing websites
• ZTRHP1-E Guest Registry: A sample registry and prior rental details when applicable
• ZTRHP1-F Floor Plans: All habitable areas and numbered bedrooms
• ZTRHP1-G Notice to Property Owner: Required for tenant applicants

Condo approval must explicitly allow Tourist Rooming House activity. Tenant applicants must provide a lease that expressly permits the operation.

Step 4: Submit the application and schedule the home visit

After reviewing the packet, Building Inspection will contact the applicant to arrange a home visit.

Staff may walk through every habitable part of the dwelling, including areas that will not be offered to guests. They use the visit to verify floor plans, confirm legal bedroom counts and discuss host responsibilities.

Occupancy and Operating Requirements

Madison limits maximum guest occupancy to the lower of:

• Two guests per legal bedroom
• Twelve guests in total

Children under 12 do not count toward that occupancy calculation.

A large home near Lake Mendota does not automatically qualify for 12 adult guests. Bedroom legality controls the calculation.

After approval, the host must also:

• Display the ZTRHP1 number in every advertisement
• Use the permit holder’s name as the advertised host
• Maintain an on-site guest registry
• Record whether the operator was present each night
• Report material changes to Zoning
• Follow the approved floor plan and operating conditions

Changes involving the floor plan, primary residence, property owner, contact details or host information should be reported promptly.

How Much Does a Madison Short-Term Rental Permit Cost?

The ZTRHP1 process currently includes:

• A one-time, non-refundable application fee of $300
• An annual ZTRHP1 permit fee of $100
• A $100 late-renewal fee after June 30

These amounts do not include the Public Health license fee, inspection-related costs, insurance, property upgrades, state tax requirements or professional advice.

Verify the current fee schedules before submitting payment.

Guest-Registry Requirements

Every Madison Tourist Rooming House operator must maintain a registry at the property for inspection.

The registry must cover the current year and the previous year. It must show:

• The reservation holder’s name
• The reservation holder’s contact information
• Arrival and departure dates
• Whether the operator was on-site or off-site each night

Update the record after every checkout. Reconstructing several months of stays from platform messages creates unnecessary risk.

Use one booking reference across:

• Airbnb, Vrbo or direct-booking records
• The internal guest registry
• Host-presence records
• Quarterly zoning reports
• Tax documentation

For an event-driven stay near Monona Terrace or Capitol Square, record the same details you would record for a quiet midweek reservation. The reporting obligation does not change because the booking came during a convention, football weekend or downtown event. Monona Terrace hosts conferences and conventions close to the Capitol, while the Dane County Farmers’ Market operates around Capitol Square.

Madison Short-Term Rental Quarterly Reporting Requirements

Every ZTRHP operator must submit a quarterly report after each calendar quarter.

The report has two required sections:

1. Advertising locations
2. Guest-registry information

Both sections are required even when the host did not advertise or receive a reservation during the quarter.

Enter “No Advertising” when the property was not advertised. Enter “No Reservations” when no guests stayed. Include the year with every date.

Quarterly reporting deadlines

Use these deadlines:

• Activity from January through March: file by May 1
• Activity from April through June: file by August 1
• Activity from July through September: file by November 1
• Activity from October through December: file by February 1

Reports may be submitted during the month after the quarter closes. Do not submit before the quarter ends.

How to submit the report online

Madison requires online quarterly-report submission. Reports are not accepted by email, postal mail or paper delivery.

To submit:

1. Create an account in the City of Madison Licenses and Permits portal.
2. Contact Madison Zoning with the email address used for the account.
3. Wait for staff to connect the account to the ZTRHP permit.
4. Open the Permitting tab.
5. Select the ZTRHP record.
6. Open Record Info and choose Attachments.
7. Add the completed quarterly report.
8. Select QR-Quarterly Reporting as the document type.
9. Enter the year and quarter in the description.
10. Save the upload and retain proof of submission.

Account linking may take up to a week. Set up the account well before the first filing deadline.

Important: Zoning Reports and Room-Tax Returns Are Different

Do not confuse the ZTRHP quarterly report with the Madison Transient Room Tax return.

The ZTRHP quarterly report goes to Madison Zoning. It records:

• Advertising locations
• Reservations
• Guest information
• Stay dates
• Whether the host was on-site

The Transient Room Tax return goes to the City of Madison Finance Department. It deals with taxable lodging revenue and payments.

Current room-tax return deadlines are:

• January 31
• April 30
• July 31
• October 31

These dates differ from the zoning-report deadlines by one day in several quarters.

Create separate calendar reminders. Filing one report does not complete the other obligation.

Common Reporting Mistakes

Avoid these preventable errors:

• Skipping a report because there were no bookings
• Completing the guest registry but omitting advertising locations
• Leaving the year off reservation dates
• Recording “hosted” without documenting each individual night
• Submitting before the quarter closes
• Sending the report by email
• Choosing the wrong upload category
• Waiting until the due date to create the portal account
• Assuming Airbnb stores every detail Madison requires
• Confusing the zoning deadline with the room-tax deadline

The safest approach is simple: update the registry after every checkout and review it monthly.

