Is Beloit, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Beloit, Wisconsin, begin by researching local regulations through the City of Beloit Planning Department, as the city requires short-term rental operators to obtain a conditional use permit and business license, with properties needing to meet specific safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Contact the Rock County Health Department for any additional health permits and ensure compliance with Wisconsin state tax requirements by registering with the Department of Revenue for sales tax collection. Find a suitable property in desirable neighborhoods like the historic downtown area or near the Rock River, considering proximity to attractions like Beloit College and the Ironworks Campus. Purchase essential furnishings including quality bedding, basic kitchen supplies, WiFi equipment, and safety items while ensuring the space meets Beloit's occupancy limits (typically 2 people per bedroom plus 2 additional). Create your Airbnb listing with professional photos highlighting local attractions, set competitive pricing based on Beloit market rates (estimated $75-120 per night in 2024), and establish house rules complying with city noise ordinances. Manage your property by maintaining regular cleaning schedules, responding promptly to guests, coordinating with local cleaning services, and staying current with Beloit's annual permit renewals and any changes to short-term rental regulations that may be implemented by the city council.

To identify profitable short-term rental properties in Beloit, Wisconsin, focus on locations within walking distance of Beloit College campus, downtown historic district near the Rock River, and areas close to major employers like Blackhawk Technical College and manufacturing facilities. Target 2-4 bedroom single-family homes or duplexes built between 1920-1980 with original character features, updated kitchens and bathrooms, reliable WiFi capability, and parking availability, as these appeal to visiting families, college visitors, and business travelers. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in nearby Madison and Janesville markets, aiming for nightly rates between $80-150 depending on size and amenities, with occupancy rates typically ranging 60-75% annually. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, noting gaps in amenities or property types, and monitor seasonal demand patterns tied to college events, summer tourism, and business travel cycles. Utilize tools like BiggerPockets for investment analysis, STR Helper for revenue projections, and connect with local real estate agents familiar with Beloit's rental regulations and zoning requirements, while also consulting the City of Beloit's planning department regarding short-term rental licensing requirements and any restrictions in residential zones.

To obtain an Airbnb/STR permit in Beloit, Wisconsin, you must first contact the Beloit Planning Department at City Hall located at 100 State Street to determine if short-term rentals are permitted in your zoning district, as the city requires compliance with local zoning ordinances. Submit an application for a business license through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, property insurance documentation, floor plans showing maximum occupancy, contact information for a local property manager if you're not local, and a completed short-term rental registration form. You'll need to pay approximately $50-100 for the business license fee and potentially additional zoning compliance fees of $25-75. The property must meet all building and fire safety codes, including smoke detectors in each bedroom and common area, carbon monoxide detectors, fire extinguishers, and emergency exit plans posted in each unit. Schedule required inspections with the Building Inspector and Fire Department, which typically cost $75-150 combined. The entire process generally takes 4-6 weeks from application submission to permit approval, assuming all inspections pass and documentation is complete. You must also register with the Wisconsin Department of Revenue for sales tax collection and remittance, and ensure compliance with any homeowner association rules or deed restrictions that may prohibit short-term rentals.

Short-term rentals (STRs) are legal in Beloit, Wisconsin, but operate under specific municipal regulations that require property owners to obtain proper licensing and permits before operating. The city typically requires STR operators to register their properties, maintain liability insurance, comply with health and safety standards, and adhere to occupancy limits and noise ordinances. Beloit generally prohibits STRs in certain residential zoning districts or requires conditional use permits in others, with stricter regulations often applied to properties in historic districts or near the University of Wisconsin-Whitewater Beloit campus area. Recent changes around 2022-2023 have included enhanced enforcement mechanisms and updated fee structures, with the city requiring annual renewals and inspections to ensure compliance with building codes and neighborhood compatibility standards. Property owners must also collect and remit local room taxes, maintain guest registries, and provide 24-hour contact information for noise or disturbance complaints, with violations potentially resulting in permit revocation or fines.

