Is Wausau, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Wausau, Wisconsin, begin by researching local regulations through the City of Wausau Planning Department, as the city requires short term rental operators to obtain a conditional use permit and business license, with properties needing to meet specific zoning requirements and safety standards including smoke detectors.

Launch checklist

• Contact the Marathon County Health Department for any additional health permits and ensure compliance with Wisconsin state tax requirements by registering with the Department of Revenue for sales tax collection.
• Find a suitable property in residential zones that allow short term rentals, focusing on areas near downtown Wausau, the Wisconsin River, or Rib Mountain for tourist appeal, with typical property costs ranging $150,000 to $300,000 for single family homes.
• Furnish the property with essential amenities including Wi Fi, cable TV, full kitchen appliances, linens, towels, and local guidebooks highlighting attractions like Granite Peak Ski Area and the Leigh Yawkey Woodson Art Museum.
• Create listings on Airbnb, VRBO, and Booking.com with professional photos showcasing the property's proximity to outdoor activities and downtown attractions, setting competitive rates around $80 to 150 per night based on season and local events.
• Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or installing smart locks.

To identify profitable short term rental properties in Wausau, Wisconsin, focus on locations within 2 to 3 miles of downtown, near the Wisconsin River waterfront, or close to Granite Peak Ski Area and Rib Mountain State Park for seasonal demand.

What to prioritize

• Target 2 to 4 bedroom single family homes or condos built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces like decks or patios that appeal to families and outdoor enthusiasts.
• Analyze pricing by researching comparable Airbnb listings in Wausau averaging $80 to 150 per night, calculate potential annual revenue of $25,000 to 45,000 against acquisition costs under $200,000, and aim for properties that can achieve 50 to 65% occupancy rates.
• Study competition using AirDNA and Mashvisor to identify gaps in the market, particularly properties that cater to business travelers visiting Aspirus Wausau Hospital, insurance companies like Employers Mutual, or seasonal tourists visiting for skiing, hiking.
• Utilize local resources including the Wausau Region Chamber of Commerce for market insights, Marathon County tourism data, Zillow and Realtor.com for property analysis.

To obtain an Airbnb/STR permit in Wausau, Wisconsin, you must first contact the City of Wausau Planning Department at City Hall located at 407 Grant Street to determine if short term rentals are permitted in your specific zoning district, as the city requires conditional use permits for STRs in most residential areas.

Documents and approvals

• You'll need to submit an application for a conditional use permit along with a site plan showing parking arrangements, a floor plan of the rental unit, proof of property ownership or authorization from the owner, a $350 application fee.
• Additionally, you must obtain a business license from the City Clerk's office for approximately $25 to 50 annually and register with the Wisconsin Department of Revenue for tax collection purposes.
• The conditional use permit process typically takes 4 to 6 weeks and requires a public hearing before the Plan Commission, where neighbors can provide input on your application.
• Once approved, you must comply with Wausau's specific requirements including maximum occupancy limits based on bedrooms, adequate off street parking (typically 2 spaces minimum), proper egress windows in sleeping areas, smoke and carbon monoxide detectors in all required locations.

Short term rentals (STRs) are legal in Wausau, Wisconsin, but operate under specific municipal regulations that the city has developed over recent years.

Core operating requirements

• The city requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short term rentals to certain residential districts while prohibiting them in some neighborhood zones to preserve residential character.
• Property owners must register their rentals, maintain liability insurance, provide emergency contact information, and ensure compliance with building and fire safety codes.
• Wausau has implemented occupancy limits based on property size, parking requirements, and noise ordinances to address neighbor concerns.
• The city has been refining these regulations since approximately 2018 to 2020 as the STR market grew, with recent updates focusing on enforcement mechanisms and clearer guidelines for operators.
• Properties in historic districts or certain residential zones may face additional restrictions, and the city maintains the right to revoke licenses for repeated violations of noise, parking, or occupancy rules.

The best Airbnb investment areas in Wausau, Wisconsin include the downtown Historic District near the Grand Theater and arts venues, which attracts cultural tourists and business travelers visiting corporate headquarters like Aspirus Health; the Rib Mountain area including neighborhoods near Granite Peak Ski Area.

In Wausau, Wisconsin, Airbnb hosts are subject to both state and local lodging taxes.

