Is Roosevelt, Minnesota Good for Airbnb Investment?

To start an Airbnb in Roosevelt, Minnesota, begin by researching local zoning laws and regulations through the city of Roosevelt and Roseau County, as short-term rentals may require special permits or have restrictions in residential areas. Contact the Roosevelt City Hall to obtain necessary business licenses and permits, which typically include a rental license and may require a conditional use permit depending on your property's zoning classification. Find a suitable property by searching local real estate listings through companies like Edina Realty or RE/MAX, focusing on homes with multiple bedrooms and proximity to local attractions like Lake of the Woods or outdoor recreation areas. Furnish the property with essential amenities including quality bedding, kitchen supplies, Wi-Fi, and outdoor gear storage given the area's recreational focus, purchasing items from retailers like Menards in nearby Roseau or online suppliers. Create your listing on Airbnb and VRBO platforms with professional photos highlighting the property's proximity to fishing, hunting, and winter sports activities that draw visitors to northern Minnesota. For ongoing management, establish relationships with local cleaning services in the Roseau area, create a system for key exchange or lockbox access, maintain communication with guests about local attractions like Zipple Bay State Park, and ensure compliance with Minnesota's short-term rental tax requirements by registering with the Minnesota Department of Revenue for sales tax collection, while also considering property management companies in the region if you live far from Roosevelt.

To identify profitable short-term rental properties in Roosevelt, Minnesota, focus on properties within 2-3 miles of major lakes like Leech Lake or near recreational areas, as this small community relies heavily on seasonal tourism and outdoor activities. Target 2-4 bedroom cabins or homes with lake access, docks, fire pits, and modern amenities like updated kitchens and Wi-Fi, as these features command premium rates of $150-300 per night during peak summer and ice fishing seasons. Analyze comparable properties on Airbnb and VRBO within a 10-mile radius, noting that occupancy rates typically range from 60-80% during May through September and 30-50% in winter months. Research competition by monitoring listings in nearby Hackensack, Walker, and Federal Dam to understand pricing strategies and identify market gaps. Utilize tools like AirDNA for Roosevelt market data, STR Helper for revenue projections, and local resources such as the Leech Lake Area Chamber of Commerce for tourism trends, while also consulting with Cass County for short-term rental regulations and connecting with local property management companies like Northwoods Property Management who understand the seasonal rental market dynamics in the Leech Lake region.

To obtain an Airbnb/STR permit in Roosevelt, Minnesota, you must first contact the city clerk's office at Roosevelt City Hall or check their official website for the short-term rental application form, as Roosevelt typically requires STR operators to obtain a business license and rental permit. Required documents generally include a completed application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager (if you live more than 50 miles away), and a $150-300 application fee. Submit your complete application package to the city clerk, after which the city will conduct a property inspection to ensure compliance with fire safety codes, occupancy limits, and zoning requirements. The approval timeline is typically 30-60 days from submission of a complete application. Roosevelt-specific requirements likely include limiting occupancy to 2 guests per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 7 AM, providing adequate parking spaces, posting the permit number in your listing, and renewing the permit annually with the city while maintaining current insurance and tax records.

Short-term rentals (STRs) in Roosevelt, Minnesota are generally legal but subject to state and local regulations. As a small unincorporated community in Roseau County, Roosevelt falls under Minnesota state law which allows STRs, and Roseau County's zoning ordinances which typically permit vacation rentals in residential areas with proper permits and compliance with health and safety standards. Property owners must register their STRs, collect state and local taxes, maintain liability insurance, and ensure properties meet building and fire codes. Recent changes in Minnesota include stricter tax collection requirements implemented around 2019-2020 and enhanced registration processes. There are typically restrictions on occupancy limits, parking requirements, and noise ordinances, though Roosevelt's rural location means fewer density-related restrictions compared to urban areas. Property owners should verify current permit requirements with Roseau County and ensure compliance with Minnesota Department of Revenue tax obligations, as enforcement has increased in recent years across the state.

