Airbnb & VRBO Performance in Peoria Illinois.

Short-Term Rental Regulations in Peoria, Illinois for 2024

Definition and Licensing

• Short-term rentals are defined as rentals for 29 days or less.
• All short-term rental properties must be registered and licensed by the City of Peoria before operating.

Licensing Requirements

• Submit a short-term rental license application, floor plan, proof of ownership, and pay a $75 annual license fee.
• Licenses must be renewed annually before March 1st.
• Properties must pass an inspection to verify compliance with building, zoning, health, and safety codes.

Taxation

• A 5% hotel/motel occupancy tax must be remitted quarterly, monthly, or annually.
• Tax payments can be submitted via the Short-Term Rental License & Tax Web Portal.

Special Use Permits

• For properties located in unincorporated parts of Peoria County, hosts need to acquire a Special Use permit from the Peoria County Board.

Compliance and Enforcement

• Failure to register or renew the license can result in fines of $750 per day of unlicensed rental operations.
• The city will initially issue warnings and allow hosts to come into compliance before imposing fines.

Additional Requirements

• Hosts must collect and remit hotel/motel taxes and submit documentation such as booking receipts and occupancy reports.
• Submission of the State of Illinois Sales and Use Tax form or the City of Peoria Short-Term Rental Tax Return is required for license renewal.

Potential Future Changes

• The city council has been debating tightening rules around factors like location limits, spacing minimums from other rentals, and the cap on total non-owner occupied units allowed in neighborhoods.

Top Airbnb Revenue-Generating Neighborhoods in Peoria, Illinois

Peoria Heights

• Appeal: Peoria Heights is a highly sought-after area due to its high occupancy rate of 70% and an average daily rate of $101. It is close to several attractions such as Grand View Drive, Peoria Heights Tower Park, and the Forest Park Nature Center. The area's lenient regulations and stable housing market make it an attractive option for both hosts and guests.

Downtown Peoria

• Appeal: Downtown Peoria offers a vibrant and central location with easy access to key attractions like the Peoria Riverfront Museum, Caterpillar Visitors Center, and the Spirit of Peoria. The area's proximity to Bradley University and various cultural events makes it a favorite among travelers looking for a mix of urban and cultural experiences.

North Peoria

• Appeal: North Peoria is known for its convenient location and amenities. It is close to Detweiller Park and other recreational areas, making it appealing to guests who want to balance leisure and outdoor activities. The area's relatively short commute time and lower noise and pollution levels add to its attractiveness.

Bradley University Area

• Appeal: The area surrounding Bradley University is popular due to its proximity to the university, which attracts students, parents, and visitors. This neighborhood offers a dynamic environment with various dining, shopping, and entertainment options, making it a preferred choice for short-term renters.

Forest Park Nature Center Area

• Appeal: This area is appealing due to its natural beauty and recreational opportunities. The Forest Park Nature Center and nearby parks provide a serene and scenic environment that attracts nature lovers and those seeking a tranquil stay. The area's amenities and natural attractions make it a high-revenue generating neighborhood for Airbnb hosts.

These neighborhoods in Peoria, Illinois, are particularly appealing due to their combination of central locations, proximity to key attractions, and the availability of various amenities, making them highly profitable for Airbnb hosts.

Tips for Furnishing and Designing an Inviting Airbnb in Peoria, Illinois

Understanding the Local Appeal

• Reflect the City's Charm: Incorporate elements that highlight Peoria's blend of small-town charm and urban amenities. Use natural materials like wood and stone to reflect the area's landscapes.

Choosing the Right Furniture

• Timeless and Durable Pieces: Opt for sturdy, high-quality furniture that can withstand frequent use. Avoid flimsy or low-quality items, especially for beds and sofas.
• Functional yet Stylish: Select furniture that serves multiple purposes, such as sofa beds, storage beds, and folding tables. These can help in maximizing space and accommodating more guests.

