A post occupancy agreement is a written agreement that allows a seller to remain in the property post-closing for a specified period of time. The agreement can set forth how utilities are being paid, how real estate taxes are being calculated, and insurance requirements between the parties, among other considerations. Post occupancy agreements are often used when a seller needs additional time to move out.

Post Occupancy Considerations:

1. Occupancy Duration and Occupancy Charge

The occupancy agreement should state the day and time that the seller’s occupancy ends. A buyer who has lending should make sure that his/her lender is okay with the occupancy period, as the lender will likely require that the buyers take occupancy of the property within a specified period of time.

The occupancy charge is often represented as a per diem (per day) rate. If the seller moves out of the property before the end of the occupancy period, the agreement can specify whether the seller is entitled to any unearned portion of the occupancy charge.

2. Security Deposit

While not required, some buyers may wish to protect themselves by requesting a security deposit. If the seller damages the property or has unpaid repair invoices, the buyer can withhold a portion of the security deposit. The parties should also consider who holds the security deposits, whether that be the title company or the buyer/new owner, and what is required to release the security deposit.

3. Prorations and Utilities

The parties should specify whether real estate taxes and homeowner’s association fees, if applicable, are to be prorated through the day of closing or to the end of the occupancy period. The buyer/new owner could choose to leave the prorations as of the day of closing and instead have the seller compensate the buyer for these amounts through the per diem occupancy charge. As for utilities, it usually makes the most practical sense for the seller to keep the utilities in his or her name until the occupancy date.

4. Keys, Owner Access, and Maintenance

Keys, owner access, and maintenance provisions of a post occupancy agreement all share one thing in common – risk allocation, and will vary depending on the buyer’s/ new owner’s risk tolerance. The seller, as occupant, is responsible for maintaining the property and keeping all components of the home in good working order. The maintenance provision can come into play in the event that there are repairs needed over a certain dollar amount. The parties specify what that dollar amount is, with the understanding that any repair over that dollar amount becomes the buyer’s/ new owner’s responsibility and anything under that amount is the seller/occupant’s responsibility.

Keys and owner access come into play here to carve out an understanding of what happens if there is a repair that exceeds the specified dollar amount and becomes the buyer’s/ new owner’s responsibility to repair. How many hours of advance notice must the owner give the occupant in order to access the property for inspection or repair purposes? Are there other purposes that the owner may exercise their advance notice for – such as pool maintenance or yard work? And how many keys should each party have?

5. Insurance

Because title transfers at closing, the buyer/new owner should have a homeowner’s insurance policy in place effective as of the day of closing; there should be no gap in property coverage simply because the seller remains in possession. The seller/occupant should not only maintain personal property insurance for the contents of the home, but also personal liability insurance.

It is best practice for each party to consult with their respective insurance agents to determine whether it is advisable that additional insurance endorsements be included,  especially in extended occupancy periods or for properties with pools. Proof of insurance amongst the parties is another consideration.

What happens if the seller refuses to leave?

Wisconsin law states that a person holding possession of a property as part of an offer to purchase is not a tenant. [1] This means that an owner would not need to follow Wisconsin state law eviction procedures. To plan for what happens in the situation of an occupant who refuses to leave, the occupancy agreement can include a “loss of use” provision, which would essentially state that for every day the seller refuses the leave, they are subject to a daily “loss of use” fee. The seller/occupant could also be responsible for the buyer/owner’s attorney’s fees as well as compensating the buyer/ new owner for any damage that may have occurred. To recover these amounts, the buyer/ new owner would need to bring legal action against the occupant in court.

Schedule a consultation with Wynn at Law, LLC today to discuss your real estate purchase or sale.

For assistance with ensuring that your post occupancy agreement makes sense for your risk tolerance, whether you are a buyer or seller, contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

[1] See Wis. Stat. 704.01(5)

The post When the Seller Stays After Closing: Understanding Post-Occupancy Agreements appeared first on Wynn at Law, LLC.

In Part II of the series, we are asking and answering the following question:

What happens when there is damage to a home after acceptance of an offer to purchase?