Penalties and Permit Revocation

Madison may impose fines of $500 to $1,000 per day for zoning violations.

The city may also revoke a ZTRHP permit when an operator:

• Misses two quarterly-reporting deadlines
• Submits incomplete reports
• Violates operating rules
• Exceeds approved occupancy
• Fails to report material changes
• Continues operating outside permit conditions

Fines may double after a permit has been revoked.

Do not treat quarterly reporting as optional paperwork. It is an ongoing condition of keeping the permit.

Renewing a Madison Short-Term Rental Permit

Every ZTRHP permit must be renewed by June 30.

To renew:

1. Complete the ZTRHP-R renewal form.
2. Report changes to the property or application information.
3. Upload supporting forms when needed.
4. Wait for staff review.
5. Pay the $100 annual renewal fee.

A $100 late fee applies after June 30.

When the permit is not renewed, the host must remove all short-term rental advertising and stop hosting after June 30.

Changes that should be disclosed include:

• Updated floor plans
• New hosts or co-hosts
• Ownership changes
• New contact information
• Changes affecting primary-residence status

Zoning may require another inspection before renewal.

Madison STR Compliance Calendar

Add these reminders to the property calendar.

January

• Finish the fourth-quarter guest registry.
• Prepare the October–December zoning report.
• Prepare the applicable room-tax return.

February

• Submit the fourth-quarter zoning report by February 1.

April

• Close the first-quarter guest registry.
• Prepare the January–March zoning report.
• Prepare the applicable room-tax return.

May

• Submit the first-quarter zoning report by May 1.

June

• Review permit information for changes.
• Renew the ZTRHP permit.
• Renew the Public Health license as required.
• Complete renewal before June 30.

July

• Close the second-quarter guest registry.
• Prepare the April–June zoning report.
• Prepare the applicable room-tax return.

August

• Submit the second-quarter zoning report by August 1.

October

• Close the third-quarter guest registry.
• Prepare the July–September zoning report.
• Prepare the applicable room-tax return.

November

• Submit the third-quarter zoning report by November 1.

Also review the host-presence count before accepting high-demand dates around Badger football, UW–Madison events or busy downtown weekends. Demand should never push the property beyond its approved operating limits.

How Kingdom Hospitality Supports Madison Hosts

A Madison permit does not manage the property for you.

Hosts still need reliable systems for:

• Guest communication
• Reservation tracking
• Cleaning coordination
• Property inspections
• Preventive maintenance
• Advertising updates
• Owner reporting
• Calendar management
• Record organization

Kingdom Hospitality offers short-term rental management, proactive property care, guest support, cleaning oversight, maintenance coordination, pricing and compliance-focused operational assistance.

The permit holder remains responsible for meeting legal, tax and filing requirements. Professional management can still make the day-to-day operation more organized and reduce the chance that important tasks disappear during a busy booking period.

Need help managing your Madison short-term rental? Speak with Kingdom Hospitality about building a reliable operating system for guest care, property maintenance, booking records and recurring deadlines.

Frequently Asked Questions

Do I need a Madison Short-Term Rental Permit before listing on Airbnb?

Yes. Hosts must receive the required licenses and the ZTRHP1 permit before advertising or renting the property. The permit number must appear in every advertisement.

Can I run an Airbnb from my Madison apartment?

Possibly. The apartment must meet Madison’s rules, qualify as the operator’s primary residence and have a lease that explicitly allows Tourist Rooming House activity.

Can I rent my Madison home while I am travelling?

Yes, but unhosted stays are generally limited to 30 days during the July 1–June 30 licensing year.

Do I need to file a quarterly report when I had no guests?

Yes. Complete both required sections and enter “No Advertising” or “No Reservations” where applicable.

How much does the Madison ZTRHP1 permit cost?

The current zoning charges include a $300 non-refundable application fee and a $100 annual permit fee. Other licensing, inspection and property-related costs may apply.

When must I renew the permit?

All ZTRHP permits must be renewed by June 30. A $100 late fee applies after that date.

Can a property manager hold the permit for me?

The permit is issued to a specific operator for a specific dwelling and is not transferable. The advertised host must match the permit holder. Confirm any proposed management arrangement with Madison Zoning before relying on it.

Next Step: Let’s Talk About Your Property

Curious about what management fees would look like for your home? The best way to know is to schedule a quick call with us. We’ll review your property, run revenue projections, and give you a clear picture of your potential earnings after fees.

Here’s how to get started:

Call us directly at 608-591-5844

Email us at info@kingdom-hospitality.net

Visit us online at www.kingdom-hospitality.net

👉 Kingdom Hospitality is here to maximize your property’s income and protect your peace of mind.