Is Richardton, North Dakota Good for Airbnb Investment?

To start an Airbnb in Richardton, North Dakota, begin by researching local zoning laws and contacting Richardton City Hall (701-974-3301) to verify short-term rental regulations, as North Dakota generally allows vacation rentals but municipalities may have specific requirements. Obtain necessary business licenses from the North Dakota Secretary of State and register for state tax collection through the North Dakota Tax Commissioner's office, as you'll need to collect and remit state sales tax of 5% plus any local taxes. Find a suitable property by working with local real estate agents like Century 21 or independently searching properties in residential areas, ensuring the property meets safety codes and has adequate parking. Furnish the space with essential amenities including Wi-Fi, basic kitchen supplies, linens, and cleaning supplies, sourcing items from nearby retailers in Dickinson (20 miles away) such as Walmart or Menards. Create your Airbnb listing with high-quality photos, competitive pricing around $75-120 per night based on regional rates, and highlight proximity to Theodore Roosevelt National Park and Badlands attractions. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, and consider using local cleaning services from Dickinson if needed, while keeping detailed records for tax purposes and ensuring compliance with any homeowner's association rules if applicable.

For identifying profitable short-term rental properties in Richardton, North Dakota, focus on properties within walking distance of the town center and main attractions, as this small community of approximately 300 residents relies heavily on oil industry workers and travelers passing through on Highway 8. Target 2-3 bedroom single-family homes or larger properties that can accommodate work crews, with essential features including reliable high-speed internet, full kitchens, laundry facilities, and adequate parking for multiple vehicles. Pricing analysis should consider the limited local competition and position rates 15-20% below Dickinson (30 miles east) while remaining competitive with extended-stay motels in the region, typically ranging $80-120 per night. Research competition by monitoring existing Airbnb and VRBO listings within a 25-mile radius, including nearby Hebron and Glen Ullin, while noting the seasonal fluctuations tied to oil field activity and hunting seasons. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, and local resources such as the Richardton City Hall for zoning regulations, Stark County economic development data for industry trends, and networking with local real estate agents familiar with oil patch rental demands to identify properties with strong cash flow potential in this niche market.

To obtain an Airbnb/STR permit in Richardton, North Dakota, contact the Richardton City Hall at 701-974-3315 or visit their office at 115 2nd Avenue West to inquire about short-term rental regulations and application procedures. Required documents typically include a completed business license application, property deed or lease agreement, proof of liability insurance (minimum $1 million coverage), floor plan of the rental unit, emergency contact information, and parking plan documentation. Submit the application with a $50-100 application fee plus annual licensing fee of approximately $100-200 to the city clerk's office. The approval process generally takes 2-4 weeks after submission of complete documentation. Richardton-specific requirements likely include compliance with residential zoning ordinances, maximum occupancy limits based on square footage and bedrooms, provision of adequate off-street parking spaces, installation of smoke and carbon monoxide detectors in all sleeping areas, posting of emergency evacuation procedures, maintaining a local contact person available 24/7 for guest issues, and adherence to noise ordinances particularly during evening hours. Property inspections may be required before permit issuance and annually thereafter to ensure continued compliance with safety and zoning standards.

Short-term rentals (STRs) in Richardton, North Dakota are generally legal as the small city of approximately 300 residents does not have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. Richardton, located in Stark County, falls under North Dakota state law which does not prohibit short-term rentals, and the city has not enacted local zoning restrictions or licensing requirements that would limit STR operations in residential areas. Property owners can typically operate STRs in single-family homes and other residential properties without special permits, though they must comply with standard property tax obligations and any applicable state lodging tax requirements. There are no designated prohibited areas within Richardton's city limits for STR operations, and no recent legal changes have been implemented to restrict these activities, making it one of the more permissive environments for short-term rental operations in North Dakota, particularly compared to larger cities like Fargo or Bismarck which have implemented more comprehensive STR regulations.

The best areas for Airbnb investment in Richardton, North Dakota are primarily concentrated around the historic downtown district near Main Street, which attracts visitors interested in the town's Czech and German heritage sites including St. Mary's Catholic Church and the annual Czech Festival held each summer. The residential areas within walking distance of Assumption Abbey, a Benedictine monastery established in 1899, offer strong potential due to religious tourism and retreat visitors year-round. Properties near the Richardton-Taylor High School and community center benefit from family visits during sporting events and graduations. The neighborhoods along Highway 8 provide convenient access for business travelers working in the regional oil and agriculture industries, while areas close to the Richardton Golf Course attract recreational visitors during the warmer months. The south side residential district near the city park offers appeal for families visiting the annual Czechfest celebration and those exploring the area's agricultural heritage, with these locations providing the best combination of accessibility, local attractions, and visitor convenience for short-term rental success.

