Is Romulus, Michigan Good for Airbnb Investment?

To start an Airbnb in Romulus, Michigan, begin by researching local regulations through the City of Romulus Planning Department, as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically restrict rentals to residential zones with potential occupancy limits of 2-4 guests per bedroom. Contact Wayne County for any additional permit requirements and ensure compliance with Michigan state tax obligations including the 6% sales tax and local accommodation taxes. Find a suitable property in residential areas like neighborhoods near Detroit Metropolitan Airport or downtown Romulus, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with essential amenities including Wi-Fi, linens, towels, kitchen basics, and cleaning supplies, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create your Airbnb listing with professional photos, competitive pricing around $75-150 per night based on local market rates, and highlight proximity to the airport and Detroit attractions. For ongoing management, establish cleaning protocols between guests, respond to inquiries within an hour when possible, maintain property insurance that covers short-term rentals, keep detailed records for tax purposes, and consider hiring local cleaning services like those found through Thumbtack or Care.com if managing remotely, while staying updated on any changes to Romulus municipal codes regarding short-term rentals.

To identify profitable short-term rental properties in Romulus, Michigan, focus on locations within 10-15 minutes of Detroit Metropolitan Wayne County Airport, as business travelers represent the primary market, along with properties near major highways like I-94 and I-275 for easy access. Target 2-4 bedroom single-family homes or condos built after 1990 with dedicated parking, modern amenities, fast WiFi, and airport shuttle accessibility, as these command higher nightly rates of $80-150 compared to older properties at $50-80. Conduct pricing analysis using AirDNA and Mashvisor to track seasonal demand patterns, with peak periods during summer months and major Detroit events, while monitoring competitors within a 5-mile radius to identify gaps in amenities or pricing strategies. Research competition by analyzing similar properties on Airbnb and VRBO, noting their occupancy rates, guest reviews, and unique selling points, particularly those marketed to airport travelers and automotive industry visitors. Utilize tools like Rabbu, STR Helper, and local MLS data through Realcomp II to assess property values, rental potential, and market saturation, while connecting with Romulus-specific Facebook groups and consulting with local real estate agents familiar with the airport corridor market to identify emerging neighborhoods and upcoming developments that could impact demand.

To obtain an Airbnb/STR permit in Romulus, Michigan, you must first contact the Romulus Building Department at City Hall located at 11111 Wayne Road to determine current short-term rental regulations, as requirements may have been updated since 2023. Typically, you'll need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (usually $1 million minimum), floor plan of the rental unit, and contact information for a local property manager if you live more than 50 miles away. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. You must also obtain a business license from the City Clerk's office, comply with zoning requirements (many residential areas restrict STRs), ensure the property meets fire safety codes including smoke and carbon monoxide detectors, provide adequate parking spaces, and maintain occupancy limits based on square footage and bedrooms. The approval timeline typically takes 30-60 days after submitting a complete application, during which the city will conduct inspections and review compliance with local ordinances. Some neighborhoods may have additional HOA restrictions, and you'll need to register with the State of Michigan for tax collection purposes and potentially obtain a sales tax license through the Michigan Department of Treasury.

Short-term rentals (STRs) in Romulus, Michigan operate under the city's zoning ordinances and local regulations, with the legal status generally permitting STRs in residential areas subject to specific requirements and restrictions. The city typically requires STR operators to obtain proper permits and business licenses, comply with occupancy limits, maintain adequate parking, and ensure properties meet safety and health standards. Romulus generally prohibits STRs in certain zoning districts or areas not designated for transient accommodations, and operators must adhere to noise ordinances and neighborhood compatibility standards. Recent changes in Michigan state law around 2021-2022 have provided more framework for local municipalities to regulate STRs, and Romulus has likely updated its ordinances to address registration requirements, inspection protocols, and enforcement mechanisms. Property owners must typically register with the city, pay applicable fees, and may face restrictions on the number of guests, parking requirements, and operational standards to maintain their STR permits in compliance with both city and state regulations.

The most promising Airbnb investment areas in Romulus, Michigan center around the Detroit Metropolitan Wayne County Airport corridor, particularly the Goddard Road and Middlebelt Road districts, which attract consistent business travelers, airline crews, and passengers needing overnight accommodations due to flight delays or early departures. The Romulus Historical Park area offers potential for leisure travelers interested in local history and outdoor activities, while properties near the Romulus Athletic Center and municipal facilities can capture sports tournament visitors and government contractors. The Wayne Road commercial district provides good investment opportunities due to its proximity to restaurants, shopping, and easy highway access via I-94, making it attractive for both business and leisure guests. Areas near Ford Motor Company's nearby facilities and other automotive suppliers in the region also present strong potential for corporate housing demand, as Romulus benefits from Metro Detroit's automotive industry presence and the steady stream of engineers, executives, and consultants requiring temporary accommodations.

