Everything You Need to Know About Owning a Short Term Rental in Ely, Minnesota

Short-Term Rental Regulations in Ely, Minnesota for 2026

Licensing and Permits

• Property owners are required to obtain a permit from the City of Ely for all short-term rentals.

Health Department Licensing

• A license from the Minnesota Department of Health is required for each short-term rental unit.

Tax Requirements

• Short-term rentals are required to pay lodging taxes.

Zoning Compliance

• Short-term rentals are allowed in residential areas, but specific regulations and potential restrictions may apply. An amendment to exclude short-term rentals in R-1 Zoning districts was rejected, allowing them to continue operating in these areas.

Existing Rentals

• Existing short-term rental units in residential areas are permitted to continue operating, as they were not previously prohibited.

Management and Operations

• Property owners must submit a management plan detailing how the short-term rental will be managed, including contact information, guest policies, and parking arrangements.

Inspections

• Short-term rentals may be subject to site inspections by local building officials to ensure compliance with safety and other regulations.

Insurance

• Property owners must provide proof of liability insurance to protect the city and neighbors from potential damages.

Compliance with Local Standards

• The Ely Area Short-Term Rental Standards Program sets basic standards for safety, comfort, cleanliness, and quality of lodging, which all short-term rentals must meet.

Regulatory information last reviewed for accuracy in 2026. Local STR ordinances change frequently — verify current rules with the city or county before listing.

Top Airbnb Revenue-Generating Neighborhoods in Ely, Minnesota

Why Ely is Appealing for Guests

Ely, Minnesota, is a popular destination for outdoor enthusiasts due to its proximity to the Boundary Waters Canoe Area Wilderness, Superior National Forest, and various lakes and recreational areas. Here are some of the top neighborhoods and areas that generate significant Airbnb revenue:

1. Downtown Ely

• Appeal: Central location with easy access to local shops, restaurants, and outdoor gear stores. Guests can walk to many amenities and are close to the International Wolf Center and other local attractions.
• Revenue Potential: High demand due to its convenient location, making it ideal for short-term rentals.

2. Areas Near the International Wolf Center

• Appeal: Proximity to the International Wolf Center, a major tourist attraction, and the surrounding natural beauty of the Superior National Forest.
• Revenue Potential: Attracts nature lovers and families, ensuring a steady stream of bookings throughout the year.

3. Lake Vermilion and Shagawa Lake Areas

• Appeal: Scenic lakefront properties offering stunning views, boat access, and outdoor recreational activities like fishing and boating.
• Revenue Potential: High demand for vacation rentals with lake access, especially during peak summer and fall seasons.

4. Boundary Waters Canoe Area Wilderness Access Points

• Appeal: Direct access to the Boundary Waters Canoe Area Wilderness, a premier destination for hiking, camping, and canoeing.
• Revenue Potential: Attracts outdoor enthusiasts and adventure seekers, ensuring a high occupancy rate throughout the year.

5. North American Bear Center and Surrounding Areas

• Appeal: Proximity to the North American Bear Center and other wildlife viewing opportunities.
• Revenue Potential: Appeals to families and nature enthusiasts, contributing to a stable and profitable short-term rental market.

These neighborhoods are highly appealing due to their proximity to natural attractions, outdoor recreational activities, and local amenities, making them prime locations for generating significant Airbnb revenue in Ely, Minnesota.

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

Understanding the Local Style and Audience

• Reflect Ely's Natural Beauty: Incorporate elements that highlight the city's rustic, natural surroundings, such as using wood accents, earthy colors, and local artwork.

Functional and Comfortable Spaces

• Multi-Functional Areas: Design spaces that serve multiple purposes, such as a dining room that can also function as a workspace or additional seating area.
• Cozy Textures and Comfort: Use soft, clean blankets, plush pillows, and comfortable seating to create inviting spaces.

Attention to Detail

• Lighting Control: Install lamps and dimmer switches to provide guests with control over their environment and to create cozy ambiance.
• Bedding and Pillows: Offer high-quality bedding and multiple pillow options to cater to different preferences. Store extra bedding layers in closets for easy access.

Local Touches

• Local Art and Products: Include locally sourced goods such as coffee, snacks, and artwork to give guests a taste of the local culture.

Outdoor Spaces

• Utilize Outdoor Areas: Ensure outdoor spaces are well-furnished and inviting, with features like grilling areas, firepits, and hot tubs. Provide outdoor blankets and seating for comfortable outdoor relaxation.

Sustainable and Eco-Friendly Features

• Eco-Friendly Design: Incorporate sustainable design elements, such as solar power and energy-efficient appliances, to appeal to environmentally conscious guests.

Guest Convenience

• Modern Amenities: Provide modern amenities like Wi-Fi, heating, and well-equipped kitchens to ensure guests have a comfortable stay.
• Blackout Shades and Temperature Control: Install blackout shades and provide temperature control options, such as ceiling fans, to cater to different sleep preferences.

Pet-Friendly and Family-Oriented

• Pet-Friendly Features: Include pet-friendly amenities like dog treats and supplies to make the space welcoming for pets.
• Family-Friendly Spaces: Create spaces that are suitable for families, such as game rooms, kids' hideaways, and outdoor play areas.

Encourage Guest Interaction and Relaxation

• Conversation-Evoking Layouts: Design living rooms that encourage conversation and social interaction, with features like swivel chairs and occasional tables.
• Reading Nooks and Relaxation Areas: Create cozy reading nooks and relaxation areas, such as a hanging chair swing or a sun porch, to help guests unwind.

