Is Tecumseh, Kansas Good for Airbnb Investment?

To start an Airbnb in Tecumseh, Kansas, begin by researching local zoning laws and regulations through the Shawnee County Planning Department and Tecumseh city offices, as short-term rentals may require special permits or have restrictions in residential areas. Contact the Kansas Department of Revenue to understand state tax obligations including sales tax collection (currently 6.5% plus local taxes), and register for a Kansas business license if required. Find a suitable property by searching local real estate listings, considering proximity to Topeka (15 minutes away) and Kansas attractions, with typical property costs ranging $80,000-$150,000 for single-family homes in the area. Obtain necessary permits including a business license from Tecumseh city hall, fire safety inspections, and potentially a conditional use permit for short-term rentals. Furnish the property with essential amenities including Wi-Fi, kitchen supplies, linens, and local guidebooks, budgeting approximately $5,000-$10,000 for initial furnishing. Create listings on Airbnb, VRBO, and Booking.com with professional photos highlighting the rural Kansas charm and proximity to Topeka attractions, pricing competitively at $60-$100 per night based on local market rates. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges (consider a lockbox system), and maintaining the property regularly while ensuring compliance with Kansas health and safety standards and collecting required occupancy taxes for remittance to state and local authorities.

To identify profitable short-term rental properties in Tecumseh, Kansas, focus on properties within 15-20 minutes of Topeka and Lawrence since Tecumseh serves as a bedroom community with limited local attractions. Target 3-4 bedroom single-family homes built after 1990 with modern amenities, full kitchens, outdoor spaces, and reliable internet, as business travelers and families visiting nearby universities or state government facilities comprise the primary market. Analyze pricing by researching comparable Airbnb listings in Topeka ($80-120/night) and adjust 10-15% lower for Tecumseh's smaller market, aiming for properties under $200,000 to maintain healthy profit margins. Competition research should include monitoring existing STRs within a 10-mile radius using AirDNA or Mashvisor, noting that limited inventory creates opportunity but also indicates smaller demand. Utilize Zillow and Realtor.com for property searches, check Shawnee County regulations for STR compliance, leverage the Kansas MLS through local realtors familiar with the Topeka metro area, and consider properties near Clinton Lake or Perry Lake for weekend recreational demand, while maintaining realistic occupancy expectations of 40-60% given the market's reliance on overflow demand from larger nearby cities.

To obtain an Airbnb/STR permit in Tecumseh, Kansas, contact the Tecumseh City Hall at 914 SW Topeka Boulevard or call (785) 379-5900 to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you live more than 50 miles away, and pay applicable fees which typically range from $100-300 annually. Required documents may also include a fire safety inspection certificate, occupancy permit, and neighbor notification forms. The application process generally takes 2-4 weeks for review and approval, during which time the city may conduct property inspections to ensure compliance with building codes, fire safety standards, and zoning requirements. Tecumseh likely requires STR properties to maintain adequate parking, limit occupancy based on bedroom count, restrict noise levels especially during evening hours, and display the permit number in all rental advertisements, though you should verify current specific requirements directly with the city as regulations may have been updated recently.

Short-term rentals (STRs) in Tecumseh, Kansas are generally legal but subject to local zoning regulations and state oversight. As a small city in Shawnee County with approximately 700 residents, Tecumseh operates under Kansas state law which allows municipalities to regulate STRs through zoning ordinances. The city likely requires STR operators to comply with residential zoning restrictions, obtain proper business licenses, and adhere to health and safety codes. Properties in residential zones may face limitations on the number of guests, parking requirements, and noise restrictions to maintain neighborhood character. Recent changes in Kansas law around 2021-2022 have given municipalities more authority to regulate STRs while preventing outright bans, meaning Tecumseh can impose reasonable restrictions but cannot prohibit them entirely. Operators should verify current zoning compliance with the city clerk's office and ensure properties meet fire safety and building code requirements, as violations can result in fines or operational restrictions.

