The short-term rental market in Sturgeon Bay, Wisconsin, is thriving, with high occupancy rates, significant revenue growth, and increased average nightly rates, making it a robust and lucrative destination for both hosts and travelers.
Thriving Short-Term Rental Market in Sturgeon Bay, Wisconsin
Sturgeon Bay, Wisconsin, continues to excel as a vibrant and lucrative destination for short-term rentals. The city, nestled in the heart of Door County, boasts a robust Airbnb market with impressive performance metrics. As of the latest data, short-term rentals in Sturgeon Bay achieve an average occupancy rate of 54%, indicating a strong demand for these properties. Additionally, the average daily rate stands at $333, reflecting the high value that guests place on the comfort, convenience, and local charm these rentals offer. With revenue growth driven by higher nightly rates and an increasing number of rental units, Sturgeon Bay remains an attractive and profitable location for short-term rental investors and hosts.
Short-Term Rental Regulations in Sturgeon Bay, Wisconsin for 2024
State and County Requirements
- DATCP License: Short-term rental properties must obtain a Tourist Rooming House License from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), which is valid for up to three years and requires a property inspection by a state-licensed professional.
- Monthly Room Tax Reports: STR hosts must submit monthly room tax reports to the Door County Tourism Zone Commission.
Municipal Requirements
- Dual Permits: Short-term rental owners need permits from both the Door County Tourism Zone Commission and the City of Sturgeon Bay.
- License Renewal: STR licenses must be renewed annually, with the license period changed to one year for all new or renewed permits. The renewal fee is $100.
- License Expiration: STR licenses expire on June 30 of each year.
- Residency Requirement: STR owners/operators or their management companies must reside or be located within a 90-minute drive of the rental property.
Additional Regulations
- No Inspection for Municipal Permit: Unlike the state license, the municipal permit does not require an inspection of the property.
- Compliance with Local Ordinances: Owners must comply with all local regulations and requirements set by the City of Sturgeon Bay.
Other Considerations
- Premier Resort Area Tax (PRAT): Although not specific to Sturgeon Bay, some nearby municipalities like Sister Bay and Ephraim have a PRAT, which may be relevant for understanding broader regional regulations.
- Sanitation System Capacity: The number of guests allowed is limited by the capacity of the sanitation system (POWTS).
Top Airbnb Revenue-Generating Neighborhoods in Sturgeon Bay, Wisconsin
Sturgeon Bay Downtown Area
- Appeal: The downtown area of Sturgeon Bay is highly appealing due to its charming shops, restaurants, and cultural attractions such as the Door County Maritime Museum and the Miller Art Museum. Guests can enjoy the historic waterfront views, vibrant art scene, and easy access to various local amenities.
- Revenue: With an average daily rate of $178 and an annual revenue of $36,837, properties in this area benefit from high demand, especially during peak seasons.
Waterfront and Bayfront Areas
- Appeal: These areas offer stunning waterfront views, access to scenic boat tours, and opportunities for outdoor activities like kayaking and paddleboarding. The picturesque scenery and proximity to Green Bay make these locations highly desirable for guests seeking a relaxing getaway.
- Revenue: Properties with waterfront views, such as those in Southern Door County near Shoemaker Point, can command higher nightly rates, contributing significantly to the overall revenue.
Neighborhoods Near Peninsula State Park
- Appeal: These neighborhoods are attractive to outdoor enthusiasts due to their proximity to Peninsula State Park, which offers scenic hikes, biking trails, and other recreational activities. The combination of natural beauty and easy access to park amenities makes these locations popular among families and nature lovers.
- Revenue: With high demand for properties that offer a blend of comfort and convenience near natural attractions, these neighborhoods generate substantial revenue, particularly during the peak summer months.
Areas with Access to Local Festivals and Events
- Appeal: Sturgeon Bay hosts numerous festivals and outdoor activities throughout the year, making neighborhoods close to these event locations highly appealing. Guests can enjoy a vibrant cultural scene and participate in local events, which enhances their stay experience.
- Revenue: The increased demand during festival seasons drives up occupancy rates and allows hosts to charge higher prices, resulting in higher annual revenues for properties in these areas.
These neighborhoods in Sturgeon Bay, Wisconsin, are particularly lucrative for Airbnb hosts due to their unique blend of natural beauty, cultural attractions, and convenient access to various amenities and activities.
