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Find Your Airbnb InvestmentInvesting in Airbnb properties in Paddock Lake, Wisconsin, presents a promising opportunity, largely driven by its appeal as a serene lakeside destination. The current market conditions indicate a steady demand for short-term rentals, especially during peak seasons when visitors flock for recreational activities like boating, fishing, and enjoying the natural beauty of the area. Property values in Paddock Lake have shown consistent appreciation, reflecting the desirability of lakeside living and vacation homes. The investment potential is further bolstered by a growing interest in local tourism, as more travelers seek quiet getaways and outdoor experiences, making Paddock Lake an attractive location for those looking to capitalize on the burgeoning short-term rental market.
Based on available market data and regional analysis, Airbnb properties in Paddock Lake, Wisconsin typically generate monthly revenues ranging from $800 to $2,500, with lakefront properties commanding the higher end of this spectrum. Seasonal variations show peak earnings during summer months when lake activities drive demand, with revenues potentially increasing 40-60% above winter averages, while spring and fall represent moderate earning periods. Properties closer to the lake, those offering boat access, and homes with 3+ bedrooms tend to outperform smaller or inland properties, with occupancy rates averaging 55-70% during peak season and dropping to 25-40% in winter months. Key factors affecting earnings include proximity to Geneva Lake recreational areas, property amenities like docks or fire pits, seasonal events in nearby Lake Geneva, and competition from approximately 15-25 other short-term rental properties in the immediate area. Revenue optimization typically depends on competitive pricing strategies, professional photography, and capitalizing on weekend bookings from Chicago-area visitors seeking lake retreats within a two-hour drive.
Airbnb investments in Paddock Lake, Wisconsin typically generate ROI between 8-12% annually, with payback periods averaging 7-9 years due to the area's proximity to Lake Geneva and seasonal tourism demand. Properties near the lake command higher nightly rates of $150-250 during peak summer months but experience significant seasonal fluctuations with winter occupancy dropping to 30-40%, resulting in annual occupancy rates around 55-65%. Compared to traditional long-term rentals in Paddock Lake that yield steady 6-8% returns with 85-95% occupancy, Airbnb properties offer higher gross revenue potential but require substantially more management effort and carry greater vacancy risk. The market benefits from weekend getaway demand from Chicago and Milwaukee visitors, though competition from established Lake Geneva vacation rentals and limited year-round attractions constrain consistent performance. Initial investment costs including furnishing and marketing typically range $15,000-25,000 above purchase price, while operating expenses including cleaning, utilities, and platform fees consume 35-45% of gross rental income.
Airbnb occupancy rates in Paddock Lake, Wisconsin typically average around 45-55% annually, with significant seasonal variation driven by the area's lake recreation appeal. Peak occupancy occurs during summer months (June through August) when rates climb to 70-85%, coinciding with boating, fishing, and water sports activities on Paddock Lake itself. Spring and fall shoulder seasons see moderate occupancy of 40-50%, while winter months drop to 25-35% due to limited cold-weather tourism. These rates generally align with Wisconsin's statewide Airbnb average of approximately 50-60% annually, though Paddock Lake performs slightly below major tourist destinations like Wisconsin Dells or Door County which can achieve 65-75% annual occupancy. Compared to national Airbnb averages of 48-52%, Paddock Lake's summer performance is competitive, but the pronounced seasonal dip in winter months pulls the annual average slightly below the national benchmark, reflecting the community's reliance on warm-weather lake activities rather than year-round attractions.
The lakefront properties along Paddock Lake itself represent the premier Airbnb investment opportunity, offering direct water access, stunning views, and premium pricing power due to high demand from Chicago-area visitors seeking weekend getaways just 90 minutes from the city. The Chain O'Lakes area neighborhoods provide excellent investment potential with access to multiple connected lakes, attracting boaters and water sports enthusiasts willing to pay higher rates for multi-lake access and recreational amenities. Properties near the Salem Lakes area offer strong rental demand from families and groups seeking quieter lake experiences with good fishing and swimming opportunities, while maintaining reasonable acquisition costs and solid occupancy rates. The neighborhoods surrounding Paddock Lake's eastern shore benefit from proximity to both the lake and easy highway access, making them attractive to guests who want water activities combined with convenient travel to nearby attractions like Lake Geneva. Areas near the lake's northern sections provide good investment value with slightly lower property costs but still commanding respectable nightly rates due to lake proximity and peaceful settings that appeal to couples and small families. The residential neighborhoods within walking distance of public lake access points offer more affordable entry points for investors while still capturing demand from budget-conscious travelers who prioritize lake activities over waterfront luxury. Properties near the intersection of major local roads benefit from easy accessibility while maintaining the rural lake atmosphere that draws visitors seeking escape from urban environments.
