The short-term rental market in Racine, Wisconsin, is thriving, with an average daily rate of $221, 51% occupancy, and a strong revenue growth, making it an attractive and promising investment opportunity.
Thriving Short-Term Rental Market in Racine, Wisconsin
Racine, Wisconsin, is experiencing a robust and promising short-term rental market, making it an attractive destination for both investors and travelers. The city's unique blend of urban charm, rich industrial history, and stunning natural beauty along Lake Michigan drives a high demand for short-term rentals. According to recent data, short-term rentals in Racine achieve an average occupancy rate of 51%, with an average daily rate of $221.
This strong performance is further bolstered by the city's seasonal attractions, with peak demand during the summer and early fall months due to popular festivals and outdoor activities. The overall ROI score for Racine is a commendable 77 out of 100, indicating a favorable environment for investment in short-term rentals. With its vibrant arts scene, outdoor recreational opportunities, and growing demand, Racine stands out as a lucrative and dynamic market for short-term rental properties.
Short-Term Rental Regulations in Racine, Wisconsin for 2024
Licensing and Permits
- Obtain a Tourist Rooming House License from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).
- Submit an application to the City of Racine Public Health Department and pass a joint inspection by the Building, Fire, and Public Health Departments.
Location and Occupancy
- The short-term rental must be located within the host's primary residence.
- Rentals are limited to periods of less than 30 consecutive days.
Zoning
- Short-term rentals are only permitted in certain zoning districts, such as residential and commercial areas. Property owners must check with the Department of City Development to ensure compliance.
Inspections and Renewals
- Short-term rental permits must be renewed annually, with inspections occurring at least once every permitting year (July 1 to June 30).
Taxes
- Register for and pay municipal room tax to the City Clerk's Office (5% room tax).
- Report and pay Wisconsin sales tax (5.1% in Racine - 5% state, 0.1% stadium).
Health and Safety
- Comply with statewide health and safety regulations, including proper fire safety measures, adequate lighting and ventilation, and safe drinking water.
Property Maintenance
- Litter, debris, and refuse must be stored in closed containers.
- Guest and resident vehicles must be parked on a hard surface of concrete, asphalt, or paverstones.
Other Regulations
- Adhere to occupancy limits and noise restrictions to minimize the impact on local communities.
- Ensure proper exiting facilities are provided for guests.
Additional Requirements
- Collect and remit the required room tax from guests.
- Comply with any lease agreements, cooperative, cohousing, condominium, homeowner association, or tenant organization regulations.
Fees
- Initial fees include a pre-inspection fee, annual permit fee, fire inspection fee, and Wisconsin seller’s permit. Annual fees include the annual permit fee and fire inspection fee.
Top Neighborhoods for Airbnb Revenue in Racine, Wisconsin
1. Downtown Racine
- Downtown Racine is highly appealing due to its easy access to restaurants, entertainment options, and convenient public transportation and parking facilities. Guests can enjoy the vibrant community, engage in local events, and be within walking distance to various amenities.
2. Waterfront Areas (Michigan Blvd.)
- Neighborhoods along Michigan Blvd. and other waterfront areas are highly desirable for their scenic views of Lake Michigan and proximity to beaches, the zoo, and marinas. Properties here offer breathtaking views, luxury accommodations, and the opportunity for outdoor activities like biking along the lakeshore.
3. Areas Near the Racine Zoo and SC Johnson Campus
- These neighborhoods attract guests due to their proximity to major tourist attractions such as the Racine Zoo and Frank Lloyd Wright's SC Johnson campus. The area's family-friendly activities and historical sites make it a favorite among various types of travelers.
4. Lakefront Neighborhoods
- Neighborhoods close to Lake Michigan are popular for their outdoor activities like boating, fishing, and enjoying the scenic views. These areas often feature properties with nautical or beach themes, which resonate well with guests looking for a coastal experience.
5. Historic Neighborhoods with Old World Charm
- Areas with historic homes, such as the one featuring the "July House: Lake Views & Old World Charm," are appealing for their unique architectural features and nostalgic charm. These properties often include original elements like exposed brick and wood burning fireplaces, making them stand out.
