Is Rice Lake, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Rice Lake, Wisconsin, begin by researching local zoning laws and regulations through the Rice Lake City Hall (715-234-7641) as the city may require special permits or have restrictions on short-term rentals in residential areas. Contact the Wisconsin Department of Revenue to understand state tax obligations including the 5.5% state sales tax and any local room taxes that Rice Lake may impose. Find a suitable property by working with local real estate agents familiar with Rice Lake's neighborhoods near popular attractions like Red Cedar Lake or downtown areas, ensuring the property meets safety requirements and has adequate parking. Obtain necessary permits including a business license from Rice Lake City Clerk, register for Wisconsin tax ID numbers, and ensure compliance with fire safety codes and building inspections. Furnish the property with quality furniture, linens, and amenities while highlighting local attractions like the Rice Lake Chain of Lakes and nearby Chippewa National Forest. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos showcasing the property's proximity to outdoor recreation and local businesses. Implement a management system using tools like Hostfully or manual coordination for cleaning services (local companies like Barron County Cleaning Services), guest communication, and maintenance, while maintaining competitive pricing that reflects Rice Lake's seasonal tourism patterns with higher rates during summer lake season and hunting seasons in fall.

To identify profitable short-term rental properties in Rice Lake, Wisconsin, focus on locations within 1-2 miles of Haugen Lake, Red Cedar Lake, and the downtown historic district, as these areas attract tourists year-round for fishing, boating, and local events. Target 2-4 bedroom properties built after 1980 with lake views or water access, full kitchens, outdoor spaces like decks or fire pits, and parking for boats or trailers, as Rice Lake's economy heavily relies on outdoor recreation and the annual Wild Rice Festival. Analyze pricing by researching comparable Airbnb and VRBO listings in the $80-150 per night range, with premium lakefront properties commanding $150-250 nightly during peak summer and fall seasons. Study competition using AirDNA and Mashvisor to identify gaps in the market, noting that Rice Lake has limited hotel options which creates opportunity for STRs, while monitoring occupancy rates of existing rentals near popular fishing spots and the Lehman's Supper Club area. Utilize tools like Rabbu and PriceLabs for dynamic pricing, partner with local property management companies familiar with seasonal demand patterns, and leverage Rice Lake Tourism Bureau data to understand visitor trends, particularly focusing on the strong fishing season from May through October and winter ice fishing periods that drive consistent bookings.

To obtain an Airbnb/STR permit in Rice Lake, Wisconsin, contact the Rice Lake City Clerk's office at City Hall located at 30 West Marshall Street or call (715) 234-7545 to begin the application process. You'll need to submit a completed short-term rental license application form, provide proof of property ownership or lease agreement, submit a floor plan of the rental property, obtain a certificate of occupancy if required, and provide proof of liability insurance with minimum coverage of $500,000. The application fee is typically around $100-150 annually, with additional inspection fees of approximately $50-75. Required documents also include a fire safety inspection certificate, contact information for a local property manager if you're not local, and compliance with zoning requirements which may limit STRs to certain residential districts. The timeline for approval is generally 30-45 days after submitting a complete application, though initial inspections may add 1-2 weeks. Rice Lake requires STR operators to maintain guest registries, limit occupancy to posted maximums, provide adequate parking, ensure quiet hours compliance between 10 PM and 7 AM, and display the rental license number in all advertisements. Properties must meet all building and fire codes, have working smoke and carbon monoxide detectors, and maintain the property in good condition with regular safety inspections.

Short-term rentals (STRs) are legal in Rice Lake, Wisconsin, but are subject to local regulations and zoning restrictions. The city requires STR operators to obtain proper permits and comply with safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Properties must meet residential zoning requirements, and STRs are generally prohibited in certain residential districts to preserve neighborhood character. Operators must collect and remit local room taxes, maintain property insurance, and ensure compliance with occupancy limits typically based on bedroom count plus two additional guests. Recent changes around 2022-2023 have included stricter enforcement of noise ordinances and parking requirements, with some areas implementing density caps to limit the concentration of STRs in residential neighborhoods. The city also requires registration with the state of Wisconsin and adherence to building codes, with violations potentially resulting in permit revocation and fines ranging from $200 to $1,000 per violation.