Notifying the Buyer About the Damage:

Wisconsin’s Residential Offer to Purchase differentiates what happens when the property is damaged in an amount less than 5% of the purchase price and what happens when the cost of the damage is over 5% of the purchase price. Regardless of the amount of damage, the seller is under an obligation to notify the buyer of any damage to the property after the offer is accepted.

The seller can notify the buyer of the damage in a few different ways. The first and most common option is to supply the information on a Notice form disclosing the damage. The second option is the seller amending his/her Real Estate Condition Report to disclose the damage. The second option is generally not recommended, as it can trigger the buyer’s 2-business day right to rescind the offer under Wis. Stat. 709.05(2)(a)(2). When a buyer rescinds the contract based on this statute, the buyer is entitled to a refund of their earnest money deposit. The second option is only recommended if the seller understands and agrees to the prospect of the contract falling apart and/or if the seller wants to give the buyer a way out of the contract. The third way of disclosing the damage is for the seller’s real estate agent to complete a Disclosure of Material Adverse Facts.

Damage Less Than 5% of The Purchase Price:

If the damage to the property is something relatively minor, such as one broken window, then the cost to repair the damage is likely less than 5% of the purchase price. The Offer specifies that when the damage is less than 5% of the purchase price, sellers must first notify the buyer of the damage. After notifying the buyer, the seller has a duty to repair the property. Specifically, the seller has to restore the property to the same condition it was in when the buyer made his or her offer.

It is the seller’s responsibility to bear the cost of the repairs. The seller may choose to pay for the cost of the repair by including the contractor’s invoice on the closing statement, entitling the contractor to be paid from the sales proceeds. Alternatively, if the seller pays for the repair before closing, he or she must supply the buyer with a lien waiver for any lien-able repairs.

If the seller cannot repair the property before closing, then the parties can mutually agree to one of the following options:

(a) extend/postpone the closing date to give the seller time to repair the property; or

(b) the seller can give the buyer a credit or price adjustment for the cost of the repair; or

(c) Other options may be available depending on what stage of the repair process the seller is in, such as holding money in an escrow account for the cost of the repair.  An attorney should be consulted to ensure that all parties rights and obligations are clearly communicated to avoid disputes.

Damage More Than 5% of The Purchase Price:

Imagine a tornado striking the home you are under contract to either purchase or sell, resulting in the need for an entirely new roof and siding. This may likely be damage that exceeds 5% of the purchase price. In this situation, the Offer specifies that the seller must first notify the buyer of the damage and then give the buyer the option to terminate the Offer. A buyer who decides to terminate is entitled to a return of their earnest money deposit.

If the buyer decides to proceed with the purchase despite the damage, then the Offer states that the buyer is “entitled to the seller’s insurance proceeds, if any, relating to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller’s deductible on such policy, if any.”

Both parties should hire legal counsel to assist with negotiating and drafting documentation to specify who will complete the repairs, how the insurance proceeds will be allocated, what documentation the seller is required to provide, and any other considerations that may need to be arranged or put in writing, depending on the agreed-upon course of action.

Schedule a consultation with Wynn at Law, LLC today to discuss your home sale or purchase

Wynn at Law, LLC can assist you with either your purchase or sale, starting with a review of or assistance with drafting the initial offer, and ending with helping you reach a successful closing.

Contact Wynn at Law, LLC today at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

The post Part II of II – Property Damage During the Real Estate Transaction appeared first on Wynn at Law, LLC.

Planning for Pets While Living – Power of Attorney and Trust

Before delving into how to plan for your pet’s care once you pass, it is also worth considering how to plan for your pet while you are still living, but may be unable to care for them, such as during an unexpected hospital stay. This can be done via a Durable Power of Attorney aka a Financial Power of Attorney. This type of Power of Attorney allows you to designate someone as your agent so that they may handle different types of property you have. Yes, pets are considered property under the law, but at Wynn at Law, LLC, we know pets are so much more, a beloved family member, which is why we enjoy assisting people who want to plan for caring for a pet.

Most Financial Powers of Attorney give your agent power to handle your “personal” property and according to Wisconsin law, a pet counts as personal property. A general Financial Power of Attorney may be sufficient in a pinch, but at Wynn at Law, LLC, we can assist you with a better option. If the care of your pet is one of your primary concerns or if your pet has medical issues, we can aid you in additional language that should be included in your Power of Attorney to ensure that your agent will be able to seamlessly care for your pet. We specifically address your agent’s authority to board your pets, to authorize veterinarian care, and compensation for these endeavors, for instance.

