Is Wilmot, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Wilmot, Wisconsin, begin by researching Kenosha County's zoning regulations and contacting the Wilmot Township office to understand local short-term rental requirements, as Wisconsin allows municipalities to regulate vacation rentals independently. Obtain necessary permits including a business license from Wisconsin Department of Revenue, register for state and local taxes (Wisconsin charges 5.5% state sales tax plus local taxes), and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by searching real estate listings in Wilmot's residential areas, considering proximity to attractions like Lake Geneva (15 minutes away) and ensuring the property meets safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture, linens, kitchen essentials, and amenities that appeal to visitors exploring southeastern Wisconsin's lake region, including items like kayaks or bicycles if near water access. Create your Airbnb listing with professional photos highlighting the rural Wisconsin charm, mention nearby attractions like Lake Geneva, Burlington, and easy access to Milwaukee (45 minutes), and set competitive pricing based on comparable properties in the area. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, and ensuring compliance with Wisconsin's innkeeper laws while keeping detailed records for tax purposes including the state's transient accommodation tax requirements.

To identify profitable short-term rental properties in Wilmot, Wisconsin, focus on locations within 1-2 miles of Geneva Lake and Chain O' Lakes, as these waterfront areas drive the highest demand from Chicago and Milwaukee visitors seeking weekend getaways. Target properties with 3-4 bedrooms, 2+ bathrooms, lake views or water access, outdoor amenities like fire pits or docks, and updated kitchens since families and groups dominate this market. Analyze pricing using AirDNA and Mashvisor to benchmark against similar lakefront properties, aiming for $200-400 nightly rates during peak summer months (June-August) and $150-250 during shoulder seasons. Research competition by studying existing Airbnb and VRBO listings within a 3-mile radius, noting their occupancy rates, amenities, and guest reviews to identify gaps in the market. Utilize tools like Rabbu and AllTheRooms for market analysis, partner with local property management companies like Lake Geneva-area vacation rental specialists, and connect with Walworth County tourism boards for seasonal demand patterns, while monitoring boat launch access points and proximity to attractions like Grand Geneva Resort to maximize your property's appeal to the recreation-focused visitor base that drives Wilmot's STR market.

To obtain an Airbnb/STR permit in Wilmot, Wisconsin, you must first contact the Kenosha County Planning and Development Department since Wilmot is an unincorporated community in Kenosha County, and apply for a Conditional Use Permit for short-term rental operations. Submit your application with required documents including property deed or lease agreement, site plan showing parking and property layout, proof of liability insurance (minimum $1 million coverage), septic system inspection certificate, well water testing results if applicable, and a detailed operational plan describing guest capacity, noise control measures, and emergency contact information. The application fee is approximately $350-500, with additional inspection fees of $150-250. The process typically takes 6-8 weeks and includes a public hearing before the County Board of Adjustments, neighbor notification requirements (properties within 300 feet must be notified), and a final inspection. Specific Wilmot area requirements include maintaining adequate off-street parking (minimum 2 spaces per rental unit), compliance with rural septic and well regulations, adherence to agricultural zoning restrictions if applicable, maximum occupancy limits based on septic capacity, and registration with the Wisconsin Department of Revenue for tax collection purposes.

Short-term rentals (STRs) in Wilmot, Wisconsin are generally legal but subject to local regulations and zoning restrictions. Wilmot, located in Kenosha County, follows county and state guidelines that typically allow STRs in residential areas with proper permits and compliance with safety requirements including smoke detectors, carbon monoxide detectors, and occupancy limits. The village likely requires STR operators to obtain business licenses and may have restrictions on the number of guests, parking requirements, and noise ordinances. Properties in certain residential zones may face limitations on rental duration (often requiring minimum stays of 2-7 days) and some neighborhoods or homeowner associations may prohibit STRs entirely. Recent changes in Wisconsin have generally moved toward more standardized regulations, with many municipalities updating their ordinances between 2020-2023 to address the growing STR market, though specific recent changes in Wilmot would need verification with the village clerk's office as local regulations can vary significantly and change frequently.

