Is Verona, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Verona, Wisconsin, begin by researching local regulations as Verona requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking. Contact the Verona City Clerk's office to obtain the necessary permits, which may include a short-term rental permit (approximately $100-200 annually) and ensure compliance with fire safety codes and building inspections. Find a suitable property by purchasing or leasing a home in residential zones, ensuring it meets minimum square footage requirements and has adequate parking spaces as mandated by city ordinances. Furnish the property with essential amenities including quality bedding, kitchen appliances, Wi-Fi, and safety equipment like smoke detectors and fire extinguishers, while considering Verona's proximity to Madison attractions for guest needs. List your property on Airbnb and other platforms with competitive pricing (typically $80-150 per night in Verona as of 2023), highlighting nearby attractions like the Military Ridge State Trail and easy access to Madison. Manage the property by establishing cleaning protocols, responding promptly to guest inquiries, maintaining the property regularly, collecting and remitting Wisconsin's 5.5% state sales tax plus Dane County's additional taxes, and keeping detailed records for tax purposes while ensuring compliance with occupancy limits typically set at 2 guests per bedroom plus 2 additional guests.

To identify profitable short-term rental properties in Verona, Wisconsin, focus on locations within walking distance of Epic Systems headquarters and downtown Madison (15-20 minutes away), as business travelers frequently visit this area. Target properties near University of Wisconsin-Madison for parent weekends and academic events, and consider proximity to outdoor attractions like Devil's Lake State Park and Wisconsin Dells (30-45 minutes away). Look for 2-4 bedroom single-family homes or condos with modern amenities, dedicated workspace areas, parking, and outdoor spaces like decks or patios that appeal to both business and leisure travelers. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $100-200 per night depending on size and amenities, with higher rates during UW events and Epic conferences. Research competition through Airbnb and VRBO searches within 5-mile radius, noting occupancy patterns and guest reviews to identify market gaps. Utilize STR-specific tools like Rabbu and AllTheRooms for market analysis, monitor Dane County regulations for compliance requirements, and leverage local resources such as Verona Chamber of Commerce for event calendars and Visit Madison for tourism trends to optimize booking strategies and seasonal pricing adjustments.

To obtain an Airbnb/STR permit in Verona, Wisconsin, you must first contact the Verona Planning and Development Department at City Hall located at 111 Lincoln Street to determine if short-term rentals are permitted in your specific zoning district, as the city has specific regulations governing STRs. You'll need to submit an application that includes a completed short-term rental permit application form, proof of property ownership or lease agreement, a site plan showing parking arrangements, proof of liability insurance (typically $1 million minimum), contact information for a local property manager if you're not local, and a floor plan of the rental unit. Required documents also include a Wisconsin Department of Revenue seller's permit for tax collection, evidence of compliance with building and fire codes, and neighbor notification forms. The application fee is approximately $200-300 with an annual renewal fee of around $150, though you should verify current rates with the city. The approval process typically takes 4-6 weeks after submitting a complete application, during which time city staff will review the application and may conduct a property inspection. Verona-specific requirements include maintaining a guest registry, posting emergency contact information prominently in the rental, ensuring adequate off-street parking (typically 2 spaces minimum), limiting occupancy based on bedroom count plus two additional guests, and adhering to noise ordinances with quiet hours typically from 10 PM to 7 AM.

Short-term rentals (STRs) are legal in Verona, Wisconsin, but operate under specific municipal regulations that the city has implemented to balance tourism benefits with neighborhood preservation. Verona requires STR operators to obtain a conditional use permit and business license, with properties subject to inspections and compliance with safety standards including smoke detectors, carbon monoxide detectors, and occupancy limits typically capped at 8-10 guests depending on the property size. The city prohibits STRs in certain residential zoning districts, particularly R-1 single-family zones, while allowing them in mixed-use and commercial areas with proper permitting. Recent changes around 2019-2021 included stricter noise ordinances, mandatory neighbor notification processes, and enhanced parking requirements of at least two off-street spaces per rental unit. Verona also enforces a complaint-based system where repeated violations can result in permit revocation, and requires STR operators to maintain local contact information for 24/7 response to issues, reflecting the city's approach to allow the practice while maintaining residential community character through careful oversight and zoning restrictions.

