by SPEAKIN’ OUT NEWS
The City of Madison is moving to tighten oversight of short-term rentals such as Airbnb and Vrbo properties with a new ordinance aimed at protecting neighborhoods, housing availability, and public safety.
Ordinance 2026-201 establishes a city permit system for short-term rentals and creates operating standards for owners who rent homes, townhomes, condos, apartments, mobile homes on permanent foundations, or accessory buildings on a short-term basis.
Under the ordinance, operators must obtain a Short-Term Rental Operational Permit, secure a business license, receive a certificate of occupancy, and pay a $350 nonrefundable application fee. Each rental unit must have its own permit, and permits cannot be transferred to another person or property.
The city will also cap short-term rentals at 0.75% of Madison’s housing supply, currently equal to 190 permits. Permits will be issued on a first-come, first-served basis.
The ordinance requires operators to carry at least $1 million in liability and personal injury coverage and provide notice to neighboring property owners once a permit is issued. Owners must also name a local contact person who is at least 21 and available 24 hours a day, seven days a week, to respond within 30 minutes to complaints or violations.
Large events such as parties, concerts, weddings, and similar gatherings are prohibited. Overnight street parking by guests is also banned, and rentals must provide one parking space per bedroom.
Safety requirements include smoke detectors, carbon monoxide detectors, fire extinguishers, emergency contact information, and posted escape routes.
Violators may face fines, permit suspension, or revocation. Three valid complaints within 12 months can lead to a suspension of at least six months.
The ordinance reflects Madison’s effort to balance tourism and property rights with neighborhood stability and resident quality of life.
Photo Caption 1: Madison has approved new regulations for Airbnb and other short-term rentals.
Photo Caption 2: The ordinance limits permits, requires safety standards, and bans large events at short-term rentals.