Should You Sell Your Lake Home or Turn It Into a Short-Term Rental?

Pros, Cons & Real-World Guidance From a Central MN STR Expert**

By Mike Fish – Minnesota Real Estate & Management

Hello, this is Mike Fish from Minnesota Real Estate & Management, and today I want to walk through a question I get multiple times every single week:

“I have a lake home—should I sell it or turn it into a short-term rental?”

For many people, the cabin was a place they grew up visiting, inherited from parents or grandparents, or used heavily at one stage of life—but now life has changed. Schedules are busier. Kids have grown. Maybe you’re using it less than expected. And that leads to the big question: Should you keep it? Sell it? Or convert it to a VRBO/airbnb rental?

My goal in this article is simple:
Give you honest, experience-based pros and cons so you can make the best decision for your situation—with zero pressure either way.

We manage a large number of STRs, and we also help people sell. Either path is fine for us; our only job is to give you clarity.

Why This Decision Matters

Lake properties are unique. They appreciate differently. They rent differently. And every owner’s personal situation is different—use, lifestyle, finances, long-term goals, and comfort level with renting all play a role.

So below is the full breakdown:
Pros of Selling
Cons of Selling
Pros of Renting
Cons of Renting
Key financial and emotional considerations
…and how to evaluate what makes sense for you.

The Pros of Selling Your Lake Home

1. Immediate Financial Payout

This is the big one.
We’re still in a very strong seller’s market.

A few examples from recent MN lake home sales:

• Bought for $650k, sold less than five years later for $921k

• Bought for $554k, sold five years later for $880k

Even with some softening over the last year, lakefront property continues to be one of the strongest performing investments in Central Minnesota.

2. Zero Management, Work, or Worry

Selling eliminates:

• Maintenance costs

• Taxes and insurance

• Repairs

• Winterizing

• Coordinating contractors

• Unexpected expenses

• Liability concerns

If you’re not up here regularly, owning a lake home is work. Selling removes all of it.

3. Cash Flexibility

When you sell, you get to decide:

• Where to reinvest

• Whether to buy a different property

• Whether to earn passive returns elsewhere

• Whether to keep funds liquid

For some people, freeing up capital is more beneficial than future rental income.

The Cons of Selling Your Lake Home

1. You Lose the Future Appreciation

Lake homes are not making themselves. Inventory is limited, demand is high, and long-term appreciation is very strong.
Five to ten years from now, your property could be worth significantly more.

2. You Give Up Potential STR Income

Many of our properties:

• Net $30,000+ per year on the low end

• Net $100,000–$150,000+ per year on the high end

If you sell, that revenue is gone.

3. You Lose the Personal and Family Use

For many families, this is the deciding factor.

The Pros of Turning Your Lake Home Into a Short-Term Rental

1. You Keep the Property

This is the biggest advantage. You continue owning:

• The land

• The lake frontage

• The future appreciation

• The ability to use it whenever you want

Most of our owners use their property a few times a year—and block the calendar for family events, holidays, or long weekends.

2. Strong Annual Net Income

Depending on the property, lake, and amenities, many STRs bring in substantial net income each year. We analyze each property individually so you know what is realistic.

3. Tax Benefits

Every situation is different—always talk to your accountant—but STRs often provide meaningful tax benefits related to:

• Depreciation

• Repairs

• Expenses

• Improvements

• Utilities and furnishings

4. You Don’t Carry the Workload Alone

As a full-service STR management company, we take 90% of the work off your plate—marketing, turnovers, guest communication, supplies, cleaners, maintenance coordination, and more.

Most owners simply enjoy the benefits without the day-to-day stress.

The Cons of Turning Your Property Into a Short-Term Rental

1. Setup Costs

On average:

• 3–6 months to fully prepare a property

• $5,000–$10,000 in inventory and supplies

• Furnishings, linens, amenities, and safety items

• Potential updates or repairs

2. Ongoing Wear & Tear

This is a major consideration.

Even well-managed properties experience wear over time. Running 200–300 guests per year through a home can mean:

• Floors refinished sooner

• Paint touched up more often

• Furniture replaced faster

• Trim and woodwork seeing more use

Some homes with immaculate finishes require more upkeep over time.

3. Market Saturation

This is reality:
Crow Wing County went from 150 STRs to 350+ in just a few years.

It is no longer “easy money.”
Success requires:

• The right amenities

• Correct pricing

• A strong lake location

• Great photos and marketing

• Professional management

• A clean, well-stocked property

4. Regulations, Restrictions & Compliance

Every lake and township is different.

Some examples:

• Mille Lacs requires ADA compliance (often $40–$50k+)

• Some townships limit rental frequency

• Some HOAs ban STRs

• Some lakes yield lower rates than others

This absolutely must be part of your decision.

5. You Still Carry Risk & Liability

We mitigate most of it as the management company—but not all of it disappears. Guests are still in your home, and that comes with responsibility.

Financial Breakdown: Sell vs. Rent

A helpful way to think about it:

If you sell:

• You may walk away with a large lump sum

• You avoid all future expenses

• You remove all risk and maintenance

• You give up all appreciation and rental income

If you rent:

• You keep long-term equity and future value

• You potentially earn $30k–$150k+ annually

• You keep personal use

• You must manage the upfront cost and wear/tear

• You must follow local regulations

I always encourage owners to write this out. Seeing it on paper brings clarity.

The Personal Side: What Do You Want?

At the end of the day, this is a highly personal decision.

Questions to ask yourself:

• Do you want continued family use of the property?

• Do you want long-term equity growth?

• Do you want ongoing income?

• Do you want zero headaches?

• Do you need the cash now?

• Do you enjoy or dislike the idea of renting?

I never pressure anyone either way—ever.
I’ve spoken to people for years about selling or renting before they found the right timing.

My job is simply to give perspective, run the numbers, and help you think clearly.

My Best Advice After Hundreds of These Conversations

• If your family loves the cabin and wants to keep using it → Renting usually makes sense.

• If you rarely use it and want zero work or worry → Selling usually makes sense.

• If you’re unsure → Run the numbers and talk it through with a professional.

• If regulations are harsh where you are → Selling might be the better path.

• If the property has excellent amenities and location → STR income can be outstanding.

Every owner and every property is different.

Need Help Deciding? Call Me Anytime.

I take 3–4 calls per week from people asking this exact question.
I will always give you honest advice—not pressure.

I help:

• People who want to sell

• People who want to rent

• People who want to manage themselves

• People who just need numbers and guidance

• People who need a realistic market analysis

• People curious about STR profitability

This is a huge decision, and you deserve clear, professional insight.

Feel free to call me anytime. I’m here to help you think through it—no pressure, ever.

– Mike Fish
Minnesota Real Estate & Management