Is Stevensville, Michigan Good for Airbnb Investment?

To start an Airbnb in Stevensville, Michigan, begin by researching local zoning laws and regulations through Berrien County and the City of Stevensville, as short-term rentals may require special permits or have restrictions in certain residential zones. Contact the Stevensville Building Department to obtain necessary permits, which typically include a business license, possible zoning variance, and compliance with fire safety codes. Find a suitable property by searching real estate listings in desirable areas near Lake Michigan beaches or downtown, considering factors like proximity to attractions, parking availability, and neighborhood appeal. Furnish the property with quality, durable furniture, essential amenities like Wi-Fi, kitchen supplies, linens, and local touches that highlight the area's charm, ensuring it meets Michigan's habitability standards. Create compelling listings on Airbnb, VRBO, and other platforms with professional photos, detailed descriptions emphasizing nearby attractions like Warren Dunes State Park and local wineries, and competitive pricing based on comparable properties in the area. Manage the property by establishing check-in procedures, hiring local cleaning services, maintaining responsive communication with guests, collecting Michigan's 6% sales tax plus any local accommodation taxes, and ensuring compliance with ongoing regulations while building positive reviews to increase bookings.

To identify profitable short-term rental properties in Stevensville, Michigan, focus on locations within 1-2 miles of Lake Michigan beaches, particularly near Warren Dunes State Park and Grand Beach areas, as these drive the highest seasonal demand from Chicago-area visitors seeking weekend getaways. Target 3-4 bedroom single-family homes or lakefront condos built after 1980 with modern amenities, outdoor spaces, parking for multiple vehicles, and ideally lake views or beach access, as these command premium rates of $200-400 per night during peak summer months. Analyze comparable properties on Airbnb and VRBO within a 5-mile radius to establish competitive pricing, noting that Stevensville properties typically achieve 60-75% occupancy rates with average daily rates dropping to $100-150 in off-season months. Research competition density using AirDNA or Mashvisor to identify undersaturated pockets, particularly focusing on properties that can accommodate larger groups since many visitors travel in extended family units from nearby metropolitan areas. Utilize local resources like the Stevensville Tourism Bureau for seasonal event calendars, partner with Southwest Michigan real estate agents familiar with STR regulations, and monitor Berrien County zoning requirements since some areas have restrictions on short-term rentals that could impact profitability.

To obtain an Airbnb/STR permit in Stevensville, Michigan, you must first contact the Stevensville City Clerk's office at City Hall located at 5768 St Joseph Avenue to inquire about their short-term rental ordinance and application process. You will need to submit a completed STR permit application form along with required documents including 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 copy of your Michigan sales tax license. The application fee is typically around $150-200 annually, with additional inspection fees of approximately $75. You must also provide written consent from adjacent property owners within 300 feet and comply with parking requirements of at least two off-street parking spaces per unit. The city requires STR properties to maintain occupancy limits of no more than 2 people per bedroom plus 2 additional guests, with quiet hours enforced from 10 PM to 8 AM. After submitting your complete application, the city conducts a safety inspection and reviews the application, which typically takes 30-45 days for approval. Once approved, you must display the permit number in all online listings and renew annually by December 31st, and the city limits the total number of STR permits issued to maintain neighborhood character.

Short-term rentals (STRs) in Stevensville, Michigan are generally legal but subject to local zoning regulations and permit requirements established by Berrien County and the City of Stevensville. The city typically requires STR operators to obtain business licenses and comply with zoning ordinances that may restrict rentals in certain residential districts, particularly single-family neighborhoods where STRs might be prohibited or require special use permits. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and occupancy limits, while operators are generally required to maintain liability insurance and collect local accommodation taxes. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced registration requirements, with the city implementing clearer guidelines for noise ordinances, parking restrictions, and guest behavior standards. STRs are more commonly permitted in commercial zones and mixed-use areas, while some purely residential zones may have restrictions or outright prohibitions, and operators should verify current zoning compliance and obtain proper permits before beginning operations as regulations continue to evolve in response to community concerns about neighborhood character and housing availability.

