Is Ashland, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Ashland, Wisconsin, begin by researching local regulations through the City of Ashland Planning Department, as the city requires short-term rental operators to obtain a conditional use permit and business license, with properties needing to meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Contact Ashland City Hall at 601 West 3rd Street to apply for the necessary permits, which typically cost around $200-400 and require a site inspection. Find a suitable property by searching local real estate listings through companies like Edina Realty or Century 21 Bayshore, focusing on areas near Lake Superior waterfront or downtown for maximum appeal, with average property prices ranging from $80,000-200,000. Furnish the space with durable, comfortable furniture from retailers like Fleet Farm or online suppliers, ensuring you include essential amenities like Wi-Fi, kitchen supplies, linens, and local guidebooks highlighting attractions like the Apostle Islands and Chequamegon Bay. List your property on Airbnb and VRBO platforms with professional photos showcasing lake views or proximity to outdoor activities, setting competitive rates around $75-150 per night based on seasonal demand. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software like Hostfully or hiring local companies such as Bayfield-area vacation rental managers to handle bookings, guest communication, and maintenance while ensuring compliance with Wisconsin's 5.5% state sales tax and Ashland's local lodging taxes.

To identify profitable short-term rental properties in Ashland, Wisconsin, focus on locations within walking distance of Lake Superior's shoreline, particularly near Prentice Park and the downtown historic district, as these areas attract tourists visiting the Apostle Islands National Lakeshore and Chequamegon Bay. Target properties with 2-4 bedrooms, waterfront or water-view features, outdoor spaces like decks or fire pits, and amenities such as kayak storage or fishing gear access, as Ashland draws outdoor enthusiasts year-round for activities like sailing, fishing, and winter sports. Analyze pricing by researching comparable Airbnb and VRBO listings in the $80-200 per night range, with premium waterfront properties commanding $150-300 nightly during peak summer months (June-September) and fall color season (September-October). Study competition through platforms like AirDNA and STR analytics tools to identify gaps in the market, noting that Ashland has limited hotel inventory which creates opportunities for STR properties. Utilize resources such as the Ashland Chamber of Commerce for tourism data, Wisconsin Department of Tourism statistics, Zillow and Realtor.com for property values, and local vacation rental management companies like Vacasa or RedAwning for market insights, while ensuring compliance with Ashland's zoning regulations and any STR licensing requirements through the city's planning department.

To obtain an Airbnb/STR permit in Ashland, Wisconsin, you must first contact the Ashland City Clerk's office at City Hall located at 601 West 3rd Street to apply for a short-term rental license, as the city implemented STR regulations around 2019-2020. Required documents typically include a completed application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and proof of compliance with fire safety codes including smoke and carbon monoxide detectors. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. You must also register with the Wisconsin Department of Revenue for tax collection purposes and obtain any necessary state business licenses. The timeline for approval is typically 30-45 days after submitting a complete application, provided all inspections pass and neighbor notification requirements are met. Ashland-specific requirements include maintaining occupancy limits based on bedroom count, providing adequate parking spaces, ensuring quiet hours compliance, and having a local contact available 24/7 for any issues that arise during guest stays.

Short-term rentals (STRs) are generally legal in Ashland, Wisconsin, but operate under local zoning regulations and licensing requirements established by the city. The city requires STR operators to obtain proper permits and comply with safety standards, fire codes, and occupancy limits. Restrictions typically include limits on the number of guests, parking requirements, and noise ordinances to maintain neighborhood character. STRs are generally prohibited in certain residential zones or may require conditional use permits depending on the specific zoning district. Recent years have seen increased scrutiny and potential tightening of regulations as the city balances tourism revenue with resident concerns about housing availability and neighborhood impacts. Property owners must register their rentals with the city, maintain liability insurance, and ensure compliance with state tax collection requirements for lodging establishments.