The best areas for Airbnb investment in Beloit, Wisconsin include the Historic Downtown District near the Rock River, which attracts visitors to the Beloit International Film Festival and business travelers visiting Beloit College and local corporate headquarters like NorthPointe Development. The Riverside Park area offers scenic waterfront appeal for leisure travelers and families visiting the city's recreational facilities. The College Hill neighborhood near Beloit College campus is ideal for visiting parents, prospective students, and academic conference attendees, with consistent demand during the school year from 2019-2024. The South Beloit border area benefits from proximity to the Illinois state line, attracting visitors who want Wisconsin lodging while accessing both states' attractions. The Krueger-Haskell Golf Course vicinity appeals to golf tourism and sports-related events, while the area near the Beloit Snappers baseball stadium (ABC Supply Stadium) sees seasonal demand during baseball season and community events, making these neighborhoods particularly attractive for short-term rental investments due to their diverse visitor demographics and year-round appeal.

In Beloit, Wisconsin, Airbnb hosts are subject to Wisconsin state sales tax at 5% and Rock County sales tax at 0.5%, totaling 5.5% on gross rental receipts, which applies to stays of less than 30 consecutive days. Additionally, hosts must collect Wisconsin's room tax, which varies by municipality but typically ranges from 5-8% in Rock County area communities, though Beloit's specific room tax rate is approximately 6%. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system for participating jurisdictions, or hosts must collect them directly if not automated. Remittance is required monthly to the Wisconsin Department of Revenue for state taxes and to Rock County for local taxes, with returns due by the 20th of the following month. Hosts must register for a Wisconsin seller's permit and may need separate registration for local room taxes. Exemptions typically include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and rentals to certain tax-exempt organizations with proper documentation.

The total cost to start an Airbnb in Beloit, Wisconsin is approximately $180,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$1,000 annually. Insurance for short-term rentals runs $2,000-$3,000 per year, significantly higher than standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services, supplies, maintenance, platform fees, and marketing total $8,000-$12,000. Additional considerations include property taxes of approximately $2,000-$3,000 annually and potential HOA fees if applicable, bringing the comprehensive startup investment to the upper end of the estimated range.

Airbnb properties in Beloit, Wisconsin typically generate modest returns with average daily rates ranging from $75-120 depending on property size and location, resulting in monthly revenues of $1,800-3,600 for properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250/month), property management (10-20% of revenue), insurance ($100-200/month), and maintenance ($200-400/month) typically consume 40-55% of gross revenue. Properties near the University of Wisconsin-Whitewater campus and downtown historic district perform better, with some investors like those managing properties through Vacasa and Awning reporting net profit margins of 15-25% annually. Success factors include proximity to Rock County attractions, competitive pricing against local hotels like Hampton Inn, professional photography, and targeting business travelers visiting companies like Blackhawk Technical College and Kerry Group, with the most profitable properties being well-maintained 2-3 bedroom homes priced 10-15% below Madison market rates while offering unique local experiences.

Airbnb investments in Beloit, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $80,000-$120,000 and monthly rental income of $800-$1,400 for 2-3 bedroom properties. The market benefits from proximity to University of Wisconsin-Whitewater (15 miles) and Janesville's manufacturing sector, driving consistent demand from business travelers and visiting families. Most investors achieve profitability within 18-24 months, with occupancy rates averaging 65-75% annually due to seasonal fluctuations and regional business activity. Properties near downtown Beloit or the Rock River tend to command premium rates of $90-$130 per night, while suburban locations average $70-$100 nightly, with peak seasons during summer months and university events generating 20-30% higher rates than off-season periods.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Beloit, Wisconsin, using data analytics to evaluate potential returns. Local real estate agents in the Beloit area who specialize in investment properties include Coldwell Banker The Real Estate Group, RE/MAX Preferred, and Century 21 Affiliated, with agents like those at Rock County Realty having experience with vacation rental investments. National services that assist Airbnb investors include Mashvisor for property analysis, AirDNA for market data and revenue projections, Rabbu for end-to-end investment services, and BiggerPockets for networking and education. RedAwning and Awning provide property management and optimization services for short-term rentals, while companies like Roofstock and Arrived Homes offer turnkey investment opportunities. Local property management companies such as Wisconsin Property Management Group and Rock County Property Services can assist with day-to-day operations of Airbnb properties in the Beloit market.