Is Edwardsburg, Michigan Good for Airbnb Investment?

To start an Airbnb in Edwardsburg, Michigan, begin by researching local regulations through Cass County and the City of Edwardsburg, as Michigan allows short-term rentals but municipalities can impose restrictions - contact Edwardsburg City Hall at (269) 663-8622 to verify zoning compliance and any required business licenses or permits, which typically cost $50-150 annually. Find a suitable property by searching MLS listings, Zillow, or working with local realtors like Coldwell Banker or RE/MAX, focusing on properties near popular attractions like Warren Dunes State Park or downtown areas, with average property prices ranging $150,000-300,000. Obtain necessary permits including a Michigan sales tax license through the Department of Treasury, potential fire safety inspections, and ensure compliance with Americans with Disabilities Act if applicable. Furnish the property with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $5,000-15,000 for a complete setup. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting unique features and proximity to Lake Michigan beaches (30 minutes away), pricing competitively at $80-200 per night based on seasonality and local events. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges through lockboxes or smart locks, and maintaining the property regularly while building relationships with local cleaning services and maintenance contractors in the Edwardsburg area.

To identify profitable short-term rental properties in Edwardsburg, Michigan, focus on locations within 2-3 miles of Warren Dunes State Park and Lake Michigan beaches, as these drive the highest seasonal demand from Chicago-area visitors seeking weekend getaways. Target 3-4 bedroom single-family homes or lakefront cottages built after 1980 with modern amenities, outdoor spaces, and parking for multiple vehicles, as families and groups represent the primary market segment. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-300/night in peak summer season) can generate 12-15% annual returns after expenses, with particular attention to properties priced under $400,000 that can achieve 60-70% occupancy rates. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, noting that successful properties often emphasize beach proximity, fire pits, hot tubs, and family-friendly features. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Edwardsburg-area property managers and reviewing Berrien County's short-term rental regulations to ensure compliance, as the market benefits from its position as a more affordable alternative to South Haven and St. Joseph while still offering Lake Michigan access.

To obtain an Airbnb/STR permit in Edwardsburg, Michigan, you must first contact the Cass County Building Department at 120 N Broadway, Cassopolis, MI 49031, as Edwardsburg falls under county jurisdiction for short-term rental regulations. Submit a completed short-term rental application form along with a site plan showing the property layout, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the local fire department, septic system inspection (if applicable), and proof of liability insurance with minimum $1 million coverage. Required documents also include a floor plan indicating maximum occupancy, emergency evacuation plan, and contact information for a local property manager if you live more than 50 miles away. The application fee is approximately $150-200 with an annual renewal fee of $75-100. Schedule inspections with both the building department and fire marshal, which typically cost $50-75 each. The entire process takes 4-6 weeks from application submission to permit approval, provided all inspections pass and documentation is complete. Specific Edwardsburg requirements include maintaining guest registries, posting maximum occupancy limits prominently, ensuring adequate parking (minimum 2 spaces), and compliance with noise ordinances between 10 PM and 7 AM. Properties must also meet all residential building codes and zoning requirements for the specific district where the rental is located.

Short-term rentals (STRs) in Edwardsburg, Michigan are generally legal but subject to local zoning regulations and state requirements. As an unincorporated community in Cass County, Edwardsburg falls under county jurisdiction rather than having its own municipal STR ordinances. Property owners must comply with Michigan's state tax requirements including collecting and remitting sales tax and accommodations tax, obtain proper business licenses, and ensure their properties meet health and safety standards. Cass County typically allows STRs in residential areas but may require special use permits or conditional use permits depending on the specific zoning district and property type. There are generally no outright prohibited areas for STRs in Edwardsburg itself, though individual homeowners associations or deed restrictions may impose limitations. Recent changes at the state level around 2021-2022 have clarified tax obligations and registration requirements for STR operators, while local enforcement has become more structured regarding noise ordinances, parking requirements, and occupancy limits to address neighbor concerns in residential neighborhoods.

