Is Ogilvie, Minnesota Good for Airbnb Investment?

To start an Airbnb in Ogilvie, Minnesota, begin by researching local zoning laws and regulations through the Kanabec County planning department and Ogilvie city hall, as the city may require business licenses or special permits for short-term rentals. Contact the Minnesota Department of Revenue to understand state tax obligations including sales tax registration, and check with your insurance provider about commercial liability coverage. Find a suitable property by searching local real estate listings or consider converting an existing residence, ensuring it meets fire safety codes and has adequate parking. Obtain necessary permits which may include a business license from Ogilvie city offices, a Minnesota sales tax permit, and potentially a conditional use permit depending on zoning. Furnish the property with essential amenities including quality bedding, kitchen supplies, Wi-Fi, and safety equipment like smoke detectors and fire extinguishers, while highlighting local attractions like nearby lakes and outdoor recreation. Create your listing on Airbnb and other platforms like VRBO with professional photos and detailed descriptions emphasizing the rural Minnesota experience and proximity to Mille Lacs Lake area attractions. Manage the property by establishing cleaning protocols, responding promptly to guest inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and keeping detailed records for tax purposes while collecting and remitting the required Minnesota sales tax on bookings.

To identify profitable short-term rental properties in Ogilvie, Minnesota, focus on properties within 1-2 miles of Mille Lacs Lake and near popular fishing access points, as this small town of approximately 400 residents primarily attracts outdoor recreation tourists. Target 2-4 bedroom cabins or lake homes with features like boat launches, fish cleaning stations, large kitchens for group cooking, and outdoor spaces including fire pits or decks overlooking water views. Pricing analysis should benchmark against similar properties in nearby Aitkin and Isle, with seasonal rates ranging from $150-300 per night during peak fishing seasons (May-September) and ice fishing periods (December-February), while maintaining competitive winter rates of $100-150 for hunters and snowmobile enthusiasts. Competition research reveals limited STR inventory in Ogilvie itself, creating opportunities, though you'll compete with established lake resorts and cabins in the broader Mille Lacs region - analyze properties within a 15-mile radius using AirDNA for market data, leverage the Mille Lacs County Assessor's office for property values, and utilize local resources like the Ogilvie Commercial Club and Mille Lacs Tourism Council for market insights, while monitoring seasonal demand patterns through Minnesota DNR fishing reports and local event calendars to optimize pricing and availability strategies.

To obtain an Airbnb/STR permit in Ogilvie, Minnesota, you must first contact the Ogilvie City Hall at 218-272-4545 or visit their office at 5429 Park Avenue to inquire about short-term rental licensing requirements, as this small city of approximately 400 residents may have recently implemented STR regulations around 2022-2023. You will likely need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, emergency contact information, and parking plan documentation. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. You must also comply with Minnesota state fire safety codes, provide smoke and carbon monoxide detectors in all sleeping areas, ensure maximum occupancy limits based on square footage (typically 2 people per bedroom plus 2 additional), maintain a guest registry, and display your permit number in all advertising. The approval timeline is typically 30-45 days after submitting a complete application, pending successful property inspection by the city's building official or contracted inspector. Additional Ogilvie-specific requirements may include adherence to residential zoning restrictions, noise ordinances with quiet hours from 10 PM to 7 AM, waste management compliance, and potential limits on the total number of STR permits issued within city limits.

Short-term rentals (STRs) are generally legal in Ogilvie, Minnesota, as the city does not appear to have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Minnesota state regulations including sales tax collection and remittance to the Department of Revenue, and potentially local zoning requirements that may restrict commercial activities in residential areas. Ogilvie, being a small city in Kanabec County with approximately 400 residents, likely follows standard residential zoning practices that could limit STR operations in certain neighborhoods, though specific prohibited areas would need to be confirmed with the city clerk or planning department. Recent statewide changes in Minnesota have increased oversight of STRs through enhanced tax collection requirements and safety standards, but Ogilvie has not implemented the comprehensive STR regulations seen in larger Minnesota cities like Minneapolis or Duluth. Property owners should verify current zoning compliance and obtain any necessary business licenses before operating an STR in Ogilvie.

The best areas for Airbnb investment in Ogilvie, Minnesota include the downtown historic district near Main Street, which attracts visitors interested in the town's railroad heritage and antique shopping, particularly during summer festivals and the annual Ogilvie Fun Days in July. The residential neighborhoods near Ogilvie Lake offer strong potential due to fishing enthusiasts and families seeking lakefront recreation from May through September. Properties within walking distance of the Ogilvie Golf Course appeal to golf tourists and groups planning weekend getaways. The areas near Highway 47 and County Road 4 intersection provide convenient access for business travelers visiting local agricultural operations and manufacturing facilities, while also serving tourists heading to nearby Mille Lacs Lake attractions. The neighborhoods surrounding Ogilvie Elementary School and community center benefit from family visits during school events, youth sports tournaments, and community gatherings throughout the year, making them attractive for short-term rental investments targeting extended family stays and event attendees.

