Is Engadine, Michigan Good for Airbnb Investment?

To start an Airbnb in Engadine, Michigan, begin by researching local zoning laws and regulations with Mackinac County and the City of Engadine, as short-term rentals may require special permits or have restrictions in residential areas. Contact the Mackinac County Building Department to obtain necessary permits, which typically include a business license, possible zoning variance, and compliance with fire safety codes. Find a suitable property by working with local real estate agents familiar with Engadine's market, focusing on areas near outdoor attractions like the Tahquamenon Falls or Lake Michigan access points that attract tourists. Furnish the property with durable, comfortable furniture and essential amenities including Wi-Fi, kitchen supplies, linens, and outdoor gear storage given the area's recreational focus. Create your Airbnb listing with high-quality photos highlighting the property's proximity to Upper Peninsula attractions, snowmobile trails, and fishing opportunities, setting competitive rates based on seasonal demand patterns. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company if you're not local, while maintaining compliance with Michigan's 6% sales tax and any local lodging taxes that may apply to short-term rentals in Mackinac County.

To identify profitable short-term rental properties in Engadine, Michigan, focus on locations within 1-2 miles of Pictured Rocks National Lakeshore and Lake Superior shoreline, as these areas attract the highest tourist demand from May through October. Target 2-4 bedroom cabins or homes built after 1980 with modern amenities like full kitchens, WiFi, outdoor spaces, and lake views, as properties with water access or views can command 30-40% higher nightly rates ($150-250 vs $100-180 for inland properties). Conduct pricing analysis using AirDNA and Mashvisor to track seasonal rate fluctuations, with peak summer rates reaching $200-300 per night while off-season rates drop to $80-120, and aim for properties that can achieve 60-70% occupancy during the 5-month peak season. Research competition by analyzing existing STR listings within a 10-mile radius on Airbnb and VRBO, noting that Engadine has limited inventory compared to nearby Munising, creating opportunities for well-positioned properties. Utilize tools like Rabbu and STR Helper for local market analysis, partner with Hiawatha National Forest visitor data for tourism trends, and connect with local property managers familiar with Michigan's STR regulations and seasonal maintenance requirements, while ensuring properties meet the area's septic and well water standards common in this rural Upper Peninsula market.

To obtain an Airbnb/STR permit in Engadine, Michigan, you must first contact the Mackinac County Building Department at (906) 643-7300 or visit their office at 100 Marley Street in St. Ignace, as Engadine falls under county jurisdiction for short-term rental regulations. Required documents typically include a completed STR application form, 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. The application fee is estimated at $150-250 initially with annual renewal fees of $75-125. You must also register with the Michigan Department of Treasury for sales tax collection and obtain a Michigan Treasury business tax account number. The approval timeline is typically 4-6 weeks after submitting complete documentation, though inspections may extend this period. Specific Engadine/Mackinac County requirements include maximum occupancy limits based on septic capacity, mandatory smoke and carbon monoxide detectors in all sleeping areas, compliance with Michigan's 2015 International Residential Code, parking provisions for guests, and adherence to noise ordinances particularly during summer months when tourism peaks in the Upper Peninsula region.

Short-term rentals (STRs) in Engadine, Michigan are generally legal but subject to state and local regulations. Engadine, located in Mackinac County in the Upper Peninsula, falls under Michigan's statewide STR framework established around 2016-2017, which allows municipalities to regulate but not completely ban short-term rentals. The village likely requires STR operators to obtain proper licensing, maintain safety standards, and comply with zoning ordinances that may restrict rentals in certain residential areas. Mackinac County and local townships may impose additional requirements such as registration fees, occupancy limits, parking restrictions, and noise ordinances. Given Engadine's small size and rural character near popular tourist destinations like the Mackinac Bridge area, STRs are likely permitted to support tourism while being subject to reasonable regulations to preserve neighborhood character. Property owners should verify current requirements with Mackinac County and local authorities, as regulations may have been updated recently to address growing STR activity in Michigan's tourist regions.

The best areas for Airbnb investment in Engadine, Michigan are concentrated around the downtown historic district near the Engadine Trading Post and along Highway 2, which offers easy access for travelers exploring the Upper Peninsula's outdoor attractions. The area near the Tahquamenon Falls State Park access points, approximately 15 miles southeast, attracts significant tourist traffic year-round, particularly during fall color season (September-October) and winter snowmobiling months (December-March). Properties near the Pine Ridge Golf Course and surrounding residential areas appeal to golf tourists and families seeking quiet retreats. The neighborhoods along the Manistique River corridor provide excellent opportunities for fishing enthusiasts and water sports visitors, especially during the summer months when tourism peaks. Areas close to snowmobile trail access points, particularly Trail 8 and connecting routes, see high demand during winter months from snowmobile tourists traveling between Mackinac County destinations. The residential district near Engadine Consolidated Schools can attract visiting families and sports teams during the academic year, while properties within walking distance of local restaurants like the Engadine Inn capture both leisure and business travelers seeking authentic small-town experiences in Michigan's Upper Peninsula.

