Airbnb & VRBO Performance in Two Harbors Minnesota.

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Two Harbors, Minnesota: Airbnb & VRBO Vacation Rental Market Overview

Despite some challenges, short-term rentals in Two Harbors, Minnesota, continue to attract adventurous and outdoorsy travelers, though they are experiencing slightly lower advance bookings and increased cancellations amidst a surge in new rental listings.

Market overview

Current Short-Term Rental Performance in Two Harbors, Minnesota

Despite some challenges, the short-term rental market in Two Harbors, Minnesota, continues to attract adventurous and outdoorsy travelers. While the area has seen a rise in the number of short-term rental listings, which has led to a slight decline in occupancy rates and average daily rates, the demand for unique experiences remains strong. For instance, the "ReTreet House," a highly-rated two-story house elevated among white cedars, still draws in travelers looking for an immersive outdoor experience, although bookings are not as far in advance as they once were.

The town of Two Harbors, with its 230 average monthly short-term rental listings, continues to be a bustling destination, especially during the summer months. Although the dynamic between hosts and guests has become more impersonal, the area's natural beauty and outdoor activities keep it a sought-after location for vacationers. While hosts are facing a normalization of occupancy levels and a slight drop in average daily rates, the overall appeal of Two Harbors as a vacation spot remains robust.

Short Term Regulations

Short-Term Rental Regulations in Two Harbors, Minnesota for 2024

General Provisions

  • Purpose and Preamble: The regulations aim to promote public health, safety, and welfare by ensuring short-term rentals are decent, safe, sanitary, and do not become a nuisance or foster blight and deterioration in the community.

Permit Requirements

  • Mandatory Permit: No person shall operate a short-term-rental-dwelling unit without first obtaining a short-term-rental permit. A single permit is required for multiple STR units within a single dwelling with a common owner and property identification number.

Location and Zoning

  • Allowed Zones: Short-term-rental permits are only allowed in B1 and B2 commercial zoning districts, except for existing permit holders in residential districts.

Permit Application and Renewal

  • Application and Renewal: Applications for renewal must be received by the City Clerk by the end of each year, as all permits expire at midnight on December 31.

Specific Regulations

  • Signage: Commercial signage is only allowed on STR units located in B1 or B2 commercial zones, in compliance with Chapter 4.40 of the City Code.

  • Events: Events are not allowed to be hosted by non-owners on the property licensed by the STR permit.

  • Parking: A minimum of two off-street parking stalls must be provided for guests. The maximum number of vehicles allowed is limited to the number of off-street parking spaces provided.

  • Occupant Eligibility: The primary overnight and daytime occupant must be an adult, 18 years or older, and must provide a telephone number to the owner.

  • Advertising: All advertising for STR units must include the City-issued permit number.

  • House Number Visibility: The house number of the property must be unobstructed and visible from the adjacent street.

  • Garbage: Appropriate solid-waste-storage bins must be available for use by guests and stored out of public view.

Taxes and Fees

  • Lodging Tax: Owners and STR-permit holders are responsible for ensuring all lodging taxes are paid as required by the Minnesota Department of Revenue.

Compliance and Enforcement

  • Suspension or Revocation: The City can suspend or revoke a short-term-rental permit for non-compliance with the regulations.

Additional Requirements

  • Health and Safety Standards: The operation must ensure that the property remains safe, secure, and sanitary for adjacent residents.
Neighborhood Performance

Top Neighborhoods for Airbnb Revenue in Two Harbors, Minnesota

1. Downtown Two Harbors

  • Appeal: Downtown Two Harbors is highly appealing due to its central location, walking distance to Agate Bay, and proximity to local attractions such as Castle Danger Brewery, restaurants, shops, and the Two Harbors Lighthouse. Rentals like "Two Harbors Lodging Apt # 2" and "The NorthShore Suite" are favorites among guests for their convenient access to these amenities.

2. Neighborhoods near Scenic Hwy 61

  • Appeal: Neighborhoods along Scenic Hwy 61 are popular because they offer easy access to Lake Superior and are close to various local attractions. Properties like "The North Shore Cottage" and "Cozy North Shore Cottage" are highly rated for their cleanliness, modern amenities, and short walks to Lake Superior and other local points of interest.

3. Historic District of Two Harbors

  • Appeal: The historic district, home to properties like the "Historic Residence of Dr. Budd" and "Lighthouse Point Retreat," attracts guests with its historic charm, walkable distance to Lake Superior, and proximity to the Two Harbors Lighthouse and other historic sites. These homes often feature multiple bedrooms and amenities like grand front porches and private backyards.

