Thinking about listing your place on Airbnb or VRBO in McFarland? You’re not alone. Short-term rentals can help you offset your mortgage or fund future goals, but the rules can feel confusing the first time you navigate them. This guide gives you a clear path to operate legally, safely, and confidently in the Village of McFarland.
You’ll learn how short-term rentals are typically classified, what permits and inspections to expect, which taxes may apply, and a step-by-step checklist to get compliant. You’ll also find practical tips to avoid common pitfalls. Let’s dive in.
What counts as a short-term rental
In many Wisconsin communities, a short-term rental that hosts guests for fewer than 30 days is treated as a Tourist Rooming House or similar transient lodging use. McFarland’s ordinance language and permit name may vary, so your first step is to confirm how your property is classified by the Village Clerk or in the McFarland municipal code.
Key points to confirm with the Village:
- Whether your address is eligible for short-term rental use in your zoning district.
- Whether whole-home rentals and single-room rentals follow the same rules.
- If the Village uses the term Tourist Rooming House and how it defines transient stays.
Rules and terminology change over time. Always verify the latest requirements directly with the Village of McFarland before you list.
Permits and licensing basics
Most Wisconsin municipalities require a short-term rental permit or business license before you host. In McFarland, expect to provide a complete application and supporting documents. Common items include:
- Application form with owner contact information and a 24/7 local contact or manager.
- Proof of property ownership or written owner authorization if you are not the owner.
- Floor plan showing bedrooms, exits, and total sleeping capacity.
- Proof that property taxes are current and evidence of liability insurance.
- Signed acknowledgment of local STR rules and any neighborhood standards.
Licenses are commonly renewed annually, and reinspection or updates may be required at renewal. Confirm exact forms, timelines, and any fees with the Village Clerk.
Safety and inspection checklist
Short-term rentals are typically inspected by a building inspector and the fire department before the Village issues a permit. Here is what they often verify:
- Smoke alarms: Installed in each bedroom and on every level, properly mounted and working.
- Carbon monoxide alarms: Required in homes with fuel-burning appliances or attached garages.
- Egress: Safe exit routes from each sleeping area. Bedroom egress windows must open and meet size rules where applicable.
- Fire extinguisher: Portable extinguisher that is visible and accessible in a clearly marked location.
- Electrical safety: No exposed wiring or overloaded circuits, working outlets, and GFCI protection in kitchens and baths where required.
- Heating and ventilation: Primary heat system operating safely with proper venting.
- Structural condition and sanitation: Safe stairs and handrails, no deteriorated flooring or roof issues, clean interior, and adequate trash handling.
- Address numbers: Visible from the street for first responders.
- Pools and hot tubs: If present, compliant fencing, gates, or covers per local rules.
- Posting of rules: In-unit posting with emergency contacts, evacuation steps, and house rules.
You may receive a list of corrections after the initial inspection. Fix these promptly and schedule a follow-up to secure final approval.
Taxes you may owe
Short-term rental income may trigger tax obligations. Plan ahead so you can collect the correct amounts from guests and remit on time.
- Wisconsin sales and use tax: Many short-term stays are taxable under state law. Registration with the Wisconsin Department of Revenue is typically required if you collect taxable rent.
- Local room or lodging tax: Some municipalities impose a separate room or tourism tax. Confirm with the Village of McFarland or Dane County whether a local room tax applies to your address and how to file.
- Platform collection: Some booking platforms collect and remit certain taxes for you. Coverage varies by location and tax type. Do not assume all taxes are handled automatically.
- Filing frequency: Your reporting interval is set by the tax authority and is often monthly or quarterly, depending on volume.
- Recordkeeping: Maintain clear records of bookings, gross receipts, taxes collected, and remittances for at least several years.
Confirm the exact registration steps and filing schedules with the Wisconsin Department of Revenue and the Village before you host.
Step-by-step: how to operate legally
Follow this practical path to launch your McFarland short-term rental the right way.
Confirm classification
- Ask the Village Clerk how your property is defined for short-term rental purposes and whether it is allowed in your zoning district.
Review the ordinance
- Read the applicable sections of the McFarland municipal code. Note occupancy limits, parking rules, posting requirements, insurance minimums, and any neighborhood notification.
Register for taxes
- Register with the Wisconsin Department of Revenue for sales and use tax if your rentals are taxable. Check with the Village and county on any room tax registration. Identify which taxes, if any, your platform will remit and which you must file yourself.
