Is Alexandria Bay, New York Good for Airbnb Investment?

To start an Airbnb in Alexandria Bay, New York, begin by researching local zoning laws and regulations through the Town of Alexandria and Jefferson County offices, as short-term rentals may require special permits or have restrictions in residential areas. Contact the Alexandria Bay Village Clerk at (315) 482-9971 to understand specific permit requirements, which typically include a business license, certificate of occupancy, and potentially a special use permit for short-term rentals. Find a suitable property near the Thousand Islands attractions, considering proximity to Boldt Castle ferry terminals and the St. Lawrence River, with properties ranging from $150,000-$400,000 depending on waterfront access. Ensure the property meets New York State fire safety codes, install required smoke and carbon monoxide detectors, and obtain liability insurance coverage of at least $1 million. Furnish the space with durable, tourist-friendly amenities including kayaks or fishing equipment to appeal to the area's outdoor recreation visitors, high-speed internet for remote workers, and local guidebooks featuring Thousand Islands attractions. Register for New York State sales tax collection through the Department of Taxation and Finance, as short-term rentals under 90 days are subject to 8% state sales tax plus local taxes. List your property on Airbnb, VRBO, and local tourism websites, highlighting proximity to Thousand Islands Bridge, Uncle Sam Boat Tours, and seasonal attractions, with rates typically ranging from $100-$300 per night depending on season and amenities. Manage bookings by partnering with local cleaning services like those serving the Clayton-Alexandria Bay area, establish relationships with local maintenance contractors familiar with seasonal property challenges, and consider hiring a local property management company such as Thousand Islands Property Management if you're not local, as the area experiences significant seasonal fluctuations with peak demand from May through October.

To identify profitable short-term rental properties in Alexandria Bay, New York, focus on waterfront or water-view locations within walking distance of the St. Lawrence River, Boldt Castle ferry terminals, and downtown attractions, as these command premium rates of $200-400 per night during peak summer season (June-September). Target 3-4 bedroom properties with modern amenities, outdoor spaces like decks or patios, boat docks or water access, and parking for multiple vehicles, as families and boating groups represent the primary market. Analyze pricing using AirDNA and Mashvisor to benchmark against successful properties like those near James Street and Church Street, where occupancy rates reach 70-85% in summer months, while winter occupancy drops to 20-30% with rates around $100-150 nightly. Research competition by studying listings within a 2-mile radius, noting that properties with unique features like hot tubs, game rooms, or boat slips achieve 15-25% higher revenue, with annual gross income potential of $35,000-65,000 for well-positioned properties. Utilize STR Helper and Rabbu for market analysis, monitor Thousand Islands tourism data through the local chamber of commerce, and consider properties under $300,000 to maintain healthy cash flow given the seasonal nature of this resort market that peaks during boating season and Thousand Islands tourism months.

To obtain an Airbnb/STR permit in Alexandria Bay, New York, you must first contact the Alexandria Bay Village Clerk's Office at 33 Market Street or call (315) 482-9301 to begin the application process, as the village requires short-term rental registration under local zoning ordinances. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (minimum $1 million coverage), floor plan showing maximum occupancy, contact information for a local representative available 24/7, and payment of applicable fees. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100 if required. You must also comply with Jefferson County health department requirements for septic and water systems, obtain a sales tax certificate from New York State for collecting occupancy taxes, and ensure compliance with fire safety codes including smoke and carbon monoxide detectors in all sleeping areas. The approval timeline is typically 4-6 weeks from submission of a complete application, though this may extend to 8-10 weeks during peak season or if inspections are required. Alexandria Bay specifically limits STR properties to no more than 8 guests, requires off-street parking for each rental unit, mandates quiet hours from 10 PM to 8 AM, and prohibits events or parties exceeding the stated occupancy limit.

Short-term rentals (STRs) in Alexandria Bay, New York are generally legal but subject to local regulations and New York State requirements. The village, located in Jefferson County in the Thousand Islands region, allows STRs but typically requires operators to obtain proper permits and comply with zoning ordinances, safety requirements, and tax obligations including state and local occupancy taxes. Properties must meet building and fire safety codes, and operators are generally required to register with New York State for tax purposes. Some residential zones may have restrictions on the number of guests or parking requirements, and properties in certain historic districts may face additional limitations. Recent changes in New York State law have strengthened requirements for STR registration and tax collection, with platforms like Airbnb and VRBO now required to collect and remit taxes directly. Given Alexandria Bay's tourism-dependent economy and proximity to popular Thousand Islands attractions, the village generally supports STRs while maintaining oversight to ensure they don't negatively impact permanent housing stock or neighborhood character.

