Why More Investors Are Choosing Short-Term Rentals in Lake Geneva

by Kim & Joel Reyenga

Why More Investors Are Choosing Short-Term Rentals in Lake Geneva

Lake Geneva, Wisconsin, has long been known as a premier vacation destination in the Midwest, drawing visitors from Chicago, Milwaukee, and beyond. With its scenic lake views, luxury resorts, historic downtown, and year-round activities, the area continues to be a hotspot for tourism.

In recent years, real estate investors have been taking advantage of Lake Geneva’s strong short-term rental market, using platforms like Airbnb and VRBO to generate income from vacation properties. As local real estate experts with eXp Realty, Kim & Joel Reyenga have helped investors navigate the Lake Geneva real estate market to find high-performing short-term rental properties.

If you’re considering investing in Lake Geneva vacation rentals, here’s why more investors are making the switch to short-term rentals and what you need to know before buying.

1. The Demand for Short-Term Rentals in Lake Geneva is Growing

One of the biggest reasons investors are choosing short-term rentals over traditional long-term rentals in Lake Geneva is the consistent demand from vacationers.

Why is demand increasing?

Tourism Growth: Lake Geneva sees millions of visitors annually, drawn by summer boating, fall festivals, winter skiing, and spring getaways.
Weekend Getaways from Major Cities: Many travelers from Chicago (90 miles away) and Milwaukee (50 miles away) prefer short-term rentals over hotels for more space and flexibility.
Year-Round Appeal: Unlike some tourist destinations, Lake Geneva has activities in every season, from lakefront beaches and golf courses in the summer to ice castles and skiing in the winter.

As demand for vacation rentals rises, investors can capitalize on the opportunity to generate steady rental income throughout the year.

2. Higher Income Potential Compared to Long-Term Rentals

Investing in short-term rental properties can be far more profitable than traditional long-term rentals.

Short-Term Rental vs. Long-Term Rental Income

A long-term rental in Lake Geneva might generate $2,000 to $3,000 per month in rent.
A short-term rental, depending on location and season, can generate $300 to $500 per night during peak times.
Many Lake Geneva vacation homes earn $5,000+ per month during high-demand seasons.

The ability to adjust nightly rates for peak weekends, holidays, and special events allows investors to maximize profits, unlike long-term rentals with fixed lease agreements.

3. Strong Return on Investment (ROI) for Lakefront and Downtown Properties

Lake Geneva’s prime locations offer some of the best ROI for short-term rental investors.

Top Locations for Short-Term Rentals in Lake Geneva

Downtown Lake Geneva – Ideal for visitors looking for walkable access to shops, restaurants, and the lake.
Lakefront Properties – Homes with lake views or direct water access command premium rental rates.
Williams Bay & Fontana – These quieter areas still offer strong demand while providing more space for larger groups and family vacations.
Geneva National – A sought-after gated golf community with access to private amenities and high-end vacation rentals.

By choosing the right location, investors can ensure higher occupancy rates and increased profitability.

4. Lake Geneva’s Short-Term Rental Market is Less Saturated Than Other Vacation Destinations

Unlike major tourist destinations with oversaturated short-term rental markets, Lake Geneva offers room for growth.

Lower competition compared to places like Door County or Wisconsin Dells
Limited hotel accommodations make vacation rentals a preferred option
High demand during events like Winterfest, Venetian Festival, and Oktoberfest

For investors, this means a higher chance of success and faster booking rates compared to larger cities where short-term rental markets may be oversaturated.

5. Airbnb and VRBO Are Driving Market Growth

Online platforms like Airbnb and VRBO have made it easier than ever to market and manage vacation rentals in Lake Geneva.

Benefits of Using Short-Term Rental Platforms

Wider Audience: Reach travelers looking for unique stays instead of hotels.
Dynamic Pricing: Adjust rental rates for peak seasons and events.
Instant Bookings & Reviews: Guests can book quickly, and positive reviews increase visibility.
Host Protections: Platforms offer damage protection and guest screening for peace of mind.

With more travelers using Airbnb and VRBO, Lake Geneva vacation homes are seeing higher occupancy rates and greater profitability.

6. Tax Benefits & Incentives for Short-Term Rental Owners

Owning a short-term rental in Lake Geneva comes with several tax advantages that can help investors reduce expenses and increase profits.

Common Tax Deductions for Short-Term Rental Owners

Mortgage interest and property taxes
Utilities and maintenance costs
Furnishings, supplies, and property upgrades
Depreciation on the property
Property management fees

Consulting with a local tax professional can help ensure you maximize these benefits while staying compliant with IRS rules.

7. Short-Term Rentals Offer Flexibility for Property Owners

One of the biggest advantages of short-term rentals is the flexibility they offer investors.

Use the Property for Personal Vacations – Unlike long-term rentals, short-term rentals allow you to block off dates for personal use.
Adjust Rental Availability Based on Market Conditions – You can rent seasonally or adjust pricing based on demand.
Easier to Sell – If market conditions change, a short-term rental can still be sold as a turnkey investment property with existing bookings.

For investors looking for both income and lifestyle benefits, short-term rentals provide the best of both worlds.

What to Know Before Investing in Short-Term Rentals in Lake Geneva

Local Regulations & Short-Term Rental Laws

Before purchasing a short-term rental property, it’s important to understand Lake Geneva’s zoning laws and rental regulations. Some areas may have:

Permit requirements for short-term rentals
Occupancy limits and noise restrictions
Homeowner association (HOA) rules in gated communities like Geneva National

Working with local real estate experts like Kim & Joel Reyenga can help ensure you find investment properties that comply with short-term rental laws.

Invest in a Short-Term Rental Property with Kim & Joel Reyenga

The short-term rental market in Lake Geneva presents an exciting investment opportunity with high income potential, strong tourism demand, and long-term appreciation. Whether you’re a first-time investor or looking to expand your portfolio, working with local real estate experts is key to finding the right property in the right location.

As trusted real estate professionals with eXp Realty, Kim & Joel Reyenga provide: