Thinking about investing in Sheboygan real estate?
Maybe you already own a rental property there. Maybe you’re a local landlord and maybe you’re considering an investment even though you live outside of the area. There are a number of good opportunities here, and the rental market is attractive to both owners and tenants. The cost of living is lower, compared to other parts of the country and even other parts of the state. The economy is growing.
Plenty of good reasons to rent out a home in Sheboygan.
But there are also legal requirements, rental regulations, and general things-to-know in order to be an effective landlord.
That’s why you work with us. As local Sheboygan property management experts, we know the market. We know the properties. We can tell you about your competition and we can help you find a property that’s sure to be profitable.
Let’s take a look at what it takes to navigate the rental landscape. We’ll provide some essential legal tips and also some long-term advice.
Quick Summary:
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The Sheboygan Rental Landscape: Opportunities for Landlords and Investors
Sheboygan, located along eight miles of Lake Michigan shoreline, is the economic center of Sheboygan County. The city has a population of roughly 50,000 and anchors a county of about 118,000 residents. Population growth has been modest but steady over the past few years, creating a stable foundation for housing demand.
Here are some of the details that you need to know before you jump into the rental market here.
High Demand and Low Vacancy Demand for rentals currently outpaces supply, which means more properties are needed. Our data from a recent city housing study shows us that vacancy rates sit well below the healthy 4–7% range, with some estimates placing them under 1%. This tight market is being driven by household growth, steady employment, and wage increases. Average advertised rents in Sheboygan fall between $1,100 and low $1,200, depending on property type. A one-bedroom apartment is likely to rent for around $1,150. Larger properties rent for more. Everything depends on property condition, amenities, and neighborhood. While these rents are affordable compared to larger Wisconsin metros, they are high enough to support strong returns for landlords, particularly when units are well maintained and competitively marketed. | Economic Anchors and Renter Base Sheboygan benefits from a diverse, durable employment base. Major employers include Kohler Co., Sargento, Johnsonville, Bemis, ACUITY, and large healthcare systems. These businesses create year-round demand for rental housing across income levels. Lakeland University contributes a steady flow of student and faculty renters, while the city’s robust tourism industry, which is bolstered by lakefront attractions and events, creates opportunities for short-term and seasonal rentals if those things are part of your investment plan. |
Housing Stock and Investment Potential Something to know if you’re an investor who is looking to buy in this market: the city’s housing stock is notably older, with more than a third of units built before 1939. That doesn’t have to mean more maintenance. Instead, this presents value-add opportunities through renovations, energy-efficiency upgrades, and modern amenities. Sheboygan has also invested in multiple Tax Increment Districts (TIDs) to encourage new housing development, signaling municipal support for increased supply. While new construction is happening, it has yet to fully meet the market’s demand. | Rent Levels and Affordability One of Sheboygan’s strengths is its relative affordability. Rents are well below national averages, making the city attractive to workforce tenants tied to manufacturing, insurance, and healthcare jobs. This affordability helps maintain low turnover and high occupancy rates, which can lead to stable cash flow for investors. |
Landlord Considerations Wisconsin’s landlord-tenant laws are generally straightforward, with no state-imposed cap on security deposits (except for manufactured home lots). Landlords must follow specific rules for check-in reports, allowable deductions, and re-renting if a tenant leaves early. New or out-of-state landlords should familiarize themselves with these requirements to ensure compliance and avoid disputes. We are going to explore these in more detail later in this blog, but it’s a consideration for anyone who is planning to rent out a property here and unfamiliar with state and local laws. |
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Sheboygan’s rental market is shaped by strong fundamentals: a diverse employer base, steady population trends, thriving tourism, and extremely low vacancy rates. Investors who can bring well-located, updated, and clean housing to market are likely to see strong occupancy and healthy returns.
Neighborhood selection is important. Lakefront and downtown areas appeal to lifestyle renters and short-term visitors, properties near major employers suit the workforce market, and rentals near Lakeland University capture student demand. With smart management, realistic budgeting for older properties, and compliance with state regulations, Sheboygan offers the potential for resilient cash flow and long-term property value growth.
Lease Agreements in Sheboygan: Compliance and Enforcement
Strangely, rental agreements in Wisconsin are not required to be in writing. We recommend that you put your agreement in writing anyway. Otherwise, there is no structure nor accountability to your relationship with your tenant.
