All Forum Posts by: Jeremy W.

Hi Victor, 

We may be able to help with a few units.

PM me.

Cheers -

Jeremy

Communication is important. Talk to the boss, talk to the guys doing the work, ask to talk a few people on the team. Get a standard list of questions, go to 2-3 firms, and see how they answer them. You can begin to get a gauge. Ask them what happens if things go wrong. Ask them for a horror story. Ask them the hard questions and see how their voices/bodies change. 

Past work is a good tell too, but be wary because any recommendation is going to be one of their "good" clients. They likely have their share of "ok" or "bad" clients too.

Home, for sure! 

• More freedom to tailor your investment to the guests' needs.
• More privacy for the guests
• Security and keys can automated
• More rooms for more quality pictures!
• Potentially free parking for your guests.

Condos can work too, but there are more variables out of your control. Cheers!

Profit-sharing is not out of the question here. As stated above, keep eyes and lease clauses tied-up for:

• Insurance
• Utilities
• Maintenance

Licensing and permitting is subject to your local municipality. Check your local government's website and/or google search short term rental laws.

You don't necessarily need insurance, but it's good for your owners to have short-term rental insurance. There are a number of them that provide specifically for Airbnb. 

@Myka is right. Just start doing it! Adding an LLC adds legitimacy, but is not a must.

Hi John, 

It seems like short-term rentals are more competitive and the city is "cracking down," but based on our experience managing a number of Airbnb properties, there is a lot more upside than in standard leases.

How do you suppose marketing to the corporate execs? Airbnb's new(er) "business travel ready" system is tailored toward professionals and they are seeing a lot of growth here. You can parse out the partiers in a few ways and make great returns. 

Chicago is still at the adoption phase of Airbnb and the "crackdown" by the city is very lenient considering how much Airbnb has taken away from the hotels. 

I agree with Keith in not putting all of your eggs in one basket. Ex: Purchase a 4-flat and use one of them for short term, another for corp execs, and the rest yearly leases. 

Lots of opportunity in the short-term game if you are willing to put in the time to price it out and manage guests (or hire someone to put in the time for you)

Cheers -

Jeremy

Yes, they circle the general area. That said, if it is not in an easily accessible location, it can frustrate the guests and give you lower reviews. Think: most of these people are coming in from out of town, tired from travel, and want a simple, comforting welcome. 

When describing the public transit, you must make it clear via the listing and throughout your conversation with guests. Maybe even provide them with a complimentary CTA/PACE pass? 

It seems like you are located in Westchester. This can be a good and a bad thing. Good - you are not under the jurisdiction the Chicago’s city ordinance. Bad - You aren’t in the city, where most visitors come. 

With that, it sounds like a nice place and it is close enough to O’Hare that you can attract business travelers. 

A couple questions:

1. What is the reasoning for financing furniture? IKEA and Craigslist are good starter points

2. How do you plan to manage the unit with increased turnover?

Along with the furniture, decor and light are important for the pictures on Airbnb. The pictures are (almost) everything! Get a pro in there. You can get good photography for under $100. 

More can be said ie handling guests, key exchange, location, but we’ll wait to hear from you. Cheers. 

Hi Frank,

It seems like you the money ready and are ready to pull the trigger on a property. Fun! Airdna.com is a great start. 

Airbnb takes a flat service fee and remits taxes (if applicable in your area). This means that it is passed onto the guests'. You can make additional revenue by charging for cleaning and for extra guests.

Airbnb is profitable after all expenses, but it is more time intensive. If you do it right (great pictures, good location, guests give you high reviews for a wonderful experience, etc) than your profit will only continue to increase. With this "time-suck" comes the need for more turnover - cleaning, maintenance, and, maybe most importantly, guest communication. Guest comm for 1) any hiccups and 2) for making their stay smooth and enjoyable.

We've found that it is more profitable for our clients (homeowners and investors) by 28-55% in Chicago.

Cheers -Jeremy

Hi Natalia,

The additional petitioning is a commissioner's adjustment. According to the ordinance, this is very vague. You fill out a "one-pager" to the commissioner and state your case. Knowing the alderman never hurts :)

It is all contingent on what the city decides. They are still trying to figure out the "airbnb thing" and how to best regulate it. I've heard that it is taking up to 6 weeks for the city to approve/decline the application presented via the Airbnb website. That's crazy! 

I am meeting with the policy adviser for Airbnb in Chicago soon so I will have a better answer for you, but PM me if you have further questions. When looking to purchase your 2-flat, getting city approval is a risk you have to consider in your analysis. 

All the best! -Jeremy