AirBNB Northern Michigan Property?

Question

Hello! I'm looking to connect to those who currently AirBNB properties in popular Northern Michigan cities: Traverse City, Boyne City, Petoskey, Harbor Springs, Mackinaw City, etc.  I took a big 4 day road trip through some cities to look around these past few days and am very interested in purchasing a property to AirBNB.  Just wondering how your experience has been (Worth the investment? Easy to find cleaning crew/handyman?) and potentially what other cities to consider?

When looking into it briefly, it looks like Mackinaw City, Traverse City, & Petoskey are the most restrictive on AirBNBs whereas Boyne City and Harbor Springs allow them with a permit, any information on how difficult it is to get one of these permits for an out of state investor?

Would greatly appreciate any Realtor recommendations that you've worked with in purchasing an AirBNB who would know more about local ordinances/best areas to buy as well.

Thanks for the help!

Tabitha L. Cox · Answer

@Landon Bleau if you want to look a little farther south along the Lake Michigan coast I run the area from Grand Haven to Ludington. I believe Muskegon through Montague are up and coming vacation areas that have been passed over for a long time. These areas are not overly regulated yet, with the most restrictions I’ve run across so far being they can only STR for 120 days a year, or the rentals have to be a month at a time. Because of the weather those STR often do 6 month ‘winter rentals’ and I have not heard many complain about not finding a renter for that timeframe. I have been learning the investor language, though still working on applying and practicing as I’ve worked with investor clients who flip, as well as do STR and LTR. I’ve flipped two personal homes, and just bought my first duplex.

Trisha Witte · Answer

I second Muskegon. I think it’s going to continue to trend toward the Grand Haven and Traverse City type locations over the next 5-10 years. There are whispers of regulations though.

Vickie Smith · Answer

Good morning!  I am a realtor in Traverse City -- I've lived here for 20 years!  My broker also manages horse show rentals which are longer term summer rentals.  I also manage a small resort on Spider Lake and a cottage on Torch Lake.  I'm happy to discuss STR restrictions and rental potential in this area!  I'll send you a message :)

Charles Kao · Answer

Many of the lakes have local STR management although not cheap.  Your biggest issue is simply finding inventor. STR in those areas do well year round because of fall colors and ski resorts and snow mobiling if they are on a lake, but on the flip side you are paying significant more because they serve dual purpose.  I have found that the return on a SFH STR in those areas is minimal in comparison to other assets as they require a large down payment, but with management taking on 18-30% of rents it's much more difficult to manage.  If you find a cleaner to manage it life is easy but it's also difficult to maintain because you lose them to others that can provide more consistent work.  If you are looking to make some money and have a place to use 4-5 times a year, then from that aspect it's a great investment but solely looking at numbers I could find others that perform much better.  Those I know that do really well often self manage as there is where most of the margin is made up.

Dandan Weinrich · Answer

Traverse city has str limit in downtown area but certain zoning are exempted. Township like eastbay and long lake are more friendly with a straightforward permitting system. Garfield township is a straight no str. There are lots opportunities in easy bay township or downtown Condos (where str is allowed.) direct west of TC has lots str experience opportunities (water front/ farm house , wineries), direct east close to Williamsburg has great opportunities even for long term summer rental to the horse show participant (June to Sep). It is a great market, yes it is expensive but I feel tourists are paying big city dollars to be here in the summer, ADR on return is very attractive.

Nikhil Jain · Answer

I am also currently in the market looking for a STR, and have been navigating the traverse city zoning map listed on the city's website to identify pockets that allow STR. I know this post is 3 years old, but still was hoping to get some insights and pointers about the areas nearby.

Fennville, Saugatuck, Douglas, Stevensville, New Buffalo are the areas that I have heavily researched upon and found them to be more or less STR friendly, for now! However the inventory in the area seems to be really low. Another factor to consider, the main season for tourism seems to be between Memorial day to Labour day, and pretty much dies down completely after that. So trying to divert my search to Northern Michigan, since there are lot more activities to do in Winter there. Does anybody know which areas are good, and have year round occupancy?

Dandan Weinrich · Answer

Hello Landon, I am happy to share with you my experience. I own and operate 4 Str and expanding into a few more this year. I am NOT a realtor and I found it was not easy to find a realtor who can speak my language. If you find one let me know too :)

John Teachout · Answer

I was just in Grand Haven this evening walking the pier. The weather and sunset were both spectacular. (It'll be different 3 months from now, lol)

Anyway, I just heard today that the Nubs Nob ski resort in Harbor Springs is closed permanently. This may impact the opportunity for winter STR there so take that into consideration. That said, their website seems current so maybe it's a rumor.

The Traverse City area has and will continue to be a major vacation destination but not sure about STR opportunities around there. I think just about anywhere in northern MI is going to be at least fair to good for STR as there's mushroom hunters in the spring, summer vacationers, fall colors and deer hunters and winter sports. "If you build it, they will come"...

Samara Anne Slocombe · Answer

Hello Landon! I grew up in Traverse City and help my parents manage their portfolio of STR in that area. Feel free to connect with me 231-271-1122 to discuss it further, you can not find a better place to invest!

Sheena Konas · Answer

Hey Nikhil! Just messaged you. I am a realtor in Traverse City. Some great spots to check out, Slabtown condos - only a few come with STR but great spot and popular for travel nurses in the winter. The GT resort - older condos but rent well during the horse shows and have a low HOA. Elmwood Township does not have any STR licenses available and do not predict any coming available for a few years. Let me know if I can help at all.

AirBNB Northern Michigan Property?

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