4. Areas near Burlington Beach and 7th Avenue

  • Appeal: This area is favored for its central location, close to Burlington Beach, and easy access to snowmobile trails and hiking routes. Rentals such as "Burlington View Stays" offer lake views, private entrances, and storage for outdoor gear, making them ideal for outdoor enthusiasts.

5. Agate Bay Area

  • Appeal: The Agate Bay area is appealing due to its scenic views of Lake Superior and the opportunity to watch ships loading iron ore. Properties like "Agate Bay Cottage" and "Destination 135" offer fully equipped kitchens, fireplaces, and private gardens, making them perfect for a relaxing getaway with stunning views.

These neighborhoods are highly sought after due to their combination of convenient locations, modern amenities, and easy access to the natural beauty and local attractions of Two Harbors.

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Design Tips

Creating an Inviting Airbnb in Two Harbors, Minnesota: Design and Furnishing Tips

To make your Airbnb in Two Harbors, Minnesota, a standout destination that reflects the city's unique style and natural beauty, consider the following tips:

Embrace Local Charm and Natural Beauty

  • Use natural materials such as wood and stone to mirror the outdoor environment and enhance the cozy, rustic charm of the area.
  • Incorporate contemporary pieces with sleek lines and functional design to balance the aesthetic.

Outdoor Spaces

  • Ensure the property has appealing outdoor spaces, such as patios, decks, or balconies, where guests can enjoy the natural surroundings and scenic views of Lake Superior.

Amenities and Features

  • Include amenities like cozy fireplaces for cool nights, modern kitchen equipment, and comfortable bedding to enhance guest satisfaction.
  • Offer pet-friendly options to cater to guests who want to enjoy the outdoors with their pets.

Neighborhood Considerations

  • Choose neighborhoods close to major attractions like Lake Superior, Gooseberry Falls State Park, and the North Shore Scenic Drive to maximize the property's appeal.
  • Proximity to the downtown area and local shops and dining options can also be a significant advantage.

Design Style

  • Opt for a design that reflects the local culture and landscape. Nautical themes can be particularly inviting in coastal-inspired homes.
  • Use warm colors and organic fabrics to enhance comfort and invite relaxation.

Modern Conveniences

  • Ensure the property is equipped with modern amenities such as reliable WiFi, fully stocked kitchens, and other conveniences that enhance guest comfort.

Seasonal and Local Touches

  • Incorporate seasonal and local elements into the decor, such as decorations that reflect the annual events like the Two Harbors Heritage Days.

Guest-Centric Upgrades

  • Upgrade furnishings and decor thoughtfully to enhance guest experiences. This can include stylish decor, functional kitchen equipment, and high-quality bedding.

By following these tips, you can create an Airbnb in Two Harbors that is both inviting and reflective of the city's unique charm and natural beauty.

Insider Tips
Practical Tips

Practical Tips to Run a Successful Short Term Rental Business in Two Harbors, Minnesota

To ensure a successful and compliant short-term rental business in Two Harbors, Minnesota, several key practices are essential.

Noise Regulations and Guest Communication

Inform your guests about the city's noise regulations and quiet hours to avoid any disturbances to the neighborhood. Include this information in both digital and physical house manuals to ensure clarity. According to the city's regulations, it is crucial to maintain a quiet and respectful environment for adjacent residents.

Comprehensive House Manual

Create a detailed house manual that includes instructions on how to use appliances, Wi-Fi passwords, and other essential information. This manual should be both digital, accessible through a guest portal or email, and physical, placed prominently in the rental property.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. This not only enhances guest convenience but also reduces the likelihood of lost keys and other logistical issues.

Parking Instructions

Provide clear parking instructions, accompanied by photos, to ensure guests understand the parking rules and regulations. The city requires a minimum of two off-street parking stalls for guests, and the number of vehicles should not exceed the available parking spaces.

By adhering to these tips, you can enhance the guest experience, comply with local regulations, and maintain a positive reputation for your short-term rental business in Two Harbors, Minnesota.

Local Vendors

Here is a brief list of house cleaning, repair, and maintenance providers in Two Harbors, Minnesota:

House Cleaning and Maintenance Providers

Schemmer's Cleaning Services

  • Family-owned cleaning service with over 40 years of experience.
  • Specializes in carpet, rug, fabric, tile, and grout cleaning.
  • Locations in Duluth and Two Harbors.
  • Contact: (218) 349-1821 (Duluth), (218) 834-2449 (Two Harbors).

