Is Riley, Kansas Good for Airbnb Investment?

To start an Airbnb in Riley, Kansas, begin by researching local zoning laws and regulations through Riley County Planning and Zoning Department, as Kansas municipalities typically require short-term rentals to comply with residential zoning restrictions and may require special use permits or business licenses. Contact Riley City Hall to obtain necessary permits, which likely include a business license ($25-50 annually) and potentially a transient guest tax permit, while ensuring compliance with Kansas Department of Health fire safety and building codes. Find a suitable property by searching local real estate listings through companies like Midwest Land Group or Flint Hills Real Estate, focusing on properties near Kansas State University or Fort Riley for higher demand, with typical investment costs ranging $150,000-300,000 for a 2-3 bedroom home. Furnish the property with essential amenities including Wi-Fi, kitchen appliances, linens, and local Kansas-themed decor, budgeting approximately $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to Manhattan and military base access, setting competitive rates around $80-150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating with local cleaning services like Riley County Cleaning Solutions, and maintaining compliance with Kansas sales tax requirements of 6.5% plus local taxes, while considering property management companies if operating remotely.

To identify profitable short-term rental properties in Riley, Kansas, focus on locations within 2-3 miles of Kansas State University campus and Fort Riley military base, as these drive consistent demand from visiting families, military personnel, and university-related travelers. Target 2-4 bedroom single-family homes or duplexes built after 1980 with dedicated parking, full kitchens, and reliable internet, as these features command premium rates in the $80-150 per night range. Analyze comparable properties on Airbnb and VRBO within Riley and nearby Manhattan to establish competitive pricing, aiming for properties that can achieve 60-70% occupancy rates with gross yields of 12-18%. Research existing STR competition by monitoring listings within a 5-mile radius, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize AirDNA for market data analysis, STR Helper for revenue projections, and the Riley County planning department for zoning compliance, while leveraging local real estate agents familiar with investment properties and checking Riley's municipal codes for any STR regulations, as the proximity to major institutions and limited hotel inventory in this small Kansas town creates strong fundamentals for profitable short-term rental investments.

To obtain an Airbnb/STR permit in Riley, Kansas, contact the Riley City Clerk's office at City Hall located at 115 S Broadway, Riley, KS 66531, or call (785) 485-2312 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 with landlord consent, submit a floor plan of the rental unit, provide proof of liability insurance (typically $1 million minimum), pass a fire safety inspection, and include contact information for a local property manager if you live more than 50 miles away. Required documents include a valid driver's license, property deed or lease, insurance certificate, and completed background check form. 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, including scheduling and completing the required inspections. Riley-specific requirements include maintaining a guest registry, posting emergency contact information prominently in the rental, ensuring adequate parking for guests without impacting neighbors, limiting occupancy to 2 people per bedroom plus 2 additional guests, and responding to any complaints within 2 hours during the rental period.

Short-term rentals (STRs) are legal in Riley, Kansas, but operate under minimal local regulation as the small city has not enacted comprehensive STR ordinances as of 2023. Riley, located in Riley County, primarily relies on state-level regulations and basic business licensing requirements, with property owners generally able to operate STRs in residential areas without significant restrictions. The city does not have specific zoning prohibitions against STRs, though operators must comply with standard property maintenance codes, fire safety requirements, and obtain basic business licenses. Unlike larger Kansas cities such as Lawrence or Manhattan that have implemented detailed STR regulations including occupancy limits, parking requirements, and registration systems, Riley has maintained a relatively permissive approach with no recent major legal changes specifically targeting short-term rentals, though property owners should verify compliance with Riley County health department regulations and state tax collection requirements for rental income.

The best areas for Airbnb investment in Riley, Kansas are primarily concentrated around Kansas State University campus and downtown Manhattan (the adjacent larger city), as Riley's small size means most opportunities are tied to university-related activities. The neighborhoods near K-State's campus, particularly areas within 1-2 miles of the university, offer strong potential due to consistent demand from visiting parents during football games, graduation ceremonies, and academic events throughout the year. Downtown Manhattan's Poyntz Avenue district and surrounding residential areas provide excellent investment opportunities with their proximity to Aggieville (the entertainment district), restaurants, and campus, attracting both university visitors and business travelers. The Sunset Zoo area and nearby residential neighborhoods also present good potential as they combine university proximity with family-friendly attractions. Areas near Fort Riley military base, though technically outside Riley proper, offer additional opportunities for military family visits and temporary lodging needs. The residential areas along Tuttle Creek Lake provide seasonal rental potential for outdoor enthusiasts and weekend visitors, though this market is more limited and seasonal compared to the university-driven demand that dominates the region.

