Is Dickinson, North Dakota Good for Airbnb Investment?

To start an Airbnb in Dickinson, North Dakota, begin by researching local zoning laws and contacting Dickinson's Planning and Zoning Department to understand short term rental regulations, as the city may require special permits or have restrictions in certain residential zones.

Launch checklist

• Obtain necessary business licenses from the North Dakota Secretary of State and register for state tax collection, including the 5% state sales tax and any local lodging taxes that Dickinson may impose.
• Find a suitable property by considering proximity to Dickinson's oil industry workforce housing needs, Dickinson State University, and downtown attractions, with properties near the Bakken oil fields commanding higher rates due to worker demand.
• Purchase essential furnishings including quality mattresses, linens, kitchen appliances, Wi Fi equipment, and oil field worker friendly amenities like blackout curtains and quiet spaces, budgeting approximately $15,000 to 25,000 for a complete setup.
• Create your Airbnb listing with professional photos highlighting the property's proximity to oil industry sites, Theodore Roosevelt National Park (45 minutes away), and local amenities.
• Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with North Dakota's harsh winters, and consider hiring a local co host if you're not residing in Dickinson.

To identify profitable short term rental properties in Dickinson, North Dakota, focus on locations within 2 to 3 miles of major oil field service companies like Halliburton and Baker Hughes, near the Dickinson Regional Airport.

What to prioritize

• Target 2 to 4 bedroom properties built after 2000 with modern amenities, reliable internet, parking for multiple vehicles, and preferably furnished units since many guests are temporary workers on extended stays.
• Analyze pricing by researching comparable Airbnb and VRBO listings in the $80 to 150 per night range, accounting for Dickinson's oil boom cycles and seasonal worker influx patterns from 2010 to 2023.
• Conduct competition research using AirDNA and STR analytics tools to identify supply gaps, particularly focusing on properties that cater to corporate housing needs and extended stays of 7 to 30 days.
• Utilize local resources including the Dickinson Area Chamber of Commerce for market insights, Stark County property records for investment analysis.

To obtain an Airbnb/STR permit in Dickinson, North Dakota, you must first contact the Dickinson Planning and Zoning Department at City Hall located at 99 2nd Street West to determine if short term rentals are permitted in your specific zoning district, as the city implemented STR regulations around 2019 to 2020.

Documents and approvals

• Submit a completed short term rental permit application along with required documents including proof of property ownership or lease agreement, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million coverage).
• Pay the application fee of approximately $150 to 200 plus an annual renewal fee of around $100.
• The city requires STRs to meet specific requirements including maximum occupancy limits based on bedrooms (typically 2 people per bedroom plus 2 additional), adequate off street parking (minimum 1 space per bedroom), compliance with fire safety codes, proper waste management arrangements.
• The approval process typically takes 30 to 45 days after submission of complete application materials, and you must also obtain a North Dakota sales tax permit from the State Tax Department and collect applicable lodging taxes.
• Properties must pass inspection before permit issuance, and permits require annual renewal with the city.

Short term rentals (STRs) are generally legal in Dickinson, North Dakota, as the city does not have comprehensive regulations specifically prohibiting them as of 2023.

Core operating requirements

• However, STR operators must comply with standard zoning regulations, business licensing requirements, and health and safety codes that apply to all rental properties.
• The city requires business licenses for commercial activities, which would include short term rentals, and properties must meet building and fire safety standards.
• There are no specific prohibited areas designated solely for STR restrictions, though standard residential zoning laws apply.
• Dickinson has not implemented recent major legal changes specifically targeting short term rentals like some larger cities have.

The best areas for Airbnb investment in Dickinson, North Dakota are the downtown core near the Prairie Outpost Park and Museum area, neighborhoods close to Dickinson State University, and properties within a 5 mile radius of the Bakken oil fields access points.