If you have a trust and become incapacitated, your successor trustee may need to step in to help care for your pet. In this case, Wynn at Law, LLC can assist you in drafting specific language in your trust for caring for a pet. This will allow your trustee to step in and immediately care for your pet.

Life Care Centers for Pets

If you prefer to leave the care of your pet to an organization rather that an individual, you may want to consider a pet life care center. These are organizations that will agree to provide care for your pets after your passing. Some of these organizations require you to leave them a minimum cash gift via your estate plan in order to fund your pet’s care. This is an attractive option for many pet owners. Some organizations even offer grief therapy for your pet and agree to find your pet a new loving home.

If you would like to arrange for your pet’s care via one of these organizations upon your passing, you should first, research and consult with the organization of your choice to obtain their requirements. Second, meet with an attorney at Wynn at Law, LLC and we will assist you in memorializing your request pursuant to the organization’s requirements.

Diet and Medication Lists

One of the greatest gifts you can give to your pet’s future caregiver is clarity. Proactively maintaining a comprehensive diet and medication lists ensures that your pet’s caregiver can provide seamless continuity of care during an already stressful transition. This list should be as specific as possible and include things such as:

• precise dosages and delivery methods of medications if your pets take any,

• brand names and measurements of your pet’s food,

• known food allergies,

• preferred treats,

• vet information and copies of recent vaccinations, and

• microchip info if applicable.

Schedule a consultation with Wynn at Law, LLC today to discuss the estate planning process for you and your pet.

Planning for your pet’s care upon your passing is only one aspect of the estate planning process. For assistance with ensuring that you have a comprehensive estate plan in place, contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

The post What happens to my pet when I pass? appeared first on Wynn at Law, LLC.

Debt Settlement:

Before discussing their debt with an attorney, many people decide to tackle the debt themselves by negotiating with their creditors to accept lower payments, negotiating with creditors to accept a lower overall amount to payoff the debt or by hiring a debt settlement company to do the negotiating for them. There are a few things to consider when using a debt settlement company to ensure the process goes as expected.

1. The Order Your Debts Are Paid:

The first thing to consider is how the debt settlement company allocates your payments. Some companies will take your payments and allocate them equally to all of the creditors that you have negotiated settlements with. Other companies may take your payments and allocate them to your smallest or oldest debts first. The latter option is not recommended and can have negative consequences, as some of your creditors may be left in the dark and not receive a single cent for some time. This often leads to those in-the-dark creditors pursuing their legal rights against you, which could result in a garnishment of your wages or a judgment against you.

2. Research, Research, Research:

The second thing to consider is whether the debt settlement company you are considering using is following the law. Debt settlement companies who do business with consumers in Wisconsin must be licensed as an “adjustment service company.”[1] These companies are prohibited from collecting up-front fees from you and must follow specific disclosure requirements as to what their services and fees include. It is highly recommended that consumers considering using a debt settlement company do thorough research to avoid possible unintended consequences, such as digging yourself into deeper debt through interest and fees or even worse, falling victim to fraudulent debt consolidation company.

3. Credit and Tax Consequences:

While some debt settlement companies may claim that their assistance will not hurt your credit, that is generally not the case. Because you are agreeing to pay your creditors in an amount less than what is actually owed, your creditors will report this to your credit bureaus, and it will show up on your credit report. Additionally, cancelled debt is reported to the IRS and considered as income, which may then affect your income taxes.

Chapter 128:

Wisconsin Statues, Chapter 128, offers a voluntary debt repayment plan, often colloquially referred to as “Chapter 128”. Similar to debt settlement, you may pick and choose which debts to include in your debt repayment plan, however, with chapter 128, you may not negotiate your debts down to a lower, overall settlement amount. Rather, when you file your petition with a Wisconsin court, the debt owed at the time of filing is then amortized over 3 years into equal monthly payments.

The huge benefit to Chapter 128 is that it stops interest from accruing on the accounts that you include in the plan and that the creditors who are included in your plan are then prohibited from attempting to collect that debt. Therefore, the debt collector phone calls stop as do the fears of garnishment of your wages.