The most promising Airbnb investment areas in Alexandria Bay, New York center around the downtown waterfront district along James Street and Market Street, where proximity to the St. Lawrence River, Boldt Castle ferry terminals, and restaurants creates high demand from tourists visiting the Thousand Islands region from May through October. The residential neighborhoods within walking distance of Scenic View Park and the municipal docks on Cornwall Street offer excellent potential due to their combination of water views and easy access to boating activities, fishing charters, and the annual Bay Days festival in July. Properties near the Alexandria Bay Chamber of Commerce area and along Walton Street benefit from business travelers attending corporate retreats and conferences at nearby resorts like Bonnie Castle Resort, while vacation rentals positioned between the village center and the I-81 corridor capture both leisure tourists heading to the islands and business visitors to the regional medical facilities and government offices in nearby Watertown, creating year-round rental opportunities beyond the peak summer season.

Alexandria Bay, New York imposes a local occupancy tax of approximately 3-4% on short-term rental accommodations including Airbnbs, which is collected by the host and remitted quarterly to the Town of Alexandria Bay. Additionally, New York State requires collection of state sales tax at 4% plus local sales tax of approximately 3-4%, totaling around 7-8% in combined state and local sales tax on lodging. Jefferson County may also impose a county occupancy tax of 2-3%. Airbnb typically collects and remits these taxes automatically for hosts in many New York jurisdictions as of 2019-2020, though hosts should verify this applies to Alexandria Bay specifically. The taxes apply to rentals of less than 30 days, with potential exemptions for stays over 30 days or rentals to permanent residents. Hosts must register with the New York State Department of Taxation and Finance and obtain a Certificate of Authority to collect sales tax, and may need to register locally with Alexandria Bay for occupancy tax collection, with remittance typically due quarterly along with required tax returns showing gross receipts and tax collected.

The total cost to start an Airbnb in Alexandria Bay, New York is approximately $285,000-$350,000. Property purchase costs around $200,000-$250,000 based on median home prices in the Thousand Islands region. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor suitable for vacation rentals. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including short-term rental licenses, business registration, and potential town permits cost $500-$1,500 annually. Insurance for short-term rentals runs $2,000-$4,000 per year, significantly higher than standard homeowner's insurance. Utilities including electricity, water, sewer, internet, and cable average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include potential property improvements for guest appeal ($5,000-$10,000) and working capital for unexpected expenses and vacancy periods ($10,000-$15,000).

Airbnb properties in Alexandria Bay, New York, demonstrate strong seasonal profitability due to the area's position in the Thousand Islands region, with average nightly rates ranging from $150-300 during peak summer months (June-September) and dropping to $75-150 in off-season periods. Properties typically generate annual revenues of $25,000-45,000 for 2-3 bedroom units, with waterfront properties commanding premium rates up to $400 per night during peak boating season. Operating expenses including cleaning fees ($75-100 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,500-2,500 annually), and maintenance average 40-50% of gross revenue. Successful properties maintain 65-75% occupancy rates during summer months, resulting in net profit margins of 25-35% annually, with waterfront cabins and properties near Boldt Castle or within walking distance of downtown performing best. Key success factors include professional photography showcasing water views, boat dock access, proximity to ferry terminals, and amenities like kayaks or fishing equipment, with many owners reporting break-even points within 2-3 years and properties generating $15,000-25,000 in annual net profit after the initial investment period.

Airbnb investments in Alexandria Bay, New York typically generate annual ROI of 12-18% due to the area's strong seasonal tourism driven by Thousand Islands attractions and Boldt Castle proximity. Cash-on-cash returns generally range from 8-14% annually, with properties near the waterfront or downtown core performing at the higher end of this spectrum. Most investors achieve profitability within 18-24 months, particularly for well-positioned 2-4 bedroom properties that can command $150-300 per night during peak summer season (June-September) and $80-150 during shoulder seasons. The market benefits from consistent demand from tourists visiting the Thousand Islands region, with occupancy rates typically reaching 65-75% annually for properly managed properties, though winter months see significant seasonal decline requiring investors to factor in 3-4 months of reduced income when calculating returns.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Alexandria Bay, New York, providing market analytics and investment insights. Local real estate agents specializing in Airbnb investments in the Thousand Islands region include Century 21 Bridgeview Real Estate and Bridgeview Real Estate, both with agents experienced in vacation rental properties since approximately 2015. National services like AirDNA (founded 2015) and Mashvisor (established 2014) offer market analysis and property evaluation tools specifically for short-term rental investments in the Alexandria Bay area. Vacasa, a national vacation rental management company operating since 2009, provides property acquisition consulting services for investors looking to purchase and manage Airbnb properties in the region. RedAwning and AvantStay also offer investment advisory services for short-term rental properties in upstate New York markets. Local property management companies like Thousand Islands Property Management and North Country Vacation Rentals, operating since around 2012-2016, often assist investors in identifying profitable properties before they hit the general market. BiggerPockets, the national real estate investment platform launched in 2004, has forums and resources specifically for short-term rental investors in the Alexandria Bay market, connecting investors with local agents and service providers who specialize in vacation rental properties in this popular Thousand Islands destination.