The best areas for Airbnb investment in Stevensville, Michigan are the Lake Michigan shoreline neighborhoods near Warren Dunes State Park, which attract summer tourists and beachgoers from Chicago and Detroit metro areas seeking weekend getaways and vacation rentals. The historic downtown district offers potential for business travelers visiting local wineries and the growing Southwest Michigan wine region, with properties near Lemon Creek Winery and other local establishments seeing steady demand. Areas close to Western Michigan University's Southwest Campus and Lake Michigan College draw visiting families, prospective students, and academic travelers throughout the year. The residential neighborhoods within walking distance of Silver Beach and the St. Joseph River provide appeal for fishing enthusiasts, boaters, and water sports visitors, particularly during peak season from May through September. Properties near the Stevensville-Lakeshore area benefit from proximity to both natural attractions and the I-94 corridor, making them accessible to travelers heading to larger Southwest Michigan destinations while offering a quieter, more affordable alternative to St. Joseph and Benton Harbor accommodations.

Airbnbs in Stevensville, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which is collected by the host and remitted monthly to the Michigan Department of Treasury if gross receipts exceed $1,000 annually. Berrien County imposes an additional 5% accommodations tax on short-term rentals, bringing the total tax rate to approximately 11%, with this county tax also collected by hosts and remitted quarterly to the Berrien County Treasurer's Office. The City of Stevensville may impose a local transient occupancy tax of up to 3%, though specific rates vary by municipal ordinance and are typically collected through the same host-remittance system. Hosts must register with both state and local tax authorities, maintain detailed records of bookings and payments, and file returns even during periods of no activity. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain stays by government employees or tax-exempt organizations may qualify for reduced rates when proper documentation is provided.

The total cost to start an Airbnb in Stevensville, Michigan is approximately $285,000-$320,000. Property purchase costs around $220,000-$250,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor. Initial setup including professional photography, listing creation, and basic renovations costs $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees total $500-$1,500. Insurance for short-term rental coverage adds $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include property taxes of approximately $3,000-$4,000 annually and potential HOA fees of $100-$300 monthly if applicable.

Airbnb properties in Stevensville, Michigan typically generate annual revenues between $15,000-$35,000 for seasonal lakefront properties and $8,000-$18,000 for standard residential units, with peak summer months (June-August) accounting for 60-70% of total bookings due to proximity to Lake Michigan beaches and Warren Dunes State Park. Operating expenses generally range from 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($150-$300 monthly), insurance ($1,200-$2,400 annually), and maintenance costs averaging $2,000-$4,000 yearly. Profit margins typically fall between 25-40% for well-managed properties, with lakefront or lake-view units commanding premium rates of $150-$300 per night during summer compared to $80-$150 for inland properties. Success factors include strategic pricing during peak beach season, professional photography highlighting lake access, responsive guest communication, and partnerships with local activity providers like Silver Beach County Park and Whirlpool Compass Fountain. Properties within walking distance of beaches or featuring amenities like hot tubs, fire pits, or boat access consistently outperform the market, with some premium lakefront properties achieving occupancy rates above 75% during the May-September season, though winter occupancy typically drops to 15-25% requiring hosts to factor seasonal cash flow variations into their profitability calculations.

Based on Stevensville, Michigan market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location proximity to Lake Michigan beaches. Properties within 2 miles of Warren Dunes State Park or lakefront access command premium rates of $150-250 per night during peak summer months (May-September), while inland properties average $80-140 nightly. Initial profitability usually occurs within 18-24 months for well-positioned properties, with seasonal occupancy rates averaging 65-75% annually due to strong summer tourism demand from Chicago and Detroit metro areas. Properties purchased under $300,000 with 20-25% down payments typically achieve break-even by month 14-20, factoring in renovation costs of $15,000-35,000 for short-term rental optimization, property management fees of 15-25%, and local lodging taxes of 6%.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Stevensville, Michigan. Local real estate agents serving the area include Berkshire Hathaway HomeServices Michigan Real Estate and Coldwell Banker Realty, with agents like those at The Upton Team and Lake Michigan Realty Group who understand the vacation rental market dynamics in this Lake Michigan coastal community. National services include AirDNA for market analytics, Mashvisor for investment property analysis, and BiggerPockets for networking with local investors. Regional companies such as Great Lakes Property Management and Vacation Rental Management Michigan provide turnkey solutions for Airbnb property acquisition and management. Local services include Harbor Country Real Estate and Warren Dunes Realty, which have expertise in the Southwest Michigan vacation rental market that has grown significantly since 2018. Additional resources include RedAwning for property management services and companies like AvantStay and Vacasa that operate in the Michigan market and can provide insights on profitable property characteristics in beach communities like Stevensville.