Chapter 128 is not for everyone. It is used for unsecured debt, such as credit card bills or medical bills, and cannot be used for secured debt, such as your mortgage or car loan. You must earn a consistent income to file and certify that you are financially able to make your monthly payment. It is highly recommended that you meet with an attorney to discuss the process and assist with calculating your debt payment to ensure it fits within your financial means, to avoid the pitfalls that come with failing to make all of your chapter 128 payments.

Chapter 7 Bankruptcy:

While debt settlement and Chapter 128 involve paying your debts back, Chapter 7 bankruptcy is often deemed a “fresh start” as it wipes your debts out, without having to pay them back. That statement may make Chapter 7 seem like the best option, however, not everyone qualifies for Chapter 7 bankruptcy. To file for Chapter 7 bankruptcy, your income must fall under certain limits based on your household size.

Even if you qualify for Chapter 7 bankruptcy, it may not be your only or best option. A Chapter 7 bankruptcy stays on your credit report for 10 years which may make it an unappealing option to those employed in certain financial professions or those who are trying to apply for credit or purchase a home in the very near future. The process of filing for Chapter 7 bankruptcy also involves a thorough analysis of your assets to determine whether they are exempt from being taken by the bankruptcy trustee and sold to satisfy your debts. If certain assets, like your home, are not exempt, you may want to look into either Chapter 128, debt settlement, or a Chapter 13 bankruptcy.

Schedule a consultation with Wynn at Law, LLC today to discuss your debt relief options

If you are already enrolled in a debt settlement program and curious as to what legal options you may have or if you are just starting to tackle your debt, our attorneys are here to assist you. Contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

[1] DFI Dealing With Debt Problems (Continued)

The post Which is right for you – Chapter 7 Bankruptcy, Debt Settlement, or Chapter 128? appeared first on Wynn at Law, LLC.

If you are in the process of purchasing a new home, or have just purchased one, you may have encountered offers for a home warranty – but what exactly is a home warranty? Home warranties provide discounted repair and/or replacement services for components within your home, such as your heating, air conditioning, electrical, appliances, and sometimes even pool or garage door components. Home warranties are intended for items such as a broken water heater or an appliance repair. Essentially, a home warranty can cover things that your homeowner’s insurance would not (more on what homeowner’s insurance covers below). However, homeowners should clearly read their home warranty to understand what is covered, as many warranties do not provide coverage for repairs or replacements that can be attributed to a lack of maintenance. Rather, home warranties are often meant to cover unexpected repairs.

Do I need a home warranty?

The decision on whether to have or forego a home warranty is completely optional and situational. It is not a legal nor lender requirement that a home owner have a home warranty. When contemplating whether or not you should purchase a home warranty, here are some things to take into consideration.

First, do you have an emergency fund in place sufficient to cover unexpected home repairs? Consider what would happen if you needed to purchase a new refrigerator within the first year of owning your home, or even worse, an expensive air conditioning replacement – if this is something that you could not afford as an out-of-pocket expense, then it may be worth considering whether a home warranty could assist with the cost of an expensive and unexpected repair or replacement. Home warranties on average range from $300-$1,200 per year depending on the plan and components of the house.

Second, consider how old your home’s components are and what condition they are in. If you had a home inspection done, your home inspector will likely have gauged the remaining life of some of your components, so it may be worth taking a look at your inspection report. However, even brand new home components can unexpectedly go out – consider whether any of those components come with warranties of their own.

Third, what condition is your home in? If there are components that were already not functioning when you purchased the home, a home warranty will not assist with their repair or replacement. Review different home warranty plans and their exclusions to understand what would and would not be covered. For example, many home warranty plans contain exclusions for improper installation, mold, code violations, and structural home components (such as foundation cracks, roof repairs, etc.). If many of the repairs you need would not be covered, then you may able to work with the seller to negotiate the repairs or a credit to do the repairs yourself, assuming you have not already closed on the home.

How is a Home Warranty Different From Homeowner’s Insurance?

