Is Minnesota or Wisconsin STR friendly?

Question

Dear BiggerPockets,

Looking for advice in regards to NOO STR somewhere between Minneapolis and Birchwood.  Long story short, last year I sold a property in Northern CA with the aim of buying in Truckee, CA (ski area); however between prices and wildfire risk we are now considering lakefront properties in MN or WI.

My wife is originally from Minnesota and her parents live in Birchwood, WI. Ideally we'd find a property between Minneapolis and Birchwood that we could use while visiting and STR otherwise. I have come across some properties on the MLS that look promising and could cash flow as long term according to Zillow which could be an option as a plan B. Our biggest concern is not really understanding the NOO STR regulations/permitting in the area and access to cleaners.

Thank you in advance for any feedback!

Christian

Christian Espana · Answer

@Daniel Anshus that is what I’m finding out.  Also don’t want to get cornered where new regulations may come after I purchase, which is why I am going to look for a property that can at least break even as a long term rental.

Daniel Anshus · Answer

@Christian Espana depends on the city and if rural the county. Most places in Minnesota are friendly to str. But there are an increasing amount that are outlawing or limiting them. I would speak with a realtor who is in the areas you’re considering buying.

Alyssa Strom · Answer

@Christian Espana Northern WI is generally STR-friendly since cabin rentals are incredibly popular in these areas but always double check with the city/county. I'd reach out to a few current Airbnb listings for cleaning recommendations in the area you choose. I'd say the closer to the Twin Cities the better and you'll crush it the summer and winters will be slow. Happy to connect you with a few investors with similar properties if you'd like!

Daniel Anshus · Answer

@Christian Espana that is a good idea. You need to go into any investment with multiple strategies, especially when considering STR. STR's are becoming increasingly targeted for legislation, especially in Minnesota. Best of luck!

Christian Espana · Answer

@Alyssa Strom it sounds like I will be making lots of calls to ensure I’ll be able to get a permit; but hopefully as you stated lakefront properties may be more friendly to vacation rentals.  If you can connect me with anyone that can help that would be fantastic.  I will send you my contact information in a private message. Thank you!

Peter Falk · Answer

Yes, this is definitely not a Statewide question, but one you need to investigate at the local level.  Madison, WI has in my opinion largely regulated short term rentals out of making sense in most cases (30 day max short-term rental if you aren't renting out part of the house you actually live in), so within the City of Madison, largely left to maybe a furnished month to month option.  Other municipal areas have no/very few specific ordinances on short term rentals.

Luke Carl · Answer

I don’t see why not? You can usually google the area followed by “short term rental” and figure out who you need to talk to at the city/county. Ask lots of questions!

Is Minnesota or Wisconsin STR friendly?

Most Popular Reply