The most promising Airbnb investment areas in Verona, Wisconsin include the downtown core near the Verona Area Community Theater and Epic Systems campus, which attracts business travelers visiting the major healthcare software company that employs over 10,000 people, and the neighborhoods near Military Ridge State Trail and Sugar River State Trail that draw outdoor enthusiasts year-round for hiking, biking, and cross-country skiing. The residential areas near Verona Area High School and Community Park are attractive for families visiting for youth sports tournaments and school events, while properties within walking distance of downtown's restaurants and shops along Military Avenue benefit from leisure travelers exploring the charming small-town atmosphere. The neighborhoods near Badger Prairie County Park and the Ice Age Trail segments offer appeal to nature tourists, and areas close to the Verona Public Library and community center attract visitors attending local events, conferences, and cultural activities throughout the year.

In Verona, Wisconsin, Airbnb hosts are subject to Wisconsin state sales tax at 5% and Dane County sales tax at 0.5%, totaling 5.5% on gross rental receipts, which applies to stays of less than 30 consecutive days. Additionally, hosts must collect the Wisconsin room tax, which varies by municipality but typically ranges from 3-8% in the area, with Verona's specific rate estimated at around 5-6%. These taxes are collected from guests at the time of booking through Airbnb's automated system in most cases, though hosts may need to register directly with the Wisconsin Department of Revenue and remit taxes monthly or quarterly depending on volume. Remittance is typically due by the 20th of the month following collection, and hosts must file returns even if no tax was collected during the period. Exemptions generally include stays of 30 days or longer, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current rates and requirements with local tax authorities as regulations can change frequently.

To start an Airbnb in Verona, Wisconsin, expect total costs around $385,000-$425,000. Property purchase represents the largest expense at approximately $350,000-$375,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchen essentials, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$2,500. Permits and fees vary but budget $500-$1,200 for business licenses, short-term rental permits, and any required inspections depending on local Verona regulations. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable total around $800-$1,200. First six months operating costs including utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($150-250/month), platform fees (3% of bookings), and property management software ($30-50/month) add approximately $3,000-$5,000 to initial investment requirements.

Airbnb properties in Verona, Wisconsin typically generate annual revenues between $15,000-$35,000 for single-family homes and $8,000-$18,000 for condos, with occupancy rates averaging 45-65% due to proximity to Madison and Epic Systems headquarters which drives consistent business travel demand. Operating expenses generally range from $8,000-$15,000 annually including cleaning fees ($25-40 per turnover), utilities ($150-250/month), property management (10-20% of revenue), insurance ($800-1,200/year), and maintenance costs, resulting in net profit margins of 25-45% for well-managed properties. Success factors include proximity to Epic Systems campus (major employer), University of Wisconsin-Madison events, and seasonal tourism to nearby attractions like Devil's Lake State Park, with properties within 10 miles of Epic commanding premium rates of $120-180/night compared to $80-120 for more distant locations. A typical 3-bedroom home near Epic generating $28,000 in annual revenue with $12,000 in expenses achieves a 57% profit margin, while properties focusing on leisure travelers during summer months and football season see occupancy spikes to 80-90% but lower off-season performance, making business travel-focused properties generally more profitable year-round in this market.

Airbnb investments in Verona, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the city's proximity to Madison and steady demand from business travelers and families visiting the University of Wisconsin. Properties in Verona's established neighborhoods like downtown or near Epic Systems headquarters command nightly rates of $120-180, with occupancy rates averaging 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with gross rental yields of 10-14% before expenses. The market benefits from Verona's growing tech sector presence, limited hotel inventory, and appeal as a family-friendly destination, though investors should expect seasonal fluctuations with stronger performance during university events, summer months, and fall foliage season.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Verona, Wisconsin, using data analytics and market insights. Local real estate agents specializing in Airbnb investments in the Verona area include Realty Executives Cooper Spransy, First Weber Realtors, and Stark Company Realtors, with agents like those at Wisconsin Dells Realty Group also serving the broader region. National services include Mashvisor, which provides rental property analysis and ROI calculations, AirDNA for market data and revenue projections, and Awning for turnkey Airbnb investment properties. RedAwning offers property management and investment services, while BiggerPockets connects investors with local professionals and market insights. Local property management companies that cater to Airbnb investors include Madison-based firms like Nest Property Management and Wisconsin Property Management Group, which extend services to Verona. Additional national platforms like Roofstock, HomeUnion, and Vacasa provide comprehensive investment and management solutions for short-term rental properties in the Wisconsin market, with some offering specific expertise in college town markets given Verona's proximity to Madison and the University of Wisconsin.