Home warranties are intended to cover the components of your home, such as plumbing, HVAC, and electrical. Homeowners insurance, on the other hand, covers damage to the actual structure of the home itself due to events outside the control of the owner, in most cases, such as a damaged roof due to a tree falling, fire or damage resulting from a natural disaster. If you have lending on your home, your lender will require you to have homeowner’s insurance, whereas the lender will not require you to have a home warranty. As always, it is best practice to thoroughly read any homeowners insurance policy or home warranty plan to understand what is and is not covered.

Schedule a consultation with Wynn at Law, LLC today to discuss the home buying process

Also see our related blog post, Five Things I Wish I Knew as a First Time Home Buyer. Contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

The post Home Owner Education: Home Warranties vs. Home Insurance appeared first on Wynn at Law, LLC.

This achievement reflects a consistent level of excellence recognized by peers, colleagues, and the Super Lawyers independent research team. The annual selection process evaluates attorneys across several criteria, including professional accomplishments, peer feedback, and overall standing in the legal community. Earning this honor once is notable—earning it five years in a row is a testament to Attorney Wynn’s ongoing dedication to her clients and her craft.

Attorney Wynn has built her reputation on providing clear guidance, compassionate support, and effective legal solutions in matters that deeply affect individuals and families. Her commitment to thorough communication and personalized service has made her a trusted resource throughout the region.

The firm celebrates this milestone as a reflection of the values at the heart of its practice: integrity, excellence, and unwavering client focus.

Wynn at Law, LLC looks forward to continuing to serve the community with the same high standards that earned this distinguished recognition year after year.

The post Wisconsin Attorney Shannon Wynn Named Super Lawyer for Fifth Year in a Row appeared first on Wynn at Law, LLC.

1. Naming Minors as a Direct Beneficiary of a Financial Account

Naming a minor child as a direct Payable On Death (POD) beneficiary of a financial account or as an insurance beneficiary could result in the money either going directly to the child’s guardian, or to the child the minute , he or she turns 18. Many 18-year-olds who come into large sums of money spend it in ways that may not be in their best interest or a child’s guardian may not be the person you want controlling the money either (i.e. divorced spouses). Parents or grandparents of minors should consider other estate planning tools, such as a trust, to avoid this situation.

2. Adding a Child as a Joint User to a Bank Account

Aging parents often find it advantageous to add one of their grown children to their bank accounts as a co-owner/ joint user so that their child can handle their finances. When the aging parent passes, the child on the bank account now owns those funds 100%. Parents with multiple children may not have anticipated this or assumed that the child would voluntarily share the funds with their siblings. In most cases, the child on the bank account does not share the funds with their siblings, and legally, they have no obligation to do so. Even if that child were to share the funds, unintended gift tax consequences can arise. Aging parents in this situation should consider using a Financial Power of Attorney to allow a child to manage their finances during their lifetime.

3. Improper Spousal Ownership of Real Estate

What happens in Wisconsin to real estate when one spouse passes? Does the surviving spouse automatically own the real estate? The answer lies in the way the spouses took ownership on the deed and the type of real estate owned. Simply having both spouses listed on the deed as owners (such as “Jack Doe and Jane Doe”) is not enough to avoid probate in most cases. Special consideration must be taken when titling real estate to ensure that a probate is not required between the spouses when one spouse passes. Having an attorney review your deed and fix any unintended titling mistakes can help prevent costly mistakes that can arise with what is often our biggest asset – the home! An attorney can also advise on options for passing down real estate when both spouses pass and common mistakes that can arise with these transfers and how to avoid them.

Schedule a consultation with Wynn at Law, LLC today to discuss the estate planning process

Whether you already have an estate plan in place and need to review it, or you would like to start from scratch, our attorneys are here to assist you. Contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

The post Top Three Estate Planning Mistakes appeared first on Wynn at Law, LLC.

