Mid Term Rentals in Madison, WI

[Kaylyn Geiger]

Hi all, 

Curious if anyone has experience with mid-term rentals in the Madison area. Well I'm technically in Fitchburg. I know Madison has pretty tough regulations on short term rentals so thinking this may be the way to go. My thought is there may be some adequate appeal here being a college town with some major corporations and hospitals thus, lots of potential with students, professors, corporate staff, nurses, etc. 

I know Fitchburg does not require permitting for rentals over 28 days. Regardless of area, I'm curious if it'd be better to rent 30+ day stays over rental sites like Air Bnb or just have the tenants sign a month-month lease. I've also heard about Furnished Finder and getting connected with local Facebook groups. Are there any other methods you use? Another idea is to get connected with real estate brokerages (my own included) for people who are in transition periods between homes. 

Any feedback is appreciated!

[Tiffany Cohen]

No experience in your maket but I'm researching other markets.  You can also try the website Kopa for more insight. Also are you near military bases, refineries or universities? Also good avenues for MTRs. Call their HR departments, housing departments or management and ask best places to post your listing. Good luck!

[Michael Leeson]

Hey @Kaylyn Geiger.  So glad to see this question pop up.  I'm in Madison and looking to get an MTR up and running soon.  I haven't had the bandwidth yet to look at the data/demand. But attended the MTR workshop at BPCON and have the new book next up on my list. 

I just finished working through some litigation with the city around a STR violation we got ourselves into. Not fun but it worked out!

My understanding is that Airbnb and Furnished Finder are both great platforms. Connecting with HR and firms moving traveling professionals seems ideal too. 

Mid-term certainly makes numbers on some of the multifamily properties we're seeing come up make more sense!

What are your thoughts on ideal areas or a radius you'd want to stay within?  I'd be interested to hear what you come up with!

[Kaylyn Geiger]

Yeah there's not a lot of info/data out there on the Madison area. I think the closer to hospitals, the university and/or big corporations the better, yet outside of the party/student zone of downtown. However, I think as long as you're within a 5-10 miles radius of all of that there will be some demand. My situation is a bit different as I'm not seeking to purchase a property but to rent out one in Fitchburg that's already owned so hoping to make that work. It's a 15 minute drive to downtown, and a 10ish minute drive to Epic, which I'm thinking will be the main draws. 

[Matt Rekowski]

Hi @Kaylyn Geiger, I’m also located in Fitchburg (soon moving to Sun Prairie). I’m looking into MTRs as well. It does seem like that route may be a lot more viable with Madison’s market as opposed to the other routes (like you mentioned due to the regulatory side with STRs, and the high cost of housing relative to rents and poor cash flow potential). I’ve been looking toward other markets, but the convenience of being able to invest in a local area is still something I would like to do if the numbers can work. I’m a healthcare provider at UW Hospital, and we get a tremendous amount of locums, travelers, and students rotating for 30+ days. As I continue to look into this more, I’ll connect with you in the near future with what I find!

[Conner Olsen]

Quote from @Kaylyn Geiger:

Hi all, 

Curious if anyone has experience with mid-term rentals in the Madison area. Well I'm technically in Fitchburg. I know Madison has pretty tough regulations on short term rentals so thinking this may be the way to go. My thought is there may be some adequate appeal here being a college town with some major corporations and hospitals thus, lots of potential with students, professors, corporate staff, nurses, etc. 

I know Fitchburg does not require permitting for rentals over 28 days. Regardless of area, I'm curious if it'd be better to rent 30+ day stays over rental sites like Air Bnb or just have the tenants sign a month-month lease. I've also heard about Furnished Finder and getting connected with local Facebook groups. Are there any other methods you use? Another idea is to get connected with real estate brokerages (my own included) for people who are in transition periods between homes. 

Any feedback is appreciated!

 You have all the major marketing channels covered! Real estate brokerages could be a good source but honestly don't think you need much more than Airbnb, VRBO, Furnished Finder, and FB groups.