These neighborhoods are particularly appealing because they offer a blend of scenic beauty, convenience, and access to local attractions, making them ideal for a wide range of guests, from families to couples and solo travelers.
Tips for Furnishing and Designing an Inviting Airbnb in Racine, Wisconsin
Understanding the Local Appeal
- Racine's unique charm is rooted in its lakeside location and historic attractions. Incorporate nautical or beach themes, and elements that reflect the city's natural beauty and historic charm into your design.
Choosing the Right Neighborhood
- Opt for properties in neighborhoods close to Lake Michigan, downtown Racine, and major attractions to enhance guest appeal and accessibility.
Key Amenities and Features
- Include outdoor spaces for relaxation or barbecues, cozy fireplaces for cooler nights, and contemporary kitchens to prepare meals. Easy access to recreational activities like boating or fishing on Lake Michigan is also highly valued.
Furniture and Decor Selection
- Select high-quality, comfortable furniture that reflects local styles such as nautical, modern farmhouse, or mid-century modern. These styles create a cozy yet contemporary atmosphere.
- Use sturdy, easy-to-clean furniture. For example, sofas with washable covers and beds with storage are practical choices.
Kitchen Essentials
- Equip your kitchen with essentials like a coffee maker, microwave, toaster, kettle, and basic cookware. Additional items such as a blender and sharp knives can enhance the guest experience.
Bedroom and Bathroom Tips
- Ensure beds are solid, easy to clean, and have a mattress that is at least 8 inches thick. Memory foam mattresses are more durable and cost-effective.
- Provide high-quality, durable towels in neutral colors and ensure ample storage for guests' toiletries and personal items.
Lighting and Mirrors
- Use mirrors to make the space feel bigger and brighter. Ensure there are power sockets near mirrors for hair dryers and straighteners.
Storage and Organization
- Implement smart storage solutions such as beds with drawers, wall hooks, and stackable containers to keep the space tidy and organized.
Technology and Workspaces
- Ensure high-speed internet is available, and consider a Wi-Fi booster for larger properties. Provide a sturdy desk and comfy chair for guests who need to work, along with good lighting and easy access to power outlets.
Safety and Compliance
- Install smoke detectors, carbon monoxide detectors, and a first aid kit. Ensure the property meets all health and safety standards, including properly functioning fire extinguishers.
Accessibility
- Consider making your Airbnb accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms.
Thematic Consistency
- Stick to your chosen theme to create a cohesive and inviting environment. Use local artwork and memorabilia to enhance the sense of place and community.
Guest Convenience
- Provide amenities such as self check-in, BBQ areas, and laptop-friendly workspaces to enhance guest convenience and satisfaction.
By following these tips, you can create an Airbnb in Racine that is both inviting and reflective of the city's unique style, ensuring a memorable stay for your guests.
Discover Racine, Wisconsin: Local Attractions and Insider Tips
Museums and Historical Sites
- Racine Art Museum: Home to the largest collection of contemporary craft in America, featuring over 4,000 pieces of art.
- Racine Heritage Museum: Delve into the rich history of Racine and its cultural heritage.
- Firehouse 3 Museum: Explore the history of firefighting in Racine.
- SC Johnson Gallery: At Home with Frank Lloyd Wright: Learn about Frank Lloyd Wright's architectural genius and his contributions to SC Johnson's headquarters.
Architectural Wonders
- SC Johnson Administration Building and Research Tower: Take a guided tour to see Frank Lloyd Wright's iconic designs.
- Wingspread: Visit Wright’s largest and last Prairie-style home, now the Wingspread Conference Center.
- Golden Rondelle Theater: A unique theater built for the 1964-65 New York World’s Fair.
Outdoor Activities
- North Beach: Enjoy one of USA TODAY’s “51 great American beaches” with its Beachside Oasis, Kids Cove playground, and live entertainment.
- Root River: Popular for fishing, hiking, canoeing, and kayaking.
- Lake Michigan: Engage in recreational boating, charter fishing, or simply enjoy the scenic views.
- Wind Point Lighthouse: Visit this fully restored lighthouse and part of mariner history.
Local Culture and Entertainment
- Racine Theatre Guild: Catch a performance at this local theater company.
