Is Burnsville, Minnesota Good for Airbnb Investment?

To start an Airbnb in Burnsville, Minnesota, begin by researching local regulations as Burnsville requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking. Contact Burnsville City Hall at 952-895-4400 to obtain the necessary permits including a business license ($50-100 annually) and ensure compliance with fire safety codes and building inspections. Find a suitable property by searching platforms like MLS, Zillow, or Realtor.com in neighborhoods like Alimagnet, Crystal Lake, or River Hills, considering proximity to Minneapolis-St. Paul airport (20 minutes away) and local attractions like Buck Hill ski area. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, smart TV, and local guidebooks, budgeting approximately $3,000-8,000 for a complete setup depending on property size. Create your listing on Airbnb, VRBO, and Booking.com with professional photography highlighting unique features, competitive pricing ($80-150/night based on local market rates), and detailed descriptions emphasizing proximity to Twin Cities metro area. Manage the property by establishing cleaning protocols between guests (budget $30-50 per turnover), installing keyless entry systems, maintaining 24/7 guest communication, and considering property management companies like RedAwning or Vacasa if you prefer hands-off management, while ensuring compliance with Minnesota's 6.875% sales tax and Burnsville's local lodging taxes.

To identify profitable STR properties in Burnsville, Minnesota, focus on locations within 15-20 minutes of Minneapolis-St. Paul International Airport and near major attractions like the Minnesota Zoo, Burnsville Center, and Buck Hill ski area, as these drive consistent demand from business travelers and tourists. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, parking, and outdoor spaces, as families and groups prefer these features over hotel alternatives. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-250/night in Burnsville) exceeds traditional rental income by 40-60%, while factoring in occupancy rates of 65-75% and operating expenses of 25-35%. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or pricing, and noting that successful properties often emphasize proximity to MSP Airport, local attractions, and Minneapolis access. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Edina Realty or RE/MAX Results, while consulting Burnsville's zoning regulations and HOA restrictions, as some neighborhoods prohibit short-term rentals, and consider properties in the $250,000-400,000 range that can generate $3,000-5,000 monthly revenue after achieving optimal occupancy and pricing strategies.

To obtain an Airbnb/STR permit in Burnsville, Minnesota, you must first contact the Burnsville City Planning Department at City Hall located at 100 Civic Center Parkway to determine current short-term rental regulations, as the city has been developing STR ordinances since 2019. Submit an application through the city's online portal or in-person, providing required documents including a completed STR license application, proof of property ownership or lease agreement with landlord consent, certificate of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, emergency contact information for a local representative within 30 minutes of the property, and a good neighbor agreement outlining house rules. Pay the application fee of approximately $200-300 plus annual renewal fees of around $150-250, and schedule required inspections for fire safety, building code compliance, and zoning verification. The approval timeline typically takes 4-6 weeks after submission of complete application materials, and you must comply with Burnsville-specific requirements including maximum occupancy limits based on bedrooms and square footage, parking requirements of one space per bedroom, noise ordinance compliance with quiet hours from 10 PM to 7 AM, waste management plans, and registration with the Minnesota Department of Revenue for tax collection purposes.

Short-term rentals (STRs) in Burnsville, Minnesota are generally legal but subject to local regulations and zoning restrictions. The city requires STR operators to obtain proper permits and comply with zoning ordinances, which typically limit short-term rentals in residential areas to owner-occupied properties or specific zoning districts. Burnsville has implemented registration requirements, safety standards including smoke and carbon monoxide detectors, occupancy limits based on property size, and parking requirements. The city prohibits STRs in certain residential zones where they conflict with neighborhood character preservation goals, and operators must maintain liability insurance and follow noise ordinances. Recent changes around 2022-2023 have included stricter enforcement mechanisms and clearer permit processes, with the city requiring annual renewals and conducting periodic inspections. Violations can result in fines ranging from $200-$1,000, and repeat offenders may face permit revocation. Property owners must also comply with Minnesota state tax requirements and collect applicable lodging taxes, while ensuring compliance with homeowners association rules where applicable.

