Was inspired to start this thread by @IceCreamKid.
I am going to be renting out apartments in the Chicago area and turning them into AirBnb rentals. (And yes, I'm going to obtain explicit permission from the land lords to do so lol)
In this thread I will be documenting my process. Whether this turns out to be a success or a giant failure, everyone here will get to witness my journey. I will try to be as detailed as possible to keep this thread high value.
Any advice from those with experience in this area would be greatly appreciated!
I will be coming back to update this thread once I have conducted more research.
For now here are my preliminary thoughts-
Initial barriers:
I talked to my brother who owns 6 homes in Detroit. He told me that I would need to find landlords that would give me explicit permission to sublease the property. Since they are assuming all of the risk, he said he wouldn't be surprised if many of them would refuse to do it unless they saw a big cut of the profits.
keys to profitability: Constant Occupation. Low Expenses.
The question that needs to be answered is this:
When traveling, is it more common to do so alone ( studio) with a spouse ( studio) with a friend (two bed room) or with your friends ( 3 or 4 bedroom).
I have a feeling the answer depends on the jurisdiction of the rental. Certain places in the city most likely attract different types of people. e.g. friends going on a roadtrip vs. the traveling businessman.
I'll need to do some research and get better insight on this- with data on my part of the city if possible.
Well, this is going to be interesting.
I am going to be renting out apartments in the Chicago area and turning them into AirBnb rentals. (And yes, I'm going to obtain explicit permission from the land lords to do so lol)
In this thread I will be documenting my process. Whether this turns out to be a success or a giant failure, everyone here will get to witness my journey. I will try to be as detailed as possible to keep this thread high value.
Any advice from those with experience in this area would be greatly appreciated!
I will be coming back to update this thread once I have conducted more research.
For now here are my preliminary thoughts-
Initial barriers:
I talked to my brother who owns 6 homes in Detroit. He told me that I would need to find landlords that would give me explicit permission to sublease the property. Since they are assuming all of the risk, he said he wouldn't be surprised if many of them would refuse to do it unless they saw a big cut of the profits.
keys to profitability: Constant Occupation. Low Expenses.
- I looked at some studio Air B&B apartments in my area, and many of them are booked MONTHS in advance. This is a good sign. I'm not going to speculate on profit margins yet, because there's too many variables I have yet to calculate. I'll come back to this.
- Mandatory expenses for each apartment = rent, utilities, renters insurance, and AirBNB payment processing fees. The place will also need a bed, sheets, pillows, towels and toilet paper for the bathroom, and perhaps a set of silverware and plates for the kitchen.
- Optional expenses: Amenities like cable, wifi, etc. Overall, i'm not totally sure how decked out these places should be to constantly attract people. Should these apartments be filled with decorations ( giving it a "home" feel, or should they be basically empty like a hotel? Is a TV necessary? These are all questions I will have to answer.
The question that needs to be answered is this:
When traveling, is it more common to do so alone ( studio) with a spouse ( studio) with a friend (two bed room) or with your friends ( 3 or 4 bedroom).
I have a feeling the answer depends on the jurisdiction of the rental. Certain places in the city most likely attract different types of people. e.g. friends going on a roadtrip vs. the traveling businessman.
I'll need to do some research and get better insight on this- with data on my part of the city if possible.
Well, this is going to be interesting.
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