Discover Ely, Minnesota: Local Attractions and Insider Tips

Local Attractions

Museums and Cultural Centers

• International Wolf Center: Observe wolves in their natural habitat and participate in evening howling expeditions or educational programs. Located half a mile east of Ely on highway #169.
• North American Bear Center: Watch live black bears in a 2.5-acre forested habitat and learn about bear behavior. Located one mile west of Ely on highway #169.
• Dorothy Molter Museum: Learn about the life of Dorothy Molter, known as the "Root Beer Lady," and explore her homestead replica. Located east of Ely on highway #169.
• Ely Folk School: Engage in various classes and workshops on crafts, cooking, and Northwoods traditions. Located on the main street of Ely.
• Ely-Winton History Museum: Explore the rich history of Ely and the surrounding area.

Outdoor Activities

• Boundary Waters Canoe Area Wilderness (BWCAW): Enjoy canoeing, kayaking, and camping in over one million acres of pristine forest and waterways.
• Superior National Forest: Hike, bike, ski, or snowshoe through the forest, and spot wildlife such as bears, deer, and moose.
• Kawishiwi Falls: Hike a short, easy trail to a beautiful waterfall. Ideal for an afternoon outing combined with dining and shopping in Ely.
• Trezona Trail: A 3.9-mile paved loop around Miners Lake, perfect for a flat and easy walk or bike ride.
• Bear Head Lake State Park: Hike, bike, snowshoe, or kayak in this 4,000-acre park with diverse wildlife and scenic trails.

Other Attractions

• Vince Shute Wildlife Sanctuary: A sanctuary dedicated to black bears, offering educational programs and viewing opportunities.
• Soudan Underground Mine State Park: Take a tour of the underground iron mines and enjoy hiking and paddleboarding in the area.

Insider Tips

Dining

• Ely Steak House: Enjoy a meal at one of Ely's unique restaurants.
• Zup’s: Visit the local grocery store for Ely-themed gifts and to mingle with locals.

Shopping

• Downtown Ely: Explore the quaint shops and find locally-made goods and intriguing gifts.

Seasonal Activities

• Winter: Experience dog sledding, snowmobiling, cross-country skiing, snowshoeing, and ice fishing.
• Summer: Enjoy canoeing, hiking, biking, fishing, and camping. Don’t miss the stunning sunsets and thousands of lakes to explore.
• Autumn: Witness dazzling fall colors, go on scenic drives, and take ATV rides.
• Spring: See wildlife, engage in open water fishing, and hike to waterfalls.

Events and Programs

• Evening Howling Expeditions: Join guided tours at the International Wolf Center for a unique wolf howling experience.
• Family Day Programs: Participate in educational and fun programs at the International Wolf Center and other museums.

By providing these attractions and tips, your guests will have a comprehensive guide to enjoying the best of Ely, Minnesota.

Practical Tips to Run a Successful Short-Term Rental Business in Ely, Minnesota

To ensure a successful and hassle-free short-term rental business in Ely, Minnesota, several practical tips can be implemented. First, it is crucial to adhere to local noise regulations by informing guests about quiet hours through clear communication in the rental listing and a digital or physical house manual. This manual should also include essential instructions, Wi-Fi passwords, and other vital information to enhance the guest experience.

A simplified check-in process can be achieved by utilizing smart locks, which eliminate the need for physical key exchanges and provide guests with convenient, self-service access. Additionally, providing detailed parking instructions accompanied by photos can help guests navigate the property easily, reducing potential confusion and stress.

By ensuring compliance with local regulations, such as obtaining the necessary short-term rental licenses and adhering to zoning laws and occupancy limits, hosts can avoid fines and penalties. Overall, a well-organized and informative approach will lead to positive guest experiences, increased bookings, and higher rental income in Ely's vibrant and seasonal market.

Short-Term Rental Management Fees in Ely, Minnesota (2026)

Short-term rental management fees in Ely, Minnesota in 2026 typically range from 15% to 30% of gross rental revenue, depending on the scope of services provided. Full-service management — covering guest communication, channel distribution across Airbnb, Vrbo, and Booking.com, dynamic pricing, cleaning coordination, and 24/7 guest support — generally falls in the 22% to 30% range. Co-hosting or partial-service arrangements that leave more responsibility with the owner usually run 15% to 20%.

Industry-wide management fees have crept upward by roughly 1–2 percentage points since 2024 as operating costs, insurance premiums, and labor expenses have risen across the vacation rental sector. Ely-area managers may also charge separately for cleaning turnovers, maintenance dispatch, linen programs, and listing optimization. Some full-service operators in Minnesota now offer guaranteed-rent or revenue-share hybrid models, which can be worth comparing against a flat percentage structure for higher-revenue properties.

Market estimates as of 2026. Conditions vary; consult local operators for current data.

Short-Term Rental Market in Ely, Minnesota (2026)

Granular market data for Ely, Minnesota remains limited as of 2026, as smaller and emerging short-term rental markets are not consistently captured by major data providers like AirDNA. However, broader Minnesota trends suggest continued demand for vacation rentals, particularly in markets offering unique experiences, scenic appeal, or proximity to established tourist destinations.

Through 2025–2026, the Minnesota short-term rental market has seen modest ADR growth of 3–5% industry-wide, partially offset by occupancy compression as supply has continued to expand. Operators in markets like Ely should evaluate hyperlocal factors — seasonality, regulatory environment, and competing accommodation supply — before making investment decisions.

Market estimates as of 2026. Conditions vary; consult local operators for current data.