Is Lawrence, Kansas Good for Airbnb Investment?

To start an Airbnb in Lawrence, Kansas, begin by researching local regulations through the City of Lawrence Planning Department, as Lawrence requires short-term rental operators to obtain a Conditional Use Permit (CUP) and business license, with properties needing to be owner-occupied or meet specific zoning requirements in residential areas. Contact Douglas County for any additional county-level permits and ensure compliance with Kansas state tax requirements including sales tax registration. Find a suitable property by searching areas near the University of Kansas campus or downtown Lawrence, considering proximity to attractions like Massachusetts Street and KU sporting venues, with typical property costs ranging $150,000-$300,000 for suitable homes. Furnish the space with essential amenities including high-speed internet (crucial for university visitors), comfortable bedding, kitchen supplies, and local guidebooks, budgeting approximately $5,000-$15,000 for initial furnishing. Create your Airbnb listing with professional photos highlighting proximity to KU campus, Jayhawk Boulevard, and local attractions, setting competitive rates around $75-$150 per night depending on property size and location. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, file monthly sales tax returns with the Kansas Department of Revenue, and consider hiring local cleaning services or property management companies like RedAwning or Vacasa if you need assistance with day-to-day operations.

To identify profitable short-term rental properties in Lawrence, Kansas, focus on locations within 1-2 miles of the University of Kansas campus, downtown Massachusetts Street, and major event venues like Allen Fieldhouse, as these areas generate consistent demand from students, parents, and sports fans. Target 2-4 bedroom properties built after 1980 with parking, updated kitchens and bathrooms, reliable Wi-Fi capability, and outdoor spaces, as these features command premium rates of $80-150 per night compared to the market average of $60-120. Conduct pricing analysis using AirDNA and Mashvisor to track seasonal fluctuations, with peak periods during KU basketball season (November-March), graduation weekends, and football games, while analyzing comparable properties within a 0.5-mile radius to optimize your pricing strategy. Research competition by monitoring active Airbnb and VRBO listings in your target neighborhoods, identifying gaps in amenities or underpriced properties, and studying guest reviews to understand market preferences. Utilize Lawrence-specific resources including the Douglas County property records database, City of Lawrence zoning maps to ensure STR compliance, local real estate agents familiar with investment properties, and Kansas University's event calendar to predict high-demand periods, while connecting with the Lawrence Association of Realtors for market insights and networking opportunities.

To obtain an Airbnb/STR permit in Lawrence, Kansas, you must first apply through the City of Lawrence Planning and Development Services Department located at City Hall at 6 East 6th Street or online through their permitting portal. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, floor plan of the rental unit, proof of liability insurance (minimum $500,000), contact information for a local responsible party available 24/7, and a site plan showing parking availability. The application fee is approximately $150-200 with an annual renewal fee of around $100. Lawrence requires STR properties to maintain a minimum 500-foot separation from other licensed short-term rentals in residential zones, provide adequate off-street parking (typically one space per bedroom), install smoke and carbon monoxide detectors in all sleeping areas, maintain a guest registry, and limit occupancy to 2 people per bedroom plus 2 additional guests with a maximum of 8 people total. The property must also comply with all building and fire codes, and operators must collect and remit city transient guest tax of 12%. The approval timeline is typically 4-6 weeks after submitting a complete application, and the permit must be renewed annually. Properties in certain historic districts or HOA-restricted areas may face additional requirements or prohibitions.

Short-term rentals (STRs) are legal in Lawrence, Kansas, but operate under specific regulations established by the city. Lawrence requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR operators must follow. Properties must meet safety standards including smoke detectors and emergency egress requirements. Lawrence has been actively updating its STR regulations in recent years, with the city council making adjustments around 2019-2021 to balance tourism benefits with neighborhood concerns about noise, parking, and housing availability. The city requires registration of all STR properties and has established complaint procedures for residents. Operators must also collect and remit local taxes, and there are restrictions on the total number of guests and vehicles allowed at STR properties to minimize impacts on residential areas.

The best areas for Airbnb investment in Lawrence, Kansas are downtown Lawrence near Massachusetts Street, the University of Kansas campus area, and the historic Oread neighborhood. Downtown Lawrence offers the highest potential due to its proximity to the vibrant Massachusetts Street entertainment district with restaurants, bars, and shops, attracting both tourists and business travelers year-round. The KU campus area, particularly near Jayhawk Boulevard and the surrounding neighborhoods, provides consistent demand from visiting families during football and basketball seasons, graduation ceremonies, and academic conferences, with Allen Fieldhouse and David Booth Kansas Memorial Stadium driving significant seasonal traffic. The Oread neighborhood, located on Mount Oread near the university, appeals to visitors seeking historic charm and walkability to campus events, while also capturing overflow demand during major university functions. East Lawrence, particularly near the Kansas River and Clinton Lake area, offers potential for guests seeking outdoor recreation and a quieter atmosphere while remaining close to downtown attractions. These areas benefit from Lawrence's position as a college town with consistent academic calendar-driven demand, plus its location along the Kansas City-Topeka corridor attracting business travelers and weekend visitors exploring Kansas's cultural and historical sites.