Furnishing and Design Tips for an Inviting Airbnb in Sturgeon Bay, Wisconsin
Embrace the Maritime Charm
- Incorporate nautical elements such as anchors, ropes, and vintage navigation tools to reflect Sturgeon Bay's shipbuilding and maritime history.
- Use a color palette that includes blues, whites, and natural woods to evoke the feeling of the waterfront.
Highlight Local Art and Culture
- Decorate with local artwork and crafts that showcase the area's vibrant arts scene.
- Display pieces that highlight the city's history, such as photographs of historic ships and lighthouses.
Utilize Natural Materials
- Choose furnishings made from natural materials like wood, stone, and wicker to blend with the natural beauty of Door County.
- Add plants and flowers native to the area to bring in a touch of the outdoors.
Create Cozy and Inviting Spaces
- Incorporate comfortable, rustic-chic furniture that invites relaxation, such as plush sofas and armchairs.
- Use warm lighting and textiles like wool blankets and nautical-themed throw pillows to create a cozy atmosphere.
Celebrate the Outdoors
- Design the space to emphasize the beautiful outdoor surroundings. Use large windows, sliding glass doors, and outdoor seating areas to connect guests with nature.
- Provide outdoor gear such as kayaks, bicycles, or fishing equipment to encourage guests to explore the local parks and waterways.
Reflect the Seasonal Beauty
- Update decor seasonally to reflect the changing beauty of Sturgeon Bay. For example, add autumn colors and apple-themed decor in the fall, or spring flowers and pastel colors in the spring.
- Incorporate seasonal activities and amenities, such as providing warm beverages and cozy throws in winter, or beach towels and sunscreen in summer.
Incorporate Local Flavors
- Stock the kitchen with local specialties and ingredients, such as Door County cherries and other regional products.
- Provide a guide to local restaurants and dining spots that serve the area's unique cuisine.
Respect the Historic and Small-Town Charm
- Maintain the historic character of the property by preserving original architectural features and using period-specific decor.
- Add touches of small-town charm, such as vintage signs, antique furniture, and community-oriented decor that reflects the city's close-knit community.
Ensure Practical Comfort
- Balance aesthetic appeal with practical comfort. Ensure the space is well-equipped with modern amenities while maintaining the unique charm of Sturgeon Bay.
- Provide clear instructions and local tips to help guests navigate and enjoy the area fully.
Discover Sturgeon Bay, Wisconsin: Local Attractions and Insider Tips
Local Attractions
Outdoor Adventures
- Cave Point County Park: Known for its stunning natural beauty, this park is perfect for kayaking, hiking, and exploring the scenic shoreline.
- Whitefish Dunes State Park: Protects the fragile dune environment along Lake Michigan and offers various recreational activities.
- Potawatomi State Park: Features 1,200 acres of rolling terrain and limestone cliffs, ideal for hiking and outdoor exploration.
- Fishing: Enjoy world-class fishing in the waters of Lake Michigan and the Bay, with species like smallmouth bass, salmon, and walleye. Visit Howie’s Tackle and Archery or Bousley’s Sport Fishing Charter for supplies and tours.
Cultural and Historical Sites
- Door County Maritime Museum: Learn about the maritime history of Sturgeon Bay and the Great Lakes, with an impressive collection of models, boats, and maritime equipment. Don’t miss the observation tower and tours of the tug boat and Cana Island lighthouse.
- Door County Historical Museum: Known as one of the best small museums in the Midwest, it displays unique pieces of Door County’s past.
- Lighthouses: Sturgeon Bay is home to three lighthouses: the North Pierhead lighthouse, the Sturgeon Bay Canal Station light, and the Sherwood Point light. Visit during the annual Lighthouse Festival in June.
Shopping and Dining
- Historic Shopping Districts: Explore the West Side, Third Avenue, and Jefferson Street for a variety of shopping experiences, from quaint shops to sophisticated boutiques.
- Local Restaurants: Indulge in a wide range of cuisines, including comfort food, seafood, Mexican, Italian, and more. Recommended spots include Donny’s Glidden Lodge and Bluefront Cafe.
Other Attractions
- The Farm: A living museum of rural history where you can feed baby goats, lambs, and piglets and connect with agricultural heritage.