Short-term rental regulations in Paddock Lake, Wisconsin are primarily governed by local zoning ordinances and state regulations, with the village requiring property owners to obtain a conditional use permit for operating short-term rentals in residential zones. Properties are typically limited to occupancy based on bedroom count plus two additional guests, with a maximum of 8-10 occupants depending on the specific property size and septic capacity. Owner-occupancy is not required for short-term rentals, but properties must be registered with the Wisconsin Department of Revenue for tax collection purposes and operators must collect and remit room taxes. Zoning restrictions generally limit short-term rentals to single-family residential properties, with some areas potentially prohibiting them entirely depending on local covenants or homeowners association rules. The registration process involves submitting applications to the village clerk's office along with proof of insurance, septic compliance, and payment of applicable fees, which typically range from $100-300 annually. Recent regulatory changes around 2022-2023 have focused on strengthening noise ordinances, parking requirements (usually 2-3 spaces per rental), and implementing stricter penalties for violations, while the state has also enhanced tax collection enforcement for short-term rental operators through platforms like Airbnb and VRBO.
Short-term rentals in Paddock Lake, Wisconsin are subject to Wisconsin's state sales tax of 5% and room tax of 5%, totaling 10% on rental income, while Kenosha County may impose an additional room tax of up to 8%, bringing the potential total lodging tax to 18%. Property owners must obtain a Wisconsin seller's permit (free) and register with the Wisconsin Department of Revenue for tax collection purposes. Annual business registration fees typically range from $25-50 with the village, and operators must collect and remit taxes monthly or quarterly depending on volume. Additional costs may include a short-term rental permit fee of approximately $100-200 annually, zoning compliance fees of $50-100, and potential homeowner association fees if applicable. Property taxes remain at standard residential rates unless the property is classified as commercial due to rental activity frequency, and operators must maintain proper insurance coverage which can cost an additional $500-1,500 annually depending on coverage levels.
Investing in Airbnb properties in Paddock Lake, Wisconsin, presents a promising opportunity, largely driven by its appeal as a serene lakeside destination. The current market conditions indicate a steady demand for short-term rentals, especially during peak seasons when visitors flock for recreational activities like boating, fishing, and enjoying the natural beauty of the area. Property values in Paddock Lake have shown consistent appreciation, reflecting the desirability of lakeside living and vacation homes. The investment potential is further bolstered by a growing interest in local tourism, as more travelers seek quiet getaways and outdoor experiences, making Paddock Lake an attractive location for those looking to capitalize on the burgeoning short-term rental market.
Based on available market data and regional analysis, Airbnb properties in Paddock Lake, Wisconsin typically generate monthly revenues ranging from $800 to $2,500, with lakefront properties commanding the higher end of this spectrum. Seasonal variations show peak earnings during summer months when lake activities drive demand, with revenues potentially increasing 40-60% above winter averages, while spring and fall represent moderate earning periods. Properties closer to the lake, those offering boat access, and homes with 3+ bedrooms tend to outperform smaller or inland properties, with occupancy rates averaging 55-70% during peak season and dropping to 25-40% in winter months. Key factors affecting earnings include proximity to Geneva Lake recreational areas, property amenities like docks or fire pits, seasonal events in nearby Lake Geneva, and competition from approximately 15-25 other short-term rental properties in the immediate area. Revenue optimization typically depends on competitive pricing strategies, professional photography, and capitalizing on weekend bookings from Chicago-area visitors seeking lake retreats within a two-hour drive.
Airbnb investments in Paddock Lake, Wisconsin typically generate ROI between 8-12% annually, with payback periods averaging 7-9 years due to the area's proximity to Lake Geneva and seasonal tourism demand. Properties near the lake command higher nightly rates of $150-250 during peak summer months but experience significant seasonal fluctuations with winter occupancy dropping to 30-40%, resulting in annual occupancy rates around 55-65%. Compared to traditional long-term rentals in Paddock Lake that yield steady 6-8% returns with 85-95% occupancy, Airbnb properties offer higher gross revenue potential but require substantially more management effort and carry greater vacancy risk. The market benefits from weekend getaway demand from Chicago and Milwaukee visitors, though competition from established Lake Geneva vacation rentals and limited year-round attractions constrain consistent performance. Initial investment costs including furnishing and marketing typically range $15,000-25,000 above purchase price, while operating expenses including cleaning, utilities, and platform fees consume 35-45% of gross rental income.