The best areas for Airbnb investment in Rice Lake, Wisconsin include the downtown historic district near Main Street, which attracts visitors to local restaurants, shops, and the Rice Lake Regional Airport for business travelers. The lakefront properties along Rice Lake itself are highly desirable for tourists seeking water recreation, fishing, and scenic views, particularly during summer months and fall foliage season. The area near the Lehigh Portland Trails and Christie Mountain Ski Area draws outdoor enthusiasts year-round for hiking, skiing, and snowmobiling. Properties close to the Rice Lake campus of Wisconsin Indianhead Technical College generate steady demand from visiting families and prospective students. The neighborhoods surrounding the annual Wisconsinland Music Festival venue and near the historic train depot appeal to cultural tourists and those attending local events, while areas with easy access to Highway 53 serve travelers passing through to the Twin Cities or Duluth markets.

In Rice Lake, Wisconsin, Airbnb properties are subject to Wisconsin state sales tax of 5% and local room tax which varies by municipality but typically ranges from 3-8% for Rice Lake area accommodations. The Wisconsin Department of Revenue requires hosts to register for a seller's permit and collect the 5% state sales tax on all short-term rental bookings, with monthly remittance due by the 20th of the following month for hosts with annual sales over $24,000, or quarterly for smaller operators. Rice Lake's local room tax, estimated at approximately 5%, must be collected separately and remitted to the city's finance department, typically on a monthly or quarterly basis depending on volume. Airbnb may collect and remit these taxes automatically through their platform for participating jurisdictions, but hosts should verify coverage and register independently if needed. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or non-profit organization bookings may qualify for tax exemptions with proper documentation.

The total cost to start an Airbnb in Rice Lake, Wisconsin is approximately $185,000-$220,000. Property purchase costs around $150,000 based on the median home price in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage adds $1,200-$1,800 annually. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services, supplies, maintenance, marketing, and platform fees total $3,000-$4,500. Additional considerations include property taxes of approximately $2,500-$3,500 annually and potential HOA fees if applicable.

Airbnb properties in Rice Lake, Wisconsin typically generate annual revenues between $15,000-$35,000 for whole-home listings, with average daily rates ranging from $80-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Rice Lake's recreational areas, particularly those with lake access or proximity to the Tuscobia State Trail, command premium rates and achieve 60-75% occupancy during peak summer months (June-August) but drop to 25-40% in winter. Successful operators like those managing cabins near Haugen or properties downtown near the historic district report net profit margins of 15-25% after all expenses, with break-even typically occurring within 2-3 years. Key success factors include professional photography, responsive guest communication, strategic pricing during hunting seasons and summer festivals, and properties that accommodate 4-8 guests with amenities like hot tubs, fire pits, or boat access, as these features can increase nightly rates by 20-40% compared to basic accommodations.

Based on Rice Lake, Wisconsin market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties near Rice Lake's recreational areas and downtown district show stronger performance, with average daily rates of $85-120 during peak summer and fall seasons. Initial profitability usually occurs within 18-24 months, factoring in property acquisition costs of $150,000-250,000 for suitable vacation rental properties. The market benefits from year-round tourism driven by fishing, hunting, and outdoor recreation, though occupancy rates fluctuate seasonally from 45% in winter months to 75% during summer peak. Operating expenses typically consume 35-45% of gross rental income, including cleaning, maintenance, insurance, and platform fees, while the growing popularity of northern Wisconsin lake destinations supports consistent 6-8% annual appreciation in property values.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Rice Lake, Wisconsin. In the Rice Lake area, local real estate agents like those at Edina Realty, RE/MAX Northwoods Realty, and Century 21 Affiliated specialize in investment properties and understand the vacation rental market dynamics around the numerous lakes. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and revenue projections, and Awning for full-service Airbnb investment management. Local property management companies such as Vacasa and RedAwning can handle operations once properties are acquired. Real estate investment firms like Roofstock and Arrived Homes occasionally feature Wisconsin lake properties, while platforms like BiggerPockets connect investors with local experts. Regional vacation rental specialists and lake property experts from firms like Lakes Sotheby's International Realty often work with investors seeking profitable short-term rental opportunities in Wisconsin's Northwoods region, leveraging the area's appeal to fishing, boating, and outdoor recreation tourists.