Is Les Cheneaux Islands, Michigan Good for Airbnb Investment?

To start an Airbnb in Les Cheneaux Islands, Michigan, begin by researching local zoning laws through Mackinac County's planning department, as short-term rentals may require special permits or fall under specific residential zoning restrictions that vary by township (Cedarville, Clark, or Marquette townships). Contact the Michigan Department of Environment, Great Lakes, and Energy for any waterfront property regulations since many properties are lakefront, and obtain necessary permits including a Michigan sales tax license, local business license, and potentially a conditional use permit from your specific township. Find property by working with local realtors familiar with the 36 interconnected islands and channels, focusing on waterfront cabins or homes with boat access since many visitors come for boating and fishing. Furnish the property with nautical-themed decor, essential amenities like linens and kitchen supplies, outdoor furniture for deck/patio areas, and consider providing kayaks, fishing equipment, or boat slip access to attract guests seeking the area's renowned boating and fishing experiences. List your property on Airbnb, VRBO, and local tourism websites, emphasizing proximity to Hessel Marina, Les Cheneaux Islands Antique Boat Show (August), and outdoor activities like fishing for northern pike and smallmouth bass. Manage the property by establishing relationships with local cleaning services in Hessel or Cedarville, creating detailed check-in instructions since cell service can be spotty, providing maps of the island chain and local attractions, and maintaining the property year-round considering harsh Michigan winters that may require winterization and limited access during ice season.

To identify profitable short-term rental properties in Les Cheneaux Islands, Michigan, focus on waterfront locations with direct lake access or boat slips, as this archipelago of 36 islands attracts boaters and fishing enthusiasts primarily during May through October. Target properties with 3-4 bedrooms, full kitchens, outdoor spaces like decks or fire pits, and boat docking capabilities, as these features command premium rates of $200-400 per night during peak summer season. Analyze pricing by comparing similar waterfront rentals on Airbnb and VRBO, noting that properties with private beaches or fishing access can charge 20-30% more than inland options. Research competition by examining occupancy rates and reviews for existing STRs in Cedarville, Hessel, and other island communities, focusing on properties that highlight boating, fishing, and island-hopping activities. Utilize AirDNA for market analysis, contact local real estate agents familiar with the Mackinac County vacation rental market, and connect with the Les Cheneaux Islands Tourism Bureau for seasonal visitor data, while also considering Michigan's STR regulations and potential township restrictions that may limit rental operations in certain areas of this pristine Great Lakes destination.

To obtain an Airbnb/STR permit in Les Cheneaux Islands, Michigan, you must first contact the Mackinac County Building Department at 100 Marley Street, St. Ignace, MI 49781 (906-643-7300) to apply for a short-term rental license, as Les Cheneaux Islands falls under Mackinac County jurisdiction. Required documents 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), proof of liability insurance ($1 million minimum), site plan showing parking areas and emergency exits, and contact information for a local property manager if you're not residing locally. The application fee is approximately $150-200 with an annual renewal fee of $100-125, plus inspection fees ranging from $75-150. You must also register with the Michigan Department of Treasury for sales tax collection and obtain a Michigan Tax ID number. The timeline typically takes 4-6 weeks for initial approval, including scheduling required inspections for fire safety, building code compliance, and septic systems. Specific Les Cheneaux Islands requirements include maintaining adequate parking for guests (minimum 2 spaces), ensuring proper waste management during peak season, adhering to noise ordinances particularly during summer months, and providing emergency contact information to neighboring properties within 300 feet of your rental.

Short-term rentals (STRs) are generally legal in Les Cheneaux Islands, Michigan, but are subject to local regulations implemented by Mackinac County and individual township ordinances. The area, which encompasses several small islands and mainland communities in the eastern Upper Peninsula, has seen increased STR activity since around 2018-2020, prompting local governments to establish zoning restrictions and permit requirements. Most townships in the Les Cheneaux area require STR operators to obtain special use permits or conditional use permits, comply with septic system regulations due to the sensitive island environment, maintain adequate parking, and adhere to occupancy limits typically based on septic capacity. Some areas may restrict STRs in certain residential zones or require minimum distances between rental properties. Recent changes around 2021-2022 have included stricter enforcement of existing regulations and enhanced permit application processes, with particular attention to environmental impact given the area's pristine lake ecosystem and seasonal tourism patterns. Property owners must also comply with Michigan state tax requirements and local fire safety codes, while some townships have implemented noise ordinances and guest registration requirements specifically targeting STR operations.

