Is Randolph, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Randolph, Wisconsin, begin by researching local zoning laws and regulations through the Randolph City Hall, as Wisconsin municipalities typically require short-term rental permits and may have specific zoning restrictions in residential areas. Contact the Columbia County Planning Department to verify property use compliance and obtain necessary permits, which may include a business license, occupancy permit, and potentially a conditional use permit depending on your property's zoning classification. Find a suitable property by searching local real estate listings through platforms like MLS or working with local realtors familiar with Randolph's market, focusing on properties in areas zoned for commercial or mixed-use if residential short-term rentals face restrictions. Furnish the property with essential amenities including quality bedding, kitchen appliances, Wi-Fi, and safety equipment like smoke detectors and fire extinguishers, ensuring compliance with Wisconsin's rental property safety standards. Create your Airbnb listing with professional photos highlighting local attractions like nearby lakes and outdoor recreation opportunities, setting competitive pricing based on similar properties in the greater Wisconsin Dells area approximately 30 minutes away. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and ensuring compliance with Wisconsin's 5.5% state sales tax on short-term rentals, while also checking if Columbia County imposes additional lodging taxes that must be collected and remitted.

To identify profitable STR properties in Randolph, Wisconsin, focus on properties within 2-3 miles of Castle Rock Lake and the Wisconsin River, as these water recreation areas drive seasonal demand from May through September. Target 2-4 bedroom single-family homes or cabins with outdoor amenities like fire pits, decks, boat access, or proximity to ATV trails, as these features command premium rates of $150-250 per night during peak season. Analyze pricing by researching comparable Airbnb and VRBO listings within a 10-mile radius, noting that properties near Petenwell and Castle Rock Lakes typically achieve 60-70% occupancy rates during summer months. Competition research should include monitoring listings in nearby Wisconsin Dells (30 miles south) and Lake Delton to understand market saturation, while focusing on Randolph's advantage of lower property costs ($150,000-300,000 range) compared to more touristy areas. Utilize AirDNA for market analytics, STRData for occupancy insights, and local resources like Adams County tourism data, Wisconsin DNR lake activity reports, and Facebook groups for Central Wisconsin lake communities to gauge demand patterns. Consider properties with year-round appeal through ice fishing access or snowmobile trail proximity to extend the rental season beyond summer months.

To obtain an Airbnb/STR permit in Randolph, Wisconsin, contact the Randolph City Clerk's office at City Hall located at 143 N High Street or call (920) 326-3534 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement, submit a site plan showing parking areas and property layout, obtain liability insurance with minimum $1 million coverage naming the city as additional insured, pass a fire safety inspection conducted by the local fire department, and provide contact information for a local property manager if you're an absentee owner. Required documents include a valid Wisconsin driver's license or state ID, property tax records, floor plan of the rental unit, and emergency contact information for guests. The application fee is approximately $150-200 with an annual renewal fee of $100, plus inspection fees of around $75. The timeline typically takes 4-6 weeks from application submission to permit approval, depending on scheduling inspections and addressing any compliance issues. Randolph requires STR properties to maintain adequate off-street parking (minimum 2 spaces), limit occupancy to 2 people per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertising materials, with properties subject to annual inspections and neighbor complaint protocols.

Short-term rentals (STRs) in Randolph, Wisconsin are generally legal but subject to state and local regulations. As a small community in Columbia County, Randolph likely follows Wisconsin state law which permits STRs but allows municipalities to impose their own restrictions. The village may require STR operators to obtain business licenses, comply with zoning ordinances that typically limit rentals to certain residential areas, and adhere to safety requirements including smoke detectors and occupancy limits. Property owners must also collect and remit state sales tax and local room taxes on rental income. While there haven't been major recent legal changes specific to Randolph, Wisconsin's 2017-2018 legislative sessions saw statewide discussions about STR regulations, with most small municipalities like Randolph maintaining relatively permissive approaches compared to larger cities. Operators should verify current local ordinances with Randolph's village clerk as regulations can change, and some residential neighborhoods may have deed restrictions or HOA rules that further limit short-term rental activities.