North Shore Management / Jones Cleaning

  • Provides commercial and residential cleaning services.
  • Offers vacation rental services, laundry, maintenance, supplies, lawn care, and snow plowing.
  • Based in Two Harbors with 23 years of service.
  • Contact: (218) 834-2600.

Sparkling and Beyond

  • Professional cleaning company using state-of-the-art equipment.
  • Experienced in various cleaning services.
  • Based in Two Harbors, MN.

For additional options and reviews, you can also refer to listings on Angi and Care.com.

Management fees

Short-Term Rental Management Fees in Two Harbors, Minnesota: A Comprehensive Guide

In Two Harbors, Minnesota, short-term rental management fees typically range from 10% to 30% of the rental revenue, varying significantly based on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging from 20% to 30% of the rental income. This type of management offers a turnkey solution, handling all aspects of the rental process to maximize occupancy rates and revenue. In contrast, basic services may incur lower fees, usually around 10% to 15%. Additionally, property owners may need to consider extra fees for specific services like cleaning, repairs, or design enhancements, which can further impact the overall cost structure.

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Why choose RedAwning

RedAwning is a tech leader in full-service short-term rental management, powered by our exclusive, unmatched tools.
Other property managers
Cost
Starting at 10%
25-40%
Guest communications
5-15 mins / 24 hours a day
1 hour+
Host communications
Dedicated phone and text line with no time on hold
Chat bots, hold lines and email threads
Insurance
Robust liability and dwelling coverage for every reservation
Spotty coverage with low claim approval rates
Contract
No cancellation fees
No contract lock-in
Just 90 days notice to cancel
Cancellation penalties
Number of Channels Your Listing is On
50+
2-4

Experience in numbers

Rest well knowing your property is managed by an experienced team powered by world-class technology.
+10-30%
in gross revenue
4.8 stars
guest rating
14+ years
managing STRs

Short Term Rental Calculator

Find out how much your property in Two Harbors should generate as a short term rental and look at the performance of properties around yours.

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Furnishing checklist

This comprehensive checklist ensures that your rental is guest-ready with all the essentials to create a comfortable and memorable experience in Two Harbors.

Living Room
Seating: Sofa, armchairs, and ottomans
Coffee Table
Entertainment: Smart TV (with streaming apps) and remote control
Decor: Area rug, wall art, plants, and throw pillows
Lighting: Floor lamp or table lamps
Charging Stations: Power strips or outlets with USB ports
Bedrooms
Beds: High-quality mattress with mattress protector
Linens: At least two sets of sheets per bed
Pillows: Hypoallergenic pillows (2-4 per bed)
Blankets: Extra throw blankets or quilts
Nightstands: With lamps or charging docks
Closet or Storage: Hangers, dresser, or luggage rack
Blackout Curtains or Shades
Bathrooms
Towels: Bath towels, hand towels, washcloths (2 sets per guest)
Shower Curtain & Liner
Toiletries: Shampoo, conditioner, body wash, hand soap
Bathroom Essentials: Toilet paper, tissues, trash bin
Hairdryer
Mirror: Full-length or wall mirror
Dining Area
Dining Table: Seating for the maximum number of guests
Place Settings: Placemats or tablecloths
Centerpiece: Vase with flowers or decorative piece
Kitchen
Appliances: Refrigerator, microwave, toaster, coffee maker, kettle
Cookware: Pots, pans, baking trays
Utensils: Forks, knives, spoons, spatulas, tongs
Dinnerware: Plates, bowls, glasses, mugs (2 sets per guest)
Cutting Board & Knives
Basic Spices & Condiments: Salt, pepper, oil
Cleaning Supplies: Sponge, dish soap, paper towels, trash bags
Outdoor Space (if applicable)
Seating: Outdoor chairs, benches, or lounges
Table: For outdoor dining or drinks
Lighting: String lights or outdoor lanterns
Grill: With necessary utensils and instructions
Outdoor Trash Bin
Extras to Elevate Guest Experience
Welcome Basket: Snacks, water bottles, or wine
Guidebook: Local recommendations and house rules
Board Games or Books: Entertainment for guests
Umbrella & Flashlight
Iron & Ironing Board
Laundry: Washer, dryer, and detergent (if available)
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⇤ Airbnb Statistics for Minnesota