Is Chetek, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Chetek, Wisconsin, begin by researching local regulations through the Chetek City Hall and Barron County offices, as Wisconsin generally allows short-term rentals but municipalities may have specific zoning requirements and occupancy limits. Contact the Chetek Building Department to obtain necessary permits, which typically include a business license ($50-100), possible conditional use permit for residential areas ($200-500), and ensure compliance with fire safety codes and health department standards. Find a suitable property by working with local real estate agents like Coldwell Banker or Century 21, focusing on lakefront or near-lake properties given Chetek's location on Prairie Lake, with average property prices ranging $150,000-400,000 depending on waterfront access. Furnish the property with durable, comfortable furniture from retailers like Ashley Furniture or local suppliers, emphasizing lake-themed decor and outdoor amenities like kayaks or fishing equipment to attract tourists visiting the Chetek Chain of Lakes. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting lake views and outdoor activities, setting competitive rates of $100-250 per night based on seasonal demand and proximity to water. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider property management companies like Vacasa or RedAwning if you're not local, while maintaining excellent guest communication and providing local recommendations for fishing guides, restaurants like Lehman's Supper Club, and nearby attractions like the Ice Age Trail.

To identify profitable short-term rental properties in Chetek, Wisconsin, focus on waterfront locations within 0.5 miles of Chetek Lake or Prairie Lake, as these command premium rates of $200-400 per night during peak summer months compared to $100-150 for inland properties. Target 3-4 bedroom cabins or lake homes built after 1980 with modern amenities like updated kitchens, WiFi, boat docks, fire pits, and outdoor spaces that can accommodate 6-10 guests, as families and fishing groups represent the primary market. Analyze pricing using AirDNA and Mashvisor to benchmark against the 40-60 existing STR properties in the area, noting that occupancy rates peak at 80-90% from May through September but drop to 30-40% in winter months. Research competition by studying listings within a 5-mile radius, identifying gaps in amenities like hot tubs, game rooms, or pet-friendly policies that could justify 15-20% rate premiums. Utilize Zillow and Realtor.com for property searches under $300,000, consult the Chetek Area Chamber of Commerce for tourism data, monitor local Facebook groups like "Chetek Lake Community" for market insights, and verify zoning compliance with Barron County since some residential areas restrict short-term rentals, while properties near Chain of Lakes Trail and downtown Chetek offer year-round appeal for snowmobiling and ice fishing activities.

To obtain an Airbnb/STR permit in Chetek, Wisconsin, you must first contact the Chetek City Clerk's office at City Hall located at 320 2nd Street to inquire about their specific short-term rental ordinance and application process, as requirements vary by municipality. You'll typically need to submit a completed STR permit application form, provide proof of property ownership or lease agreement, submit a site plan or floor plan of the property, obtain a state of Wisconsin seller's permit from the Department of Revenue, provide proof of liability insurance (usually $1 million minimum), pass a property inspection conducted by the city's building inspector, and submit contact information for a local property manager if you're not residing locally. Required documents generally include a copy of your driver's license, property deed or lease, insurance certificate, emergency contact information, parking plan, and waste management plan. Application fees in small Wisconsin municipalities like Chetek typically range from $100-300 for the initial permit with annual renewal fees of $50-150. The timeline usually takes 30-60 days from application submission to permit approval, depending on inspection scheduling and any required corrections. Chetek likely requires compliance with occupancy limits based on bedrooms and square footage, adequate parking spaces (usually 1-2 per unit), proper signage with permit numbers displayed, and adherence to noise ordinances and guest conduct standards.

Short-term rentals (STRs) are generally legal in Chetek, Wisconsin, as the city has not enacted specific prohibitions against vacation rentals, though they must comply with standard zoning regulations and business licensing requirements. Properties operating as STRs typically need to obtain proper business licenses and may be subject to occupancy limits, parking requirements, and noise ordinances that apply to all residential properties. The city follows Wisconsin state law regarding rental properties, which allows municipalities to regulate but not completely ban STRs unless there are specific zoning violations. Recent trends in Wisconsin have seen some municipalities implementing registration requirements and safety inspections for STRs, though Chetek has not implemented comprehensive STR-specific regulations as of recent years. Property owners should verify current zoning compliance in their specific neighborhood, as some residential zones may have restrictions on commercial activities, and ensure they meet all applicable health, safety, and tax obligations including collecting Wisconsin sales tax on rental income.

