Can an HOA Restrict Rentals in Wisconsin?

What Wisconsin law says

Wisconsin's condominium law (Wis. Stat. ch. 703) contains no rental-restriction statute of the Utah or Virginia type — no mandated exemptions, no fee caps, no vested rights. Instead, the controlling authority is case law. In Apple Valley Gardens Association, Inc. v. MacHutta, 2009 WI 28, the Wisconsin Supreme Court upheld a bylaw amendment prohibiting unit rentals, holding that '[n]othing in s. 703.09(1)(g) or in any other section of ch. 703 requires that all restrictions on use must be identified in the declaration.' Section 703.10(3), the court found, 'expressly authorizes the placement of additional use restrictions in condominium bylaws and does not contain limitations on the types of restrictions that can be implemented through bylaw amendments.'

The procedural bar is therefore the bylaw-amendment threshold: § 703.10(5) allows bylaws to be amended by the affirmative vote of unit owners holding 67% or more of the votes. That is a lower hurdle than amending many declarations, and it means Wisconsin condo owners face genuine risk that a rental ban they never agreed to can be adopted over their objection — provided the ban does not conflict with the declaration or with state or federal law. Section 703.10(2m) separately bars enforcing any bylaw, rule, or covenant in a discriminatory manner under Wisconsin's fair housing law (§ 106.50).

Non-condominium HOAs — the single-family subdivisions governed by restrictive covenants rather than chapter 703 — operate under common-law covenant enforceability plus the nonprofit corporation law (ch. 181). Recorded rental bans, caps, and waiting periods in subdivision CC&Rs are generally enforced as written, as the HOA411 seed records show (10–12.5% caps and one-year owner-occupancy waits are common in Milwaukee-area condos), but there is no MacHutta-style supreme court decision squarely blessing rental bans for non-condo HOAs.

• Wis. Stat. § 703.10(3) — Condo bylaws may include any restriction on the use and maintenance of units and common elements — the statutory hook for rental restrictions.
• Wis. Stat. § 703.10(5) — Condo bylaws may be amended by affirmative vote of owners holding 67% or more of the votes.
• Wis. Stat. § 703.10(2m) — No bylaw, rule, or covenant may be applied in a discriminatory manner under Wisconsin fair housing law (§ 106.50).
• Apple Valley Gardens Ass'n v. MacHutta, 2009 WI 28 — Wisconsin Supreme Court: a condo may prohibit rentals through a bylaw amendment; use restrictions need not be in the declaration.

What HOAs in Wisconsin can and can’t do

HOAs generally can:

• Prohibit rentals entirely through a bylaw amendment approved by 67% of votes (condominiums)
• Impose rental caps (10%, 12.5%), minimum lease terms (12 months), and owner-occupancy waits before first rental
• Require written leases on board-approved forms with copies filed with the association
• Restrict rentals to narrow hardship circumstances (military, job relocation) as some associations do
• Enforce recorded rental bans in non-condo subdivisions through covenant enforcement

Limits under Wisconsin law:

• Adopt a rental restriction that conflicts with the declaration or with state/federal law — MacHutta's validity test
• Apply rental rules in a discriminatory manner under Wis. Stat. § 106.50 (§ 703.10(2m))
• For non-condo HOAs, rely on a supreme court decision blessing rental bans — none squarely exists; enforceability rests on covenant law

Things to know in Wisconsin

• Bylaws, not just declarations: MacHutta is the rare state supreme court decision expressly allowing rental bans via bylaw amendment — in most UCIOA states, a ban needs declaration-level action. Wisconsin condo buyers should read the bylaws, not just the declaration.
• 67% is the bylaw threshold, but declarations often set their own higher amendment bars — a rental ban placed in the declaration instead of the bylaws must meet the declaration's vote requirement.
• Hardship-only rental regimes exist: Whispering Woods in Madison permits rentals only with board approval in four temporary circumstances (military, short-term job relocation, volunteer assignment) — an unusually tight Wisconsin model.
• Title protection: § 703.10(6) provides that bylaws do not render unit title unmarketable — so a rental-banning bylaw cannot be used to block a foreclosure sale to an investor buyer (Bankers Trust v. Bregant).

Rental rules we’re seeing in Wisconsin

Real examples from the HOA411 database:

• Stone Creek of Kenosha Condominium Association, Kenosha — The condo disclosure Executive Summary (effective April 2025) states 'Currently rentals are not allowed in this complex' — a full rental prohibition of the kind MacHutta upheld.
• Cudahy Connection Condominiums, Cudahy — Bylaws cap rentals at 10% of units (8 of 76), require a 12-month minimum lease, and require the owner to occupy for 1 year before a first rental.
• Wisconsin Tower Condominium, Milwaukee — Bylaws require a 12-month minimum lease on a board-approved written form with a rental cap of 12.5% (9 of 77 units).
• Brookfield Lake Condominium Association, Brookfield — Declaration Art. VIII §8.2 lets an owner lease or sublease the entire unit at any time with a written lease and a copy delivered to the Board within 7 days — no rental cap was found.

Frequently asked questions

Can my Wisconsin condo ban rentals after I buy?

Yes, potentially. Under Apple Valley Gardens Ass'n v. MacHutta (2009 WI 28), a rental ban can be adopted by bylaw amendment — not just by declaration amendment — on a 67% vote of owners (Wis. Stat. § 703.10(5)). The ban is valid so long as it doesn't conflict with the declaration or the law.

Does a Wisconsin rental ban have to be in the declaration?

No — that is the point of MacHutta. The supreme court held that nothing in chapter 703 requires all use restrictions to be in the declaration, and § 703.10(3) expressly authorizes additional use restrictions in the bylaws. Always read the bylaws, not just the declaration.

Can a Wisconsin HOA ban rentals in a single-family subdivision?

Recorded CC&R rental bans, caps, and waiting periods in non-condo subdivisions are generally enforceable under covenant law, and they are common. But unlike condos, there is no Wisconsin supreme court decision squarely blessing subdivision rental bans — enforceability rests on general covenant principles.

What vote does it take to amend Wisconsin condo bylaws?

The affirmative vote of unit owners holding 67% or more of the votes, under Wis. Stat. § 703.10(5). Declarations may set different (often higher) thresholds for declaration amendments, so check both documents.

Can a Wisconsin rental ban be used to block an investor from buying at foreclosure?

No. Wis. Stat. § 703.10(6) provides that bylaws do not affect title to a unit, and in Bankers Trust v. Bregant (2003) the court of appeals refused to apply an owner-occupancy bylaw to block confirmation of a foreclosure sale to a non-occupant investor buyer. Rental bans restrict use, not transfer of title.

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General information only, not legal advice. HOA rules change — confirm directly with the HOA or a Wisconsin attorney before buying or leasing.