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 license (approximately $100-200 annually) and ensure compliance with fire safety codes and health department requirements. Find a suitable property by purchasing or leasing a home in residential zones, ensuring it meets minimum square footage and parking requirements typically mandated by the city. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Wisconsin state law. Create your Airbnb listing with professional photos, competitive pricing (average $80-150 per night in Verona as of 2023), and detailed descriptions highlighting proximity to Epic Systems campus and Madison attractions. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and keeping detailed records for tax purposes including Wisconsin's 5.5% state sales tax and Dane County's additional lodging taxes that apply to short-term rentals.

To identify profitable short-term rental properties in Verona, Wisconsin, focus on locations within walking distance of Epic Systems headquarters (major employer driving business travel demand), near downtown Verona's shopping and dining district, or properties with easy access to Madison attractions since Verona serves as a suburban alternative. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, full kitchens, dedicated workspaces for business travelers, parking, and outdoor spaces like patios or decks that appeal to families visiting the area. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against Madison rates (typically 10-15% lower in Verona), aiming for properties under $400,000 that can generate $150-200 per night during peak seasons and $100-130 during off-peak periods. Research competition by analyzing existing STR listings within 3-mile radius, identifying gaps in amenities or guest capacity, and monitoring occupancy rates of similar properties through tools like AllTheRooms and STR analytics platforms. Utilize Dane County property records, Zillow rental estimates, and local real estate agents familiar with Verona's zoning regulations to identify compliant properties, while leveraging Epic's employee housing demand patterns and University of Wisconsin event calendars to predict seasonal booking trends that can drive 65-75% annual occupancy rates in well-positioned properties.

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 Verona has restrictive regulations on STRs. If allowed, submit an application through the Planning Department including a completed STR permit application form, property deed or lease agreement, floor plan of the rental unit, parking plan showing adequate off-street parking, contact information for a local property manager if you live more than 50 miles away, proof of liability insurance (minimum $1 million), and Wisconsin seller's permit for tax collection. Required fees typically include a $200 application fee and $150 annual renewal fee, though these may vary. The application process generally takes 4-6 weeks for review and approval, during which time the city may conduct inspections to ensure compliance with building codes, fire safety requirements, and occupancy limits. Verona requires STR operators to maintain a guest registry, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, provide adequate parking (typically 1 space per bedroom), and respond to complaints within 2 hours if living locally or have a designated local contact available 24/7, with violations potentially resulting in permit revocation and fines up to $500 per day.

Short-term rentals (STRs) are legal in Verona, Wisconsin, but are subject to municipal regulations and licensing requirements. The city requires STR operators to obtain a business license and comply with zoning ordinances, with most residential areas allowing STRs as a conditional use. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators must provide contact information for a local representative available 24/7. Verona has implemented occupancy limits based on property size and requires parking compliance with city codes. The city has been actively updating its STR regulations since around 2018-2020 to address neighborhood concerns while balancing property owner rights, with recent changes focusing on noise ordinances and registration requirements. STRs are generally prohibited in certain high-density residential zones, and the city maintains the right to revoke licenses for repeated violations of noise, parking, or occupancy rules.

The most promising Airbnb investment areas in Verona, Wisconsin include the downtown core near the Verona Area Community Theater and Epic Systems headquarters, 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 for hiking and biking year-round. The residential areas near Verona Area High School and Community Park are attractive for families visiting for sports tournaments and school events, while properties within walking distance of downtown's restaurants and shops along Verona Avenue benefit from the city's growing food scene and local festivals like the annual Fun Days celebration. The newer subdivisions near Highway 18/151 offer convenient access for Madison commuters and visitors to the greater Madison area, including University of Wisconsin events, while still providing the small-town charm that many travelers seek as an alternative to urban accommodations.

In Verona, Wisconsin, Airbnb hosts are subject to Wisconsin state sales tax of 5% and Dane County's room tax of 8%, totaling 13% on short-term rental stays. The Wisconsin Department of Revenue requires hosts to register for a seller's permit and collect these taxes from guests, with monthly remittance due by the 20th of the following month for hosts with regular bookings. Dane County's room tax is administered separately and must be remitted quarterly to the county treasurer, with returns due by the last day of the month following each quarter. Hosts earning less than $1,000 annually may qualify for simplified reporting procedures, and stays exceeding 30 consecutive days are typically exempt from room tax obligations. The city of Verona may impose additional local lodging requirements, and hosts should register with both state and county authorities while maintaining detailed records of all rental income and tax collections for compliance purposes.

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 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, bedding, kitchen essentials, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Wisconsin generally cost $500-$1,500 including business registration, potential short-term rental permits, and tax registration. Insurance premiums for short-term rental coverage run $2,000-$3,500 annually, with the first year paid upfront. Utility deposits and initial connections cost approximately $500-$800. First six months of operating costs including utilities ($150-$250/month), cleaning services ($75-$125 per turnover), supplies and maintenance ($200-$400/month), platform fees (3% of bookings), and marketing expenses total roughly $4,000-$7,000 depending on occupancy rates and property size.

Airbnb properties in Verona, Wisconsin typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $80-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts in the Madison metropolitan area (which includes Verona) reporting annual net profits of $8,000-$15,000 per property. Success factors include proximity to Epic Systems headquarters (major employer driving business travel demand), University of Wisconsin-Madison events, seasonal tourism to nearby attractions, professional photography, consistent 4.8+ star ratings, and strategic pricing during peak periods like graduation weekends and football season. Properties within 15 minutes of Epic Systems or featuring amenities like hot tubs, fire pits, or pet-friendly policies command premium rates, with some hosts achieving occupancy rates of 65-75% annually compared to the market average of 45-55%.

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 areas near Epic Systems headquarters command premium nightly rates of $120-180, while suburban homes average $90-140 per night with occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with gross rental yields averaging 10-14% before expenses, though investors should factor in Wisconsin's property taxes averaging 1.9% and seasonal demand fluctuations that see peak performance during university events, summer months, and fall foliage season from companies like Trek Bicycle Corporation bringing corporate visitors to the area.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Verona, Wisconsin. Local real estate agents specializing in investment properties include Realty Executives Cooper Spransy, Coldwell Banker Success, and RE/MAX Preferred, with agents like those at First Weber Realtors having experience in the Madison metro area vacation rental market since 2018. National services include Mashvisor (founded 2014) for property analysis, AirDNA for market data and revenue projections, and Awning for full-service Airbnb property management and acquisition assistance. Local property management companies like RedAwning and Vacasa have expanded into the Wisconsin market, while investment-focused firms such as Roofstock and Arrived Homes offer turnkey short-term rental opportunities. Regional specialists include Wisconsin-based STR Property Group and Madison Area Property Management, both established around 2019-2020 to serve the growing vacation rental investor market in Dane County communities like Verona.