- First Fridays, Gallery Nights, and Party on the Pavement: Participate in the vibrant cultural events happening almost every weekend.
- Racine Zoological Gardens: Explore the charming 28-acre lakefront zoo.
Dining and Shopping
- Local Breweries: Visit and tour breweries like The Racine Brewery.
- Authentic Danish Kringle: Try Racine’s famous pastry, the official Wisconsin State Pastry.
- Boutiques and Specialty Shops: Shop at the unique boutiques and specialty stores in Downtown Racine.
- Seasonal Farmer’s Markets: Enjoy local produce and products at the seasonal markets.
Insider Tips
- Carriage House Pedal Tours: Take a fun and unique tour of Downtown Racine on a pedal-powered carriage.
- Hot Shop Glass: Participate in a glass blowing workshop or visit the gallery.
- Funky Hannah’s Beads: Create your own jewelry in this interactive shop.
- Uncorkt Wine Tasting Bar: Enjoy wine tasting in a cozy setting.
- Classic Car Show: If visiting in mid-August, don’t miss the Classic Car show at Reefpoint Marina.
Additional Activities
- Reefpoint Marina Events: Participate in events like the Wine-a-thon and Dinghy Poker Run.
- Splash Pad/Laurel Salton Clark Memorial Fountain: A great spot for families to enjoy during the summer.
- 3rd Coast Bicycles and Racine Cyclery: Rent or buy a bike to explore Racine on two wheels.
By sharing these attractions and insider tips, your guests will have a comprehensive and enjoyable experience in Racine, Wisconsin.
Practical Tips to Run a Successful Short Term Rental Business in Racine, Wisconsin
To ensure a smooth and successful short-term rental business in Racine, Wisconsin, several practical tips can be implemented:
Noise Regulations and Guest Communication
Inform your guests about the city's noise regulations and quiet hours to avoid any potential issues with neighbors. Include this information in your rental agreement and provide a clear notice in the property to remind guests of the quiet hours.
Comprehensive House Manual
Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This will help guests navigate the property easily and reduce the number of inquiries you receive.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed check-in instructions, including photos of the property entrance and any specific steps they need to follow.
Parking Instructions
Include clear parking instructions with photos in your house manual to ensure guests know where to park their vehicles. This is particularly important in Racine, where vehicles must be parked on a hard surface of concrete, asphalt, or paver stones.
By following these tips, you can enhance the guest experience, reduce potential issues, and maintain compliance with local regulations, ultimately contributing to the success of your short-term rental business in Racine.
Here is a brief list of house cleaning providers in Racine, Wisconsin:
House Cleaning Services in Racine, WI
Molly Maid of East Metro Milwaukee and Racine
- Offers custom house cleaning, move-out cleaning, and recurring cleaning services.
- Provides floor cleaning, dusting, and washing/sanitizing of surfaces.
Merry Maids of Oak Creek & Racine
- Provides home cleaning services to help manage your cleaning needs.
- Focuses on re-energizing your home and freeing up your time.
MaidPro of Racine
- Offers weekly, bi-weekly, or one-time house cleaning services tailored to your needs.
- Customizable maid services to fit your schedule and preferences.
Homeaglow
- Provides professional and affordable house cleaning services.
- Background-checked cleaners and competitive pricing starting at $19 for a 3-hour clean.
Care.com House Cleaning Services
- Lists various local house cleaning options with affordable prices starting at $18.94/hr.
- Allows you to search by rates, reviews, and experience.
Short-Term Rental Management Fees in Racine, Wisconsin: A Guide to Service Levels and Costs
In Racine, Wisconsin, managing a short-term rental can incur management fees that typically range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, which handle comprehensive tasks such as guest communication, marketing, and maintenance, usually charge fees at the higher end of this spectrum, often around 20% to 30% of the rental income.
In contrast, basic services may be more budget-friendly, potentially starting at around 10% of the rental revenue. Additionally, property owners may need to consider extra fees for services like cleaning, repairs, or design enhancements, which can further impact the overall cost of managing their short-term rental properties. Understanding these fee structures is crucial for hosts to ensure they are getting the best value for their investment while complying with Racine's stringent short-term rental regulations.