Is Washburn, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Washburn, Wisconsin, begin by researching local zoning laws and regulations through the Washburn City Hall, as this small lakefront community may have specific ordinances regarding short-term rentals, particularly given its proximity to Lake Superior and seasonal tourism patterns. Contact the Bayfield County Planning Department to understand county-level requirements and obtain necessary permits, which typically include a business license from the city and potentially a conditional use permit if operating in residential zones. Find a suitable property by focusing on areas near the lake, downtown, or close to outdoor recreation access points, considering that Washburn attracts visitors for fishing, boating, and fall color tours. Purchase or lease a property and furnish it with durable, comfortable furniture emphasizing the area's natural beauty and outdoor recreation theme, including amenities like kayaks, fishing gear, or winter sports equipment. Create your Airbnb listing with professional photos highlighting lake views, proximity to the Apostle Islands, and seasonal activities, setting competitive rates based on comparable properties in nearby Bayfield or Ashland. For ongoing management, establish relationships with local cleaning services, maintenance providers, and consider property management companies familiar with the area's seasonal rental market, while maintaining compliance with Wisconsin state tax requirements including sales tax collection and remittance to the Department of Revenue.

To identify profitable short-term rental properties in Washburn, Wisconsin, focus on waterfront locations near Lake Superior or properties within walking distance of the harbor and downtown area, as this lakeside community attracts tourists seeking scenic views and water activities. Target 2-4 bedroom properties with amenities like fireplaces, decks, lake views, and outdoor spaces that appeal to families and groups visiting for fishing, boating, and seasonal tourism. Analyze pricing by researching comparable Airbnb and VRBO listings in Washburn and nearby Bayfield, typically ranging from $150-400 per night depending on size and location, with peak rates during summer months and fall color season. Study competition by examining occupancy rates and reviews of existing STRs within a 5-mile radius, noting that Washburn has limited hotel options which creates opportunity for vacation rentals. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources including the Washburn Area Chamber of Commerce for tourism trends, while monitoring seasonal patterns since this market peaks June through October with lower winter demand except for ice fishing and winter sports enthusiasts.

To obtain an Airbnb/STR permit in Washburn, Wisconsin, contact the Washburn City Clerk's office at City Hall located at 1681 West Bayfield Street to begin the application process, as the city likely requires short-term rental operators to register their properties and obtain a business license. You'll need to submit a completed STR permit 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're not local, and pay applicable fees which typically range from $100-300 annually for the permit plus potential inspection fees of $50-100. The city may require a zoning compliance review, fire safety inspection, and adherence to occupancy limits based on square footage and bedroom count, with specific parking requirements of one space per bedroom and noise ordinance compliance including quiet hours from 10 PM to 7 AM. Submit all documents to the City Clerk, schedule any required inspections with the building department, and allow 30-45 days for processing and approval, after which you'll receive your permit that must be renewed annually and displayed prominently in the rental property along with emergency contact information for guests.

Short-term rentals (STRs) are generally legal in Washburn, Wisconsin, but are subject to local regulations and state oversight. As a small city in Bayfield County, Washburn likely requires STR operators to obtain proper licensing and permits, comply with zoning restrictions that may limit rentals in certain residential areas, and adhere to safety requirements including smoke detectors and occupancy limits. Wisconsin state law requires STR operators to collect and remit room taxes, and many municipalities have implemented registration requirements and regular inspections. Recent changes across Wisconsin have seen increased regulation of STRs, with many communities implementing stricter zoning controls and limiting the concentration of rentals in residential neighborhoods to address housing availability concerns. Property owners in Washburn should check with the city clerk's office for specific local ordinances, as regulations can vary significantly between municipalities and may include restrictions on the number of guests, parking requirements, and noise ordinances that particularly affect lakefront properties popular with tourists visiting the Lake Superior area.

The best areas for Airbnb investment in Washburn, Wisconsin are the Historic Bayfront District near the harbor and marina, which attracts tourists visiting the Apostle Islands National Lakeshore and offers prime access to Lake Superior activities like sailing, fishing, and ferry services to the islands. The downtown area around Central Avenue provides proximity to local restaurants, shops, and the annual Washburn Brownstone Days festival, making it ideal for visitors exploring the town's historic architecture and cultural events. Properties near Thompson's West End Park and the recreational trail system appeal to outdoor enthusiasts visiting for hiking, biking, and cross-country skiing, particularly during peak summer and winter seasons. The residential areas within walking distance of Washburn Marina capture both leisure travelers and business visitors associated with the commercial fishing industry and seasonal tourism operations, while locations near the historic Washburn Cultural Center benefit from arts events and community gatherings that draw regional visitors year-round.