The most promising Airbnb investment areas in Ashland, Wisconsin center around the Historic Downtown District near the waterfront, which attracts tourists visiting the Chequamegon Bay area and attending events at the Northern Great Lakes Visitor Center and local festivals throughout the summer months. The Maslowski Beach and Prentice Park neighborhoods offer excellent potential due to their proximity to Lake Superior's recreational activities, including fishing, boating, and beach access that draws visitors from April through October. The area near Northland College presents opportunities for business travel and visiting families, particularly during graduation periods and academic conferences. Properties within walking distance of the Ashland Oredock and historic Soo Line Depot capitalize on heritage tourism and photography enthusiasts. The residential areas along 6th Street and around Chapple Avenue provide good investment potential due to their central location between downtown attractions and outdoor recreation areas, making them attractive to both leisure travelers exploring the Apostle Islands region and business visitors to local healthcare facilities and government offices.

Airbnb properties in Ashland, Wisconsin are subject to Wisconsin state sales tax of 5% and room tax of 5%, totaling 10% on lodging stays. Additionally, Ashland County imposes a local room tax of 5%, bringing the combined rate to approximately 15% on short-term rental accommodations. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Wisconsin around 2018. Airbnb remits these taxes quarterly to the Wisconsin Department of Revenue and applicable local jurisdictions on behalf of hosts. Stays of 30 days or longer are generally exempt from room taxes but may still be subject to sales tax. Hosts who collect taxes independently must register with the Wisconsin Department of Revenue, obtain a seller's permit, and file monthly or quarterly returns depending on their volume, with payments due by the 20th of the month following the reporting period.

Starting an Airbnb in Ashland, Wisconsin requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total approximately $3,000-5,000. Permits and fees vary but expect around $500-1,500 for business licenses, short-term rental permits, and potential zoning approvals required by Ashland city regulations. Insurance premiums for short-term rental coverage average $1,200-2,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services cost roughly $800-1,200 initially. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-150 per turnover), maintenance reserves ($200-400/month), platform fees (3% of bookings), and marketing expenses total approximately $4,000-8,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Ashland, Wisconsin show moderate profitability potential with average nightly rates ranging from $80-150 depending on property type and location proximity to Lake Superior and Chequamegon Bay. Properties near the waterfront or downtown area typically generate $2,000-4,000 monthly during peak summer months (June-September) when tourism peaks for outdoor activities, but experience significant seasonal decline to $500-1,200 monthly during winter months. Operating expenses including cleaning fees ($40-60 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance typically consume 40-60% of gross revenue. Successful properties often achieve 12-18% annual profit margins, with lakefront cabins and historic downtown properties performing best due to Ashland's appeal as a gateway to the Apostle Islands and its arts community. Properties within walking distance of Main Street restaurants and the Lake Superior shoreline command premium rates and maintain 65-80% occupancy during peak season, while rural properties 10+ miles from town struggle with 35-50% occupancy rates and lower nightly rates of $60-100, making profitability more challenging without significant cost management.

Airbnb investments in Ashland, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the city's proximity to Lake Superior recreational activities and seasonal tourism patterns. Properties near the waterfront or downtown area command premium rates of $80-120 per night during peak summer months (June-September), while shoulder seasons see rates drop to $50-75 per night. Initial investment costs average $150,000-250,000 for suitable properties, with investors typically reaching profitability within 18-24 months after accounting for renovation costs, furnishing, and marketing expenses. The market benefits from consistent demand from outdoor enthusiasts visiting the Apostle Islands National Lakeshore and Chequamegon National Forest, though occupancy rates fluctuate significantly between summer highs of 70-80% and winter lows of 25-35%. Annual gross rental income typically ranges from $18,000-35,000 depending on property size and location, with net profits after expenses averaging $8,000-18,000 annually for well-managed properties.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Ashland, Wisconsin. Local real estate agents like those at Edina Realty and Coldwell Banker Becker serve the Ashland market and can help identify properties suitable for Airbnb investments. National services include Mashvisor, which provides rental property analytics, and AirDNA, offering short-term rental market data for the area. BiggerPockets connects investors with local professionals, while Roofstock focuses on turnkey rental properties. Local property management companies like Vacasa and RedAwning can handle Airbnb operations once properties are acquired. RE/MAX agents in the Chequamegon Bay area have experience with vacation rental properties, and First Weber Realtors covers the northern Wisconsin market. Additional services include Awning for short-term rental management, HostGPO for property optimization, and local contractors and interior designers who specialize in preparing properties for the vacation rental market in the Lake Superior region.