NEW Lake Geneva Short-Term Rental Rules: What Owners Need to Know

By Jade Goodhue

If you own or manage a short-term rental (STR) in the City of Lake Geneva, a big deadline is approaching:April 30, 2025. That’s the cutoff for renewing or applying for yourCity of Lake Geneva STR license. With the rollout of a new software system calledRentalscape, the city is cracking down hard on illegal and noncompliant STRs.

In this post, we’ll walk through what’s changing with the updated amended ordinance voted in end of 2024, what you need to do, and why staying compliant actually makes more financial sense than trying to cut corners.

The New Enforcement Tool: Rentalscape

As of early 2025, the City of Lake Geneva has officially implementedRentalscape, a short-term rental compliance and tracking platform. This software scans Airbnb, VRBO, and other platforms to automatically:

Match property listings to city licenses
Flag unlicensed STRs
Detect violations of occupancy, parking, quiet hours, and zoning

SOURCE:

If your property is not licensed or is in violation, Rentalscape will flag it.Fines will be automaticand steep. Repeat violations can result in suspension or revocation of your license, or worse: a ban from reapplying in the future.

Important Deadlines

April 30, 2025: Deadline to apply for or renew your City of Lake Geneva STR license.
July 1, 2025: Start of the new licensing year for the Wisconsin Tourist Rooming House License from the DATCP (State of Wisconsin).

What You Need To Be Compliant:

State License through the DATCP (costs ~$110 annually plus $300 inspection fee if new)
City STR License ($400 annually + $250 late fee if you miss the deadline)
Zoning Approval — STRs are only allowed in specific zoning districts
Room Tax Permit & Business License
Advertising Rules — must include license number, parking, and occupancy limits
Noise Rules — no outdoor activity between 10pm-7am
Local Contact Person within 25 miles

8. You Get One 180-Day Rental Season Per Year

You can only rent your STR for 180 consecutive days in a year.
These 180 days are called your “rental season” and you choose when it starts on your license application.
Once your 180-day window starts, it runs straight through without breaks—no pausing and resuming.

9. Minimum Stay Rules During the Rental Season

Each booking must be at least 2 nights long.
However, guests can only arrive once every 7 days for the Rental Booking Period.
Example: If a guest arrives on June 1, the next guest can’t arrive until June 8 (even if the first one leaves earlier).

10. Off-Season Rental Rules (Outside Your 180-Day Window)

Once your 180-day rental season ends, you can only rent for long-term stays.
Off-season rentals must be for 29 days or more.
Example: If you rent the property from Nov 1–7, your next guest can’t check in until Nov 30.

What Happens if You’re Noncompliant?

In the City of Lake Geneva, Wisconsin, operating a short-term rental (STR) without proper licensing and adherence to local ordinances can lead to significant penalties and enforcement actions. The city’s regulations are designed to maintain community standards and ensure the safety and well-being of both residents and visitors.

Penalties for Noncompliance:

Operating Without a License:

According to the Ordinance of the Common Council, property owners found renting their properties without a valid State of Wisconsin Tourist Rooming House License and a City of Lake Geneva Short-Term Rental Annual License are subject to fines of $1,000 per day. Additionally, they may be required to pay overdue room taxes and associated penalties.
According to the Ordinance of the Common Council, property owners found renting their properties without a valid State of Wisconsin Tourist Rooming House License and a City of Lake Geneva Short-Term Rental Annual License are subject to fines of $1,000 per day. Additionally, they may be required to pay overdue room taxes and associated penalties.
Violations Leading to License Revocation:

According to the STR Rental Ordinance, an STR license may be revoked if there are more than two violations of the specific requirements outlined for short-term rentals. Major violations include:

False advertising related to occupancy limits and parking availability.

Absence of a designated operator within 25 miles of the rental property.

Failure to display the STR license number as mandated.

Late payment of room taxes exceeding 30 days.

Renting the property outside the permitted timeframes.
According to the STR Rental Ordinance, an STR license may be revoked if there are more than two violations of the specific requirements outlined for short-term rentals. Major violations include:

False advertising related to occupancy limits and parking availability.

Absence of a designated operator within 25 miles of the rental property.

Failure to display the STR license number as mandated.

Late payment of room taxes exceeding 30 days.

Renting the property outside the permitted timeframes.
False advertising related to occupancy limits and parking availability.
Absence of a designated operator within 25 miles of the rental property.
Failure to display the STR license number as mandated.
Late payment of room taxes exceeding 30 days.
Renting the property outside the permitted timeframes.
Fines for Major Violations per the Ordinances for the Common Council under section 98-206:

Penalties escalate with repeated offenses within a rolling 12-month period:

First Offense: Written warning and potential fines of $250 per day of violation, plus court costs.

