Is Scanlon, Minnesota Good for Airbnb Investment?

To start an Airbnb in Scanlon, Minnesota, begin by researching Carlton County and Scanlon city regulations, as this small city near Duluth may require business licenses or zoning compliance for short-term rentals, with potential registration fees around $50-200 annually. Contact Scanlon City Hall at (218) 879-3963 to verify specific permit requirements and zoning restrictions, as some residential areas may prohibit commercial activities. Find a suitable property by searching local real estate listings through Edina Realty or RE/MAX Results, focusing on homes near Jay Cooke State Park or the St. Louis River for tourist appeal, with average property prices ranging $150,000-300,000. Obtain necessary permits including a Minnesota sales tax permit through the Department of Revenue, potential fire safety inspections, and any required business licenses from Carlton County. Furnish the property with essential amenities including Wi-Fi, linens, towels, kitchen supplies, and outdoor gear storage given the area's recreational focus, budgeting approximately $5,000-15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to outdoor activities like hiking, fishing, and the nearby Fond du Lac reservation attractions. Manage bookings using property management software like Guesty or OwnerRez, establish relationships with local cleaning services in the Cloquet-Scanlon area, and maintain competitive pricing around $80-150 per night depending on seasonality and local events at nearby venues.

To identify profitable short-term rental properties in Scanlon, Minnesota, focus on waterfront locations near the St. Louis River or properties within walking distance of Jay Cooke State Park, as these areas attract outdoor enthusiasts and tourists seeking nature experiences. Target 2-4 bedroom cabins or homes with rustic charm, modern amenities like WiFi and updated kitchens, outdoor spaces with fire pits or decks, and parking for multiple vehicles including boat trailers. Analyze pricing by researching comparable Airbnb and VRBO listings in Scanlon and nearby Cloquet, Carlton, and Duluth, aiming for nightly rates between $120-200 depending on property size and amenities, with higher rates during peak summer months and fall foliage season. Conduct competition research by monitoring occupancy rates and guest reviews of existing STRs within a 10-mile radius, identifying gaps in amenities or service quality you can exploit. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, and local resources including the Carlton County tourism board and Duluth visitor bureau for seasonal demand patterns, while also consulting with local real estate agents familiar with the area's tourism trends and zoning regulations that permit short-term rentals.

To obtain an Airbnb/STR permit in Scanlon, Minnesota, you must first contact the Carlton County Planning and Zoning Department since Scanlon is a small city that typically follows county regulations for short-term rentals. Submit an application through Carlton County's planning office located at 301 Walnut Avenue, Carlton, MN 55718, along with required documents including a completed STR permit application, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate, and septic system compliance certificate if applicable. The application fee is approximately $150-250 with an additional $75 annual renewal fee, and you may need to pay for required inspections which typically cost $100-200. The timeline for approval is generally 30-60 days depending on inspection scheduling and completeness of your application. Specific Scanlon requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate parking spaces (typically 1 space per bedroom), ensuring the property meets all building and fire codes, maintaining a local contact person available 24/7 if you're not local, and adhering to quiet hours between 10 PM and 8 AM. You must also register with the Minnesota Department of Revenue for sales tax collection and remittance, and some properties may require a conditional use permit if located in certain zoning districts.

Short-term rentals (STRs) in Scanlon, Minnesota are generally legal but subject to state and local regulations. As a small city in Carlton County with approximately 1,000 residents, Scanlon likely follows Minnesota's statewide approach which allows STRs while requiring compliance with local zoning ordinances, tax obligations including state sales tax and local lodging taxes, and basic safety requirements. The city may require business licenses or permits for STR operations, and properties must meet residential building codes and safety standards. Recent changes across Minnesota have included increased enforcement of tax collection requirements and some municipalities implementing stricter zoning restrictions, though Scanlon's specific ordinances may be less restrictive than larger cities like Minneapolis or St. Paul. Property owners should verify current local zoning laws, obtain necessary permits, register with the Minnesota Department of Revenue for tax purposes, and ensure compliance with any homeowners association rules or deed restrictions that might prohibit short-term rental activities.