The best areas for Airbnb investment in Wilmot, Wisconsin include the lakefront properties along Powers Lake and Lake George, which attract summer tourists, fishing enthusiasts, and water sports visitors from nearby Chicago and Milwaukee metropolitan areas. The downtown Wilmot area near Highway 50 offers good potential due to its proximity to the Wilmot Mountain ski resort, drawing winter sports tourists and weekend visitors year-round. Properties near the Chain O'Lakes region are highly attractive for vacation rentals as this area sees consistent tourism from boaters, anglers, and families seeking lake house experiences, particularly during peak summer months from May through September. The residential areas within walking distance of local restaurants, bars, and recreational facilities along the main corridors provide steady rental demand from visitors attending local events, family gatherings, and those seeking quiet weekend getaways from urban areas. Additionally, properties near the Wisconsin-Illinois border benefit from cross-state tourism and are attractive to visitors exploring both states' recreational offerings.

Airbnb properties in Wilmot, Wisconsin are subject to Wisconsin state sales tax of 5% and room tax of 5%, totaling 10% on lodging stays. Kenosha County imposes an additional 8% room tax, bringing the combined rate to approximately 18% on short-term rental accommodations. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for Wisconsin properties. Airbnb remits the collected taxes quarterly to the Wisconsin Department of Revenue and applicable local jurisdictions on behalf of hosts. However, individual hosts remain responsible for registering with local tax authorities and may need to file returns even when Airbnb collects taxes, particularly for any additional local municipal taxes that may apply in Wilmot. Properties rented for 30 days or longer are generally exempt from room taxes but may still be subject to sales tax. Hosts should verify current rates and requirements with the Wisconsin Department of Revenue and Kenosha County as tax rates and collection procedures can change, and some smaller municipalities may have additional lodging taxes not automatically collected by platforms.

Starting an Airbnb in Wilmot, Wisconsin requires approximately $285,000-$320,000 in total initial investment. Property purchase costs around $250,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Kenosha County range from $500-$1,500 depending on local regulations and business license requirements. Short-term rental insurance costs approximately $1,200-$2,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable total around $800-$1,200. First six months of operating costs including utilities ($200/month), cleaning supplies ($100/month), maintenance reserves ($150/month), property management software ($50/month), and marketing ($100/month) amount to approximately $3,600. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-$5,000 to the initial investment.

Airbnb properties in Wilmot, Wisconsin show moderate profitability potential with average nightly rates ranging from $120-180 during peak summer months and $80-120 in off-season periods, generating approximately $18,000-28,000 in annual gross revenue for well-positioned properties. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-3,500 yearly. Properties near Lake Geneva and Chain O'Lakes command premium rates due to water access and recreational activities, with lakefront cabins achieving 65-75% occupancy rates during May-September compared to 45-55% for inland properties. Success factors include proximity to water activities, ski resorts like Grand Geneva, and Chicago's weekend market (90-minute drive), with properties featuring hot tubs, fire pits, and boat access showing 20-30% higher booking rates. Net profit margins typically range from 15-25% for owner-operated properties, though this can drop to 8-15% when factoring in mortgage payments and professional management, making Wilmot a viable but competitive market requiring strategic positioning and amenity differentiation to achieve optimal returns.

Airbnb investments in Wilmot, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to Lake Geneva and seasonal tourism demand. Properties in Wilmot generally reach profitability within 18-24 months, with peak performance during summer months (June-August) when occupancy rates can reach 70-85% and average daily rates of $150-250 for well-appointed vacation rentals. The market benefits from Chicago-area visitors seeking weekend getaways, with annual gross rental yields averaging $25,000-$40,000 for typical 2-3 bedroom properties, though investors should factor in seasonal fluctuations where winter months may see occupancy drop to 30-40%, requiring strong summer performance to achieve target returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Wilmot, Wisconsin. Local real estate agents in the Lake Geneva area such as Keefe Real Estate and Century 21 Affiliated serve the Wilmot market and have experience with vacation rental properties given the region's proximity to popular lakes. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for Airbnb investors in Wisconsin markets. RedAwning and Vacasa offer property management services that can help investors identify suitable properties while providing ongoing management. Local property management companies such as Lake Geneva Property Management and Wisconsin Vacation Rentals have expertise in the southern Wisconsin lake region market. Real estate investment firms like Roofstock and Awning (now part of RedAwning) have historically operated in Wisconsin markets to help investors find turnkey short-term rental properties, while platforms like Rabbu and Hostfully provide market analysis specific to vacation rental potential in lake communities like Wilmot.