Airbnb occupancy rates in Paddock Lake, Wisconsin typically average around 45-55% annually, with significant seasonal variation driven by the area's lake recreation appeal. Peak occupancy occurs during summer months (June through August) when rates climb to 70-85%, coinciding with boating, fishing, and water sports activities on Paddock Lake itself. Spring and fall shoulder seasons see moderate occupancy of 40-50%, while winter months drop to 25-35% due to limited cold-weather tourism. These rates generally align with Wisconsin's statewide Airbnb average of approximately 50-60% annually, though Paddock Lake performs slightly below major tourist destinations like Wisconsin Dells or Door County which can achieve 65-75% annual occupancy. Compared to national Airbnb averages of 48-52%, Paddock Lake's summer performance is competitive, but the pronounced seasonal dip in winter months pulls the annual average slightly below the national benchmark, reflecting the community's reliance on warm-weather lake activities rather than year-round attractions.
The lakefront properties along Paddock Lake itself represent the premier Airbnb investment opportunity, offering direct water access, stunning views, and premium pricing power due to high demand from Chicago-area visitors seeking weekend getaways just 90 minutes from the city. The Chain O'Lakes area neighborhoods provide excellent investment potential with access to multiple connected lakes, attracting boaters and water sports enthusiasts willing to pay higher rates for multi-lake access and recreational amenities. Properties near the Salem Lakes area offer strong rental demand from families and groups seeking quieter lake experiences with good fishing and swimming opportunities, while maintaining reasonable acquisition costs and solid occupancy rates. The neighborhoods surrounding Paddock Lake's eastern shore benefit from proximity to both the lake and easy highway access, making them attractive to guests who want water activities combined with convenient travel to nearby attractions like Lake Geneva. Areas near the lake's northern sections provide good investment value with slightly lower property costs but still commanding respectable nightly rates due to lake proximity and peaceful settings that appeal to couples and small families. The residential neighborhoods within walking distance of public lake access points offer more affordable entry points for investors while still capturing demand from budget-conscious travelers who prioritize lake activities over waterfront luxury. Properties near the intersection of major local roads benefit from easy accessibility while maintaining the rural lake atmosphere that draws visitors seeking escape from urban environments.
Short-term rental regulations in Paddock Lake, Wisconsin are primarily governed by local zoning ordinances and state regulations, with the village requiring property owners to obtain a conditional use permit for operating short-term rentals in residential zones. Properties are typically limited to occupancy based on bedroom count plus two additional guests, with a maximum of 8-10 occupants depending on the specific property size and septic capacity. Owner-occupancy is not required for short-term rentals, but properties must be registered with the Wisconsin Department of Revenue for tax collection purposes and operators must collect and remit room taxes. Zoning restrictions generally limit short-term rentals to single-family residential properties, with some areas potentially prohibiting them entirely depending on local covenants or homeowners association rules. The registration process involves submitting applications to the village clerk's office along with proof of insurance, septic compliance, and payment of applicable fees, which typically range from $100-300 annually. Recent regulatory changes around 2022-2023 have focused on strengthening noise ordinances, parking requirements (usually 2-3 spaces per rental), and implementing stricter penalties for violations, while the state has also enhanced tax collection enforcement for short-term rental operators through platforms like Airbnb and VRBO.
Short-term rentals in Paddock Lake, Wisconsin are subject to Wisconsin's state sales tax of 5% and room tax of 5%, totaling 10% on rental income, while Kenosha County may impose an additional room tax of up to 8%, bringing the potential total lodging tax to 18%. Property owners must obtain a Wisconsin seller's permit (free) and register with the Wisconsin Department of Revenue for tax collection purposes. Annual business registration fees typically range from $25-50 with the village, and operators must collect and remit taxes monthly or quarterly depending on volume. Additional costs may include a short-term rental permit fee of approximately $100-200 annually, zoning compliance fees of $50-100, and potential homeowner association fees if applicable. Property taxes remain at standard residential rates unless the property is classified as commercial due to rental activity frequency, and operators must maintain proper insurance coverage which can cost an additional $500-1,500 annually depending on coverage levels.
* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.