Having a lease agreement that is both legally compliant and legally enforceable is essential to protecting your investment and avoiding costly disputes. A well-crafted lease clearly outlines the rights and responsibilities of both the landlord and tenant, including rent terms, security deposits, maintenance obligations, and rules for property use.
Compliance with Wisconsin’s landlord-tenant laws ensures your lease aligns with state regulations, including required disclosures, eviction procedures, and tenant protections. Without a legally sound lease, landlords risk challenges in court, delayed evictions, or even financial penalties. Additionally, a strong lease sets clear expectations for tenants, reducing misunderstandings and establishing a professional landlord-tenant relationship.
Investing the time and resources to create a thorough, enforceable lease not only safeguards your property but also contributes to smoother operations. There’s more consistent rental income, and a better shot at long-term success.
Don’t just grab any lease template off the internet. Make sure you are working with a document that protects you and your rental property. Here’s what it has to include.
Names of Parties. Full names of the landlord and all tenants. Anyone living in the property who is 18 years of age or older must be included in the lease.
Property Description. The rental unit’s address and any included spaces, such as a garage or storage.
Lease Term. Start and end dates for the lease, or terms for a month-to-month rental.
Rent Amount and Payment Terms. Monthly rent, due date, accepted payment methods, and late fees. Be clear about grace periods and about what’s included and not included in the rent.
Security Deposit Details. Amount collected, where it is held, and conditions for return.
Maintenance and Repairs. Who is responsible for routine upkeep, repairs, and reporting damage.
Utilities and Services. Which utilities are included or tenant-paid.
Rules for Property Use. Occupancy limits, pet policies, smoking rules, and noise expectations.
Entry Rights. Landlord’s right to enter, notice requirements, and emergencies.
Eviction and Termination Procedures. Grounds for eviction, notice periods, and legal remedies.
Disclosure Requirements. Any legally required notices, such as lead paint or mold disclosure.
Signatures and Date. Both landlord and tenant must sign and date the lease.
This is not an exhaustive list of what should be included in your lease agreements. However, without these specifics included, you could face ambiguity and uncertainty when you try to hold your residents accountable.
Looking at the Laws: What You Need to Know about Liability and Legalities for Sheboygan Rentals
Navigating rental laws can feel challenging even for experienced landlords. No one wants to be accused of violating fair housing laws or renting out a home that’s unfit for occupancy.
Understanding the rules around landlord/tenant relationships is essential to protecting your investment and maintaining positive tenant relationships. In Sheboygan, Wisconsin, state and local regulations cover everything from security deposits and lease agreements to tenant rights and eviction procedures.
For property owners, staying informed helps avoid costly and disruptive legal issues. It also ensures a smoother, more profitable rental experience.
Don’t be that landlord who doesn’t know any better.
Get to know the laws and follow them.
Here are the rental requirements and regulations that you’ll most want to pay attention to.
Security Deposits
Unless you’re renting out a mobile home lot, there is no state-imposed limit to what you can collect as a security deposit. The deposit must be refundable, and once it’s received from the tenant, the landlord must provide a receipt that reflects the amount collected and the purpose of the money. The law also requires a check-in sheet that reflects the condition of the property, and we’ll talk more about that in a moment. At the end of the lease term, landlords have 21 days after the end of the lease or the tenant’s move-out date to return the deposit. Deductions can be made for unpaid rent and utility bills and for any tenant damage, but not general wear and tear.
Check-In Documentation
According to Wisconsin law, before the landlord can accept the security deposit from a tenant, they must notify the tenant in writing that they have 7 days after moving in to either inspect the property and notify the landlord of any existing damage or request from the landlord a list of defects or damages that were charged against the previous tenant’s security deposit. We take photos to document property condition so that your property is protected during the tenancy and so that damage is easily identified after a tenancy.
Rental Increases
The good news is, there’s no rent control in Wisconsin. Property owners can raise the rent as much as they’d like, in accordance with their own lease agreement. When you’re raising the rent during a lease renewal, you’ll have to inform the tenant of the new rental amount before they agree to renew the lease. If you’re operating on a month-to-month tenancy, a 28-day notice period is required before the rent goes up.
