Searching for a way to maximize your new home and make a profit? If you’re a homeowner looking for a side hustle or extra income, hosting an Airbnb out of your home is a lucrative option! Airbnb has gotten increasingly popular over the years and hopping on to the trend could help you make some cash on the side.
But before you register yourself as a host, there are a few things you need to keep in mind to make your Airbnb a successful listing. In Illinois, there are some rules and laws applicable to Airbnb homeowners that you need to be aware of. Attorney Ben Weaver and the 23 Legal team is happy to guide you through the legal aspects and advise you on how to make the most of your property…
Some fun stats showing the popularity and impact of Airbnb hosts in the United States:
- A typical host in the U.S. earns $14,000 per year from Airbnb.
- 55% of hosts on the Airbnb platform are women.
- 13% of hosts in the U.S. are over the age of 60.
- More than 30% of active listings in the U.S. are managed by hosts with 21 or more properties,
Hosting An Airbnb From Your Home
The thought of the extra income is enticing! Before you sign up to become a host and list your property, it’s important to consider the pros and cons of this business venture.
Pros
- Additional Income: Becoming an Airbnb host allows you to earn extra income on the side without much effort. Plus, you get more returns from your real estate investment.
- Flexibility: The best part about running an Airbnb is the flexibility it offers you. You can choose when and how often you want to rent out, without committing to it full-time. It is not the same as having to invest yourself full-time in a business.
- Meeting New People: If you find other cultures intriguing, being an Airbnb host is going to get even more exciting. You can meet people from different cultures and ethnicities and learn a lot about them by interacting personally!
- Property Maintenance: Maintenance may seem like a chore for some homeowners but not for Airbnb hosts. With a frequent guest turnover, you will have to regularly maintain your property to keep it nice for guests, adding to its long-term value.
Cons
- Extra Time and Effort: Running an Airbnb requires time and effort. You have to manage the property, clean and maintain it between bookings, handle the guests’ needs, and look to their comfort. It’s a significantly demanding task requiring your time and effort.
- Regulations and Legal Compliance: As an Airbnb host, you have to comply with certain rules and regulations. These can change over time and you’ll have to be well aware of all the laws you need to be following.
- Property Wear and Tear: Running an Airbnb means your property will be prone to greater wear and tear as compared to when it was only you using the property. Be mentally prepared for all the increased maintenance costs you will experience.
- Liability: When hosting people, there will always be a risk of guests injuring themselves or any other damage that is caused on your property. You must consider this liability before you enlist your house as an Airbnb.
8 Tips for Running a Successful Airbnb Property in Illinois
Make a calculated decision by weighing the pros and cons. If you decide to go ahead, here are some tips to help you run your Airbnb successfully!
- Make your listing attractive: You need to entice people towards your property and you must showcase your best. Take high-quality, professional photographs, and write a moving description by emphasizing why your property is better than the rest.
- Price competitively: Your prices must be competitive with other similar properties in the area. If you’re new to the industry, use Airbnb’s pricing suggestions to help you set the price.
- Hospitality matters: Great hospitality and excellent customer service is the difference between an Airbnb and a successful one. Respond quickly to inquiries, be open when accommodating guests’ requests, and maintain a clean and tidy property.
- Safety first: The safety of your guests needs to be a priority. Install all safety devices such as smoke detectors, fire extinguishers, sprinklers, and locks. Ensure that these devices are maintained and are in working condition always.
- House rules: Define a set of house rules and upload it with the listing. Having a clear policy enables a smooth and hassle-free experience for both you and the customers.
- Local recommendations: Make your listing more attractive by giving guests local recommendations – tourist spots, eateries, entertainment and shopping centers, etc. This helps offer them a holistic and enjoyable experience.
- Professional cleaning: Cleaning is important after a guest leaves and before another arrives. Use professional cleaning services to ensure your property is spotless for another booking.
- Legal considerations: Rules for short-term rentals are different from those for rental property. Seek a professional real estate attorney to help you understand what laws apply to you and the legal proceedings that need to be undertaken for compliance.
Legal Considerations for Illinois Homeowners Hosting an Airbnb
Illinois has specific regulations for short-term rentals, similar to other states. If you’re looking to run an Airbnb out of your home, seek out attorney Ben Weaver’s professional guidance to help you sort real estate legal matters. Here are a few laws and other issues to be familiar with…
- Licensing and Registration: In some cities of Illinois, homeowners are required to have a license and need to register their Airbnb property. Please ensure you have an idea of the local laws that apply to you.
- Zoning Laws: Depending on where you live, and the zoning regulations of the area, running an Airbnb might be illegal. Some zones are purely residential and do not permit short-term rentals.
- Taxation: Airbnbs are liable to hotel and motel tax that applies for short-term rentals in the state of Illinois. Ensure that you collect and remit these taxes per the rules.
- Insurance: Airbnb rentals may not be covered under the homeowner’s insurance. Speak to your insurance company and get short-term rental insurance to cover the property damage and safeguard your finances.
- Lease Agreements: Consult a real estate attorney and get a lease agreement drafted. This should include expectations from guests, their expected stay, and cancellation policy. A legally sound document drafted by an expert will safeguard you from potential legal trouble down the road.
- Safety and Liability: As discussed before you cannot take the safety of your guests lightly. Accidents on your property can land you in legal hot water. Discuss with an attorney what safety measures you need to have in place and have a policy in place to keep you protected in case of unfortunate accidents.
- Fair Housing Laws: Fair housing laws dictate no discrimination when choosing guests. As an Airbnb host, you must treat all guests equally without any bias.
“Great experience working with Ben…highly knowledgeable and good customer service. Highly recommended!” – Client Testimonial
Consult 23 Legal for All Real Estate Matters
With smart planning, you can run a successful Airbnb in Illinois just like anywhere else! All you need to do is cover your bases. Provide excellent service and be mindful of all your legal regulations. Attorney Ben Weaver can help you deal with all legal regulations, obtaining permits, zoning issues, liability, and more. Whether you’re looking to invest in a family home or rent out your property, our team will help you get the best return on your real estate investment!
Connect with us to protect your interests in all real estate matters!
Ready to make a little extra income? Hosting an Airbnb out of your home is simple.
Accomplish your real estate goals with 23 Legal: (847) 447-6004
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.