The best areas for Airbnb investment in Edwardsburg, Michigan are primarily concentrated around Diamond Lake and the greater Cass County lake district, where properties can capitalize on year-round tourism from Chicago-area visitors seeking weekend getaways, with peak seasons during summer boating months and winter ice fishing. The downtown Edwardsburg area near the Amtrak station offers opportunities for business travelers and those visiting nearby Notre Dame University in South Bend, Indiana, just 20 minutes away. Properties near Warren Dunes State Park and the Lake Michigan shoreline, though slightly outside Edwardsburg proper, attract significant summer tourism and can command premium rates from May through September. The rural areas along the Dowagiac River provide appeal for fishing enthusiasts and nature lovers, while locations near local wineries in the Southwest Michigan Wine Trail see consistent bookings from wine tourists throughout the growing season. Investment properties should focus on lake-adjacent locations within 10 miles of Edwardsburg, as these areas benefit from proximity to multiple lakes including Diamond Lake, Magician Lake, and Indian Lake, drawing visitors from Chicago, Grand Rapids, and Kalamazoo metropolitan areas seeking affordable lakefront vacation rentals.

Airbnb properties in Edwardsburg, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to rentals of less than 30 consecutive days. Cass County, where Edwardsburg is located, imposes an additional 5% county accommodations tax on short-term rentals, bringing the total tax rate to approximately 11%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Michigan around 2017-2018. For properties where Airbnb doesn't collect taxes automatically, hosts must register with the Michigan Department of Treasury and remit the 6% state tax monthly or quarterly depending on volume, while the county tax must be remitted to the Cass County Treasurer's office. Rentals of 30 days or longer are generally exempt from these lodging taxes, and some jurisdictions may provide exemptions for certain types of accommodations or stays related to medical treatment, though specific exemptions should be verified with local authorities as they can vary by municipality within the county.

The total cost to start an Airbnb in Edwardsburg, Michigan 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 inspection fees cost $300-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable cost $500-$800. First six months operating costs including utilities ($900), cleaning supplies ($300), maintenance ($600), marketing ($400), and platform fees on estimated $18,000 revenue ($2,700) total approximately $4,900. Additional working capital of $3,000-$5,000 is recommended for unexpected expenses and initial cash flow gaps.

Airbnb properties in Edwardsburg, Michigan 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 Warren Dunes State Park and Lake Michigan beaches. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within 10 miles of Lake Michigan beaches and those offering amenities like hot tubs, fire pits, or game rooms achieve occupancy rates of 60-75% during peak season (May-September) compared to 35-50% for basic properties further inland. A typical 3-bedroom lakefront property purchased for $250,000 in 2021 generated approximately $28,000 in gross revenue with $16,000 in expenses, yielding a 4.8% net return before mortgage considerations, while a similar inland property 15 miles from the lake earned $18,000 gross with $11,000 expenses for a 2.8% return. Success factors include strategic pricing during summer months, maintaining 4.8+ star ratings, offering family-friendly amenities, and marketing to Chicago-area visitors seeking weekend getaways, with properties featuring outdoor entertainment spaces and modern interiors consistently outperforming basic accommodations by 25-40% in both occupancy and nightly rates.

Based on Edwardsburg, Michigan market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties in this Southwest Michigan market, particularly those near Warren Dunes State Park and Lake Michigan attractions, show strong seasonal demand from Chicago-area visitors. Initial profitability usually occurs within 8-14 months, with peak performance during summer months (May-September) when occupancy rates reach 70-85%. Investment properties averaging $200,000-$350,000 can generate $2,500-$4,200 monthly gross revenue during peak season, dropping to $1,200-$2,000 in off-season months. The proximity to Notre Dame University (30 minutes) and various wineries creates year-round demand, though winter months see 40-50% occupancy rates. Cash-on-cash returns are optimized when investors put down 20-25% and leverage financing, with break-even typically achieved by month 10-12 after accounting for furnishing costs, property management fees, and seasonal maintenance expenses.

STRSearch leads the national market for Airbnb investment property analysis and market data, providing comprehensive tools for identifying profitable short-term rental opportunities in Edwardsburg, Michigan. Local real estate agents specializing in investment properties include Berkshire Hathaway HomeServices Michigan Real Estate (established 1855), Coldwell Banker Realty, and RE/MAX agents who focus on the Southwest Michigan vacation rental market near Warren Dunes State Park and Lake Michigan. National services like Mashvisor (founded 2014), BiggerPockets (2004), and Roofstock (2015) offer property analysis tools and investment opportunities in the area. Local property management companies such as Michigan Vacation Rentals and Great Lakes Property Management assist with Airbnb operations, while investment-focused firms like Awning (2017) and RedAwning provide turnkey short-term rental solutions. Regional specialists including Lakeshore Realty and Harbor Country real estate agents understand the seasonal rental dynamics of this popular Michigan vacation destination, with companies like AirDNA (2015) and Rabbu providing market analytics specific to the Edwardsburg and greater Cass County area.