The best areas for Airbnb investment in Scanlon, Minnesota are primarily concentrated around the Cloquet River corridor and near the Jay Cooke State Park boundary, as Scanlon's proximity to this popular state park attracts outdoor enthusiasts year-round for hiking, camping, and scenic river activities. The historic downtown district near the old logging mill sites offers charm for visitors interested in Minnesota's timber heritage, while properties within walking distance of the Willard Munger State Trail appeal to cyclists and recreational vehicle tourists traveling between Duluth and Hinckley. Areas close to the St. Louis River provide access to fishing and water recreation, drawing seasonal visitors from the Twin Cities metro area. The residential neighborhoods along Highway 210 offer convenient access for business travelers visiting nearby Cloquet's industrial facilities including Sappi paper mill operations, while still maintaining the small-town appeal that attracts weekend getaway visitors seeking a quieter alternative to busier Duluth accommodations just 20 miles northeast.

Airbnb properties in Scanlon, Minnesota are subject to Minnesota's state lodging tax of 3% on gross receipts, which applies to all short-term rental accommodations under 30 days. St. Louis County, where Scanlon is located, does not impose an additional county lodging tax, but operators must register with the Minnesota Department of Revenue and collect the state tax from guests at the time of booking or check-in. The tax must be remitted monthly to the state if monthly collections exceed $100, or quarterly if collections are less than $100, using Minnesota's electronic filing system. Airbnb as a platform may collect and remit these taxes directly on behalf of hosts through their automated tax collection service, which began around 2017-2018 for Minnesota properties. There are no specific exemptions for small operators, though stays of 30 days or longer are generally exempt from lodging taxes as they're considered long-term rentals rather than transient accommodations. Property owners must maintain detailed records of all bookings, tax collected, and payments made to ensure compliance with state regulations.

To start an Airbnb in Scanlon, Minnesota, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the Duluth-Superior metro area where Scanlon is located. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom home including furniture, bedding, kitchenware, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees in Carlton County include business license ($100-$200), potential zoning permits ($200-$500), and state tax registration ($50). Insurance costs approximately $1,200-$1,800 annually for short-term rental coverage. 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 supplies, maintenance, marketing, platform fees (3% of bookings), and miscellaneous expenses total approximately $2,000-$3,000, assuming moderate booking activity during the initial period.

Airbnb properties in Scanlon, Minnesota, a small community near Duluth, typically generate modest returns due to limited tourist traffic and seasonal demand patterns. Properties in this area generally earn $15,000-$25,000 annually in gross revenue, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-15%), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs. Net profit margins generally range from 15-25% after all expenses, translating to $3,000-$6,000 annual profit for typical properties. Success factors include proximity to outdoor recreation areas like Jay Cooke State Park, offering unique amenities such as hot tubs or fire pits, and targeting weekend getaways from Twin Cities residents seeking rural retreats. Properties with lake access or scenic views command premium rates, while those marketing to fishing enthusiasts or snowmobile groups during winter months see improved occupancy rates. The market faces challenges from limited year-round demand and competition from established resorts in the greater Duluth area, making location selection and property differentiation critical for profitability.

Based on Scanlon, 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. Properties near recreational areas like lakes or trails tend to perform at the higher end with 15-18% annual returns, while standard residential properties average 12-15%. Initial profitability usually occurs within 8-14 months after launch, with full investment recovery typically achieved in 6-8 years. The market benefits from seasonal tourism during summer months and hunting seasons, with occupancy rates averaging 65-75% annually. Properties requiring minimal renovation show faster profitability timelines of 6-10 months, while extensive rehabs may take 12-18 months to reach positive cash flow. Average daily rates in the Scanlon area range from $85-140 depending on property size and amenities, with peak season rates commanding 20-30% premiums during summer and fall months.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Scanlon, Minnesota. Local real estate agents in the Duluth-Superior area like RE/MAX Results, Coldwell Banker East West, and Edina Realty have agents experienced with investment properties who can assist with Airbnb acquisitions in Scanlon. National services include Mashvisor, which provides rental property analytics, and BiggerPockets, which connects investors with local professionals. AirDNA offers market data and revenue projections for short-term rentals in the region. Local property management companies like Arrowhead Property Management and Superior Property Services can help investors identify properties suitable for Airbnb conversion. RedAwning and Vacasa provide both property identification services and management solutions for short-term rentals. Real estate investment firms like HomeVestors and local investor groups through the Duluth Real Estate Investors Association can provide leads on profitable properties in Scanlon and surrounding Carlton County areas.