Is Cold Spring, Minnesota Good for Airbnb Investment?

To start an Airbnb in Cold Spring, Minnesota, begin by researching local zoning laws and regulations through the Cold Spring City Hall, as the city may require short-term rental permits and compliance with residential zoning restrictions. Contact the Stearns County planning department to verify county-level requirements and obtain necessary business licenses, which typically cost $50-100 annually. Find a suitable property by searching local real estate listings or considering converting existing residential property, ensuring it meets Minnesota's habitability standards and has adequate parking. Furnish the space with essential amenities including quality bedding, kitchen supplies, Wi-Fi, and safety equipment like smoke detectors and carbon monoxide alarms as required by Minnesota state law. Create your Airbnb listing with professional photos highlighting Cold Spring's proximity to lakes and outdoor activities, setting competitive rates based on similar properties in the area (typically $75-150 per night for the region). For ongoing management, establish a cleaning routine between guests, respond promptly to inquiries, maintain the property according to Minnesota health and safety codes, collect and remit applicable state sales tax (6.875%) and local lodging taxes if required, and consider hiring local property management services if you live far from Cold Spring. Ensure you have proper insurance coverage, as standard homeowner's policies may not cover short-term rental activities, and maintain detailed records for tax purposes including income and expenses related to the rental operation.

To identify profitable short-term rental properties in Cold Spring, Minnesota, focus on locations within walking distance of Cold Spring Brewing Company and downtown amenities, or properties near Sauk River access points and recreational areas. Target 2-4 bedroom homes or cabins with unique features like fireplaces, outdoor spaces, or historic charm that can command $80-150 per night depending on seasonality. Analyze comparable properties on Airbnb and VRBO within a 10-mile radius, noting that summer months (June-August) typically see 70-85% occupancy rates while winter drops to 40-60%. Research competition by monitoring 15-20 existing STRs in the area, identifying gaps in amenities or pricing strategies. Utilize AirDNA for market data specific to Stearns County, STR Helper for revenue projections, and local Facebook groups like "Cold Spring Community" for insider knowledge on upcoming events or developments that could impact demand. Consider properties near the annual Turkey Day Festival venue or those offering easy access to both Cold Spring and nearby St. Cloud attractions to maximize booking potential year-round.

To obtain an Airbnb/STR permit in Cold Spring, Minnesota, contact the Cold Spring City Hall at 218-685-8618 or visit their offices at 21 Red River Avenue North to inquire about short-term rental licensing requirements. You will likely need to submit a completed rental license application, provide proof of property ownership or lease agreement, submit a site plan or floor plan of the property, obtain a certificate of occupancy, provide proof of liability insurance (typically $1 million minimum), and pass safety inspections including smoke and carbon monoxide detectors. Required documents typically include a valid driver's license, property deed or lease, insurance documentation, and emergency contact information for guests. Application fees generally range from $100-300 annually, with additional inspection fees of approximately $50-150. The approval timeline is typically 30-60 days from submission of complete application materials. Cold Spring specific requirements may include parking provisions for guests, occupancy limits based on bedrooms and square footage, quiet hours enforcement between 10 PM and 8 AM, and compliance with residential zoning restrictions. Contact the city's planning and zoning department to confirm current regulations as requirements can change, and ensure you also comply with any applicable county and state tax registration requirements for short-term rentals.

Short-term rentals (STRs) in Cold Spring, Minnesota are generally legal but subject to local regulations and zoning restrictions. The city of Cold Spring, located in Stearns County, typically requires STR operators to obtain proper permits and comply with zoning ordinances that may limit rentals to certain residential districts while prohibiting them in others. Common restrictions include occupancy limits, parking requirements, noise ordinances, and safety standards including smoke detectors and emergency exits. Property owners must usually register their rentals with the city and may face limitations on the number of rental days per year or require conditional use permits in some zones. Recent trends in Minnesota municipalities have shown increased regulation of STRs due to housing concerns and neighborhood impacts, with many cities implementing stricter licensing requirements and enforcement mechanisms around 2020-2023. Cold Spring likely follows similar patterns with requirements for local business licenses, compliance with state tax obligations, and adherence to building codes, though specific prohibited areas would typically include certain residential zones or areas near schools and parks as determined by local zoning maps and ordinances.

