Is Denison, Kansas Good for Airbnb Investment?

To start an Airbnb in Denison, Kansas, begin by researching local zoning laws and regulations through the Crawford County Planning Department and Denison City Hall, as Kansas municipalities typically require short-term rental permits and may have occupancy restrictions. Contact the city clerk's office at (785) 935-2233 to obtain necessary business licenses and permits, which may include a transient guest tax license since Kansas imposes a 6.5% state transient guest tax plus potential local taxes. Find a suitable property by working with local real estate agents familiar with Denison's residential areas, focusing on properties near attractions like the Denison State Park or downtown area, with typical property costs ranging $80,000-$150,000 for a 2-3 bedroom home. Furnish the property with essential amenities including Wi-Fi, kitchen appliances, linens, and local guidebooks, budgeting approximately $8,000-$15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting Denison's small-town charm and proximity to outdoor activities, setting competitive rates around $75-$125 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, maintaining responsive communication with guests, and ensuring compliance with Kansas health and safety standards while building relationships with local cleaning services and maintenance contractors in the Denison area.

To identify profitable short-term rental properties in Denison, Kansas, focus on properties within walking distance of downtown attractions, near Denison State Park, or close to major highways like US-75 for accessibility. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and reliable internet, as these appeal to families visiting the area or business travelers. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 20-mile radius, aiming for properties that can generate $80-150 per night depending on size and amenities, while ensuring purchase prices allow for positive cash flow after expenses. Research competition by analyzing existing STR listings in Denison and nearby Holton or Topeka, identifying gaps in amenities or property types that are underserved. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources such as Jackson County tourism boards, Kansas Department of Wildlife and Parks for event calendars, and networking with local real estate agents familiar with the Denison market to identify properties with STR potential before they hit the general market.

To obtain an Airbnb/STR permit in Denison, Kansas, contact the Denison City Clerk's office at City Hall located at 120 Main Street or call (785) 935-2233 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, emergency contact information, and a $150 application fee paid by check or money order. Additional requirements specific to Denison include maintaining occupancy limits of 2 people per bedroom plus 2 additional guests, providing adequate parking spaces (minimum 1 space per bedroom), installing smoke and carbon monoxide detectors in all sleeping areas, ensuring compliance with residential zoning regulations, and designating a local contact person available 24/7 within 30 miles of the property. The application timeline is approximately 30-45 days for processing, during which the city may conduct a property inspection to verify safety compliance and zoning adherence. Annual renewal fees of $75 are required, and operators must maintain a guest registry, collect and remit applicable city taxes of 8%, and ensure quiet hours between 10 PM and 7 AM are enforced.

Short-term rentals (STRs) in Denison, Kansas are generally legal as the city does not have specific municipal ordinances prohibiting them, operating under Kansas state law which allows property owners to rent their properties for short periods. However, STR operators must comply with standard zoning regulations, business licensing requirements, and health and safety codes that apply to all rental properties in the city. Properties used as STRs are typically subject to residential zoning restrictions and may face limitations in certain neighborhoods if homeowner associations have specific covenants against short-term rentals. The city requires STR operators to obtain proper business licenses and collect applicable local taxes, including transient guest taxes where applicable. There have been no significant recent legal changes specifically targeting STRs in Denison as of 2023-2024, though operators should verify current zoning compliance and ensure they meet all state and local tax obligations, fire safety requirements, and building codes that govern rental properties in Jackson County.

The best areas for Airbnb investment in Denison, Kansas would be the historic downtown district near Main Street, which attracts visitors interested in the town's railroad heritage and antique shopping, and neighborhoods within walking distance of the Denison Community Center and local parks where families visit for youth sports tournaments and community events. The area near Highway 75 corridor offers good accessibility for business travelers and those passing through between Kansas City and smaller northern Kansas towns. Properties close to the Denison Lake area (if accessible) would appeal to fishing enthusiasts and weekend recreational visitors, while homes near the school district attract parents visiting for school events and activities. The residential areas with larger, well-maintained homes from the early-to-mid 20th century provide authentic small-town charm that appeals to visitors seeking a quiet retreat from urban areas, particularly those exploring rural Kansas tourism or visiting family in the region.

Airbnb properties in Denison, Kansas are subject to Kansas state transient guest tax of 6% on lodging stays of less than 28 consecutive days, which is collected by the host and remitted monthly to the Kansas Department of Revenue by the 25th of the following month if monthly collections exceed $40. Crawford County may impose an additional transient guest tax of up to 2%, bringing the potential total occupancy tax to 8%, though specific county rates would need verification with Crawford County officials. The City of Denison does not appear to have a separate municipal lodging tax as of 2023, but hosts should verify current local ordinances as municipalities can adopt such taxes. Tax collection typically occurs at the time of booking through Airbnb's platform in many Kansas jurisdictions, with the company remitting directly to tax authorities where agreements exist, though hosts remain ultimately responsible for compliance. Exemptions generally apply to stays of 28 days or longer, certain government employees on official business, and some nonprofit organization travelers, but hosts must maintain proper documentation and should register with the Kansas Department of Revenue for tax collection purposes.

To start an Airbnb in Denison, Kansas, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$150,000 based on median home prices in rural Kansas communities. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and any required inspections from local authorities. Insurance costs run $2,000-$3,500 annually for comprehensive coverage including liability and property protection specific to short-term rentals. Utilities including electricity, water, gas, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs encompass cleaning services ($150-$250 per turnover), maintenance reserves ($200-$400 monthly), marketing expenses ($100-$200 monthly), and platform fees to Airbnb (3% of bookings), totaling approximately $4,000-$7,000 depending on occupancy rates and property size.

Airbnb properties in Denison, Kansas show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue based on 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-3,500 yearly. Net profit margins generally fall between 15-25% after expenses, with successful properties earning $4,000-8,000 annually in net income. Success factors in this rural Kansas market include proximity to Milford Lake recreational activities, competitive pricing below $100/night, professional photography, responsive guest communication, and targeting fishing/hunting enthusiasts and family reunions during peak summer months. Properties within 10 miles of Milford State Park typically outperform urban listings by 20-30% due to outdoor recreation demand, while hosts who provide local activity guides and maintain 4.8+ star ratings achieve occupancy rates 15-20% above market average.

Based on Denison, Kansas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and occupancy rates. Properties in Denison generally reach profitability within 18-24 months, with average nightly rates of $75-$95 for well-positioned properties near local attractions or business districts. The market benefits from steady demand from travelers visiting nearby recreational areas and business travelers, though seasonal fluctuations can impact performance with stronger returns during spring and summer months (March-September) when occupancy rates reach 65-75% compared to winter months at 45-55%. Initial investment recovery typically occurs within 3-4 years for properties purchased below $150,000, while higher-end properties may require 4-6 years for full ROI realization, with gross rental yields averaging 10-14% annually before expenses.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Denison, Kansas. In the Kansas City metro area, which serves the broader Kansas region, companies like BiggerPockets connects investors with local real estate professionals experienced in investment properties, while Roofstock specializes in turnkey rental properties that can be converted to Airbnb use. Local Kansas real estate agents such as those with RE/MAX, Coldwell Banker, and Century 21 franchises in nearby larger markets like Topeka and Kansas City often work with investors seeking vacation rental properties. National services like Mashvisor and AirDNA provide market analysis and property identification tools for short-term rental investments. Additionally, companies like Awning and RedAwning offer property management and investment advisory services for Airbnb properties in smaller Kansas markets, while local property management companies in the region such as Kansas Property Management Group can assist with operational aspects of short-term rental investments in rural Kansas communities like Denison.