What to Know Before Using Your Property as an Airbnb, VRBO, or Other Short-Term Rental In Wisconsin:

1. Know Wisconsin State Law Governing Short-Term Rentals

In 2017, Wisconsin enacted a new short-term rental law to combat restrictions that municipalities and other local governments were placing on short-term rentals. The law defines short-term rentals as those for residential dwellings that are offered for rent for less than 30 consecutive days.[1] This law is codified as Wisconsin Statute 66.1014, and has been termed the “Right to Rent Law” as one of its main purposes is to prevent “political subdivisions” (defined as: cities, towns, villages, or counties – which will be referred to as “municipalities” in this blog) from prohibiting property owners from renting their residences for seven consecutive days or longer. Therefore, municipalities can place restrictions on rentals that are shorter than 7 days, so long as they do not conflict with State law. Municipalities may also place restrictions on rentals that are between 7 and 29 consecutive days, but these restrictions must still allow a short-term rental host to rent for at least 180 days a year. The Right to Rent law also requires anyone who rents their residence for more than 10 nights a year to purchase a touring rooming house license from the Department of Agriculture, Trade and Consumer Protection (DATCP). These licenses cost $110 per year and require a one-time inspection fee of $300.[2] The law allows municipalities to also require their own licenses, which must be purchased in addition to the DATCP license to lawfully conduct short-term rentals. The last state player in the short-term rental game is the Wisconsin Department of Revenue, which requires an owner of a short-term rental to report and pay Wisconsin state sales tax on rentals.[3] Websites like Airbnb and VRBO will collect and remit the sales tax for you.[4]^,[5]  These websites also collect other county and local taxes, if applicable. Essentially, the Right to Rent law sets the framework for what laws municipalities may enact. The law encourages municipalities to enact their own ordinances on short term rentals to limit nuisances and keep residents happy. Each municipality can choose its own registration and inspection requirements, fees, and other limitations. This is why it is extremely important to know your municipality’s short-term rental requirements.

2. Know Your County and Municipality’s Laws and Ordinances Governing Short-Term Rentals

Before going straight to renting your home, first consider whether your county has any restrictions. Walworth County has its own ordinance, which requires short-term rental owners to obtain a County License.[6] The County License has a $500 fee for the first year and a $200 annual renewal fee thereafter.[7]^,[8] Along with the County license, an owner must submit the property rules that apply to the rental, which have certain requirements of their own.[9] Keep in mind that Walworth County and the State of Wisconsin have additional requirements for short-term rentals that are serviced by a private septic system, serviced by a private well, and located on a lake. To ensure that all County requirements are met, be sure to read up on Walworth County’s Code of Ordinances and consult the County’s Land Use and Resource Management Department. Other municipal code regulations on short-term rentals that may apply include:

• Proof of property and liability insurance,
• Number of parking spaces that must be offered,
• Proof of floor plan specifications,
• Fire inspection,
• Business registration,
• Nuisance regulations,
• Quiet time hours,
• Local property manager requirements

3. Know Your Homeowner Association’s Restrictions on Short-Term Rentals

Something you may have noticed about the Right to Rent law is that the definition of “political subdivision” does not include a homeowner’s association. This means that associations can place complete restrictions on short-term rentals. The trend with associations within Walworth County seems to be placing a ban on short-term rentals altogether to stay consistent with the association’s goals and other rules. Banking on using a residence located within an association as a short-term rental is risky, as the association could vote to prohibit short-terms rentals in the future. If your residence is part of a homeowner’s association, you should make sure to read the association’s rules and bylaws. Another thing to look out for are associations that are currently inactive – the creation of a homeowner’s association should show up on the title work that is ordered when you purchase or sell a residence. An inactive association is still an association that can be brought back to life by its members, whether those members are composed of the owners of residences within a subdivision plat or a developer. If your residence is part of an association, this is the first place you should look to in determining whether a short-term rental is allowed.

4. Consider the Advantages and Disadvantages of Short-Term Renting

If you are considering using your property as a short-term rental, not only should you make sure that you are abiding by state law, local law, and any homeowner’s association restrictions, but you should also consider the advantages and disadvantages of short-term renting. Financially, short-term renting can not only brings in more income than a long-term rental, but also may allow rental owners to claim tax deduction benefits for things such as property maintenance, insurance, and utilities. Additionally, as a short-term renter, you can be flexible and choose to rent as much or as little as possible. While the financial freedom and flexibility that comes with short-term renting is quite enticing to those looking to begin their short-term rental journey, you should also be aware of some disadvantages. Unfortunately, short-term rentals can drive up housing prices. Also, as this blog has shown, the laws regarding short-term rentals can vary between municipalities, which means that if you have multiple rentals in different locations, you will have to keep track of each municipality’s rules to avoid potential expensive fees. A third downfall is the noise and nuisances that rental properties may create – noise violations, theft, and property damage to name a few. Lastly, be sure to check your homeowner’s insurance policy as some insurance carriers will not cover any damage that occurs at a property when the home is being used as a short term rental.