[Nikki Cepeda]

Hi all,

I know this thread is a bit old but curious if the couple of you who were interested in Madison's MTR market had any luck. @Kaylyn Geiger @Michael Leeson

My husband and I are LTR investors in Janesville with a few multi-family units but we're considering the MTR market specifically Madison and Milwaukee as options. I don't have proven data of success but with Madison having hospitals, the university, the airport, and many extended-stay hotels it seems it might have the demand.

It seems the median price on Airbnb for a 30-day stay is $5,000 before fees.

[Kaylyn Geiger]

@Nikki Cepeda Happy to share! We ended up going the STR route. Fitchburg does have some limitations. You can only rent your place for 183 days out of the year, which still gets us far more monthly than our LTR. It has to be your primary residence and of course you need licensing for the city and health department. If a stay is longer than 6 days (If I'm remembering correctly), it's not counted as a STR thus it doesn't impact your total days booked.

We started in December and have been booked essentially every weekend. Our longest stay was 37 days—a family who needed somewhere to stay between selling their home in TX completing their new home in the area. Otherwise lots of people coming for university tours, conventions at Alliant, events at The Kohl Center and concert venues like the Sylvee. 

We charge between $198 and $278/night for a 3 bed 2 full bath half duplex. It sleeps 7 in total. We do have a discounted monthly rate of $3,200 for the longer term people which we've had a few inquiries outside of the one we had booked but haven't been able to accommodate because of other shorter term bookings. 

Our plan is to finish out the year and then determine whether or not we want to continue STR or dabble more with MTRs. Right now we are doing all cleaning and management ourselves so we're weighing out whether or not the amount we're earning is worth the hassle. We do get weekly inquires from Furnished Finder as we started to create an account but never finished. Not sure if it's more of a marketing tactic or there is actually that much demand.

Wish I had more insight on MTRs but hopefully knowing the demographics we've attracted this far can help inform some of your decisions. 

Kaylyn

[Nikki Cepeda]

That's great insight and appreciate you taking the time to share! I'm glad to hear the STR route has been working fairly well for you both so far and it's not even peak season yet! We're currently doing research in the area and getting familiar with the regulations for mid-term rentals specifically. I'll keep you updated on whether we have some movement there and share any insight as well ahead of you considering MTR at the end of the year.

[Emily Licari]

@Michael Leeson  would love to hear more about the STR violation from the city . Dealing with zoning myself right now, which I dont think is based in any reality. Curious to hear more. 

[Nick Gober-Keller]

Congratulations on your strategic move into Fitchburg's mid-term rental market! It's a commendable step, and your engagement in these forums is a clear sign of your dedication to learning and networking.

Deciding between Airbnb for 30+ day stays or traditional leases involves considering management ease, income stability, tenant screening, and fees. Platforms like Furnished Finder, local Facebook groups, and partnering with real estate brokerages can be great resources for reaching potential tenants.

Remember, attractive mid-term stays often require fully furnished, amenity-rich spaces. Additionally, Fitchburg's downtown, with its entertainment options and close proximity to several hospitals, can be a major draw.

The following hospitals are all within about 7-9 miles of downtown Fitchburg:

• UnityPoint Health - Meriter Hospital
• St. Mary's Hospital
• University Hospital - UW Health
• Select Specialty Hospital - Madison
• William S. Middleton Memorial Veterans Hospital
• American Family Children's Hospital
• SSM Health St. Mary's Hospital - Madison
• Rehabilitation Hospital of Wisconsin
• UW Health Rehabilitation Hospital
• UnityPoint Health - Meriter - NewStart Treatment Center

Ensure to stay compliant with regulations by consulting with local real estate professionals or attorneys. You're on an exciting path and we're cheering for your success!

[Missy Denk]

Hi All! 

I have a similar question. My wife is a travel nurse and we just bought our primary home in the Fitchburg area. We would still like to travel a little bit still (1-2 more years) and would like to rent out to a few travel nurses a year w/ having some block off months to stay in our home. I checked the city of Fitchburg website and see you only need a permit if you are renting 28 days or less. Since we would be renting out 1-2 months at a time, do we not have to worry about permits or anything? We haven't ran into any issues yet from a renter's point on furnished finder, so we are hoping that could remain the same. Any input would be great here, thank you! 

[Zachary Deal]

Hi Missy, I think you're correct that you only need a permit if you're renting for a period less than 28 days in Fitchburg