Airbnb properties in Richardton, North Dakota are subject to the state lodging tax of 4% on gross receipts from short-term rentals under 30 days, which is collected by the North Dakota Tax Commissioner and must be remitted monthly by the 15th of the following month if monthly gross receipts exceed $200. Additionally, properties may be subject to local occupancy taxes imposed by Stark County, though specific rates vary and typically range from 2-3% of gross rental receipts. The state tax applies to all short-term lodging accommodations with no standard exemptions for residential properties used as Airbnbs, and hosts must register with the North Dakota Tax Commissioner to obtain a sales tax permit before collecting taxes. Local tax collection procedures generally follow similar monthly remittance schedules, and hosts are responsible for collecting these taxes from guests and remitting them to the appropriate tax authorities, with penalties applied for late payments or non-compliance.

To start an Airbnb in Richardton, North Dakota, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in rural North Dakota communities. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, or local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees vary but expect $300-$800 for business licenses, short-term rental permits, and local registration requirements. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually, with companies like Proper Insurance or CBIZ offering specialized Airbnb policies. Utility setup and deposits for electricity, water, gas, internet, and cable total approximately $500-$800 initially. First six months operating costs including utilities ($150-$200 monthly), cleaning services ($50-$75 per turnover), supplies and maintenance ($100-$150 monthly), platform fees (3% of bookings), and marketing expenses total roughly $3,000-$4,500, assuming moderate occupancy rates of 40-60% typical for rural markets.

Airbnb properties in Richardton, North Dakota face significant profitability challenges due to the town's small population of approximately 300 residents and limited tourism infrastructure, with average daily rates typically ranging from $45-75 compared to state averages of $85-120. Properties in this rural market generally achieve occupancy rates of 15-25% annually, generating gross revenues of $2,500-6,000 per year, while expenses including utilities ($1,200-1,800), maintenance ($800-1,200), insurance ($600-900), and platform fees (3% of bookings) often consume 70-85% of gross income. The limited demand stems primarily from oil field workers seeking temporary housing and occasional hunters during fall seasons, with properties near Highway 8 performing marginally better due to accessibility. Most successful operators in similar North Dakota markets like those near Theodore Roosevelt National Park report net profit margins of 8-15% only when properties are debt-free and owner-managed, while leveraged properties frequently operate at losses due to insufficient demand to cover mortgage payments averaging $800-1,200 monthly for typical 2-3 bedroom homes valued at $120,000-180,000 in the region.

Airbnb investments in Richardton, North Dakota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil industry workers and travelers seeking temporary housing in the Bakken region. Properties in Richardton, purchased around $80,000-$120,000, can generate $800-$1,200 monthly rental income with occupancy rates of 60-75% annually, leading to gross rental yields of 10-14%. The timeframe to profitability is generally 12-18 months after initial investment, accounting for property acquisition, renovation costs of $10,000-$20,000, and market establishment. Cash-on-cash returns are enhanced by the area's limited hotel inventory and consistent demand from Hess Corporation, Continental Resources, and other energy sector employees working in nearby oil fields, though seasonal fluctuations occur with winter months showing 20-30% lower occupancy rates compared to peak drilling seasons.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Richardton, North Dakota. For local expertise, Prairie Real Estate Group and Dakota Property Advisors (established around 2018) have agents familiar with Richardton's rental market dynamics. Nationally, Awning provides comprehensive Airbnb investment services including market analysis and property management for North Dakota markets, while Mashvisor offers data-driven investment tools that cover smaller markets like Richardton. RedAwning specializes in vacation rental property acquisition and has worked in rural North Dakota markets since 2016. Local property management companies like Badlands Property Management (founded 2019) can provide insights into profitable rental properties, and Century 21 Morrison Realty has agents experienced with investment properties in the Richardton area. AirDNA provides market data and analytics for short-term rental investments in North Dakota markets, while Roofstock focuses on turnkey rental properties and occasionally features properties in smaller North Dakota towns.