Riley, Kansas does not impose specific lodging or occupancy taxes on Airbnb rentals as of 2024, as the city primarily relies on property taxes and state sales tax for revenue generation. However, Airbnb hosts in Riley are subject to Kansas state sales tax at a rate of 6.5%, plus Riley County's local sales tax of approximately 1%, bringing the total sales tax to around 7.5% on short-term rental income. The Kansas Department of Revenue requires hosts to register for a sales tax permit and collect taxes from guests at the time of booking, with monthly remittance due by the 25th of the following month if monthly gross receipts exceed $4,000, or quarterly if below that threshold. Airbnb may collect and remit these taxes automatically through their platform for participating jurisdictions, though hosts should verify this arrangement with the Kansas Department of Revenue. Properties rented for more than 28 consecutive days to the same guest are typically exempt from transient lodging tax requirements, and certain agricultural or educational exemptions may apply depending on the property's use and guest qualifications.

The total cost to start an Airbnb in Riley, Kansas would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Kansas communities. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor typically runs $8,000-$12,000. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$4,000. Permits and fees including business license, short-term rental permits, and inspection fees total approximately $500-$1,500. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost $800-$1,200. First six months of operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $3,000-$5,000 to initial startup costs.

Airbnb properties in Riley, Kansas, typically generate modest returns due to the small market size and limited tourist demand in this rural college town of approximately 1,000 residents near Kansas State University. Properties in Riley average $45-65 per night with occupancy rates around 35-45% annually, resulting in gross revenues of $5,700-$10,600 per year for a typical 2-bedroom rental. After accounting for expenses including property taxes ($800-1,200), insurance ($600-900), cleaning fees ($1,200-1,800), utilities ($1,800-2,400), maintenance ($800-1,500), and Airbnb fees (3% host fee), net profit margins typically range from 15-25%, yielding annual profits of $850-$2,650 per property. Success factors include proximity to Kansas State University for parent weekends and graduation events, competitive pricing below Manhattan Kansas rates, and targeting agricultural visitors during harvest seasons. Properties within walking distance of downtown Riley or with unique rural amenities like farm stays perform better, with some hosts reporting 50-60% occupancy rates during peak university events, though the limited population base and competition from Manhattan's larger Airbnb market constrains overall profitability compared to major metropolitan areas.

Airbnb investments in Riley, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative given Riley's proximity to Fort Riley military base and Kansas State University in nearby Manhattan. Properties in Riley benefit from consistent military personnel rotations and university-related demand, with investors commonly seeing break-even points within 18-24 months and full profitability by year 2-3. The market shows seasonal variations with higher occupancy during university events and military training cycles, with successful properties averaging $75-120 per night and 60-75% annual occupancy rates. Initial investment recovery typically occurs within 3-4 years, while long-term appreciation combined with rental income can yield total returns of 15-20% annually for well-positioned properties near Fort Riley or along major corridors connecting to Manhattan.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Riley, Kansas, offering comprehensive market analysis and property recommendations. Local real estate agents in the Manhattan-Riley area such as Flint Hills Realty and Landmark Real Estate Group have experience with investment properties and understand the Kansas State University market dynamics that drive rental demand in Riley. National services like AirDNA provide detailed market analytics and revenue projections for the Riley area, while Mashvisor offers investment property analysis tools specifically for short-term rentals. BiggerPockets connects investors with local Kansas real estate professionals experienced in Airbnb investments, and companies like RedAwning and Vacasa provide property management services for investors who purchase in Riley. Local property management companies such as Purple Wave Property Management and Wildcat Property Solutions offer specialized Airbnb management services. National platforms like Roofstock and HomeUnion occasionally feature Kansas investment properties, while local mortgage brokers like First National Bank of Kansas and Landmark National Bank provide financing options for investment properties in the Riley market.