The best areas for Airbnb investment in Burnsville, Minnesota include the Crystal Lake neighborhood near Burnsville Center, which attracts business travelers visiting corporate offices and shopping destinations, and the residential areas along the Minnesota River bluffs that appeal to tourists seeking scenic views and outdoor recreation access. The downtown Burnsville area near the Performing Arts Center draws visitors attending cultural events and concerts, while neighborhoods close to Buck Hill ski area benefit from winter sports tourism and year-round outdoor enthusiasts. Properties near the Minnesota Zoo boundary are attractive due to proximity to this major regional attraction, and areas along County Road 42 corridor offer convenient access to Minneapolis-St. Paul International Airport, making them ideal for business travelers and tourists exploring the Twin Cities metro area.

In Burnsville, Minnesota, Airbnb hosts are subject to multiple lodging taxes including the state lodging tax of 3% on gross receipts, Dakota County's lodging tax of 3%, and Burnsville's local lodging tax of 3%, totaling approximately 9% in combined lodging taxes, plus the standard Minnesota sales tax of 6.875% for a total tax burden of around 15.875% on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with the Minnesota Department of Revenue and may need to obtain a sales tax permit. The state requires monthly or quarterly remittance depending on volume, while local taxes are generally remitted monthly to Dakota County and the City of Burnsville. Exemptions may apply for stays exceeding 30 consecutive days, certain government or nonprofit travelers, and in some cases religious or charitable organizations, though hosts should verify current exemption criteria as they can change and may require proper documentation from guests.

Starting an Airbnb in Burnsville, Minnesota requires approximately $380,000-$420,000 in total initial investment. Property purchase costs around $320,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials add another $1,500-$2,500. Permits and fees in Burnsville include business license ($100-$200), short-term rental permit ($200-$400), and potential HOA approval fees totaling approximately $500-$800. Insurance for short-term rentals costs roughly $2,000-$3,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services require about $1,000-$1,500 initially. First six months of operating costs including utilities ($800/month), cleaning services ($150 per turnover), maintenance reserves ($300/month), platform fees (3% of bookings), and property management software subscriptions total approximately $8,000-$12,000, assuming moderate occupancy rates of 60-70% during the initial period.

Airbnb properties in Burnsville, Minnesota typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,500 annually), and maintenance costs ($2,000-4,000 yearly). Properties near Burnsville Center or with lake access command premium rates, with some three-bedroom homes achieving 65-75% occupancy rates and net profit margins of 25-35%. Success factors include proximity to Minneapolis-St. Paul International Airport (20 minutes away), competitive pricing against hotels in nearby Bloomington, professional photography, and responsive guest communication. A typical case involves a renovated 1,200 sq ft home generating $28,000 annually with $17,000 in expenses, yielding approximately $11,000 net profit (39% margin). Properties targeting business travelers and families visiting the Twin Cities metro area perform best, particularly those offering parking, WiFi, and kitchen amenities, though seasonal fluctuations can reduce winter occupancy by 20-30% compared to summer months.

Based on Burnsville, Minnesota market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Burnsville Center or close to Minneapolis-St. Paul International Airport tend to perform better, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furnishing, and marketing expenses. The market benefits from proximity to Twin Cities attractions, corporate travelers visiting companies like Seagate Technology, and seasonal demand from visitors to nearby parks and lakes. Properties requiring minimal renovation in established neighborhoods typically see break-even points around 14-16 months, while those needing significant updates may extend to 20-24 months before achieving consistent positive cash flow.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Burnsville, Minnesota. Local real estate agents specializing in investment properties include Keller Williams Integrity Realty agents who focus on vacation rental investments, RE/MAX Results agents with STR expertise, and Coldwell Banker Realty professionals experienced in Airbnb property acquisition. Edina Realty, being Minnesota's largest real estate company, has several agents in the Twin Cities metro area who specialize in investment properties suitable for short-term rentals. National services include Mashvisor for property analysis and market data, BiggerPockets for investor networking and deal sourcing, Roofstock for turnkey rental properties, and AirDNA for market analytics and revenue projections. Local property management companies that also help with acquisition include RedAwning, which operates in the Minneapolis-St. Paul area, and several boutique firms like Twin Cities STR Management and Minnesota Vacation Rentals that assist investors in identifying profitable properties. Additionally, local investment groups and meetups through BiggerPockets and real estate investment associations in the Twin Cities area provide networking opportunities to connect with agents and services specializing in Airbnb investments in Burnsville and surrounding Dakota County communities.