Eviction Laws in Wisconsin
To evict a tenant, you must first send a termination notice to your resident. Since most evictions are due to nonpayment of rent, your notice would likely be a 5-Day Notice to Pay or Quit. If the tenant neither pays the overdue rent nor moves out of the property, you’ll need to file for a legal eviction in the courts. The initial hearing will be within 25 days of the Summons and Complaint being filed. Make sure you’re clear on all the timelines and paperwork when you move forward with an eviction. We always recommend getting help from a property manager or an attorney.
Thinking about a short-term rental in Sheboygan? Make sure you understand the legalities. Short-term rentals, also known as tourist rooming houses, require a license and must comply with state lodging code requirements. This includes a pre-inspection and annual health inspections to ensure compliance with regulations. |
How to Navigate the Rental Market without Breaking Any Laws
We’ve talked about the rental landscape, so you know that owning rental property in Sheboygan, Wisconsin, can be a fantastic way to generate steady income.
And you also know that navigating the local rental market while remaining fully compliant with state and local laws is crucial to protecting your investment, maintaining positive tenant relationships, and avoiding costly legal disputes.
Here’s what to remember.
Understand Wisconsin Landlord-Tenant Laws The foundation of lawful property management is a strong understanding of Wisconsin’s landlord-tenant laws. These statutes cover everything from lease agreements and security deposits to tenant rights and eviction procedures. Failing to comply with any of these requirements can result in legal penalties and strained tenant relationships. Landlords also need to be aware of disclosure obligations. Wisconsin law requires landlords to inform tenants about lead paint hazards in older properties, provide notice of pest infestations if known, and disclose any material conditions that may affect habitability. These disclosures should be incorporated into your lease agreement to ensure both clarity and compliance. | Use a Legally Compliant Lease Agreement A well-drafted lease is the single most important legal tool a landlord can use. Your lease should clearly outline rent amounts, payment schedules, security deposits, maintenance responsibilities, rules for pets and smoking, and procedures for resolving disputes. It must also align with Wisconsin law on notice requirements, eviction procedures, and tenant protections. A strong lease reduces misunderstandings, sets clear expectations, and provides enforceable terms if legal action becomes necessary. | Stay Current on Local Regulations While Wisconsin provides the overarching legal framework, municipalities like Sheboygan may have additional ordinances affecting rental properties. These can include property maintenance codes, occupancy limits, and fire safety requirements. Regularly checking with the city or consulting with a local property manager ensures that your rentals meet all local standards and helps avoid fines or legal complications. |
Screen Tenants Thoroughly Responsible tenant screening protects both your property and your compliance record. Use background checks, credit reports, and rental history evaluations to select tenants who are likely to pay rent on time and care for your property. Keep all screening criteria consistent to avoid discrimination claims under the Fair Housing Act. Documenting your process demonstrates that tenant selection decisions are fair, legal, and non-discriminatory. | Maintain the Property Properly Wisconsin law requires landlords to provide safe and habitable housing. This includes functioning plumbing, heating, electricity, and adherence to building codes. Regular maintenance not only keeps tenants satisfied but also reduces the risk of disputes and liability claims. Documenting maintenance and repairs can be invaluable if disagreements arise over property conditions. | Handle Evictions Carefully Even the most diligent landlords may occasionally face non-paying or problematic tenants. Wisconsin law outlines a formal eviction process that must be strictly followed. Attempting to remove a tenant without proper notice or through self-help methods like changing locks or shutting off utilities is illegal and can result in serious penalties. Understanding notice periods, filing procedures, and court requirements is essential before pursuing eviction. |
Partner with Professionals
For landlords new to Sheboygan or those managing multiple properties, working with property managers, attorneys, or local real estate professionals can make compliance easier. These experts can provide guidance on lease preparation, legal requirements, tenant relations, and day-to-day operations, helping you avoid missteps that could jeopardize your investment.
We’d love to be your resource and your property management partner.
Successfully navigating the Sheboygan rental market requires a combination of legal knowledge, careful planning, and proactive property management. By understanding Wisconsin’s landlord-tenant laws, using a legally compliant lease, maintaining your property, screening tenants thoughtfully, and seeking professional guidance when needed, you can protect your investment while providing quality housing. Landlords who operate within the law not only reduce the risk of disputes and fines but also create a more stable, profitable, and professional rental business.
Let’s talk about your Sheboygan rental property and its potential. Contact us at Blue Frog Property Management.