The best areas for Airbnb investment in Les Cheneaux Islands, Michigan are Cedarville and Hessel, which serve as the primary gateways to the island chain and offer the most accessibility for guests arriving by car or boat. Cedarville is particularly attractive due to its proximity to the Les Cheneaux Islands Antique Boat Show (held annually since 1976), one of the largest wooden boat shows in the Great Lakes region, drawing thousands of visitors each August. Hessel offers excellent marina access and is popular with boating enthusiasts who visit for fishing, sailing, and exploring the 36 islands in the archipelago. Properties near Government Island and Marquette Island are highly desirable for their pristine natural settings and private island feel, attracting families and groups seeking secluded vacation experiences. The Snows Channel area is ideal for fishing-focused rentals, as it provides access to some of the best northern pike, walleye, and bass fishing in Michigan. Waterfront properties along the main shipping channel capture both recreational boaters and visitors interested in watching Great Lakes freighter traffic, while locations near the Les Cheneaux Historical Maritime Museum in Hessel benefit from cultural tourism and educational group visits.

Airbnb properties in Les Cheneaux Islands, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to all short-term rental stays under 30 days. Additionally, Mackinac County imposes a local accommodation tax of approximately 2-3% on short-term rentals. These taxes are typically collected directly from guests at the time of booking through Airbnb's automated tax collection system, which remits payments quarterly to the Michigan Department of Treasury and local tax authorities. Property owners must register with the Michigan Treasury Department and obtain a sales tax license, filing monthly returns even when Airbnb collects on their behalf. Mackinac County requires separate registration for local accommodation taxes, with remittance due monthly by the 20th of the following month. Exemptions include stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and rentals to guests with valid tax-exempt certificates for qualifying purposes such as government travel or certain nonprofit activities.

The total cost to start an Airbnb in Les Cheneaux Islands, Michigan is approximately $485,000-$585,000. Property purchase costs range from $350,000-$450,000 for a median waterfront cabin or cottage suitable for vacation rentals in this remote island chain area. Furnishing costs typically run $25,000-$35,000 for a complete setup including beds, linens, kitchen equipment, outdoor furniture, and decor appropriate for a lakefront property. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $3,000-$5,000. Permits and fees including business license, short-term rental permit, and zoning compliance cost approximately $1,500-$2,500 annually. Insurance for a vacation rental property in this area runs $3,000-$4,500 per year. Utilities including electricity, propane, water, septic, internet, and seasonal services average $8,000-$12,000 for six months of operation. First six months operating costs including cleaning services, maintenance, supplies, platform fees, marketing, and property management total approximately $15,000-$20,000, assuming moderate occupancy rates during the peak summer season when most visitors come to enjoy boating, fishing, and island activities in this popular Michigan vacation destination.

Airbnb properties in Les Cheneaux Islands, Michigan, typically generate annual revenues of $15,000-$35,000 for seasonal cottages and waterfront homes, with peak summer months (June-August) commanding $150-$300 per night depending on property size and water access. Operating expenses generally run 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($2,000-$4,000 annually), insurance ($1,500-$3,000), maintenance ($3,000-$6,000), and local taxes, resulting in net profit margins of 25-45% for well-managed properties. Success factors include waterfront location, boat access or dock availability, modern amenities, professional photography, and responsive property management, with properties featuring private docks or beach access achieving 15-20% higher occupancy rates. A typical 3-bedroom lakefront cottage purchased for $250,000 and generating $28,000 in annual rental income with $16,000 in expenses would yield a 4.8% cash-on-cash return plus property appreciation, though seasonal demand concentration requires careful cash flow management during the October-May off-season when occupancy drops to 10-15%.

Airbnb investments in Les Cheneaux Islands, Michigan typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% for waterfront properties and 4-8% for inland properties. The seasonal nature of this northern Michigan archipelago drives strong summer rental demand from May through September, with peak rates of $200-400 per night for lakefront homes and $100-250 for standard properties. Properties generally reach profitability within 2-3 years, with initial investments of $150,000-500,000 for suitable rental properties. The market benefits from limited hotel inventory and strong demand from boaters, fishermen, and families seeking remote island experiences, though investors should account for 4-5 month low seasons and higher maintenance costs due to harsh winters and remote location accessibility challenges.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Michigan markets like Les Cheneaux Islands. Local real estate agents serving the Les Cheneaux Islands area include Mackinac Realty, Century 21 Northland, and Coldwell Banker Schmidt Realtors who have experience with vacation rental properties in the region. National services like AirDNA (founded 2015), Mashvisor, and BiggerPockets provide market analysis and investment tools for Airbnb properties. Vacasa and RedAwning offer property management services for short-term rentals in Michigan. Local property management companies such as Northern Michigan Vacation Rentals and Great Lakes Property Management specialize in the Upper Peninsula vacation rental market. Real estate investment firms like Roofstock and Awning focus on turnkey rental properties, while platforms like VRBO and Airbnb themselves provide market insights. Regional brokerages including RE/MAX and Berkshire Hathaway HomeServices have agents familiar with investment properties in the Straits of Mackinac area where Les Cheneaux Islands is located.