Lesson 4 (Section One): How the Lake You Choose Impacts Vacation Rental Income
By Mike Fish, Broker/Owner – Minnesota Real Estate & Management
Short-Term Rental Training Series
When people begin analyzing a potential short-term rental in Central Minnesota, most focus on the structure itself—bedrooms, layout, finishes, amenities. But one of the biggest factors affecting long-term profitability isn’t inside the home at all. It’s the lake.
For buyers unfamiliar with the Brainerd Lakes Area, only the few “big name” lakes usually come to mind. Yet every lake has its own character, reputation, strengths, and limitations—and these differences directly influence nightly rates, occupancy, and year-round demand. Selecting the right lake can easily shift annual revenue by tens of thousands of dollars.
Below are the major lake-related factors I review with clients when we evaluate a property’s STR potential.
1. Lake Size & Reputation
Lakes like Gull Lake and Cross Lake consistently bring in the highest nightly rates. Larger, more recreational lakes offer more space to explore, better boating, more restaurants, and overall more activity—making them incredibly desirable for vacationers.
If your guest profile includes wake surfers, tubers, or pontoon cruisers, a big-water lake is often the strongest performer.
2. The Value of a Good Beach
A swimmable shoreline is one of the most influential booking factors. Even a smaller kid-friendly beach can add $100+ per night in peak season. Some of our top homes don’t have beaches, but when you do, it becomes an immediate magnet for families—the core of our Central Minnesota rental demographic.
3. Restaurants, Marinas & Boat Rentals
Amenities on the lake heavily influence demand.
Things like:
Boat-to restaurants
On-lake bars or ice cream shops
Marinas
Boat and pontoon rental options
turn a lake from a view into an experience—and that converts directly into higher occupancy.
4. Fishing Quality
Fishing is one of our strongest guest segments. Lakes known for walleye, crappie, largemouth, or trophy fishing (Mille Lacs is a prime example) draw year-round interest. Incorporating DNR lake data into your listing and lake profile can be a major advantage.
5. Water Quality & Lake Depth
Clear water helps photos pop—and encourages swimming. But equally important is depth at the end of the dock. We’ve seen years where boats couldn’t reach a property because of water levels. Always verify typical summer depth and lake-level fluctuations.
6. Public Boat Access
A lake without a public landing can be a significant drawback. Guests bringing their own watercraft need easy access.
Smaller, quieter lakes can perform extremely well—but understand the tradeoff if boat access is limited.
7. Winter Demand: Ice Fishing & Snowmobiling
Winter profitability varies, but if the lake has strong ice fishing or connects to snowmobile trails, you can attract steady off-season traffic. Some rentals thrive specifically because their lake becomes an ice-fishing village in January.
8. Big Lake Energy vs. Small Lake Privacy
Bigger lakes bring higher revenue—but also more noise, traffic, and activity. Many guests prefer:
Quiet mornings
Fewer boats
Better kayaking
More privacy
Smaller, calmer lakes
We manage some extremely high-performing properties on lakes most people have never even heard of. The key is matching the lake to the experience you’re offering.
9. The Common Buyer Tradeoff
Most buyers begin their search in the $750K–$1.5M range on the major lakes, but often end up purchasing on a slightly smaller lake because they get a much nicer home for the money.
This is the choice:
Do you want the most popular lake, or the best house?
Both can be profitable with the right strategy.
10. Personal Use Still Matters
Most clients want a lake home that serves both family and rental. You don’t need to please everyone—just the guests your property is designed for. And many of the highest-performing homes in our portfolio are on lakes that are completely under the radar.
Final Thoughts
The lake you choose has a direct impact on nightly rates, occupancy, guest satisfaction, and long-term profitability. Big lakes usually bring higher income, but beaches, boat access, winter activities, and lake personality can outweigh raw size.
If you want a deeper dive, check out my full video on the Top 20 Lakes in the Brainerd Lakes Area—it pairs perfectly with this lesson.
As always, I’m here to help you analyze both the lake and the property to make the most informed investment decision possible.
— Mike Fish
Minnesota Real Estate & Management
Full-service lake home brokerage & the Brainerd Lakes Area’s short-term rental experts
