Is Eagle River, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Eagle River, Wisconsin, begin by researching local zoning laws and regulations through the City of Eagle River Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to no more than 30% of units in multi-family buildings. Contact the Eagle River City Clerk's office to obtain the necessary business license and short-term rental permit, which costs approximately $100-200 annually and requires property inspection for safety compliance including smoke detectors, carbon monoxide detectors, and emergency egress routes. Find a suitable property by working with local real estate agents familiar with Eagle River's lakefront and downtown areas, focusing on properties zoned for residential use that allow short-term rentals, with popular locations being near Chain O' Lakes or downtown Eagle River where properties range from $200,000-800,000 depending on waterfront access. Furnish the property with northwoods-themed decor, essential amenities like high-speed internet, full kitchen appliances, linens, towels, and outdoor equipment such as fishing gear, kayaks, or snowshoes to appeal to Eagle River's year-round tourism market. List your property on Airbnb, VRBO, and local tourism websites, highlighting proximity to snowmobile trails, fishing opportunities on the Chain O' Lakes, and winter activities, with competitive pricing ranging from $150-400 per night depending on season and amenities. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring Eagle River-based property management companies like Northwoods Vacation Rentals if you're not local, while maintaining compliance with Wisconsin's 5.5% sales tax and Eagle River's additional room tax requirements, and ensure you have proper insurance coverage through companies that specialize in short-term rental properties.

To identify profitable short-term rental properties in Eagle River, Wisconsin, focus on waterfront locations within 1-2 miles of Eagle River Chain of Lakes, particularly properties near Cranberry Lake, Lynx Lake, or Eagle Lake, as these command premium rates year-round. Target 3-4 bedroom cabins or homes built after 1990 with modern amenities like updated kitchens, Wi-Fi, hot tubs, fire pits, boat docks, and snowmobile trail access, as Eagle River attracts both summer lake enthusiasts and winter snowmobilers visiting the World Snowmobile Racing Championships. Analyze pricing using AirDNA and Mashvisor to identify properties generating $150-300+ per night in peak summer (June-August) and winter (December-February) seasons, with annual revenues potentially reaching $40,000-70,000 for well-positioned properties. Research competition by studying existing Airbnb and VRBO listings within 5 miles, noting occupancy rates, amenities, and pricing strategies of successful operators like those managing properties near Trees for Tomorrow or downtown Eagle River. Utilize Vilas County property records, work with local realtors familiar with STR regulations like Coldwell Banker Mulleady or RE/MAX Property Pros, and leverage tools like Rabbu and Awning for market analysis while ensuring compliance with Vilas County's short-term rental ordinances and obtaining proper permits before purchasing.

To obtain an Airbnb/STR permit in Eagle River, Wisconsin, you must first contact the Eagle River City Clerk's office at City Hall located at 220 West Mill Street to apply for a short-term rental license, as the city requires all properties rented for less than 30 days to be licensed. Required documents typically include a completed application form, proof of property ownership or lease agreement, property insurance documentation, floor plan or layout of the rental space, emergency contact information, and parking plan details. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100. Submit your complete application to the City Clerk's office and schedule a required property inspection with the building inspector to ensure compliance with fire safety, occupancy limits, and zoning requirements. The timeline for approval is generally 4-6 weeks from submission, depending on inspection scheduling and any required corrections. Eagle River specific requirements include maintaining a maximum occupancy based on bedroom count, providing adequate parking spaces (typically 2 spaces minimum), ensuring proper waste management arrangements, displaying the rental license number in all advertisements, maintaining a local contact person available 24/7 for emergencies, and adhering to quiet hours typically from 10 PM to 7 AM. Once approved, you must renew the license annually and report any changes to the property or contact information to maintain compliance with city ordinances.

Short-term rentals (STRs) are generally legal in Eagle River, Wisconsin, but are subject to local regulations and zoning restrictions implemented by the city. Eagle River, located in Vilas County, allows STRs in most residential areas but requires operators to obtain proper permits and business licenses, comply with occupancy limits typically based on septic system capacity, maintain adequate parking, and follow noise ordinances to minimize impacts on neighboring properties. The city has implemented registration requirements for STR operators and may restrict rentals in certain residential zones or require conditional use permits in specific areas. Recent changes around 2020-2022 have included stricter enforcement of existing regulations and enhanced registration processes, with the city working to balance the economic benefits of tourism-related rentals with maintaining residential neighborhood character. Property owners must also comply with state tax requirements and local fire safety codes, and violations can result in fines or permit revocation.

