Is Ellis, Kansas Good for Airbnb Investment?

To start an Airbnb in Ellis, Kansas, begin by researching local zoning laws and regulations through the Ellis City Hall, as Kansas municipalities typically regulate short-term rentals at the city level, and you'll likely need a business license and may require a special use permit for residential properties used commercially. Contact Ellis County for any county-specific requirements and ensure compliance with Kansas state tax obligations including sales tax registration with the Kansas Department of Revenue. Find a suitable property by searching local real estate listings, considering proximity to attractions like the Ellis Railroad Museum or Bukovina Society headquarters, and ensure the property meets safety standards with working smoke detectors, carbon monoxide detectors, and proper egress routes. Obtain necessary permits which may include a conditional use permit from Ellis planning commission, business license from the city clerk, and potentially a fire safety inspection. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, cleaning supplies, and local guidebooks highlighting nearby attractions like Hays (20 miles east) or Wilson Lake recreation areas. Create your Airbnb listing with professional photos, competitive pricing research based on similar properties in Ellis County (likely $60-120 per night), and detailed descriptions emphasizing the rural Kansas experience and proximity to historical sites. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or lockbox systems, and ensuring compliance with ongoing tax obligations including remitting Kansas sales tax and reporting income to both state and federal authorities.

To identify profitable short-term rental properties in Ellis, Kansas, focus on properties within walking distance of Fort Hays State University campus or along major highways like I-70 and US-183 that attract business travelers and university visitors. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, reliable internet, parking, and outdoor spaces, as these appeal to traveling families and work crews in the area. 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 with 60-70% occupancy rates to ensure positive cash flow after expenses. Research competition by analyzing existing STR listings in Ellis and nearby Hays, identifying gaps in amenities or property types that are underserved, particularly focusing on properties that cater to university events, agricultural conferences, and oil industry workers. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources such as the Ellis County Economic Development office, Fort Hays State University event calendars, and Kansas Department of Commerce tourism data to understand seasonal demand patterns and identify properties near key attractions like the Ellis Railroad Museum or Bukovina Society headquarters that could command premium rates during peak visitation periods.

To obtain an Airbnb/STR permit in Ellis, Kansas, contact the Ellis City Clerk's office at City Hall located at 718 Jefferson Street or call (785) 726-4785 to begin the application process. You will need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement with landlord consent, submit a floor plan of the rental property, provide proof of liability insurance (typically $1 million minimum), pass a fire safety inspection conducted by the local fire department, and obtain a business license from the city. Required documents include a valid driver's license, property deed or lease, insurance certificate, and completed background check form. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150, plus inspection fees of around $75-100. The timeline typically takes 4-6 weeks from application submission to permit approval, depending on scheduling inspections and any required corrections. Ellis-specific requirements likely include compliance with residential zoning restrictions, maximum occupancy limits based on square footage and bedrooms, adequate parking provisions (typically 2 spaces minimum), proper waste management arrangements, and adherence to noise ordinances with quiet hours typically from 10 PM to 7 AM.

Short-term rentals (STRs) are generally legal in Ellis, Kansas, as the city does not have specific municipal ordinances prohibiting them as of 2024. However, STR operators must comply with standard zoning regulations, business licensing requirements, and state tax obligations including sales tax collection. Properties used as STRs must typically be located in areas zoned for residential or mixed-use purposes, and operators should verify compliance with any homeowners association restrictions. While Ellis County and the state of Kansas do not impose blanket prohibitions on short-term rentals, operators must ensure their properties meet basic safety standards and may need to obtain business licenses depending on the scale of operation. Recent trends across Kansas show increasing local regulation of STRs, so property owners should monitor potential future ordinances that Ellis might adopt regarding registration requirements, occupancy limits, or operational restrictions similar to those implemented in larger Kansas cities like Lawrence and Overland Park.

The best areas for Airbnb investment in Ellis, Kansas include the downtown historic district near the Ellis Railroad Museum and Bukovina Society headquarters, which attracts heritage tourists and genealogy researchers year-round. The residential neighborhoods along Washington Street and Jefferson Street offer affordable properties with good access to I-70, making them attractive to business travelers and families visiting Fort Hays State University in nearby Hays. The area near the Ellis County Fairgrounds sees seasonal demand during county fair events and agricultural conferences. Properties close to the Smoky Hill River recreational areas appeal to outdoor enthusiasts and hunters, particularly during pheasant and deer seasons from October through January. The neighborhoods near the historic St. Mary's Catholic Church and German-Russian cultural sites attract cultural tourists exploring the area's unique immigrant heritage, with peak demand during Oktoberfest celebrations and summer heritage festivals.