Prepare the property
- Install and test smoke and carbon monoxide alarms, place a fire extinguisher, verify egress, label address numbers, and confirm electrical and heating systems are safe. Create a simple floor plan and determine a safe occupancy number based on sleeping rooms and exits.
Apply for the permit
- Complete the Village application, include owner authorization and insurance documentation, attach your floor plan, designate a local contact, and sign all acknowledgments. Submit payment as required by the Village.
Schedule and pass inspections
- Coordinate with the Building Inspector and Fire Department. Address any corrections quickly and obtain written approval or a certificate once you pass.
Post required information
- Inside the unit, post emergency contacts, evacuation instructions, and house rules that align with Village standards and your insurance.
List and collect
- Once licensed and tax-registered, activate your listing. Collect or confirm the collection of all required taxes. Track gross receipts and tax amounts in real time.
Renew and maintain
- Note your renewal date. Keep safety devices maintained, respond promptly to complaints, and keep tax filings current.
Timeline and renewals
Approval timelines depend on inspector availability and how quickly you complete any corrections. Initial approval often takes 2 to 6 weeks after you submit a complete application, though it can take longer if upgrades are needed. Many municipalities renew permits annually. Ask the Village whether reinspection is required at renewal or only upon complaint.
Common pitfalls to avoid
- Launching before approval: Operating without required permits or inspections can lead to fines and a shutdown order.
- Assuming platforms pay all taxes: Coverage varies. Confirm which taxes are collected and remitted on your behalf and keep proof.
- Underinsuring: Standard homeowner policies may exclude short-term rentals. Talk with your insurance provider about STR or umbrella coverage.
- Ignoring zoning or HOA rules: Some zones or covenants restrict rentals. Verify before you buy or list.
- Missing local contact requirements: Many permits require a 24/7 contact who can respond quickly to issues.
Buying a home for a short-term rental
If you are considering a purchase in McFarland with hosting in mind, build compliance into your plan from day one. Confirm zoning, understand inspection requirements, and budget for safety upgrades such as alarms, extinguishers, and egress improvements. Pay special attention to parking, occupancy limits, and any HOA covenants that could restrict your plans.
A clear strategy on permits, inspections, and taxes will help you evaluate returns more accurately and avoid costly surprises after closing.
Who to contact to confirm details
Because rules and fees change, verify current requirements before you host:
- Village of McFarland Clerk: Permit type, application, fees, and renewal.
- Village Building Inspector / Community Development: Inspections, occupancy, and safety standards.
- Village Fire Department: Fire safety requirements, extinguishers, and alarm placement.
- Wisconsin Department of Revenue: Sales and use tax registration, filing, and guidance.
- Dane County Public Health: Any applicable health or sanitation standards.
Keep notes of who you spoke with and when. Save copies of your application, inspection approvals, and tax filings for your records.
Final thoughts
Hosting in McFarland can be a smart move when you follow the rules. By confirming your classification, preparing the property for safety, registering for taxes, and maintaining good records, you set yourself up for fewer surprises and stronger returns. If you are exploring a purchase with short-term rental potential, bring compliance questions into your home search so you can buy with confidence.
If you want a local perspective on which homes and neighborhoods align with your goals, reach out to The See Team. We’re happy to help you map out next steps and connect you with the right Village contacts so you can move forward with clarity.
FAQs
Do I need a permit if I only host occasionally in McFarland?
- Possibly. Many municipalities require a permit for any transient rental, even if you host a few weekends. Confirm with the Village Clerk.
What inspections should I expect before I host in McFarland?
- Expect building and fire inspections that verify smoke and carbon monoxide alarms, egress, extinguishers, electrical safety, heating, and posted house rules.
Will Airbnb or VRBO handle my taxes in Wisconsin?
- Sometimes. Platforms may collect some taxes in certain locations, but coverage varies. Confirm which taxes are covered and register for any others you must remit.
Are there occupancy limits for short-term rentals in McFarland?
- Most ordinances set limits based on sleeping rooms and safe egress. Ask the Building Inspector how occupancy is determined for your property.
Can I use a property manager for my McFarland rental?
- Yes. Many permits allow you to designate a local agent or manager. The application usually requires a 24/7 contact who can respond to complaints.
What happens if I host without a permit in McFarland?
- You could face fines, orders to cease operating, and potential permit denial or revocation later. Getting licensed before you list is the safer path.