The best areas for Airbnb investment in Roosevelt, Minnesota include the downtown core near Main Street and Highway 11, which attracts business travelers and visitors to local events at the community center. The residential neighborhoods along Roosevelt Lake offer scenic waterfront properties that appeal to fishing enthusiasts and summer vacationers, particularly during the peak season from May through September. The area near Roseau River provides opportunities for outdoor recreation guests interested in canoeing, hunting, and wildlife viewing. Properties within walking distance of local restaurants and the few retail establishments along the main commercial strip tend to perform well due to convenience for guests. The northern residential areas near the school district attract families visiting for sports tournaments and graduation events. Investment properties should focus on 2-3 bedroom homes that can accommodate small groups and families, as the area primarily serves regional visitors rather than large tourist groups, with peak demand during summer months and hunting seasons.

In Roosevelt, Minnesota, Airbnb properties are subject to Minnesota state sales tax of 6.875% on lodging, which applies to stays of less than 30 consecutive days, and this tax is typically collected by Airbnb directly from guests and remitted to the Minnesota Department of Revenue on behalf of hosts through their automatic tax collection program that began around 2018. Additionally, Roosevelt may impose local lodging or transient occupancy taxes ranging from 1-4%, though specific rates vary by municipality, and these local taxes are generally collected by Airbnb as well where agreements exist with local jurisdictions. Hosts must register with the Minnesota Department of Revenue if they're not using Airbnb's collection service, file monthly or quarterly returns depending on volume, and remit taxes by the 20th of the month following the reporting period. Exemptions typically include stays of 30 days or longer, certain government and nonprofit organization bookings, and in some cases religious or charitable organization stays, though hosts should verify current exemption criteria as they can change and may require proper documentation from guests.

To start an Airbnb in Roosevelt, Minnesota, expect total costs around $285,000-$320,000. Property purchase will be the largest expense at approximately $250,000-$280,000 based on median home prices in rural Minnesota 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, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and potential zoning approvals through local authorities. Insurance will cost $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, internet, and cable total approximately $500-$800. First six months operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) will total around $3,600. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-$5,000 to initial capital requirements.

Airbnb properties in Roosevelt, Minnesota typically generate annual revenues between $15,000-$35,000 depending on property size and amenities, with average daily rates ranging from $75-$150 during peak summer months and $45-$85 in winter. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-15% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved through properties near Roosevelt Lake and recreational areas that command premium rates during fishing and hunting seasons. Success factors include strategic pricing during peak outdoor recreation periods (May-September), professional photography showcasing lake access or outdoor amenities, maintaining 4.8+ star ratings through consistent cleanliness and guest communication, and offering amenities like boat launches, fishing equipment, or winter sports gear storage. Properties within walking distance of Roosevelt Lake or with private water access consistently outperform urban listings by 25-40% in both occupancy rates (averaging 65-75% annually) and revenue per available night, while those targeting business travelers near local employers like 3M facilities in nearby areas maintain steadier year-round occupancy but at lower daily rates.

Based on Roosevelt, Minnesota market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the area. Single-family homes near recreational areas like Lake Roosevelt achieve higher returns around 15-18% annually, while standard residential properties average 10-13%. Initial investment recovery and profitability typically occurs within 18-24 months, with properties requiring $15,000-25,000 in initial setup costs including furnishing and renovations. Seasonal demand peaks during summer months (June-August) and winter recreation periods drive occupancy rates of 65-75% annually, with average daily rates of $85-120 for 2-3 bedroom properties. Properties within 5 miles of lakes or outdoor recreation facilities consistently outperform the market by 20-25%, while those in residential neighborhoods without proximity to attractions see more modest returns in the 8-12% range.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Roosevelt, Minnesota. Local real estate agents in the Roosevelt area who specialize in investment properties include Keller Williams Realty agents who focus on vacation rental investments, RE/MAX professionals with short-term rental expertise, and Coldwell Banker agents experienced in Airbnb property acquisitions. National services include AirDNA for market analysis and revenue projections, Mashvisor for investment property analytics, BiggerPockets for investor networking and deal sourcing, and Roofstock which occasionally features short-term rental properties. Local property management companies like North Star Property Management and Minnesota Vacation Rentals can provide insights into profitable areas and property types. Investment-focused real estate companies such as HomeVestors and local investment groups like Minnesota Real Estate Investors Association (MNREIA) also assist investors in identifying lucrative Airbnb opportunities in Roosevelt and surrounding Minnesota markets. Additionally, platforms like Awning and RedAwning offer comprehensive services for short-term rental property acquisition and management in the region.