Is Williams Bay, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Williams Bay, Wisconsin, begin by researching local zoning ordinances through the Williams Bay Village Hall, as the village requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to owner-occupied properties or designated areas. Contact the Williams Bay Building Department at (262) 245-2700 to obtain necessary permits including a business license ($50-100 annually), occupancy permit, and potential conditional use permit if required by zoning. Find a suitable property within village limits, ensuring it meets fire safety codes with proper egress windows, smoke detectors, and carbon monoxide detectors as mandated by Wisconsin state law and Walworth County health department regulations. Furnish the space with quality furniture, linens, kitchen essentials, and Wi-Fi, focusing on lake-themed decor given Williams Bay's location on Geneva Lake, while ensuring compliance with Americans with Disabilities Act guidelines for accessibility. Create your Airbnb listing with professional photos highlighting proximity to Geneva Lake attractions, local restaurants like Sprecher's Restaurant & Pub, and seasonal activities, setting competitive rates based on comparable lakefront properties ($150-400/night depending on season and size). Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, collecting and remitting Wisconsin's 5.5% state sales tax plus Walworth County's 0.5% room tax, and coordinating with local cleaning services and maintenance providers to ensure consistent guest satisfaction and regulatory compliance.

To identify profitable short-term rental properties in Williams Bay, Wisconsin, focus on lakefront or lake-view properties within walking distance of Geneva Lake, as this resort town's primary draw is water recreation and scenic beauty. Target 3-4 bedroom homes or condos with modern amenities, outdoor spaces like decks or patios, and parking for multiple vehicles, as families and groups visiting Lake Geneva area typically stay 2-4 nights and value space and convenience. Analyze pricing by researching comparable Airbnb and VRBO listings within a 2-mile radius of the lake, noting that peak season rates (May-September) can command $300-600 per night while off-season drops to $150-300, with occupancy rates typically ranging 60-75% annually. Study competition using AirDNA or Mashvisor to assess market saturation, focusing on properties with consistent 4.5+ star ratings and high booking frequency, while identifying gaps in amenities or property types. Utilize local resources including Walworth County property records for purchase prices and tax assessments, consult with Geneva Lake area realtors familiar with STR regulations, and monitor Williams Bay village ordinances as Wisconsin municipalities increasingly regulate short-term rentals, ensuring compliance with local zoning laws and potential licensing requirements before investing.

To obtain an Airbnb/STR permit in Williams Bay, Wisconsin, you must first contact the Williams Bay Village Hall at 1 Williams Bay Street or call (262) 245-2700 to obtain the short-term rental license application, as the village requires all properties rented for less than 30 days to be licensed. Submit the completed application along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage naming the village as additional insured, floor plan showing maximum occupancy, contact information for a local property manager within 30 minutes of the property, and Wisconsin Department of Safety and Professional Services registration. Pay the annual license fee of approximately $200-300 plus a one-time inspection fee of around $100. The property must pass a safety inspection conducted by the village building inspector, checking smoke detectors, carbon monoxide detectors, fire extinguishers, emergency egress, and occupancy limits. Williams Bay specific requirements include maximum occupancy of 2 people per bedroom plus 2 additional guests, quiet hours from 10 PM to 8 AM, designated parking for each rental unit, and compliance with the village's noise ordinance. The approval process typically takes 4-6 weeks from submission of complete application, and licenses must be renewed annually by December 31st with updated insurance documentation and any necessary re-inspections.

Short-term rentals (STRs) are legal in Williams Bay, Wisconsin, but operate under specific municipal regulations that were updated around 2020-2022. The city requires STR operators to obtain a conditional use permit and business license, with properties limited to no more than two rental units per property and occupancy caps typically set at 10-12 people depending on the property size. STRs are prohibited in certain residential zoning districts close to the lake shore and downtown core to preserve neighborhood character, while permitted areas are primarily in mixed-use and specific residential zones. Recent changes include stricter parking requirements (minimum 2 spaces per unit), mandatory 24/7 local contact person requirements, noise ordinance compliance, and annual permit renewals with fees ranging from $200-500. The city has also implemented a complaint-based enforcement system and requires STR operators to maintain liability insurance, with violations potentially resulting in permit revocation and fines up to $1,000 per violation.

The most attractive areas for Airbnb investment in Williams Bay, Wisconsin are the lakefront properties along Geneva Lake's shoreline, particularly near the Williams Bay Beach and pier area, which draws summer tourists for swimming, boating, and water activities from May through September. The historic downtown district near Main Street offers proximity to local restaurants, shops, and the Geneva Lake Shore Path, attracting year-round visitors including couples seeking romantic getaways and families exploring the area's Victorian-era charm. Properties near the Yerkes Observatory area capitalize on educational tourism and stargazing enthusiasts, while locations within walking distance of the Williams Bay Beach provide premium rental rates during peak summer months when Chicago-area residents escape to the lake for weekends and vacations. The residential areas between Highway 67 and the lake offer a sweet spot of affordability while maintaining easy access to both the waterfront attractions and local amenities, making them ideal for investors seeking strong occupancy rates during the busy summer season when Geneva Lake hosts numerous festivals, boat shows, and outdoor concerts that drive consistent demand for short-term rentals.