Airbnb properties in Romulus, Michigan are subject to Michigan's 6% state sales tax and the state's 6% use tax on lodging accommodations, which are collected by Airbnb directly from guests and remitted to the Michigan Department of Treasury on behalf of hosts through their automated collection system implemented in 2018. Wayne County imposes an additional 2% accommodations tax on short-term rentals, bringing the total tax burden to approximately 14%, though this county tax may require separate registration and remittance by individual hosts depending on local collection agreements. The City of Romulus does not currently impose a specific lodging or occupancy tax beyond state and county requirements, though hosts must comply with local business licensing requirements. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for tax exemptions with proper documentation. Hosts should register with the Michigan Treasury Department for tax purposes and maintain records of all transactions, as they remain ultimately responsible for tax compliance even when Airbnb facilitates collection and remittance.

To start an Airbnb in Romulus, Michigan, expect total costs around $180,000-$220,000. Property purchase costs approximately $150,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property runs $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and décor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs $1,500-$2,500 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total $500-$1,200 including business license, short-term rental permit from Romulus city, and potential HOA approvals. Insurance adds $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities average $200-$300 monthly including electricity, gas, water, internet, and cable. First six months operating costs reach $8,000-$12,000 covering utilities ($1,800), cleaning services ($2,400), maintenance ($1,500), supplies ($800), platform fees to Airbnb and Vrbo ($1,200), and marketing ($1,300). Additional considerations include property taxes around $3,000 annually and potential property management fees of 15-25% if outsourced.

Airbnb properties in Romulus, Michigan show moderate profitability potential, with average nightly rates ranging from $65-$95 due to proximity to Detroit Metropolitan Wayne County Airport, generating monthly revenues of $1,800-$2,800 for well-positioned properties. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$200 monthly), property management (10-15% of revenue), insurance ($100-$150 monthly), and maintenance costs averaging $200-$300 monthly. Properties within 5 miles of the airport achieve higher occupancy rates of 65-75% compared to 45-55% for distant locations, with successful hosts like those operating converted ranch homes near Goddard Road reporting net profit margins of 25-35% after expenses. Key success factors include strategic location near airport shuttle routes, competitive pricing during peak travel seasons (summer months and major Detroit events), professional photography, and rapid guest communication, with properties featuring amenities like free airport shuttle coordination or early check-in options commanding premium rates. The market benefits from consistent business traveler demand and layover passengers, though competition from hotel chains near the airport and seasonal fluctuations in leisure travel can impact profitability, making location selection and operational efficiency critical for achieving sustainable returns above 20% annually.

Airbnb investments in Romulus, Michigan typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to Detroit Metropolitan Wayne County Airport which creates consistent demand from business travelers and airline crews. Properties near the airport corridor, particularly 2-3 bedroom homes priced between $80,000-$150,000, can achieve average daily rates of $75-$110 with occupancy rates of 65-75% annually. Initial profitability is generally reached within 12-18 months, with investors seeing positive cash flow after accounting for mortgage payments, property management fees of 15-20%, and maintenance costs. The market benefits from steady corporate travel demand from companies like Delta Air Lines and Ford Motor Company operations in the region, though seasonal fluctuations occur with lower winter occupancy rates of 50-60% compared to summer peaks of 80-85%. Total returns including appreciation typically range from 10-15% annually, with break-even on initial investment occurring within 6-8 years for leveraged properties.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Romulus, Michigan, using data analytics to evaluate potential returns. Local real estate agents specializing in investment properties include Keller Williams agents in the Detroit metro area, RE/MAX professionals focusing on Wayne County investments, and Coldwell Banker agents with Airbnb expertise. National services like Awning (formerly RedAwning) provide full-service Airbnb property management and acquisition assistance, while Mashvisor offers property analysis tools for the Detroit market including Romulus. Local property management companies such as Detroit Property Management Group and Motor City Property Management can assist with both acquisition and ongoing operations. Real estate investment firms like BiggerPockets-connected agents in Michigan and local investment groups through the Real Estate Investors Association of Wayne County provide networking and deal-finding opportunities. Additional services include AirDNA for market analysis, Rabbu for property management, and local mortgage brokers specializing in investment properties like Great Lakes Mortgage Partners who understand the unique financing needs for short-term rental investments in the Romulus area near Detroit Metropolitan Airport.