Chicago vacation rental demand is on the rise this summer
(Above) Living room in a house in Chicago’s Old Town neighborhood listed on vacation rental site Airbnb. Photos by Andrew Miller.
The demand for vacation home rentals is back. Reservations are on the rise. Average daily rates are on the rise. And tenants stay longer.
15-Aug-21 ?? After a year-long battle over the effects of COVID-19 on the vacation home and shared accommodation industry in Chicago, travel volume and unit bookings are rapidly returning, analysts say.
Nearly half of Chicago’s Airbnb hosts have written off their property as COVID-19 closings increased in 2020, and the inventory of available rentals has fallen to about 5,400 units out of about 10,600 listings.
However, demand for vacation homes appears to be soaring to 2019 levels this summer, industry sources say.
?? Many Chicago vacationers are choosing private homes and well-appointed apartments over downtown hotels as the travel industry rebounds. noted the real estate agent Sara benson (left), president of Chicago-based Benson Stanley Realty, which works with income property owners.
In Old Town and Lincoln Park, some Airbnb rental rates for upscale two-bedroom units with private outdoor space and built-in washer / dryer are over $ 300 per night, Benson said.
In the summer of 2020, Chicago City Council approved regulatory measures to curb the use of short-term rentals as “party houses.” or prohibited activity centers.
New amendments to Chicago’s vacation home and short-term rental policy include a ban on single-night stays. There are also stricter rules regarding excessive noise and / or vibration generated inside the rental accommodation, in any private open space adjoining the rental, or on the adjacent public road.
Landlords who list homes as vacation rentals on popular booking sites like Airbnb and VRBO should submit their registration information to the city, not just home sharing platforms.
The changes also increase the annual owner’s license fee to $ 125 per unit, from $ 60.
This change should help the Ministry of Commercial Affairs and Consumer Protection track violations. Homeowners who break the law face fines of $ 5,000 and $ 10,000.
An industry survey of Chicago vacation homes and shared properties shows the following market trends:
?? Summer bookings are currently 40% or more from 2019 levels, the last normal summer before COVID.
?? Large houses and apartments with three or more bedrooms experience the largest increases in demand.
?? Many properties are booked at record average daily rates for the months of August through November 2021.
?? The average length of stay continues to increase and far exceeds pre-2020 levels.
If you are a homeowner considering joining the booming shared rental and vacation home industry, it is important to remember that there are some drawbacks, even for well-managed units.
?? We had a long term vacation home visitor from New York who apparently did not read our rules on using the trash, ?? said an angry owner. They threw their kitchen trash bags on the aft deck several times, creating a buffet for the rats.