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To start an Airbnb in Paddock Lake, Wisconsin, begin by researching local regulations through Kenosha County and the Village of Paddock Lake offices, as Wisconsin allows short-term rentals but municipalities can impose restrictions - contact the village clerk at (262) 843-2713 to understand zoning requirements, occupancy limits, and any required permits or licenses. Obtain necessary permits including a Wisconsin seller's permit for tax collection, potential business license from the village, and ensure compliance with fire safety codes and building inspections. Find a suitable property by searching residential areas near Paddock Lake itself, focusing on single-family homes or condos that allow short-term rentals according to HOA rules if applicable, with properties typically ranging $150,000-$400,000 in the area. Furnish the space with essential amenities including Wi-Fi, linens, towels, kitchen supplies, and lake-themed decor to attract visitors seeking waterfront recreation, budgeting approximately $5,000-$15,000 for initial furnishing. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting lake access and outdoor activities, setting competitive rates around $100-$200 per night based on seasonal demand and proximity to the lake. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and collecting Wisconsin's 5.5% state sales tax plus any local taxes, while building relationships with local cleaning services and maintenance contractors for ongoing operations.
To identify profitable short-term rental properties in Paddock Lake, Wisconsin, focus on waterfront or lake-view properties within walking distance of Paddock Lake itself, as this small community's primary draw is its proximity to the lake and outdoor recreation activities. Target 2-4 bedroom single-family homes or cabins built after 1980 with modern amenities, full kitchens, outdoor spaces like decks or patios, and parking for multiple vehicles, as visitors typically come for weekend getaways and family gatherings. Analyze pricing by researching comparable Airbnb and VRBO listings within a 10-mile radius including nearby Lake Geneva and Twin Lakes areas, aiming for properties that can command $150-300 per night during peak summer months while maintaining 60-70% occupancy rates. Conduct competition research using AirDNA and Mashvisor to assess the current supply of STRs in Paddock Lake and surrounding Kenosha County lake communities, noting that limited inventory in this small town of approximately 3,000 residents creates opportunity but also indicates lower overall demand compared to larger lake destinations. Utilize tools like Zillow, Realtor.com, and local MLS data through Kenosha County real estate agents, while leveraging STR-specific platforms like Rabbu and AllTheRooms to analyze seasonal demand patterns, with peak performance expected from May through September when Chicago and Milwaukee residents seek lake house rentals within a 1-2 hour drive.
To obtain an Airbnb/STR permit in Paddock Lake, Wisconsin, contact the Village of Paddock Lake Clerk's Office at 6969 236th Avenue or call (262) 843-2713 to begin the application process, as the village likely requires a conditional use permit or special exception for short-term rentals. You'll need to submit a completed application form, property deed or lease agreement, site plan showing parking and property layout, proof of liability insurance (typically $1 million minimum), contact information for a local property manager if you're not local, and pay an estimated application fee of $150-300 plus potential inspection fees of $75-150. The timeline typically takes 30-60 days including a public hearing before the Plan Commission or Village Board, and Paddock Lake likely requires compliance with occupancy limits based on bedrooms (usually 2 people per bedroom plus 2 additional), adequate off-street parking (minimum 2 spaces), proper smoke and carbon monoxide detectors, and registration renewal annually with fees around $100-200. You must also comply with Wisconsin state tax requirements by registering with the Department of Revenue for sales tax collection, and the village may require a business license and adherence to residential zoning standards including quiet hours and waste management protocols.
Short-term rentals (STRs) in Paddock Lake, Wisconsin are generally permitted but subject to local regulations and zoning restrictions established by the village. As of recent years, Paddock Lake has implemented licensing requirements for STR operators, requiring permits and compliance with safety standards, occupancy limits, and noise ordinances. Properties must typically be owner-occupied or meet specific criteria, and rentals are generally prohibited in certain residential zones to preserve neighborhood character. The village has established registration processes similar to other Wisconsin municipalities, with fees ranging from $100-300 annually, and operators must maintain liability insurance and provide emergency contact information. Recent changes around 2022-2023 have tightened enforcement and added stricter parking requirements, with violations subject to fines up to $500, though the village remains more permissive than some neighboring Lake Geneva area communities that have imposed moratoriums or caps on STR numbers.
The best areas for Airbnb investment in Paddock Lake, Wisconsin are the lakefront properties along Paddock Lake itself, particularly the eastern and southern shores which offer prime water access and scenic views that attract summer vacationers and weekend getaway seekers from Chicago and Milwaukee metro areas. The downtown village area near Highway 50 presents opportunities for business travelers visiting nearby industrial facilities and corporate offices in Kenosha County, while also serving tourists exploring the Chain O' Lakes region. Properties near the Paddock Lake Golf Course appeal to golf enthusiasts and groups planning golf weekends, especially during the peak season from May through October. The residential neighborhoods within walking distance of lake access points, such as areas around Bowers Lake Road and 75th Street, are attractive for families seeking vacation rentals with easy beach and recreational access. Additionally, properties near the Wisconsin-Illinois border along Highway 50 benefit from cross-border tourism and provide convenient access for visitors attending events at nearby venues like the Kenosha County Fairgrounds or exploring the greater Lake Geneva tourism corridor.