The most promising areas for Airbnb investment in Cold Spring, Minnesota include the downtown historic district along Red River Avenue, which attracts visitors to local shops, restaurants, and seasonal events like the Cold Spring Granite Days festival. The lakefront areas near Cold Spring Lake and nearby Horseshoe Lake are highly desirable for vacation rentals due to their recreational appeal for fishing, boating, and summer activities. Properties near the Cold Spring Brewing Company and downtown entertainment venues perform well year-round due to the growing craft beer tourism and weekend visitors from the Twin Cities metro area. The residential neighborhoods within walking distance of Rocori High School see demand during graduation seasons and school events. Areas close to the Sauk River and regional parks attract outdoor enthusiasts and families seeking weekend getaways, while properties near Highway 23 benefit from business travelers and those attending events at nearby venues in St. Cloud and Sartell, making these locations ideal for short-term rental investments.

Cold Spring, Minnesota imposes a lodging tax of 3% on short-term rental accommodations including Airbnbs, which is collected by the city and applies to stays of less than 30 consecutive days. The tax is calculated on the total rental amount excluding cleaning fees and is typically collected by Airbnb directly from guests and remitted to the city on behalf of hosts through their automated tax collection system, though individual hosts may need to register with the city and remit taxes manually if not using platforms with automatic collection. Stearns County also levies an additional 1% lodging tax, bringing the total occupancy tax rate to approximately 4% for most Airbnb stays in Cold Spring. Hosts must obtain a lodging license from the city, register for tax collection purposes, and file monthly or quarterly returns depending on their rental volume, with payments typically due by the 20th of the following month. Exemptions generally apply to stays exceeding 30 consecutive days, rentals to permanent residents, and accommodations provided to individuals displaced by emergencies, though hosts should verify current exemption criteria with Cold Spring's city clerk office as regulations may have been updated since 2023.

The total cost to start an Airbnb in Cold Spring, Minnesota is approximately $285,000-$315,000. Property purchase costs around $220,000-$250,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$20,000 for quality furniture, bedding, kitchenware, and decor. Initial setup including professional photography, listing creation, and marketing materials costs $1,500-$2,500. Permits and fees including business license, short-term rental permit, and potential zoning approvals total $500-$1,200. Insurance for short-term rental coverage adds $2,000-$3,000 annually. 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 ($150 per turnover), supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and a 10-15% contingency fund for unexpected expenses during the startup phase.

Airbnb properties in Cold Spring, Minnesota typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $80-$150 depending on proximity to Cold Spring's lakes and seasonal demand. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within walking distance of Sauk River or featuring lake access command premium rates during summer months (May-September), with occupancy rates reaching 70-85% compared to 45-60% for standard properties. Successful operators like those managing cabins near Cold Spring's recreational areas report net profit margins of 15-25% after all expenses, with properties featuring amenities like hot tubs, fire pits, or boat access achieving the highest profitability. The market benefits from Cold Spring's proximity to St. Cloud and Minneapolis visitors seeking weekend retreats, though winter months typically see 30-40% revenue drops, making year-round appeal through winter activities or business traveler accommodation crucial for sustained profitability.

Based on Cold Spring, Minnesota market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location proximity to Cold Spring's lakes and recreational areas. Properties within walking distance of Cold Spring Lake or downtown areas command higher nightly rates of $120-180, while standard residential properties average $80-120 per night with 60-75% occupancy rates during peak summer months (May-September) and 35-45% during winter months. Initial investment recovery typically occurs within 6-8 years for properties purchased at $200,000-350,000 price points, with gross rental yields averaging 15-22% annually when factoring in Cold Spring's tourism patterns driven by fishing, boating, and proximity to larger lakes in the Stearns County region. Operating expenses including property management, cleaning, utilities, and maintenance typically consume 35-45% of gross rental income, leaving net returns in the 10-16% range for well-positioned properties that capitalize on Cold Spring's seasonal recreation economy and its location along Highway 23.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Cold Spring, Minnesota. Local real estate agents in the area who work with Airbnb investors include Coldwell Banker Realty agents serving the St. Cloud metro area, RE/MAX Results professionals, and Keller Williams Integrity Realty agents who understand vacation rental markets near lakes and recreational areas. National services that can help identify profitable Airbnb properties in Cold Spring include AirDNA for market analysis, Mashvisor for investment property analytics, BiggerPockets for investor networking and deals, Awning for short-term rental investment guidance, and RedAwning for vacation rental market insights. Local property management companies that work with Airbnb investors include Central Minnesota Property Management and Lake Country Property Services, while national companies like Vacasa, RedAwning Property Management, and AvantStay also operate in Minnesota markets. Real estate investment firms such as Roofstock and Arrived Homes occasionally feature properties in smaller Minnesota markets, and local mortgage brokers familiar with investment properties include First National Bank of Cold Spring and Bremer Bank advisors who understand short-term rental financing.