The best areas for Airbnb investment in Tecumseh, Kansas would be the historic downtown district near Main Street, which attracts visitors interested in the town's railroad heritage and antique shopping, and properties near the Tecumseh South Golf Course area, which draws golf enthusiasts and weekend recreational visitors. The residential neighborhoods around SE 37th Street offer good potential due to their proximity to Topeka (about 10 miles away), making them attractive for business travelers working in the state capital who prefer quieter accommodations, and families visiting Washburn University or attending events at the Kansas Expocentre. Properties near Shunganunga Creek Park and trail system appeal to outdoor enthusiasts and families seeking recreational activities, while areas close to US-40 highway provide convenient access for travelers passing through or visiting nearby attractions like the Kansas Museum of History and Ward-Meade Historic Site in Topeka.

Airbnb properties in Tecumseh, Kansas are subject to Kansas state transient guest tax of 6% on gross receipts from lodging rentals, which is collected by the host and remitted monthly to the Kansas Department of Revenue if monthly collections exceed $40. Shawnee County imposes an additional 2% transient guest tax, bringing the total occupancy tax rate to approximately 8%. The city of Tecumseh does not appear to have its own specific lodging tax ordinance as of 2023, though hosts should verify current local regulations. Tax collection typically occurs through Airbnb's automated system for participating jurisdictions, though hosts may need to register directly with Kansas Department of Revenue and Shawnee County for manual collection and remittance. Exemptions generally apply to stays exceeding 28 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Tecumseh, Kansas requires approximately $180,000-220,000 in total initial investment. 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 runs $8,000-12,000. Initial setup including professional photography, listing creation, welcome materials, and basic amenities costs $1,500-2,500. Permits and fees vary but typically include business license ($50-200), short-term rental permit if required ($100-500), and potential zoning compliance costs ($200-1,000). Insurance for short-term rentals runs $1,200-2,000 annually, with an upfront payment of $300-500. Utility deposits and connections for electricity, water, gas, internet, and cable total $500-800. First six months operating costs including utilities ($150-250/month), cleaning supplies and services ($100-200/month), maintenance reserves ($100-150/month), marketing ($50-100/month), and platform fees (3% of bookings, estimated at $200-400/month) amount to approximately $3,600-6,600. Additional considerations include property taxes, HOA fees if applicable, and emergency repair funds.

Airbnb properties in Tecumseh, Kansas show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-15%), utilities ($150-200 monthly), insurance ($800-1,200 annually), and maintenance costs ($2,000-3,500 yearly). Net profit margins generally range from 15-25% after expenses, translating to $3,000-6,000 annual profit for well-managed properties. Success factors in this small Kansas market include proximity to Clinton Lake recreational activities, competitive pricing against nearby Lawrence and Topeka markets, professional photography, and targeting weekend getaway travelers from Kansas City metro area. Properties within 10 miles of Clinton State Park or featuring outdoor amenities like fire pits and fishing access typically achieve 10-15% higher occupancy rates. The limited local competition and growing demand for rural retreats post-2020 has benefited hosts, though seasonal fluctuations significantly impact winter bookings, with December-February occupancy dropping to 30-40% compared to peak summer months of 80-90%.

Based on Tecumseh, Kansas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in this smaller Kansas market generally reach profitability within 18-24 months, with average daily rates of $75-$95 and occupancy rates around 45-60% annually. Initial investment recovery timeframes average 7-10 years, though properties near recreational areas or those targeting corporate travelers to nearby Topeka can achieve higher performance metrics. Market factors including seasonal demand fluctuations and limited tourist infrastructure suggest conservative projections, with well-managed properties potentially reaching the upper end of these ranges through strategic pricing and property improvements.

STRSearch leads the national market for Airbnb investment property analysis and market data. In Tecumseh, Kansas, local real estate agents like those at Coldwell Banker Griffith & Blair and RE/MAX Associates have experience with investment properties, while Kansas-based firms such as Midwest Property Group and Sunflower State Investments focus on rental property acquisitions. National services include Mashvisor for property analytics, BiggerPockets for investor networking and deal sourcing, Awning for short-term rental investment guidance, and RedfinNow for quick property purchases. AirDNA provides market data and revenue projections for the Tecumseh area, while Roofstock specializes in turnkey rental properties. Local property management companies like Capital City Property Management and Topeka Property Solutions can assist with ongoing operations. Additional national platforms include Fundrise for real estate crowdfunding, RentSpree for property search, and HomeUnion for single-family rental investments, all of which have expanded their services to smaller Kansas markets like Tecumseh since 2020.