In Lawrence, Kansas, Airbnb hosts are subject to both state and local lodging taxes. The Kansas state transient guest tax is 6% on gross receipts from rentals of less than 28 consecutive days, while Douglas County imposes an additional 2% transient guest tax, bringing the total lodging tax rate to 8%. The City of Lawrence also requires a business license for short-term rental operations, which costs approximately $25-50 annually. These taxes are typically collected by Airbnb directly from guests and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's automated tax collection service, which began around 2018-2019 for Kansas. Hosts who collect taxes independently must register with the Kansas Department of Revenue and Douglas County, file monthly returns by the 25th of the following month, and remit collected taxes accordingly. Properties rented for 28 days or longer are generally exempt from transient guest taxes, and some jurisdictions may provide exemptions for rentals to government employees or during certain circumstances, though specific exemption details should be verified with local tax authorities as regulations can change.

To start an Airbnb in Lawrence, Kansas, the total initial investment would be approximately $285,000-$320,000. Property purchase costs around $220,000 based on Lawrence's median home price as of 2023. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Permits and fees in Lawrence include business license ($50), short-term rental permit ($200), and potential HOA approvals totaling $500-$1,000. Insurance for short-term rentals costs $2,000-$3,000 annually, requiring specialized coverage beyond standard homeowner's policies. Utilities setup and deposits for electricity, gas, water, internet, and cable average $500-$800 initially. First six months operating costs including utilities ($1,200), cleaning services ($1,800), maintenance ($1,000), property management software ($300), and marketing ($500) total approximately $4,800. Additional considerations include potential property taxes ($3,000-$4,000 annually) and a recommended cash reserve of $10,000-$15,000 for unexpected expenses and vacancy periods.

Airbnb properties in Lawrence, Kansas typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with occupancy rates averaging 45-65% due to the presence of the University of Kansas driving consistent demand from visiting families, prospective students, and game day visitors. Operating expenses generally run 35-50% of gross revenue, including cleaning fees ($40-80 per turnover), property management (10-20%), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs, resulting in net profit margins of 15-35% for well-managed properties. Properties within 2-3 miles of KU campus command premium rates of $80-150 per night compared to $60-100 for properties further out, with Victorian-era homes near downtown and modern condos performing particularly well. Success factors include strategic pricing during KU basketball season and graduation periods when rates can double, maintaining high cleanliness standards given competition from local hotels like The Oread, and targeting the family market visiting students rather than just gameday crowds, with properties featuring multiple bedrooms and parking consistently outperforming studio units by 20-30% in both occupancy and revenue per available night.

Airbnb investments in Lawrence, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the University of Kansas student population and visiting families during football season and graduation events. Properties near campus or downtown areas can achieve occupancy rates of 65-75% annually, with average daily rates between $80-120 depending on property size and amenities. Initial profitability usually occurs within 12-18 months after accounting for furnishing costs, property management fees, and seasonal fluctuations, with peak earning periods during KU basketball tournaments in March and football games from August through November. Two-bedroom properties within 2 miles of campus tend to perform best, generating approximately $2,000-3,500 monthly gross revenue during peak academic months and $1,200-2,000 during summer periods when student demand decreases but family visitors and summer program attendees maintain moderate occupancy levels.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Lawrence, Kansas. In Lawrence, local real estate agents like those at Realty Executives of Lawrence and Coldwell Banker Griffith & Blair have experience with investment properties and can assist with Airbnb acquisitions near the University of Kansas campus. National services include AirDNA for market analysis, Mashvisor for investment property analytics, and BiggerPockets for networking with local investors. Local property management companies such as Lawrence Property Management and Sunflower Property Management can provide insights into rental markets and may assist with identifying investment opportunities. Real estate investment firms like HomeVestors and national platforms such as Roofstock occasionally feature Kansas properties suitable for short-term rentals. Additionally, local real estate agents at RE/MAX Associates and Berkshire Hathaway HomeServices in Lawrence understand the college town dynamics that make certain properties attractive for Airbnb investments, particularly those near downtown Lawrence or within walking distance of KU campus.