The best areas for Airbnb investment in Eagle River, Wisconsin are the Chain O' Lakes waterfront district, particularly properties near Eagle Lake, Cranberry Lake, and Voyageur Lake, which attract summer tourists for fishing, boating, and water sports from May through September. The downtown Eagle River area near the Northwoods Children's Museum and close to snowmobile trail access points performs well year-round, benefiting from both summer family tourism and winter snowmobile enthusiasts visiting for the World Championship Snowmobile Derby held annually in January. Properties near the Eagle River Golf Course and Anvil Lake area are attractive for golf tourism during warmer months, while locations within walking distance of restaurants and bars on Railroad Street capture visitors attending local festivals and events. The Three Lakes Chain area, though slightly outside Eagle River proper, offers premium rental potential due to its pristine lake access and proximity to hiking trails, attracting outdoor enthusiasts and families seeking authentic Northwoods experiences, with peak seasons driving rates of $200-400 per night for waterfront properties.

Eagle River, Wisconsin imposes a 5.5% local room tax on short-term rentals including Airbnbs, which is collected in addition to Wisconsin's 5% state sales tax for a combined rate of 10.5%. The local room tax is administered by Vilas County, where Eagle River is located, and applies to rentals of less than 30 consecutive days. Airbnb typically collects and remits both state and local taxes automatically for hosts, but hosts who collect taxes directly must register with the Wisconsin Department of Revenue and remit state taxes monthly if collections exceed $200 per month, while local room taxes are remitted quarterly to Vilas County by the 25th of the month following each quarter. Exemptions include stays of 30 days or longer, rentals to permanent residents, and accommodations provided to certain government employees on official business, though hosts must maintain proper documentation to claim exemptions and may need to obtain a seller's permit and room tax certificate depending on their rental volume and collection methods.

The total cost to start an Airbnb in Eagle River, Wisconsin is approximately $285,000-$350,000. Property purchase represents the largest expense at $200,000-$275,000 based on median home prices in the Eagle River area. Furnishing costs range from $15,000-$25,000 to create an attractive vacation rental with quality furniture, bedding, kitchen essentials, and decor suitable for the Northwoods market. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business licenses, short-term rental permits, and tax registrations cost approximately $500-$1,500 depending on local regulations. Insurance premiums for short-term rental coverage run $2,000-$3,500 annually. Utility setup and deposits for electricity, water, sewer, internet, and cable total $1,000-$2,000. First six months operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance reserves ($1,500), marketing ($800), and platform fees ($2,000) add approximately $7,300 to launch costs.

Airbnb properties in Eagle River, Wisconsin typically generate annual revenues between $15,000-$35,000 for seasonal cabins and lakefront properties, with peak summer months (June-August) accounting for 60-70% of bookings at average daily rates of $150-$250. Operating expenses generally run 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$100 per turnover), utilities ($200-$400 monthly), insurance ($1,500-$2,500 annually), and maintenance ($2,000-$4,000 yearly). Properties within walking distance of Eagle River Chain of Lakes command premium rates and achieve 70-80% occupancy during summer season, while inland properties typically see 50-60% occupancy with lower ADRs of $100-$175. Net profit margins for well-managed properties range from 25-40%, with lakefront cabins featuring amenities like docks, kayaks, and fire pits performing best. Success factors include professional photography, responsive communication, local activity partnerships with businesses like Wildwood Outdoor Adventures, and seasonal pricing strategies that capitalize on snowmobile season (December-March) and fishing tournaments. Properties requiring significant renovations or lacking lake access often struggle to achieve profitability above 15-20% margins due to Eagle River's competitive vacation rental market and seasonal demand fluctuations.

Airbnb investments in Eagle River, Wisconsin typically generate annual ROI of 12-18% due to the area's strong seasonal tourism driven by lake activities, fishing, and winter sports. Cash-on-cash returns generally range from 8-14% annually, with properties near Eagle River Chain of Lakes commanding premium rates of $150-300 per night during peak summer months (June-August) and winter snowmobile season (December-February). Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties valued between $200,000-400,000. The market benefits from consistent demand from Chicago and Milwaukee visitors, with occupancy rates averaging 65-75% annually. Properties with lake access, docks, or snowmobile trail proximity typically see the highest returns, while shoulder seasons (spring/fall) maintain moderate occupancy at $100-150 nightly rates. Local property management companies like Vacasa and RedAwning report strong performance metrics for the area, with many properties generating $25,000-45,000 in gross annual rental income after accounting for seasonal fluctuations and maintenance costs.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Eagle River, Wisconsin. In the Eagle River area, local real estate agents like those at Coldwell Banker Mulleady and RE/MAX Property Pros have experience with vacation rental properties given the region's tourism focus around the Eagle River Chain of Lakes. National services include Mashvisor, which provides Airbnb investment analytics, AirDNA for market data and revenue projections, and BiggerPockets for investor networking and deal sourcing. RedAwning offers property management and investment services for short-term rentals, while AvantStay focuses on group vacation rental investments. Local property management companies like Vacasa and RedAwning operate in Wisconsin lake regions and can provide insights into profitable properties. Real estate investment firms such as Roofstock and Awning (now part of RedAwning) have historically offered turnkey short-term rental investments, though availability varies by market. Additionally, working with local vacation rental management companies like those serving the Northwoods region can provide valuable market intelligence for identifying properties with strong rental potential in Eagle River's seasonal tourism market.