- Ship Watching: Witness the bustling maritime industry, including massive ships being built and repaired at the largest shipyard in the Great Lakes.
- Sunset Park: A perfect spot for a picnic, sunset viewing, or admiring the Gantry Crane of Bay Shipbuilding.
Insider Tips
Seasonal Activities
- Summer: Enjoy kayaking, boat tours, and visiting Cave Point County Park. Don’t miss the summer festivals and events.
- Fall: Experience apple picking, fall colors, and hiking through nature. The fall season is a favorite among locals.
- Winter: Visit the Door County Maritime Museum, see ice formations at Cave Point County Park, and take the “Bridge Walk” for a scenic winter experience.
- Spring: Enjoy cherry and apple blossoms, and explore the beautiful spring flowers. This is also a great time for birding.
Local Events
- Lighthouse Festival: Held in June, this festival allows visitors to tour the historic lighthouses.
- Open Bass Tournament: A popular fishing tournament held in May.
- Concerts and Performances: Catch small productions at the Third Avenue Playhouse throughout the year.
Practical Tips
- Weather: Be prepared for varying weather conditions, with summer highs around 73°F and winter lows around 4°F.
- Accommodations: Sturgeon Bay offers a range of lodging options, including resorts, national hotels, themed hotels, and historic B&Bs.
By sharing these local attractions and insider tips, you can help your Airbnb guests make the most of their visit to Sturgeon Bay, Wisconsin.
Practical Tips to Run a Successful Short-Term Rental Business in Sturgeon Bay, Wisconsin
To ensure a smooth and profitable short-term rental business in Sturgeon Bay, Wisconsin, several practical tips can be implemented:
Noise Regulations and Guest Communication
Inform guests about quiet hours and local noise regulations to maintain a respectful environment for both guests and neighbors. Clearly outline these rules in your listing and provide a reminder in the house manual.
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 helps guests navigate the property easily and reduces the need for frequent inquiries.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to access the property, along with photos of the smart lock and any other relevant entry points.
Parking Instructions
Include clear parking instructions with photos in your house manual to avoid confusion. This is particularly important in areas where parking is limited or has specific regulations.
By adhering to these tips, you can enhance the guest experience, reduce potential issues, and ensure your short-term rental business in Sturgeon Bay operates efficiently and successfully.
Here is a brief list of house cleaning, repair, and maintenance providers in Sturgeon Bay, Wisconsin, and the surrounding area of Door County:
Mi Casa Door County Cleaning and Property Management LLC
- Offers spring cleaning, regularly scheduled cleaning, vacation rental turn-over, and end-of-season deep-cleaning.
- Additional services include grocery shopping, laundry, event decorating/clean-up, and environmental stewardship cleaning.
- Family-owned and operated, with services tailored to individual property needs.
Hill Services
- Provides commercial and residential cleaning services, including office cleaning, carpet cleaning, window cleaning, and more.
- Services also include steam cleaning for carpets, area rugs, and upholstery, as well as tile and grout cleaning.
- Offers pressure washing, lawn care, snow removal, and caretaking services for homes.
Mastercare Cleaning Services & Janitorial Supplies Inc
- Specializes in carpet cleaning, floor cleaning, and window cleaning for both commercial and residential properties.
- Also provides janitorial cleaning services and distributes cleaning supplies.
- Fully trained staff using environment-friendly solutions.
Door County Clean
- Based in Sister Bay, WI, but serves Door County.
- Offers residential cleaning, caretaking, and short-term rental cleaning services.
- Services include full top-to-bottom cleaning, staging, restocking household items, and laundry.
Short-Term Rental Management Fees in Sturgeon Bay, Wisconsin
In Sturgeon Bay, Wisconsin, the management fees for short-term rentals can vary significantly based on the level of service provided. Typically, these fees range from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. For instance, companies like Summer and DoCo Vacations offer full-service management that includes listing creation, professional photography, smart pricing, and 24/7 guest support, with fees starting at around 20% of the rental revenue.
On the other hand, basic services that involve fewer responsibilities, such as cleaning and routine checkups, may incur lower fees. Additionally, property owners may need to consider extra costs for cleaning, repairs, or design enhancements, which can be factored into the overall management fee or charged separately. Understanding these fee structures is crucial for property owners to maximize their rental income while ensuring their properties are well-maintained and guest-ready.