Williams Bay, Wisconsin imposes a 5.5% local room tax on short-term rental accommodations including Airbnbs, which is collected in addition to Wisconsin's 5% state sales tax for a combined rate of approximately 10.5%. The local room tax is administered by Walworth County, and Airbnb hosts must register with the Wisconsin Department of Revenue to obtain a seller's permit and collect these taxes from guests at the time of booking. Hosts are required to file monthly returns by the 20th of the following month and remit collected taxes to the state, which then distributes the local portion to Williams Bay. The room tax applies to stays of less than 30 consecutive days, with exemptions typically available for stays of 30 days or longer, certain medical-related accommodations, and stays by government employees on official business. Airbnb may collect and remit these taxes automatically for hosts through their platform in Wisconsin, but hosts remain ultimately responsible for compliance and should verify that taxes are being properly collected and remitted.

The total cost to start an Airbnb in Williams Bay, Wisconsin is approximately $485,000-$565,000. Property purchase represents the largest expense at $350,000-$425,000 based on median lakefront and near-lake property prices in this popular Lake Geneva area resort town. Furnishing costs range from $25,000-$35,000 for quality furniture, bedding, kitchen essentials, and decor suitable for vacation rental guests. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $8,000-$12,000. Permits and fees including business license, short-term rental permit, and tax registrations cost approximately $1,500-$2,500. Insurance for short-term rental coverage runs $3,000-$4,500 annually. Utility setup and deposits for electricity, gas, water, internet, and cable total $1,000-$1,500. First six months operating costs including utilities ($2,400), cleaning services ($3,600), maintenance ($2,000), property management software ($600), marketing ($1,200), and miscellaneous expenses ($1,200) add up to approximately $11,000. Additional considerations include potential HOA fees common in Williams Bay lakefront communities ($2,000-$6,000 annually) and higher property taxes due to the desirable location near Lake Geneva.

Airbnb properties in Williams Bay, Wisconsin, typically generate annual revenues of $25,000-$45,000 for lakefront properties and $15,000-$28,000 for non-waterfront homes, with peak summer months (June-August) accounting for 60-70% of total bookings due to the area's proximity to Lake Geneva. Operating expenses generally range from $8,000-$15,000 annually, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($2,400-$3,600), insurance ($1,200-$2,000), and maintenance costs. Successful properties achieve profit margins of 35-55%, with lakefront cabins and homes with amenities like hot tubs, boat access, or fire pits commanding premium rates of $200-$400 per night during summer versus $80-$150 for standard properties. Key success factors include professional photography showcasing lake views, responsive guest communication, partnerships with local activity providers, and maintaining high cleanliness standards, as properties with 4.8+ star ratings typically achieve 70-80% occupancy rates compared to 45-60% for lower-rated listings. The market benefits from Chicago-area visitors seeking weekend getaways, with properties located within walking distance of the lake or downtown Williams Bay performing 25-30% better than those requiring drives to attractions.

Airbnb investments in Williams Bay, Wisconsin typically generate annual ROI of 12-18% due to the area's proximity to Lake Geneva and seasonal tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties near the waterfront or with lake access commanding premium rates of $200-400 per night during peak summer months (June-August) and $120-200 during shoulder seasons. Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties valued between $300,000-600,000. The market benefits from consistent demand from Chicago-area visitors seeking weekend getaways, with occupancy rates typically reaching 65-75% annually. Properties with 3-4 bedrooms, outdoor amenities, and lake proximity tend to perform best, generating gross rental yields of 15-22% before expenses, while net yields after property management, maintenance, and local taxes typically settle around 10-15%.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Williams Bay, Wisconsin. Local real estate agents in the Lake Geneva area such as Keefe Real Estate and Century 21 Affiliated serve Williams Bay and understand the vacation rental market dynamics around Geneva Lake. National services like AirDNA provide market analytics and revenue projections for Airbnb investments in the Williams Bay market, while Mashvisor offers property analysis tools for short-term rental investments in Wisconsin lake communities. Local property management companies such as Geneva Lake Rentals and Lake Geneva Country Meats Property Services can assist with identifying investment opportunities and managing Airbnb properties in Williams Bay. BiggerPockets marketplace and Roofstock also feature short-term rental investment properties in Wisconsin lake markets, and local mortgage brokers like First Weber Mortgage Services understand financing for vacation rental properties in the Geneva Lake region.