Hi all, new to the group. I own a few investment properties and would like to expand to a STR in the city of Chicago. I am aware of the city's licensing requirements, but so far, what seems most problematic is the lack of condo buildings willing to accept leases/stays less than 6 months. In searching existing STRs, it is very clear this happens in practice, but I am not willing to buy a property and gamble that we can do an STR. One piece of advice I heard from a realtor friend was to search for a single family or row home so an association isn't involved, but those are both outside of the price range for what would make sense. Does anyone have advice/experience in the Chicago market? Thanks in advance!
@Tara Sonnabend Single families and fee simple row houses are required to be your primary residence and will have limitations on how many nights you can STR. Anything up to four units require you to live in the building. I'd be leery of buying into an HOA, even if allowed, because you never know when the rug can pulled out from under you with rule changes.
I live in the Chicago area, but don't invest in the City for these reasons. Another alternative is looking into surrounding towns, like Oak Park or some other suburbs that might attract short term visitors.
@Tara Sonnabend - You are correct in everything you stated in your post. Chicago is a bit tricky with Airbnb but also very navigatable if you follow the process. I have an airbnb in the Bucktown neighbor and it's been great. If you have more than one airbnb you have to get an operator's license.
I love the idea of buying a condo and airbnb'ing it. You just have to be diligent in reviewing the HOA bylaws or better yet make your agent do that. Then just start making a bunch offers once you have confirmed they allow airbnbs. What's your budget? Does it include furnishing?
I wonder if it'd be worth looking on airbnbs to see which current condos are listed?
Hey @Tara Sonnabend - you're right, the requirements are a bit more strict but the condo's are there. Not many, but when I search for condos that allow Airbnb's, I see 4 units right now depending on where you're looking. I just sold a condo that was in a 3-unit association that allowed for airbnb rentals and the association was self-managed, so highly flexible in terms of what you can do.
I always advise my clients to join the board if they are going to be an investor in the association. You have a greater influence over policies, etc.