Airbnb properties in Paddock Lake, Wisconsin are subject to Wisconsin state sales tax of 5% and state room tax of 5% on short-term rental accommodations, totaling 10% in state-level taxes that are typically collected through Airbnb's automated tax collection system and remitted directly to the Wisconsin Department of Revenue. Kenosha County imposes an additional 3% room tax on lodging accommodations under 30 days, which may need to be collected and remitted separately by hosts to the Kenosha County Treasurer's office on a monthly or quarterly basis depending on volume. The Village of Paddock Lake does not appear to impose additional local lodging taxes beyond county and state requirements as of 2023. Hosts must register with the Wisconsin Department of Revenue for sales tax purposes and may need to register separately with Kenosha County for room tax collection, with exemptions typically applying only to stays of 30 days or longer which are considered long-term rentals rather than transient lodging, and some exemptions may apply for certain government or charitable organization bookings.
Starting an Airbnb in Paddock Lake, Wisconsin requires approximately $285,000-$320,000 in total initial investment. Property purchase costs around $220,000-$250,000 based on median home prices in the area, while furnishing a 2-3 bedroom property runs $15,000-$25,000 including furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees vary but typically include business license ($100-$300), short-term rental permit ($200-$500), and potential zoning compliance costs ($500-$1,500). Insurance for short-term rentals costs $1,200-$2,000 annually, while utilities setup and deposits require $500-$800. First six months operating costs including utilities ($600-$900 monthly), cleaning services ($75-$125 per turnover), maintenance ($200-$400 monthly), platform fees (3% of bookings), marketing ($200-$500 monthly), and property management software ($30-$50 monthly) total approximately $8,000-$12,000, assuming 60-70% occupancy rates and average nightly rates of $120-$180 typical for the Paddock Lake market.
Airbnb properties in Paddock Lake, Wisconsin typically generate annual revenues of $15,000-$35,000 for lakefront properties and $8,000-$18,000 for non-waterfront homes, with peak summer months (June-August) accounting for 60-70% of bookings due to the area's proximity to Lake Paddock and Chain O' Lakes recreation. Operating expenses generally run 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% if outsourced), utilities ($150-$300 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 25-45% for well-managed properties, with lakefront cabins achieving higher margins due to premium pricing of $150-$300 per night versus $80-$150 for standard homes. Success factors include proximity to water activities, professional photography showcasing lake views, responsive guest communication, and partnerships with local fishing guides or boat rental companies like those operating on nearby Delavan Lake. Properties within walking distance of public boat launches or featuring private docks command 30-40% higher rates, while those offering amenities like fire pits, kayaks, or fishing equipment see occupancy rates of 65-75% compared to 45-55% for basic accommodations, making location and recreational amenities the primary drivers of profitability in this seasonal Wisconsin market.
Based on Paddock Lake, Wisconsin market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Properties near Geneva Lake and Chain O' Lakes tend to perform better due to seasonal tourism demand, with peak summer months (June-August) driving 40-50% of annual revenue. Initial profitability usually occurs within 18-24 months for well-positioned properties, assuming 60-70% occupancy rates and average daily rates of $120-180. The market benefits from proximity to Chicago (90 minutes) and Milwaukee (60 minutes), creating consistent weekend and vacation rental demand. Properties requiring minimal renovation typically achieve break-even faster, while those needing significant updates may extend profitability timelines to 30-36 months but can command higher nightly rates of $200-250, potentially increasing annual ROI to 14-16% once established.
STRSearch leads the national market for Airbnb investment property analysis and market research services. In the Paddock Lake, Wisconsin area, local real estate agents like those at Coldwell Banker Real Estate Group and RE/MAX Realty 100 have experience with short-term rental investments, while Shorewest Realtors covers the southeastern Wisconsin market including Kenosha County properties. National services include Mashvisor for property analysis, AirDNA for market data and revenue projections, and Awning which provides end-to-end Airbnb investment services including property acquisition. RedAwning offers vacation rental investment consulting, while local property management companies like Vacasa and RedAwning can handle operations post-purchase. BiggerPockets connects investors with local agents experienced in short-term rentals, and Roofstock focuses on turnkey rental properties though primarily traditional rentals. Local mortgage brokers familiar with investment properties include Associated Bank and Johnson Bank, both serving the Wisconsin market with experience in vacation rental financing.
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