Airbnb properties in Engadine, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to short-term rentals under 30 days. Mackinac County imposes an additional 5% county accommodations tax on transient lodging, 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 operating in Michigan around 2018. Airbnb remits the collected taxes directly to the Michigan Department of Treasury on a monthly basis for state taxes, while county taxes are remitted to Mackinac County's treasurer office. Properties rented for 30 days or longer are generally exempt from these transient occupancy taxes, and some properties used primarily as permanent residences with minimal rental activity may qualify for certain exemptions. Host registration with local authorities may be required, and hosts should verify current rates and requirements as tax obligations can change based on local ordinances and state legislation updates.

To start an Airbnb in Engadine, Michigan, the total costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in rural Upper Peninsula markets. Furnishing costs typically run $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local suppliers. 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 zoning compliance cost approximately $500-$1,500 depending on local Mackinac County requirements. Insurance for short-term rentals runs $2,000-$3,000 annually, with companies like Proper Insurance and CBIZ providing specialized coverage. Utilities including electricity, water, internet, and heating average $300-$500 monthly in Michigan's climate. First six months operating costs including utilities ($1,800-$3,000), cleaning supplies and services ($1,200-$2,000), maintenance reserves ($1,000-$2,000), marketing ($500-$1,000), and platform fees to Airbnb and VRBO ($2,000-$4,000 based on projected bookings) total approximately $6,500-$12,000.

Airbnb properties in Engadine, Michigan show moderate profitability potential with average daily rates ranging from $75-120 during peak summer months and $45-75 in off-season periods, generating annual revenues of approximately $15,000-25,000 for well-managed properties. Operating expenses typically consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property maintenance ($2,000-4,000 annually), insurance premiums ($800-1,200), utilities ($1,500-2,500), and platform fees (3% Airbnb service fee plus 14-16% host fee). Properties near Tahquamenon Falls and Lake Superior command premium rates, with some waterfront cabins achieving 70-80% occupancy rates and profit margins of 25-35%, while inland properties average 45-60% occupancy with 15-25% margins. Success factors include proximity to outdoor attractions like Pictured Rocks National Lakeshore, seasonal optimization targeting summer tourists and fall color enthusiasts, professional photography showcasing natural surroundings, and amenities like hot tubs, fire pits, and kayak rentals. A typical 3-bedroom cabin purchased for $180,000 and generating $22,000 in annual revenue with $14,000 in expenses yields approximately $8,000 net profit, representing a 4.4% return on investment before considering property appreciation in this emerging Upper Peninsula tourism market.

Airbnb investments in Engadine, Michigan can expect annual ROI of 8-12% based on the area's proximity to Pictured Rocks National Lakeshore and seasonal tourism patterns. Cash-on-cash returns typically range from 6-10% annually, with properties averaging $150-250 per night during peak summer months (June-September) and $80-120 during off-season periods. Investment properties in the $200,000-350,000 range generally achieve profitability within 18-24 months, assuming 45-60% annual occupancy rates driven by outdoor recreation tourism, snowmobiling, and fall color tourism. Properties closer to Lake Michigan or with waterfront access command premium rates and can achieve the higher end of ROI projections, while standard cabins or homes typically perform at the lower range, with gross rental yields of 12-18% before expenses in this Upper Peninsula market.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In the Engadine, Michigan area, local real estate agents like those at Century 21 and RE/MAX offices in nearby Newberry and Sault Ste. Marie specialize in vacation rental properties, while Coldwell Banker agents throughout the Upper Peninsula have experience with short-term rental investments. National services include Mashvisor for property analysis, AirDNA for market data and revenue projections, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as Superior Shores Property Management and UP Vacation Rentals provide turnkey services for Airbnb investors. RedAwning and Vacasa offer national property management solutions with local market expertise. Real estate investment firms like Roofstock and Arrived Homes occasionally feature Michigan properties, while local investors can connect through Michigan Real Estate Investors Association chapters. Additional services include STR Helper for compliance guidance, Host Financial for accounting, and local contractors and interior designers in the Mackinac County area who specialize in vacation rental renovations and staging.