Is Keuka Lake, New York Good for Airbnb Investment?

To start an Airbnb in Keuka Lake, New York, begin by researching local regulations in Yates County and surrounding municipalities like Penn Yan, Branchport, and Hammondsport, as each may have different short-term rental ordinances requiring registration, occupancy limits, and safety inspections that typically cost $100-300 annually. Obtain necessary permits including a Certificate of Occupancy from the local building department, sales tax certificate from New York State Department of Taxation, and potentially a special use permit if zoning requires it, with total permit costs ranging $200-800. Find property by searching lakefront or lake-view homes in the $200,000-600,000 range through local realtors familiar with the Finger Lakes region, focusing on properties with 2-4 bedrooms, dock access, and proximity to wineries like Dr. Konstantin Frank or Keuka Lake Vineyards. Furnish the property with lake-themed decor, outdoor furniture for deck/patio areas, kayaks or paddleboards, fire pit, fully equipped kitchen, high-speed internet, and comfortable bedding for 4-8 guests, budgeting $15,000-30,000 for complete furnishing. List your property on Airbnb, VRBO, and local vacation rental sites with professional photography highlighting lake views, wine trail proximity, and seasonal activities, setting rates between $150-400 per night depending on size and amenities. Manage the property by establishing relationships with local cleaning services in Penn Yan or Hammondsport charging $80-150 per turnover, maintenance contractors familiar with lakefront properties, and consider hiring a local property management company like Finger Lakes Premier Properties if you live more than 2 hours away, which typically charges 20-30% of rental income.

To identify profitable short-term rental properties in Keuka Lake, New York, focus on waterfront or water-view locations within walking distance of the lake, particularly in Penn Yan, Hammondsport, or Branchport areas where tourist activity is highest during summer months and fall wine season. Target properties with 3-4 bedrooms, outdoor spaces like decks or patios, lake access, parking for multiple vehicles, and amenities like fire pits or hot tubs that enhance the lakeside experience. Analyze pricing by researching comparable Airbnb and VRBO listings around Keuka Lake during peak season (June-October) and shoulder seasons, noting that waterfront properties typically command $200-400 per night while lake-view properties range $150-250 per night. Research competition using AirDNA, Mashvisor, or manual searches on booking platforms to identify supply density, occupancy rates, and revenue potential, paying attention to properties near Keuka Lake State Park, local wineries like Dr. Konstantin Frank or Bully Hill, and popular fishing spots. Utilize tools like AirDNA for market analytics, STR Helper for performance tracking, local MLS data through real estate agents familiar with the Finger Lakes region, and connect with the Yates County tourism board for seasonal visitor data and regulations, while also monitoring local Facebook groups and forums for insider knowledge about the best performing rental areas around this Y-shaped glacial lake.

To obtain an Airbnb/STR permit for Keuka Lake, New York, you must first determine which specific municipality your property is located in (such as Penn Yan, Hammondsport, or one of the surrounding townships) as requirements vary by local jurisdiction. Generally, you'll need to apply through the local town or village clerk's office by submitting a short-term rental application along with required documents including proof of property ownership, liability insurance certificate (typically $1 million minimum), floor plan or property layout, emergency contact information, and parking plan. Most municipalities require a site inspection and charge application fees ranging from $100-300 annually, with some requiring additional business licenses costing $25-75. You'll need to comply with occupancy limits (usually 2 people per bedroom plus 2 additional), provide smoke and carbon monoxide detectors, maintain guest registries, and often limit rental periods to minimum 2-3 night stays. The approval process typically takes 30-60 days after submitting a complete application, and many areas require annual renewal with updated insurance and inspection certificates. Contact your specific town or village hall directly as Yates County municipalities have varying regulations, and some areas near the lake may have additional waterfront or seasonal restrictions that could affect your permit approval and operating conditions.

Short-term rentals (STRs) around Keuka Lake, New York operate under a complex patchwork of local municipal regulations, as the lake spans multiple towns and villages in Yates and Steuben counties. Most municipalities in the Finger Lakes region, including those around Keuka Lake such as Penn Yan, Hammondsport, and various townships, generally allow STRs but with varying restrictions implemented between 2018-2023. Common regulations include requirements for permits or licenses, occupancy limits typically ranging from 8-12 people, parking restrictions, noise ordinances, and mandatory registration with local authorities. Some waterfront areas may have additional zoning restrictions, and certain residential districts might limit or prohibit commercial STR operations. Recent changes around 2022-2023 have seen several Finger Lakes communities tightening regulations due to concerns about housing availability and neighborhood character, with some requiring annual renewals, imposing stricter safety inspections, and establishing complaint procedures. Property owners should verify specific requirements with the exact municipality where their property is located, as regulations can vary significantly between Penn Yan Village, Jerusalem Township, Pulteney Township, and other jurisdictions around the lake.