Conclusion

Wynn at Law, LLC assists clients who are looking to purchase property to be used as a short-term rental, clients selling short term rentals and clients who are purchasing property already used as one. Attorney Shannon Wynn or Attorney Ciara Doherty can help navigate buyers as to where to look to ensure a short-term rental is allowed, can review and explain title work that may have restrictions on short-term renting, and can help buyers feel empowered and informed throughout the entire process.

Schedule a consultation with Wynn at Law, LLC today to discuss the purchase or sale of short-term rented real estate.

Contact us today for a consultation at 262-725-0175 or our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has three office locations: Lake Geneva, Delavan, and Salem.

SOURCES: [1] Wis. Stat. 66.0615(dk)

[2] DATCP Home Tourist Rooming Houses (wi.gov)

[3] DOR Homeowners and Individuals Selling Short-Term Lodging (wi.gov)

[4] Collection and remittance of taxes and lodging taxes | Help (vrbo.com)

[5] Occupancy tax collection and remittance by Airbnb in Wisconsin – Airbnb Help Center

[6] Walworth County, Wisconsin Code of Ordinances. Chapter 26, Art. VII. ARTICLE VII. – OFFERING A RESIDENTIAL DWELLING AS A SHORT TERM RENTAL | Code of Ordinances | Walworth County, WI | Municode Library

[7] Wisconsin Division (walworth.wi.us)

[8] Wisconsin Division (walworth.wi.us)

[9] See Walworth County Code of Ordinances, Chapter 26, Art VII, Sec. 26-343.

What to Know Before Using Your Property as an Airbnb, VRBO, or Other Short-Term Rental In Wisconsin:

1. Know Wisconsin State Law Governing Short-Term Rentals

In 2017, Wisconsin enacted a new short-term rental law to combat restrictions that municipalities and other local governments were placing on short-term rentals. The law defines short-term rentals as those for residential dwellings that are offered for rent for less than 30 consecutive days.[1] This law is codified as Wisconsin Statute 66.1014, and has been termed the “Right to Rent Law” as one of its main purposes is to prevent “political subdivisions” (defined as: cities, towns, villages, or counties – which will be referred to as “municipalities” in this blog) from prohibiting property owners from renting their residences for seven consecutive days or longer. Therefore, municipalities can place restrictions on rentals that are shorter than 7 days, so long as they do not conflict with State law. Municipalities may also place restrictions on rentals that are between 7 and 29 consecutive days, but these restrictions must still allow a short-term rental host to rent for at least 180 days a year. The Right to Rent law also requires anyone who rents their residence for more than 10 nights a year to purchase a touring rooming house license from the Department of Agriculture, Trade and Consumer Protection (DATCP). These licenses cost $110 per year and require a one-time inspection fee of $300.[2] The law allows municipalities to also require their own licenses, which must be purchased in addition to the DATCP license to lawfully conduct short-term rentals. The last state player in the short-term rental game is the Wisconsin Department of Revenue, which requires an owner of a short-term rental to report and pay Wisconsin state sales tax on rentals.[3] Websites like Airbnb and VRBO will collect and remit the sales tax for you.[4]^,[5]  These websites also collect other county and local taxes, if applicable. Essentially, the Right to Rent law sets the framework for what laws municipalities may enact. The law encourages municipalities to enact their own ordinances on short term rentals to limit nuisances and keep residents happy. Each municipality can choose its own registration and inspection requirements, fees, and other limitations. This is why it is extremely important to know your municipality’s short-term rental requirements.