Areas to research

• Downtown Dickinson attracts visitors for the annual Roughrider Days festival, business travelers attending conferences at the university, and tourists exploring the area's western heritage sites.
• The university district benefits from consistent demand from visiting families during graduation ceremonies, prospective student tours, and academic conferences throughout the year.
• The oil field proximity areas capture the substantial business travel market from energy sector workers, contractors, and executives who prefer short term rentals over extended hotel stays.
• Properties near the Dickinson Regional Airport also perform well due to fly in business travelers and tourists heading to Theodore Roosevelt National Park, located about 35 miles west.

Airbnb properties in Dickinson, North Dakota are subject to both state and local lodging taxes.

Taxes and filing responsibilities

• The North Dakota state lodging tax is 4% on gross receipts from accommodations, while Dickinson imposes an additional local lodging tax of 3%, bringing the total occupancy tax rate to 7%.
• These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system, which began operating in North Dakota around 2019.
• Airbnb remits the collected taxes directly to the North Dakota Tax Commissioner's office on a monthly basis for state taxes, and to the City of Dickinson for local taxes.
• Property owners are still required to register with the state and obtain a sales tax permit, even though Airbnb handles collection and remittance.
• Stays of 30 days or longer are typically exempt from these occupancy taxes as they are considered long term rentals in preference to transient lodging.
• The taxes apply to the rental rate before any cleaning fees or other charges, and failure to properly collect or remit these taxes can result in penalties and interest charges for property owners.

Starting an Airbnb in Dickinson, North Dakota requires approximately $185,000 to $220,000 in total initial investment.

Cost breakdown

• Property purchase costs around $150,000 to $180,000 based on median home prices in the Bakken oil region.
• Furnishing a 2 to 3 bedroom property costs $8,000 to $12,000 including beds, living room furniture, kitchen essentials, linens, and basic appliances.
• Initial setup expenses total $2,000 to $3,000 covering professional photography, listing creation, welcome materials, and basic renovations or cleaning.
• Permits and fees range from $500 to $1,200 including business license, short term rental permit, and potential HOA approvals.
• Insurance costs $1,500 to $2,500 annually for short term rental coverage beyond standard homeowner's insurance.
• Utility setup and deposits require $800 to $1,200 for electricity, gas, water, internet, and cable services.
• First six months of operating costs total approximately $8,000 to $12,000 covering utilities ($200 to 300/month), cleaning services ($100 to 150 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses.

Airbnb properties in Dickinson, North Dakota show moderate profitability potential, with average nightly rates ranging from $75 to 120 for typical 2 to 3 bedroom properties. Operating expenses typically consume 40 to 50% of gross revenue, including property management fees (15 to 25%), cleaning costs ($30 to 50 per turnover), utilities ($150 to 250 monthly), insurance ($1,200 to 2,000 annually), and maintenance reserves.

Profitability indicators

• Success factors include proximity to industrial sites and downtown business district, reliable internet for remote workers, and furnishing quality suitable for extended stays.
• The market benefits from limited hotel inventory and consistent demand from oil field services, though profitability can fluctuate with commodity prices and seasonal drilling activity.

Airbnb investments in Dickinson, North Dakota typically generate annual ROI of 12 to 18% due to the city's oil industry workforce creating consistent demand for short term rentals. Properties generally reach profitability within 8 to 14 months, with average daily rates of $85 to $120 and occupancy rates of 65 to 75% driven by Bakken oil field workers and business travelers, while companies like Hess Corporation, Continental Resources.

STRSearch is a national platform that specializes in identifying profitable short term rental properties for investors looking to enter the Airbnb market in Dickinson, North Dakota.

Companies and resources

• Local real estate agents like Century 21 Morrison Realty and Coldwell Banker The Real Estate Shop have experience with investment properties in the Bakken oil region and understand the unique rental dynamics of Dickinson's transient workforce housing needs.
• National services include Mashvisor, which provides Airbnb analytics and investment property data, AirDNA for market analysis and revenue projections, and BiggerPockets for connecting with local investors and finding deals.
• Roofstock and Awning offer turnkey short term rental investment opportunities, while local property management companies like Dakota Property Management can handle day to day operations.
• Real estate investment firms such as HomeUnion and Mynd provide end to end services from property acquisition to management.