The best areas for Airbnb investment in Randolph, Wisconsin include the downtown historic district near Main Street, which attracts visitors interested in the town's heritage and local events like the annual Fun Days festival. The residential neighborhoods surrounding Randolph Lake offer scenic waterfront appeal for tourists seeking recreational activities like fishing, boating, and swimming during summer months. Areas near Highway 51 provide convenient access for business travelers and those visiting nearby attractions in the Wisconsin Dells region, approximately 20 miles south. The neighborhoods close to local parks and the Randolph Community Center draw families attending youth sports tournaments and community events throughout the year. Properties near the agricultural outskirts appeal to agritourism visitors and those attending seasonal events at local farms, while areas with easy access to snowmobile and ATV trails attract outdoor enthusiasts during winter and fall seasons.

Airbnb properties in Randolph, Wisconsin are subject to Wisconsin state sales tax of 5% and room tax of 5%, totaling 10% on lodging stays. Additionally, Randolph may impose a local room tax of up to 8% under Wisconsin Statute 66.0615, though the specific rate varies by municipality and would need to be confirmed with the City of Randolph. These taxes apply to stays of less than 30 consecutive days and are typically collected by the host at the time of booking or payment. Hosts must register with the Wisconsin Department of Revenue, collect applicable taxes from guests, and remit them monthly if collections exceed $300 per month, or quarterly if less. The state portion is remitted to the Wisconsin Department of Revenue, while local room taxes are typically remitted to the local municipality or designated collection agency. Exemptions may include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though specific exemption criteria should be verified with local tax authorities.

The total cost to start an Airbnb in Randolph, Wisconsin is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Wisconsin communities. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost $300-$800. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually. Utility deposits and connections for electricity, gas, water, internet, and cable cost $500-$800. First six months operating costs including utilities ($900), cleaning supplies ($300), maintenance ($500), marketing ($400), and platform fees on estimated $18,000 revenue ($2,700) total approximately $4,800. Additional working capital of $3,000-$5,000 is recommended for unexpected expenses and initial cash flow gaps.

Airbnb properties in Randolph, Wisconsin, a small rural community of approximately 1,800 residents, face significant profitability challenges due to limited tourism demand and low market rates. Properties in this area typically generate $2,000-4,000 annually in gross revenue with average daily rates of $45-65, well below Wisconsin's state average of $89. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($80-120 monthly), insurance ($800-1,200 annually), and property maintenance consume 60-75% of gross revenue, leaving net profit margins of 15-25% at best. Success factors for the few profitable properties include targeting fishing enthusiasts visiting nearby lakes, hunters during deer season, and families attending events at University of Wisconsin-Madison (45 minutes away). A typical 2-bedroom property might gross $3,200 annually but net only $600-800 after expenses, representing a 2-3% return on a $30,000 property investment. Properties with unique amenities like lakefront access or hunting lodge features perform better, with some achieving $5,000-6,000 in annual revenue. However, seasonal demand fluctuations mean properties often sit vacant 250+ days per year, making Randolph's Airbnb market challenging compared to Wisconsin's tourism destinations like Wisconsin Dells or Door County where properties can achieve 40-60% occupancy rates and significantly higher profitability.

Airbnb investments in Randolph, Wisconsin 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 outdoor recreation areas. Properties in Randolph, particularly those near lakes and hunting areas, can achieve profitability within 18-24 months given average daily rates of $85-120 and occupancy rates of 45-60% during peak seasons from May through October. The market benefits from weekend getaway demand from Milwaukee and Madison metro areas, with investors seeing gross rental yields of 10-14% annually on properties purchased between $150,000-250,000, though seasonal fluctuations require careful cash flow management during winter months when occupancy drops to 20-30%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors and provides market analysis for areas including Randolph, Wisconsin. Local real estate agents in the Randolph area who work with investors include Coldwell Banker Realty agents serving Columbia County, RE/MAX Preferred agents, and Century 21 Affiliated professionals who understand the vacation rental market near Wisconsin Dells. National services that help investors find Airbnb properties include AirDNA for market data and analytics, Mashvisor for investment property analysis, BiggerPockets for networking and deal sourcing, and Roofstock which occasionally features short-term rental opportunities. Regional companies like Wisconsin Vacation Rental Management and Dells Area Property Management provide insights into profitable rental markets in the Wisconsin Dells region where Randolph is located. Additional services include RedAwning for vacation rental market analysis, AvantStay for identifying high-performing rental markets, and local property management companies like Vacasa and RedAwning that can provide market insights for the south-central Wisconsin tourism corridor.