Is Kenosha, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Kenosha, Wisconsin, begin by researching local regulations as Kenosha requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking. Contact the Kenosha City Clerk's office to obtain the necessary business license (approximately $50-100 annually) and ensure your property meets fire safety codes and building requirements. Find a suitable property by purchasing or leasing in neighborhoods like downtown Kenosha, HarborPark, or near the lakefront, considering proximity to attractions like the Kenosha Public Museum and Lake Michigan. Furnish the space with essential amenities including Wi-Fi, linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers, budgeting $3,000-8,000 for initial setup. Create your Airbnb listing with professional photos highlighting local attractions and set competitive rates based on comparable properties in the $75-150 per night range. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and keeping detailed records for tax purposes while ensuring compliance with Wisconsin's 5.5% state sales tax and Kenosha's local room tax requirements.

To identify profitable short-term rental properties in Kenosha, Wisconsin, focus on locations within 1-2 miles of Lake Michigan waterfront, downtown historic district near the HarborMarket, and areas close to the Kenosha Public Museum and Civil War Museum which attract tourists year-round. Target 2-4 bedroom properties built after 1950 with parking, updated kitchens, and outdoor spaces like decks or patios that can capitalize on the lakefront appeal. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $80-150 per night depending on size and location, with higher rates during summer months (June-August) when lake activities peak. Research competition by studying existing Airbnb and VRBO listings within 3 miles, identifying gaps in amenities or underserved neighborhoods, particularly focusing on properties that lack professional photography or optimal pricing strategies. Utilize tools like Rabbu, STR Helper, and local MLS data through Kenosha Realtors Association, while monitoring occupancy rates through AirDNA's market data for Kenosha County, and consider properties near major employers like Snap-on Tools headquarters and Amazon fulfillment center for potential corporate traveler demand during weekdays to supplement weekend leisure bookings.

To obtain an Airbnb/STR permit in Kenosha, Wisconsin, you must first contact the Kenosha City Planning Department at City Hall located at 625 52nd Street to determine if short-term rentals are permitted in your specific zoning district, as the city has varying regulations by zone. You'll need to submit an application for a Conditional Use Permit through the Planning Department, which typically requires a completed application form, property survey, site plan showing parking arrangements, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, and a $500-750 application fee. The process involves a public hearing before the Plan Commission, requiring notification to neighboring property owners within 300 feet at least 10 days prior to the hearing, with total timeline typically ranging 60-90 days from application submission to approval. Kenosha specifically requires STR operators to maintain on-site parking for guests, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, provide 24-hour contact information to neighbors, maintain the property in compliance with all building and health codes, and obtain annual renewal of the permit with associated fees of approximately $200-300, while also requiring compliance with Wisconsin state tax registration and collection requirements for transient accommodations.

Short-term rentals (STRs) are legal in Kenosha, Wisconsin, but operate under specific regulations established by the city. As of 2023, Kenosha requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use districts, while residential areas have more limited permissions. The city prohibits STRs in certain residential neighborhoods and requires properties to meet safety standards including smoke detectors, carbon monoxide detectors, and occupancy limits. Operators must also collect and remit room taxes, maintain liability insurance, and provide emergency contact information to the city. Recent changes in 2022-2023 included stricter enforcement of noise ordinances and parking requirements, with the city implementing a complaint-based system for violations. Properties must also comply with Wisconsin state regulations regarding taxation and health department standards, and Kenosha has established maximum occupancy limits based on property size and bedroom count to address neighborhood concerns about overcrowding and parking.

The most promising Airbnb investment areas in Kenosha, Wisconsin include the Historic Downtown District near the harbor and Kenosha Public Museum, which attracts tourists visiting the Civil War Museum and scenic Lake Michigan waterfront activities. The Uptown neighborhood offers proximity to the University of Wisconsin-Parkside, generating consistent demand from visiting families, prospective students, and academic conferences. The HarborPark area is particularly attractive due to its location near Simmons Island Beach, the Kenosha Harbor, and summer festivals like the Kenosha Kingfish baseball games at Historic Simmons Field. The area around Highway 50 and I-94 intersection provides excellent access for business travelers visiting major employers like Snap-on Tools headquarters and Amazon fulfillment centers, while also serving Chicago commuters seeking affordable accommodations. The Southport corridor benefits from its proximity to the Kenosha Public Museum, lighthouse, and marina activities, plus it's convenient for visitors attending events at the Kenosha County Fairgrounds and those exploring the area's connection to the Underground Railroad historical sites.

