All Forum Posts by: Vijay Prabhakaran

I would definitely close off the window, that is weird if using it as a bedroom.  I think the french doors could stay you can frost with decays.  It really depend who buys or rents the apartment.  A couple will probably use it as an office which the french doors are a positive to me.

I've starting doing Airbnb for a unit in Logan Square.  So far it is about break even with just renting the unit since I have a management company.  If you are going to self manage an Airbnb I would think you can make 25-30% more than renting to long term tenants.  Occupancy takes a little time to full book from what I've been told until you have ~10 reviews. My expectation is to make 20% more than long term rent with the management company in place.   My main concern is winter, I will probably look for a short term lease over winter if I can find one just to reduce the risk.

Chicago does charge hotel taxes to Airbnb, and another 4% fee on top of Airbnb's fees which are published.  Chicago also require registration but I don't think anyone get denied and I don't think there is any enforcement yet.

@Ibn Abney  what size and area were you Airbnbing in?  I'm really curious about the winter months.  I'm about to Airbnb a property in Logan Square.  I've got a management company because I don't have time to schedule cleanings with a full time job which will take about 30% of the profit but I'm hoping that it will still be significantly over just renting.  It's my first month in May. 

@Carolyn Fuller thanks for the recommendation.  There are a few universities in the Chicago area although they are not real close to my property as Cambridge the colleges in Boston.  It is a good idea.  People have been telling me that winter will probably be break even with long term renting or a little below.  Jan and Feb will probably be pretty slow.  If the summer goes well I think I will market it both as a 3-6 month leased property.  

@Jeff Burdick, who do you use for property management?  Do you like them?  

@Tushar Shah, in that area you should be able to turn the apartments with minimal vacancy but definitely plan for 5% and some cost to turn the apartment (ie paint and repairs). I generally keep vacancy near 0 which makes a big difference for the profitablity of my buildings. For CapEx, your inspector should be able to give an estimate on the useful life of major items and then just plan for the expense. I'm around $125-150 for water and garbage. I personally don't use the 50% rule that is a really rough estimate. In Chicago, the tax situation varies so widely it can make these rules really not accurate.

@Selena Walsh, Thanks for this feedback.  Glad to hear that you haven't had a complete drop off during the winter months.  I think as long as I'm break even with rent from a long term tenant over winter that would be great.  Chicago is getting more competitive from what I can tell but there are a lot of buildings that don't allow for Airbnb in Chicago so I think there is still some room for more units or better quality.  Are you self managing cleaning?

Justin, thanks for your recommedations.  I've heard that a clean apartment is critical which is not surprising.  There is good amount of tourism in Chicago.  I had not thought about catering to business travel but that makes sense. Most the AirBNB's are about 60-70% occupied in the neighborhood for the next 3 months.  Then mostly free.  Have you found that you are making significantly more than with long term tenants?

I'm thinking about converting a rental unit to an airbnb in Chicago-Logan Square. I'm wondering if anyone has any suggestions for cleaning service, general tips. I'm also concerned about how much the winter will slow down in Chicago or other cold winter places. Thanks for all feedback.

Thanks for this feedback.  I will repost.

I'm thinking about converting a rental unit to an airbnb in Chicago-Logan Square.  I'm wondering if anyone has any suggestions for cleaning service, general tips.  I'm also concerned about how much the winter will slow down in Chicago or other cold winter places.  Thanks for all feedback.