With the shared economy in full-swing, we often get asked for advice on how to buy a Chicago condo for Airbnb. And how to reduce the risk of doing it.
Our resident expert on the subject is Alex Cross. Alex is an experienced Chicago real estate broker with Best Chicago Properties plus he has several years experience as a successful Chicago condo Airbnb host. As such, Alex has some pretty valuable knowledge to share.
Tips On How To Buy A Chicago Condo For Airbnb
The first consideration in real estate is always location. And clearly to have a successful Chicago condo Airbnb, location is king. So it’s not really surprising to read Alex’s first tip.
1. Find The Best Location
“One of the best reasons guests choose my Airbnb listing is its proximity to public transportation. Being close to the CTA means my guests start their stay on a smooth and positive note.”
Alex goes on from there to weather. After all this is Chicago we’re talking about!
2. Consider Variations In Seasonal Traffic
“Location is second only to season. The peak season in Chicago is May to September and that should be considered in your budgeting.”
Next, Alex gets personal.
3. Determine Which Tasks You’ll Do Yourself
Airbnb of course inspired an entire new industry of hosting companies but Alex prefers a hands-on approach to his listing.
“I handle all guest communications. I have certain standards when it comes to response time and messaging that I want to uphold.”
In an industry that relies on your reputation, this is a good idea. However, Alex was also quick to point out that he outsources cleaning and turnover. He advises focusing on what matters.
Speaking of what matters, at a young age Alex learned the importance of being friendly and respectful. And this informs his next tip.
4. Be Best Friends With Your Neighbors And HOA
If you want to keep your listing live, it’s important you follow your home owner association’s (HOA) rules and keep your neighbors happy. Alex says,
“The main thing I’m doing to avoid inconveniencing my neighbors is only allowing a maximum of six renters, though my listing could host eight. Also, I vet each group thoroughly and have rules in place to ensure neighbors aren’t disturbed.”
About his HOA, he continued,
“Another important factor I considered was if I would be able to make enough renting the unit should Airbnb ever get banned. So I considered these top 4 questions to ask when buying a Chicago condo as well.”
To protect yourself from unwelcome surprises, Alex’s last tip about how to buy a Chicago condo to Airbnb should not be overlooked.
5. Before You Buy A Chicago Condo For Airbnb Know The Regulations!
“Chicago now has some laws regulating Airbnb’s. Prior to purchasing a property familiarize yourself with these laws or consult an expert to better understand them. Doing so will allow you to de-risk the investment.”
“Right now the laws only apply to single family homes and 2-4 unit properties. All other property types Chicago lets the HOAs regulate. Buyers also have to make sure the property is in a sanctioned zoning and the ward allows it.”
Thanks For Reading Alex’s Tips On How To Buy A Chicago Condo For Airbnb
Contact Alex Cross if you’re looking for guidance on how to buy a Chicago condo for Airbnb. And if you need help setting up, managing or optimizing your short term vacation rental check out his site Vacation Rental Advisory.
By the way, if you’re considering buying a house instead of a condo for Airbnb, check out our tips for buying a house for Airbnb in Chicago.