In Kenosha, Wisconsin, Airbnb operators are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The Wisconsin state sales tax of 5% applies to all short-term rental accommodations, while Kenosha County imposes an additional room tax of approximately 5-6% on lodging stays of less than 30 consecutive days. The City of Kenosha may also levy a local room tax of around 3-8% depending on current municipal rates. These taxes are typically collected by the host at the time of booking or check-in and must be remitted monthly or quarterly to the Wisconsin Department of Revenue for state taxes and to Kenosha County for local room taxes, with returns generally due by the 20th of the following month. Airbnb may collect and remit these taxes automatically in some cases through their platform, but hosts remain ultimately responsible for compliance. Exemptions may apply for stays exceeding 30 consecutive days, certain government employees on official business, and guests with valid tax-exempt certificates, though documentation requirements vary by jurisdiction and hosts should verify current rates and procedures with local tax authorities as these can change periodically.

The total cost to start an Airbnb in Kenosha, Wisconsin is approximately $185,000-$220,000. Property purchase costs around $150,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for quality furniture, bedding, kitchenware, and decor suitable for short-term rentals. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,000. Permits and fees in Kenosha include business license ($50), short-term rental permit ($200), and potential zoning compliance costs totaling $500-$1,000. Insurance for short-term rentals runs $1,200-$2,000 annually, with the first year paid upfront. Utility deposits and setup fees for electricity, gas, water, internet, and cable cost approximately $500-$800. First six months of operating costs including utilities ($900/month), cleaning services ($100 per turnover), maintenance reserves ($200/month), platform fees (3% of bookings), and marketing expenses total $8,000-$12,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Kenosha, Wisconsin typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $75-$140 depending on property type and location proximity to Lake Michigan. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties within walking distance of downtown Kenosha or lakefront areas achieve occupancy rates of 65-75% with profit margins of 25-35%, while suburban locations typically see 45-55% occupancy and 15-25% margins. Success factors include professional photography, competitive pricing during summer peak season (May-September when lake activities drive demand), quick response times to guests, and targeting business travelers visiting nearby companies like Snap-on Tools or Abbott Laboratories. A typical 3-bedroom lakefront property purchased for $180,000 in 2019 generated approximately $28,000 in annual revenue with $16,000 in expenses, yielding a 6.7% return on investment before mortgage considerations, while properties further from attractions struggle with seasonal fluctuations and lower year-round demand.

Airbnb investments in Kenosha, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near the University of Wisconsin-Parkside and downtown lakefront areas command premium rates of $80-120 per night during peak summer months, with average occupancy rates of 65-75% annually. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, particularly those within walking distance of Lake Michigan or the historic downtown district. The market benefits from Chicago proximity (90 minutes) attracting weekend visitors, while local events like the Kenosha HarborMarket and Bristol Renaissance Faire drive seasonal demand spikes that can push monthly returns above 15% during May through September.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Kenosha, Wisconsin. Local real estate agents in Kenosha who specialize in investment properties include Shorewest Realtors, Coldwell Banker Real Estate Group, and RE/MAX Newport Elite, with agents like those at First Weber Realtors also serving the area since the early 2000s. National services that assist Airbnb investors include Mashvisor (founded 2014), AirDNA (established 2015), and Awning (launched 2020), which provide market analysis and property management services. Local property management companies like Kenosha Property Management and Lake Geneva-area firms such as Geneva Lakes Property Management extend services to Kenosha investors. Additional national platforms include BiggerPockets (since 2004), Roofstock (founded 2015), and Vacasa (established 2009) for property management, while local mortgage brokers and investment-focused real estate professionals at companies like Berkshire Hathaway HomeServices and Century 21 Affiliated have been helping investors since the 1990s identify properties suitable for short-term rental conversion in Kenosha's growing tourism market.