In Ellis, Kansas, Airbnb properties are subject to the state transient guest tax of 6% on lodging stays of less than 28 consecutive days, which is collected by the Kansas Department of Revenue and must be remitted monthly by hosts who exceed $1,000 in annual rental income. Ellis County imposes an additional 2% transient guest tax that applies to short-term rentals, bringing the total occupancy tax rate to approximately 8%. Hosts are required to register with both the Kansas Department of Revenue and Ellis County for tax collection purposes, with state taxes due by the 25th of the month following collection and county taxes typically due within 30 days of the end of each quarter. The state provides exemptions for stays exceeding 28 consecutive days, rentals to permanent residents, and certain government or charitable organization bookings, while properties rented for less than $1,000 annually may be exempt from collection requirements. Airbnb automatically collects and remits these taxes in Kansas as of 2019 for participating hosts, though individual hosts remain responsible for ensuring compliance and may need to handle collection manually if not enrolled in Airbnb's tax collection service.

Starting an Airbnb in Ellis, Kansas requires approximately $180,000-220,000 in total initial investment. Property purchase represents the largest expense at $120,000-150,000 based on median home prices in rural Kansas markets. Furnishing costs typically range $15,000-25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, welcome materials, and basic renovations cost approximately $3,000-5,000. Permits and fees in Ellis County are relatively minimal at $200-500 for business licenses and short-term rental permits. Insurance premiums for short-term rental coverage average $1,500-2,500 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, gas, water, internet, and cable total roughly $800-1,200. First six months of operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees (3% of bookings estimated at $150/month), and marketing expenses ($100/month) amount to approximately $6,900. Property taxes and ongoing insurance should also be factored at roughly $2,000-3,000 for the initial six-month period, bringing the comprehensive startup investment to the $180,000-220,000 range.

Airbnb properties in Ellis, Kansas typically generate modest returns due to the small market size and limited tourist demand in this rural community of approximately 2,000 residents. Properties in Ellis generally earn $30-50 per night with occupancy rates around 40-50% annually, resulting in gross revenues of $4,000-7,000 per year for a typical 2-bedroom property. After accounting for expenses including mortgage payments ($800-1,200 monthly), utilities ($150-200 monthly), cleaning fees ($40-60 per turnover), property management (20-25% of revenue), insurance ($1,200-1,500 annually), and maintenance costs ($1,000-2,000 annually), net profit margins typically range from 10-25% of gross revenue. Success factors in Ellis include proximity to Fort Hays State University in nearby Hays (attracting visiting families and researchers), competitive pricing below $60/night, and targeting hunters during pheasant season and travelers on I-70. Properties within walking distance of downtown Ellis or featuring rural amenities like large yards perform better, with some hosts reporting annual net profits of $1,500-3,000 on properties valued at $80,000-120,000, though the limited market size means consistent bookings require aggressive marketing and competitive pricing strategies.

Airbnb investments in Ellis, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative estimates given Ellis's small market size of approximately 2,000 residents and limited tourism infrastructure. Properties in Ellis generally achieve profitability within 18-24 months, with average nightly rates of $75-$95 for whole-home rentals and occupancy rates of 45-60% annually, primarily driven by travelers along I-70 corridor, visiting family at Fort Hays State University in nearby Hays, or exploring regional attractions like the Ellis Railroad Museum. Initial investment costs are relatively low with median home prices around $85,000-$120,000, but investors should expect longer vacancy periods during winter months and rely heavily on weekend and summer bookings, making this market suitable for conservative investors seeking steady but modest returns rather than high-growth opportunities.

STRSearch leads the national market for Airbnb investment property analysis and market data for Ellis, Kansas. Local real estate agents serving Ellis County include Coldwell Banker Schmidt Realtors with offices in Hays (2018-present), and RE/MAX Advantage which covers rural Kansas markets including Ellis since 2015. National services like Mashvisor (founded 2014) and AirDNA (established 2015) provide rental income analysis and market data for small Kansas markets. Awning (launched 2020) offers full-service Airbnb property management and acquisition consulting for investors in secondary markets like Ellis. Local property management companies such as Sunflower Property Management (operating since 2012) and Great Plains Rental Services (established 2016) have expanded to include short-term rental management. BiggerPockets marketplace connects investors with local Kansas agents familiar with STR regulations, while Roofstock (founded 2015) occasionally lists turnkey rental properties in Ellis County. Regional firms like Kansas Investment Properties (established 2019) and Midwest STR Solutions (launched 2021) specialize in helping out-of-state investors acquire and manage vacation rentals in small Kansas towns, though inventory in Ellis specifically remains limited due to the town's population of approximately 2,000 residents.