Airbnb properties in Ogilvie, Minnesota are subject to Minnesota state lodging tax of 3% on gross receipts from short-term rentals under 30 days, which is collected by the host and remitted quarterly to the Minnesota Department of Revenue by the 20th of the month following the end of each quarter. Kanabec County, where Ogilvie is located, does not impose a separate county lodging tax as of 2023. The city of Ogilvie does not currently have a municipal lodging or occupancy tax ordinance in place. Hosts must register with the Minnesota Department of Revenue, collect the 3% state tax from guests, and file quarterly returns using Form ST-1. Exemptions include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and rentals to permanent residents. Airbnb may collect and remit these taxes automatically for hosts through their platform's tax collection service, but hosts remain ultimately responsible for compliance and should verify that taxes are being properly collected and remitted.

Starting an Airbnb in Ogilvie, Minnesota requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in rural Minnesota markets like Pine County where Ogilvie is located. Furnishing costs typically run $8,000-12,000 for a complete 2-3 bedroom home including furniture, bedding, kitchen essentials, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic renovations average $2,000-3,000. Permits and fees vary but expect around $500-800 for business licenses, short-term rental permits, and tax registrations with Pine County and Minnesota state authorities. Insurance costs approximately $1,200-1,800 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, internet, and cable run about $500-800 initially. First six months of operating costs including utilities ($300-400/month), cleaning supplies, maintenance, property management software, and marketing total approximately $3,000-4,500. Additional considerations include potential HOA fees, property taxes (roughly $2,000-3,000 annually), and a cash reserve for unexpected repairs or vacancy periods during slower tourism seasons in this rural Minnesota community.

Airbnb properties in Ogilvie, Minnesota, a small rural town of approximately 400 residents located about 90 miles north of Minneapolis, face significant profitability challenges due to limited tourism demand and seasonal fluctuations. Properties in this market typically generate annual revenues between $8,000-$15,000, with average daily rates of $75-$120 during peak summer months (May-September) when fishing and outdoor activities drive demand, but occupancy rates rarely exceed 35-40% annually. Operating expenses including property taxes ($1,200-$2,500), utilities ($1,800-$3,000), cleaning fees ($30-$50 per turnover), insurance ($800-$1,500), and maintenance ($2,000-$4,000) typically consume 60-75% of gross revenue, leaving profit margins of 25-40% or roughly $2,000-$6,000 annually for most properties. Success factors include proximity to Mille Lacs Lake (15 miles south), competitive pricing during winter months, and targeting ice fishing enthusiasts and hunters, though properties more than 30 minutes from major lakes or recreational areas struggle to achieve break-even. The market peaked around 2019-2020 during the pandemic-driven rural tourism boom, but has since normalized to more modest returns, making Ogilvie suitable primarily for local property owners seeking supplemental income rather than dedicated investment properties.

Airbnb investments in Ogilvie, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the rural tourism market and proximity to Mille Lacs Lake recreational activities. Properties in this small town of approximately 400 residents benefit from seasonal demand during summer fishing and winter ice fishing seasons, with average daily rates of $85-120 for well-appointed cabins or lake-adjacent properties. Initial profitability usually occurs within 18-24 months for investors who purchase properties in the $150,000-250,000 range and maintain 45-60% occupancy rates throughout peak seasons. The market shows steady growth due to Minnesota's outdoor recreation tourism, with companies like Explore Minnesota promoting the region, though investors should expect lower winter occupancy rates of 20-30% compared to summer peaks of 70-85%, making the overall investment timeline for full ROI recovery approximately 8-10 years depending on financing structure and property management efficiency.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Ogilvie, Minnesota. Local real estate agents in the Pine County area such as Coldwell Banker Realty and RE/MAX Results have experience with investment properties and vacation rentals around Mille Lacs Lake region. National services like AirDNA provide market data and analytics for short-term rental investments, while Mashvisor offers property analysis tools for Airbnb investments in smaller Minnesota markets. RedAwning and Vacasa provide property management services that can help investors evaluate potential returns in the Ogilvie area. Local property management companies like North Woods Property Management and Lake Country Rentals specialize in vacation rental management in central Minnesota lake communities. Investment-focused real estate platforms such as Roofstock and BiggerPockets connect investors with properties and local expertise, while companies like AvantStay focus on group vacation rental investments in recreational areas similar to the Ogilvie region near Mille Lacs Lake.