I have a multi-unit in a class A neighborhood in Chicago (Lincoln Square - 60625) that I am wrapping up a large rehab on right now. The property is on a remarkable block and the units really are fantastic - we've taken great care in choosing finishes and upgrading many items. The last 2 units are coming online right now and we're suddenly considering AirBnB vs. long term rental. Here's why:
An old friend of mine from the hospitality world has cofounded what I understand is the only "full-service" short-term rental property management company in Chicago and they manage over 100 units - doing everything from price adjusting to marketing to filling to cleaning. I do not believe they are paying your utility bills or ordering maintenance but they are cleaning and turning the property over day after day if necessary. They charge a 29% fee to do this - literally answering every email/message, writing feedback, acting as a concierge services, meeting tenants if necessary (normally doing lockbox/coded entry nowadays), etc.
The numbers his company prepared for me are almost too irresistible. We're talking netting roughly 50% more than I would net with long term tenants. I've run their same numbers considering if I were to property manage it myself, and the numbers are staggering. All said, I have a few detailed questions:
- Does anyone have experience in running numbers for short term rentals that they can share how to do it?
- For those of you who are doing this, how are you furnishing your units? How do you figure these costs? Do you rent? Buy? I would think that we would want our furnishings to similarly match the beautiful finishes we used (wherever that sweet spot is) in order to maximize our returns.
- How are you managing the turnover/cleaning? If you do it, how do you arrange for when you are out of town?
This is a good start to hopefully getting me to a space where I can make an informed choice.