Taxes and filing responsibilities

• The Wisconsin state room tax is 5% on gross receipts from lodging rentals, which applies to all short term rentals including Airbnbs.
• Marathon County imposes an additional 3% room tax, bringing the total lodging tax to 8%.
• The City of Wausau may also impose a local room tax of up to 8%, though the current rate is typically around 3 to 5%, making the combined rate approximately 11 to 13%.
• These taxes are collected from guests at the time of booking and must be remitted monthly to the Wisconsin Department of Revenue for state taxes and to Marathon County for county taxes by the 25th of the following month.
• Airbnb may collect and remit these taxes automatically for hosts in some cases, but hosts remain ultimately responsible for compliance.
• Properties rented for 30 days or more are generally exempt from room taxes, and certain agricultural or educational lodging may qualify for exemptions.
• Hosts must register with the state and obtain a seller's permit, and may need to register separately with local jurisdictions depending on municipal requirements.

Starting an Airbnb in Wausau, Wisconsin requires approximately $180,000 to 220,000 in total initial investment.

Cost breakdown

• Property purchase costs around $150,000 based on median home prices in the area as of 2023.
• Furnishing a 2 to 3 bedroom property typically runs $8,000 to 12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances.
• Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total approximately $3,000 to 5,000.
• Permits and fees vary but expect around $500 to 1,500 for business licenses, short term rental permits, and inspection fees depending on local Wausau regulations.
• Insurance premiums for short term rental coverage average $1,200 to 2,000 annually, with the first year paid upfront.
• Utility deposits and connections for electricity, gas, water, internet, and cable typically cost $800 to 1,200 initially.
• First six months of operating costs including utilities ($200 to 300/month), cleaning services ($75 to 100 per turnover), supplies and maintenance ($150 to 250/month), platform fees (3% of bookings).

Airbnb properties in Wausau, Wisconsin typically generate annual revenues between $15,000 to $35,000 for entire homes, with average daily rates ranging from $80 to $150 depending on property size and location near attractions like Rib Mountain or downtown areas.

Profitability indicators

• Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($30 to 50 per turnover), property management (10 to 20% of revenue), utilities ($150 to 300 monthly), insurance ($1,200 to 2,000 annually).
• Net profit margins typically range from 15 to 35% for well managed properties, with higher end homes near ski areas or the Wisconsin River commanding premium rates during peak seasons from June through October and winter sports months.
• Success factors include strategic pricing during events at the Grand Theater, University of Wisconsin Stevens Point activities, and outdoor recreation seasons, with properties featuring amenities like hot tubs, fire pits.
• Properties purchased specifically for short term rental investment in Wausau's desirable neighborhoods like Riverside or areas near Stewart Park have shown ROI of 8 to 12% annually when factoring in mortgage costs, though this varies significantly based on purchase price, financing terms.

Airbnb investments in Wausau, Wisconsin typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% based on current market conditions.

Return planning figures

• Properties in downtown Wausau near the Wisconsin River and close to Granite Peak Ski Area tend to perform better, with average daily rates of $85 to 120 during peak seasons and occupancy rates of 65 to 75% annually.
• Initial investment recovery usually occurs within 7 to 10 years, with monthly gross rental income averaging $1,200 to 2,000 for well positioned 2 to 3 bedroom properties.
• The market benefits from year round tourism including winter sports enthusiasts, summer outdoor recreation visitors, and business travelers.
• Operating expenses typically consume 35 to 45% of gross rental income including cleaning, maintenance, insurance, and platform fees, making net annual returns more conservative at 6 to 8% for most investors in the Wausau market.

STRSearch is a national platform that specializes in identifying profitable short term rental properties for investors looking to enter the Airbnb market in Wausau, Wisconsin.

Companies and resources

• Local real estate agents like those at Coldwell Banker Action and Century 21 Gold Key have experience helping investors identify properties suitable for vacation rentals in the Wausau area.
• National services include AirDNA for market analysis and revenue projections, Mashvisor for investment property analysis, and BiggerPockets for connecting with local investors and agents familiar with STR regulations.
• RedAwning and Awning provide property management and optimization services for Airbnb investments.
• Local property management companies like Northwoods Property Management and Wisconsin Vacation Rentals offer turnkey solutions for investors.
• Real estate investment firms such as Roofstock and Arrived Homes occasionally feature Wisconsin markets including smaller cities like Wausau.
• Local mortgage brokers at Associated Bank and Peoples State Bank understand investment property financing for vacation rentals, while services like STR Helper and HostGPO provide operational support for new Airbnb hosts in the central Wisconsin market.