2. Know Your County and Municipality’s Laws and Ordinances Governing Short-Term Rentals

Before going straight to renting your home, first consider whether your county has any restrictions. Walworth County has its own ordinance, which requires short-term rental owners to obtain a County License.[6] The County License has a $500 fee for the first year and a $200 annual renewal fee thereafter.[7]^,[8] Along with the County license, an owner must submit the property rules that apply to the rental, which have certain requirements of their own.[9] Keep in mind that Walworth County and the State of Wisconsin have additional requirements for short-term rentals that are serviced by a private septic system, serviced by a private well, and located on a lake. To ensure that all County requirements are met, be sure to read up on Walworth County’s Code of Ordinances and consult the County’s Land Use and Resource Management Department. Other municipal code regulations on short-term rentals that may apply include:

• Proof of property and liability insurance,
• Number of parking spaces that must be offered,
• Proof of floor plan specifications,
• Fire inspection,
• Business registration,
• Nuisance regulations,
• Quiet time hours,
• Local property manager requirements

3. Know Your Homeowner Association’s Restrictions on Short-Term Rentals

Something you may have noticed about the Right to Rent law is that the definition of “political subdivision” does not include a homeowner’s association. This means that associations can place complete restrictions on short-term rentals. The trend with associations within Walworth County seems to be placing a ban on short-term rentals altogether to stay consistent with the association’s goals and other rules. Banking on using a residence located within an association as a short-term rental is risky, as the association could vote to prohibit short-terms rentals in the future. If your residence is part of a homeowner’s association, you should make sure to read the association’s rules and bylaws. Another thing to look out for are associations that are currently inactive – the creation of a homeowner’s association should show up on the title work that is ordered when you purchase or sell a residence. An inactive association is still an association that can be brought back to life by its members, whether those members are composed of the owners of residences within a subdivision plat or a developer. If your residence is part of an association, this is the first place you should look to in determining whether a short-term rental is allowed.

4. Consider the Advantages and Disadvantages of Short-Term Renting

If you are considering using your property as a short-term rental, not only should you make sure that you are abiding by state law, local law, and any homeowner’s association restrictions, but you should also consider the advantages and disadvantages of short-term renting. Financially, short-term renting can not only brings in more income than a long-term rental, but also may allow rental owners to claim tax deduction benefits for things such as property maintenance, insurance, and utilities. Additionally, as a short-term renter, you can be flexible and choose to rent as much or as little as possible. While the financial freedom and flexibility that comes with short-term renting is quite enticing to those looking to begin their short-term rental journey, you should also be aware of some disadvantages. Unfortunately, short-term rentals can drive up housing prices. Also, as this blog has shown, the laws regarding short-term rentals can vary between municipalities, which means that if you have multiple rentals in different locations, you will have to keep track of each municipality’s rules to avoid potential expensive fees. A third downfall is the noise and nuisances that rental properties may create – noise violations, theft, and property damage to name a few. Lastly, be sure to check your homeowner’s insurance policy as some insurance carriers will not cover any damage that occurs at a property when the home is being used as a short term rental.

Conclusion

Wynn at Law, LLC assists clients who are looking to purchase property to be used as a short-term rental, clients selling short term rentals and clients who are purchasing property already used as one. Attorney Shannon Wynn or Attorney Ciara Doherty can help navigate buyers as to where to look to ensure a short-term rental is allowed, can review and explain title work that may have restrictions on short-term renting, and can help buyers feel empowered and informed throughout the entire process.

Schedule a consultation with Wynn at Law, LLC today to discuss the purchase or sale of short-term rented real estate.

Contact us today for a consultation at 262-725-0175 or our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has three office locations: Lake Geneva, Delavan, and Salem.

SOURCES: [1] Wis. Stat. 66.0615(dk)

[2] DATCP Home Tourist Rooming Houses (wi.gov)

[3] DOR Homeowners and Individuals Selling Short-Term Lodging (wi.gov)

[4] Collection and remittance of taxes and lodging taxes | Help (vrbo.com)

[5] Occupancy tax collection and remittance by Airbnb in Wisconsin – Airbnb Help Center

[6] Walworth County, Wisconsin Code of Ordinances. Chapter 26, Art. VII. ARTICLE VII. – OFFERING A RESIDENTIAL DWELLING AS A SHORT TERM RENTAL | Code of Ordinances | Walworth County, WI | Municode Library

[7] Wisconsin Division (walworth.wi.us)

[8] Wisconsin Division (walworth.wi.us)

[9] See Walworth County Code of Ordinances, Chapter 26, Art VII, Sec. 26-343.

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