In Washburn, Wisconsin, Airbnb properties are subject to Wisconsin's state sales tax of 5% on lodging accommodations, which applies to rentals of less than 30 consecutive days. Additionally, Bayfield County imposes a room tax of 5.5% on transient lodging, bringing the total occupancy tax to approximately 10.5%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Wisconsin around 2018. Airbnb remits these taxes quarterly to the Wisconsin Department of Revenue and applicable local jurisdictions on behalf of hosts. Property owners who collect taxes independently must register with the Wisconsin Department of Revenue and file monthly or quarterly returns depending on their volume. Exemptions generally apply to stays of 30 days or longer, certain government employees on official business, and some nonprofit organization bookings. Local municipal taxes may also apply depending on specific Washburn city ordinances, though many smaller Wisconsin municipalities rely primarily on county-level room taxes rather than implementing additional city-specific lodging taxes.

Starting an Airbnb in Washburn, Wisconsin requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup expenses including professional photography, listing creation, and basic renovations run $2,000-3,000. Permits and fees vary but expect $500-1,000 for business licenses, short-term rental permits, and potential zoning approvals. Insurance costs approximately $1,200-1,800 annually for short-term rental coverage. Utility setup and deposits for electricity, water, internet, and cable total around $500-800. First six months of operating costs including utilities ($300/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) amount to approximately $4,500. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $3,000-5,000 to initial costs.

Airbnb properties in Washburn, Wisconsin, a small lakeside community on Lake Superior, typically generate modest profitability with average daily rates ranging from $80-150 during peak summer months (June-August) and dropping to $50-80 in off-season periods. Properties near the lake or with water views can achieve 60-70% occupancy rates during summer but often fall to 20-30% in winter months, resulting in annual gross revenues of $15,000-35,000 for typical 2-3 bedroom properties. Operating expenses including cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($1,200-2,000 annually), and maintenance typically consume 40-55% of gross revenue. Successful properties in the area, particularly those marketed as "Lake Superior retreats" or "fishing cabins," achieve net profit margins of 25-35% by focusing on outdoor recreation amenities, partnering with local fishing guides, and maintaining high cleanliness standards. Properties within walking distance of Washburn's marina or featuring amenities like fire pits, kayaks, or fishing equipment command premium rates and achieve better year-round occupancy, with some owners reporting annual net profits of $8,000-15,000 on properties valued at $200,000-350,000, though success heavily depends on effective marketing to tourists from Minneapolis-St. Paul and Milwaukee metro areas.

Based on Washburn, Wisconsin's tourism market driven by its Lake Superior location and proximity to the Apostle Islands, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%. Properties near the waterfront or with lake views command premium rates of $150-250 per night during peak summer months (June-September), while off-season rates drop to $80-120 per night. The seasonal nature of tourism means occupancy rates average 45-60% annually, with summer months reaching 75-85% occupancy. Initial investment recovery typically occurs within 7-10 years, with monthly gross revenues averaging $2,500-4,500 for well-positioned properties. The market benefits from consistent demand from fishing enthusiasts, summer vacationers, and fall color tourists, though winter months see significant drops in bookings. Properties requiring $20,000-40,000 in renovations and furnishing can expect to reach profitability within 18-24 months, with successful operators like those managing multiple units in the Bayfield County area reporting combined portfolio returns of 10-15% annually.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Washburn, Wisconsin. Local real estate agents like those at Coldwell Banker Mulleady and RE/MAX Northwoods in the Bayfield County area have experience with vacation rental properties near Lake Superior. National services include Awning, which provides market analysis and property management for Airbnb investments, and Mashvisor, offering rental property analytics and investment tools. AirDNA provides short-term rental data and market insights for the Washburn area, while RedAwning specializes in vacation rental property sales and management. Local property management companies like Apostle Islands Property Management can assist with ongoing operations, and national platforms like Vacasa and AvantStay offer full-service solutions for investors. Real estate investment firms such as Roofstock and Arrived Homes occasionally feature properties in northern Wisconsin markets, while local agents at Century 21 Bayshore and Edina Realty have knowledge of the seasonal rental market dynamics in the Lake Superior region.