Sturgis, SD Short Term Rental Tips & Resources

[Jennifer Frank]

This is my first post on BP though I've been consuming content for years. My husband and I own a very successful STR in Denver, Colorado and are now expanding our STR portfolio to the Black Hills of South Dakota. We put an offer in on a house used for STR in Sturgis, SD and are looking for advice and resources on BP for this new venture. Does anyone have any STR management recommendations(or insurance, lawyers, accountants, etc)? I've contacted a few companies but either haven't heard back, or they don't serve the Sturgis area. I would also love to connect with anyone investing in or doing real estate business in the Black Hills. I'm also happy to connect on anyone interested in investing in or setting up an STR in Colorado.

[Joe Splitrock]

As someone who has vacationed in the Black Hills over 50 times, I can tell you that Sturgis is one of the least desirable locations in the Black Hills (outside of when the rally is going on). The Black Hills are a large area. Sturgis is on the edge of the forest and far away from popular tourist locations further south. Hill City and Keystone are the prime area near Mount Rushmore and countless tourist attractions. Custer state park is even farther south but very accessible from Hill City / Keystone or Rapid City. Lead / Deadwood is further north and has gained popularity for adults due to gambling in Deadwood and is a good winter area due to Terry Peak skiing and snowmobiling. Spearfish Canyon is farther to the north, but also popular with lots of cabins along Spearfish Canyon Highway running south (the best drive in the Black Hills). That is more to the west and in the thick of the forest. Lots of great hikes.  

Sturgis is kind of run down and nobody really goes there when the rally isn't going on. Bars in Sturgis make most all their money in a two week span for the year. We stayed at a hotel there one summer for $60 a night and rally week it was $600 a night, so be prepared for major seasonality. I am sure STR prices are higher this year. The Black Hills were very popular during the pandemic and hotel prices are crazy out there this summer. We are staying away because too many people are traveling right now. It is just built up pandemic demand.

I personally would not buy in Sturgis. Of course I don't know what the place looks like and where in Sturgis it is located. The city occupies a large geography, so if you have a cool cabin in the hills, it may be fine. Just be aware it is a long drive to get to anything accept Deadwood or Spearfish, which are still both a 30 minute drive.

I am not trying to be negative. I know the area very well so happy to answer any questions.