Second Offense: Fines of $500 per day, court costs, and a 3-month suspension of the annual license.

Third Offense: Fines of $1,000 per day, court costs, and a 1-year suspension of the annual license.

Fourth Offense: Permanent revocation of the annual license and prohibition from obtaining future licenses for the property.
Penalties escalate with repeated offenses within a rolling 12-month period:

First Offense: Written warning and potential fines of $250 per day of violation, plus court costs.

Second Offense: Fines of $500 per day, court costs, and a 3-month suspension of the annual license.

Third Offense: Fines of $1,000 per day, court costs, and a 1-year suspension of the annual license.

Fourth Offense: Permanent revocation of the annual license and prohibition from obtaining future licenses for the property.
First Offense: Written warning and potential fines of $250 per day of violation, plus court costs.
Second Offense: Fines of $500 per day, court costs, and a 3-month suspension of the annual license.
Third Offense: Fines of $1,000 per day, court costs, and a 1-year suspension of the annual license.
Fourth Offense: Permanent revocation of the annual license and prohibition from obtaining future licenses for the property.
Minor Violations:

Issues such as excessive noise or disruptive behavior by guests can lead to citations. Accumulating five such citations within a rolling 12-month period constitutes a major violation, potentially resulting in license suspension or revocation.
Issues such as excessive noise or disruptive behavior by guests can lead to citations. Accumulating five such citations within a rolling 12-month period constitutes a major violation, potentially resulting in license suspension or revocation.

Community Enforcement and Reporting:

Residents are encouraged to report suspected unlicensed STR operations or violations to theCity of Lake Geneva Building and Zoning Department. The city maintains a, and any property not on this list may be operating illegally. Complaints can be submitted through the city’s official channels.

Compliance Math: The Cost of Doing It Right vs. Cutting Corners

Let’s say you own a3-bed, 2-bath STRthat rents for $450/night, and you’re compliant for the legal 180-day max allowed in residential zones.

Compliant Host (Legal STR):

180 nights x $450/night x 90% occupancy = $72,000 gross income
-$400 city license
-$110 state license
-$300 one-time inspection (if new)
Net income (minus fees): ~$72,100 (year 1)

Noncompliant Host (Over-rents beyond the 180-day limit at 70% annual occupancy):

365 days x 70% occupancy = 255.5 nights → rounded to 255 nights
255 nights x $450 = $114,750 gross income
No license fees paid
Fined for unlicensed operation 2nd offense: $500/day x 3 days = -$1,500 minimum
Risk of Rentalscape detection, platform takedown, and legal action
If caught for the 4th offense, future STR operation is banned or suspended indefinitely
Short-term net: ~$113,250
Potential STR income in future years: $0/year
Long-term risk: permanent loss of STR business and reputation

Potential Consequences for Non-Compliance:

If you’re caught operatingillegally—especially under the radar of Lake Geneva’s newRentalscape monitoring system—the city can:

🚫 Revoke your license

Once you’re flagged and fined, you may lose the ability to legally apply for or renew your short-term rental (STR) license in the future. If your property is in arestricted residential zone, you likely won’t be able to pivot and get another permit later—you’re done.

📤 Get de-listed from Airbnb/VRBO

If you’re operating without a license, the city will notify Airbnb, VRBO, and other platforms. These platforms have compliance agreements with cities like Lake Geneva and willremove your listingsif they receive notice of noncompliance.

⚖️ Face legal action

Beyond fines, persistent noncompliance could lead toinjunctionsor lawsuits, making it illegal to operate or advertise the rental at all.

📉 What does that mean for your income?

If you’re shut down:

You go from making $100K+ per year… To zero—instantly.

Hence, the “$0/year” potential future STR income. You might make a quick buck over-rentingonce, but the risk is losingallfuture cash flow, and potentially getting blacklisted from doing it again in that market.

Bottom Line:

While over-renting might seem like it boosts profits in the short run, the long-term risks of being shut down and blacklisted from Airbnb and city licensure are far too great. One Rentalscape flag could end your business for good.

Adhering to Lake Geneva’s STR regulations is crucial for property owners to avoid severe financial penalties, legal actions, and potential loss of rental privileges. Ensuring compliance not only protects property owners but also contributes to the safety and harmony of the community.

Final Thoughts

Short-term rentals are still welcome in Lake Geneva—but only for those who follow the rules. With theRentalscape system now fully live, noncompliance is no longer under the radar. If you want your rental business to survive past summer, you need to be licensed and compliant.

If you’re unsure whether your property is in an eligible zone or need help applying, contact theCity of Lake Geneva Building and Zoning Departmentor visit:

Get In Touch