The most promising Airbnb investment areas around Keuka Lake, New York include the Village of Hammondsport at the southern tip, which serves as the heart of the Finger Lakes wine region with over 30 wineries within a 10-mile radius and hosts the annual Wine Country Classic car show, making it attractive year-round for wine tourists and event attendees. Penn Yan on the northern shore offers excellent investment potential due to its proximity to Keuka Lake State Park, the Windmill Farm & Craft Market, and serves as a central hub for lake activities while maintaining lower property costs than Hammondsport. The western shore communities of Branchport and Keuka Park are ideal for waterfront vacation rentals, attracting families and groups seeking direct lake access for boating, fishing, and swimming during peak summer months. Bath, located southeast of the lake, presents opportunities for business travelers visiting the region's agricultural and manufacturing sectors while offering easy access to both Keuka Lake and the broader Finger Lakes region. The eastern shore near Dresden and Starkey provides a more secluded, premium market for luxury vacation rentals, appealing to guests seeking privacy and high-end lake experiences, particularly during the summer season and fall foliage period when tourism peaks.

Airbnb properties around Keuka Lake, New York are subject to New York State sales tax of 8% on lodging stays under 90 days, which is automatically collected by Airbnb and remitted to the state since 2018. Additionally, Yates County imposes a 3% occupancy tax on short-term rentals, bringing the total tax burden to approximately 11%, though this county tax may require separate registration and direct remittance by hosts depending on local collection agreements. The villages and towns surrounding Keuka Lake, including Penn Yan, Branchport, and Hammondsport, may impose additional local occupancy taxes ranging from 2-4%, with collection methods varying by municipality - some have agreements with Airbnb for automatic collection while others require hosts to register locally and remit taxes quarterly. Stays of 90 days or longer are generally exempt from occupancy taxes but may still be subject to other local fees, and properties used exclusively as primary residences or certain agricultural exemptions may qualify for reduced rates, though hosts should verify current rates and collection procedures with the New York State Department of Taxation and Finance and their specific local tax authorities as rates and procedures have evolved significantly since 2019.

To start an Airbnb at Keuka Lake, New York, expect total costs around $420,000-$480,000. Property purchase represents the largest expense at $350,000-$400,000 for a median lakefront or lake-view home suitable for short-term rental. Furnishing costs typically range $25,000-$35,000 for a complete 3-4 bedroom property including beds, linens, kitchen essentials, living room furniture, and outdoor amenities. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations average $3,000-$5,000. Permits and fees in New York vary by municipality but expect $500-$2,000 for short-term rental permits, business licenses, and tax registrations. Insurance premiums for short-term rental coverage run $2,000-$4,000 annually, with six months costing $1,000-$2,000. Utility setup and deposits for electricity, water, internet, cable, and heating average $500-$1,000 initially. First six months operating costs including utilities ($1,200-$1,800), cleaning services ($2,400-$3,600), maintenance ($1,000-$2,000), marketing ($500-$1,000), and platform fees on bookings ($1,500-$2,500) total approximately $6,600-$10,900. Additional considerations include property taxes, which average $8,000-$12,000 annually in the Finger Lakes region, though these ongoing costs extend beyond the initial startup investment.

Airbnb properties around Keuka Lake, New York typically generate annual revenues of $25,000-$45,000 for well-positioned lakefront or lake-view properties, with peak summer months (June-August) accounting for 60-70% of total bookings at average daily rates of $200-$350. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (15-25% if outsourced), utilities ($2,000-$3,500 annually), insurance ($1,200-$2,000), maintenance and repairs ($3,000-$5,000), and local taxes, resulting in net profit margins of 25-35% for successful operators. Properties within walking distance of the lake or offering direct water access command premium rates and achieve 70-85% occupancy during peak season, while those further inland may see 45-60% occupancy at $120-$200 nightly rates. Success factors include professional photography showcasing lake views, amenities like kayaks or fire pits, responsive communication, and strategic pricing that capitalizes on wine tour season (April-October) when visitors explore the Finger Lakes region's numerous wineries including Dr. Konstantin Frank and Keuka Lake Vineyards, with the most profitable properties being those that combine lake access with wine country proximity, often achieving ROI of 8-12% annually on properties purchased specifically for short-term rental investment.

Airbnb investments in Keuka Lake, New York typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's strong summer tourism season from May through September when nightly rates average $200-350 for lakefront properties and $120-200 for properties within walking distance of the lake. Properties generally reach profitability within 18-24 months, with peak occupancy rates of 75-85% during summer months and 35-45% during off-season periods. Initial investment costs average $300,000-600,000 for suitable properties, with annual gross rental income potential of $35,000-75,000 depending on property size, location proximity to the lake, and amenities offered. The market benefits from consistent demand from visitors to the Finger Lakes wine region, with companies like Vacasa and RedAwning reporting strong booking performance for well-managed properties, though investors should expect seasonal cash flow variations with 60-70% of annual revenue concentrated in the May-October period.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in the Keuka Lake, New York area by providing market data and investment analysis tools. Local real estate agents serving the Finger Lakes region who specialize in investment properties include Keuka Lake Realty, Finger Lakes Properties, and Howard Hanna Real Estate Services which has offices throughout New York state. National services that assist Airbnb investors include Mashvisor for property analysis, AirDNA for market research and revenue projections, Awning for full-service Airbnb investment management, Roofstock for turnkey rental properties, and BiggerPockets for networking and education. Regional companies like Upstate New York Vacation Rentals and Finger Lakes Vacation Rental Management provide property management services for short-term rentals in the area. RedAwning and Vacasa also operate in New York state offering property management and optimization services for vacation rental investors, while local property management companies such as Keuka Lake Property Management and Finger Lakes Real Estate Services cater specifically to the lake region's seasonal rental market.