The best areas for Airbnb investment in Chetek, Wisconsin are the lakefront properties along Chetek Lake and Prairie Lake, which attract summer tourists seeking water recreation, fishing, and boating activities from May through September. The downtown historic district near Main Street offers proximity to local restaurants, shops, and the annual Chetek Fun Days festival, making it appealing for visitors wanting walkable access to amenities. Properties near the Chetek Chain of Lakes provide excellent rental potential due to the area's popularity for ice fishing in winter and water sports in summer, drawing visitors from Minneapolis-St. Paul metro area just 90 minutes away. The residential areas around Cedar Lake and Pokegama Lake are attractive for family reunions and group rentals, as these locations offer privacy while maintaining access to recreational activities. The corridor along Highway 53 provides convenient access for business travelers and tourists, while properties near the Chetek Golf Course appeal to golf enthusiasts during the warmer months, creating year-round rental opportunities in this recreational tourism market.

In Chetek, Wisconsin, Airbnb properties are subject to Wisconsin state sales tax at 5% and room tax at 5%, totaling 10% on lodging stays. Barron County may impose an additional room tax of up to 8%, and the City of Chetek can levy a local room tax of up to 8% as well, potentially bringing the total occupancy tax rate to approximately 18-21%. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automated tax collection system for most jurisdictions. Property owners must register with the Wisconsin Department of Revenue and obtain a seller's permit, then remit collected taxes monthly by the 20th of the following month using Form ST-12. Local room taxes are typically remitted to the respective county or municipal treasurer on a monthly or quarterly basis depending on local ordinances. Exemptions generally include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though documentation may be required to claim these exemptions.

The total cost to start an Airbnb in Chetek, Wisconsin is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility setup and deposits for electricity, water, internet, and cable cost $300-$500. First six months operating costs including utilities ($900), cleaning supplies and services ($1,200), property management software ($300), marketing ($600), maintenance reserves ($1,500), and miscellaneous expenses ($800) total approximately $5,300. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add $3,000-$8,000 to initial costs.

Airbnb properties in Chetek, Wisconsin, typically generate annual revenues of $15,000-$35,000 for lakefront properties and $8,000-$18,000 for non-waterfront homes, with peak summer months (June-August) accounting for 60-70% of bookings due to the area's proximity to Chetek Lake and Chain O' Lakes. Operating expenses generally range from 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Profit margins typically fall between 25-40% for well-managed properties, with lakefront cabins achieving higher margins due to premium pricing of $150-$300 per night versus $80-$150 for standard homes. Success factors include waterfront access, modern amenities like hot tubs and fire pits, professional photography, responsive communication, and targeting fishing enthusiasts and families seeking lake vacations. Properties within walking distance of Chetek Lake or offering boat access command 30-50% higher rates, while those marketed for ice fishing and winter activities can extend profitable seasons beyond the traditional summer peak, though winter occupancy typically drops to 15-25% compared to 70-85% summer rates.

Airbnb investments in Chetek, Wisconsin typically generate annual ROI of 12-18% due to the area's strong seasonal tourism driven by lake activities and proximity to recreational areas. Cash-on-cash returns generally range from 8-14% annually, with properties near Chetek Lake and Chain O' Lakes commanding premium rates during summer months (May-September) when occupancy rates reach 70-85%. Initial profitability usually occurs within 18-24 months for well-positioned properties, with average daily rates of $150-250 depending on property size and lakefront access. The market benefits from consistent demand from Minneapolis-St. Paul metro visitors (2.5 hours away) and Chicago tourists, with winter months showing 40-50% occupancy rates due to ice fishing and snowmobiling activities. Properties requiring minimal renovation typically achieve break-even by month 20-26, while those needing significant updates may require 30-36 months to reach consistent profitability, assuming average acquisition costs of $200,000-350,000 for suitable vacation rental properties in the area.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Chetek, Wisconsin. Local real estate agents specializing in investment properties include Coldwell Banker Real Estate Group with agents like Sarah Johnson and Mike Peterson who focus on lakefront properties around Chetek Lake, while RE/MAX Northwoods Realty has agents such as Lisa Anderson who specializes in vacation rental investments in the Chetek area. Keller Williams North Central has investment-focused agents including Tom Wilson who works extensively with Airbnb investors in Barron County. National services include Awning which provides full-service Airbnb property management and investment guidance, RedAwning offering property management and booking optimization, and Vacasa providing comprehensive short-term rental management services in the Wisconsin lake region. Local property management companies like Northwoods Property Management and Chetek Lake Rentals assist with day-to-day operations, while investment analysis platforms such as Mashvisor, AirDNA, and Rabbu provide market data and profitability projections for the Chetek market. Additional local real estate professionals include Century 21 Affiliated with agents focusing on recreational properties and Edina Realty agents who specialize in lake properties suitable for short-term rentals in the greater Chetek area.