AIRBNB in Door County, Wisconsin?

Question

Hello everyone,

I was wondering if anyone had any insight about AIRBNBs in Door County, Wisconsin?  I know it is a popular tourist destination and potentially thought it may be more lucrative than doing conventional long term rentals.

Kevin Rea · Answer

@Kahner Delchambre

Here is my 2 cents and why I am investing in Door County (and why I am okay with inspiring other investors to join in even though they might be a competitor).

In the past Door County was against change and locals controlled most decisions. I read an article recently about how one town changed its rental ordinances to be more friendly to short term rentals and is hiring an agency to oversee everything. I feel this is the beginning for all towns and villages to do the same.

Budgets are tight and these places are realizing that when people stay for a week or less they spend way more money shopping and eating out.

I could go on and on about the positives. I also think that COVID helped wake people up but that is another can of worms.

I am seeing big projects that got put on hold from the housing crash of 2006 being built now. And there does seem to be a big influx of condos which may or may not tap into the short term rentals depending on their restrictions.

Also towns are creating more bike and walking paths. This is expanding the “walkability” range of the towns so investors can build out further.

My finger is getting tired so I will wrap it up …

There is maybe 1 in 10 locals that complain about every and anything and as long as the complainers feel that they are the majority then they will keep barking. So I want more short term rentals to help DC and it’s locals realize how much all that influx of money will help their community.

BTW it probably wasn’t profitable for a company to install broadband internet in DC but now it is and locals should be happy about that.

Pam Smith · Answer

@Rebecca E. we have a place in Ephraim and it was very successful our first summer without any reviews and without it getting listed until mid-May. Our CoC was about 20%. That being said, some of the municipalities are talking about regulating STRs but so far they've been very reasonable (outside of Sevastopol) and don't seem willing to hurt STR owners. Of course that can change, but right now, it's okay. I was very worried earlier this week, but received the meeting notes from this week's meeting and was pleased coming out of it. Very reasonable and definitely willing to partner. The biggest hurdle here is finding a great team (cleaners, handyman, plumber) and ensuring that your neighbors are fine with it. Also, inventory is extremely low. Feel free to PM me with any other questions about this area.

Luke J Nelsen · Answer

I used to work up there and the tourism season is very short. You have from May-October to make your money and then it grinds to a halt up there. The politics are also very touchy as others have mentioned. There is "locals vs tourist" tension that may cause some issues for you depending on where you are looking to invest. I personally do not own any real estate up there but did look into a property near Kangaroo Lake in Baileys Harbor at one point. The numbers just didn't make sense as the tourism season is too short for me.

Rebecca E. · Answer

@Luke Baumbach

I'm surprised that Minocqua has more restrictions since tourism is almost the biggest business up there.  Rhinelander is the same way:  very restricted I hear.

Corina Eufinger · Answer

I've found the Lake Country as a whole doesn't seem to regulate them too much. I saw that the Town of Summit and City of Delafield have some regulations. Another choice may be Sun Prairie or Hartford.

Luke Baumbach · Answer

@Pam Smith my parents have run one in the Minocqua area. Like you said, it's not encouraged, but I don't see anyone cracking down on it. At the end of the day it's providing great places to stay for tourists, which benefits the local economy.

Rebecca E. · Answer

@Kevin Rea

Thanks for your thoughts.  I've been thinking of buying a vacation home in Door County or really on the lake up/over there.  I'm from Wisconsin but not Door County so the 75 mile rule would be an issue.

Do you have any suggestions about where to look where the restrictions aren't so onerous and where there might be some winter business?  Up around Minocqua, people rent for hunting or snowmobiling but I never hear anything but summer rentals there.

Pam Smith · Answer

This is our first summer with an Airbnb in Door County and so far it's done very well considering we didn't get it listed until mid-May. Fall hasn't booked up at all so it'll be interesting to see what happens. We don't plan on listing it over the winter so it's definitely a seasonal market for us, which means we need to make all of our cash flow in about 4 months.

Paul Sandhu · Answer

Is there a Jim Morrison tribute band there?  I think some STR with a Jim Morrison theme would go over well.  Come on baby light my fire.

AIRBNB in Door County, Wisconsin?

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