Enhancing Guest Comfort

• Well-Equipped Kitchens: Ensure the kitchen is stocked with essentials like a coffee maker, microwave, toaster, kettle, and basic cookware. Additional items like a blender and sharp knives can be nice extras.
• Comfortable Bedding: Use high-quality mattresses (at least 8 inches thick) and consider memory foam mattresses for durability. Add a mattress cover to extend the life of the mattress.
• Cozy Interiors: Incorporate cozy bedding, and use uplifting colors and local art to create a welcoming atmosphere.

Utilizing Space Effectively

• Smart Storage: Use beds with drawers, wall hooks, pegboards in the kitchen, and stackable containers to optimize storage. Provide a designated spot for guests' personal items, like a luggage rack.
• Mirrors and Lighting: Use mirrors to make the space feel bigger and brighter. Ensure good lighting and easy access to power outlets, especially in areas where guests might work or get ready.

Amenities and Extras

• Outdoor Spaces: If possible, provide spacious outdoor areas for gatherings, which are highly valued by guests in Peoria Heights.
• Family and Pet-Friendly: Include amenities suitable for families and pets, such as playpens, games, or pet-friendly facilities.
• Basic Toiletries and Essentials: Provide a hairdryer, basic toiletries, and a first-aid kit. Ensure there is enough storage for guests' toiletries and personal items.

Neighborhood Considerations

• Riverview and Park Areas: Invest in neighborhoods like the upscale Riverview area or near Peoria Heights Park, which offer scenic views and recreational opportunities.
• Accessibility to Local Amenities: Choose locations with easy access to local shops, restaurants, and attractions to enhance the overall visitor experience.

Accessibility and Safety

• Accessibility Features: Consider making your Airbnb accessible to guests with disabilities by adding ramps, wide doorways, and grab bars in bathrooms.
• Safety Equipment: Install smoke detectors, carbon monoxide detectors, and provide a first aid kit for guest safety.

By following these tips, you can create an inviting and uniquely styled Airbnb in Peoria, Illinois, that appeals to a wide range of guests and enhances their overall experience.

Practical Tips to Run a Successful Short Term Rental Business in Peoria, Illinois

To ensure a smooth and successful short term rental business in Peoria, Illinois, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform your guests about quiet hours to maintain neighborhood integrity. Include clear noise regulations in your house rules, specifying quiet hours (typically between 10pm and 8am) to avoid disturbances and ensure compliance with local ordinances.

Comprehensive House Manual

Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also outline house rules, including noise regulations, to set clear expectations for your guests.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to access the property, along with photos to help them navigate any specific steps or features of the smart lock system.

Clear Parking Instructions

Include parking instructions with photos in your house manual to help guests understand where and how to park. This can prevent confusion and potential issues with neighbors, ensuring a hassle-free stay for your guests.

By implementing these tips, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short term rental business in Peoria, Illinois.

Here is a brief list of house cleaning providers in Peoria, Illinois:

House Cleaning Services in Peoria, IL

Two Maids

• Offers professional house cleaning services with experienced, trained, and background-checked cleaners.
• Provides all necessary cleaning supplies and equipment.
• Customizable services, including one-time and recurring cleanings.

Molly Maid

• Provides customized cleaning plans with no contracts.
• Services include floor cleaning, dusting, washing, and sanitizing.
• Offers one-time, move-out, and recurring cleaning services.

CottageCare

• Offers house cleaning services starting at $113, using eco-friendly products.
• Customized housekeeping services tailored to specific needs.
• Services include kitchen, bathroom, hardwood, tile, laminate, dusting, and carpet vacuuming.

Merry Maids

• Based in East Peoria, but serves the surrounding area including Peoria.
• Offers expert cleaning services with 40 years of experience.
• Provides services to help restore balance to your life by managing housekeeping tasks.

Managing Short-Term Rentals in Peoria, Illinois: Fees and Services

In Peoria, Illinois, the management of short-term rental properties, such as those listed on Airbnb or VRBO, involves a range of fees that can vary significantly based on the level of service provided. Full-service management companies, which handle comprehensive tasks including guest communication, marketing, and maintenance, typically charge fees ranging from 12% to 20% or more of the rental revenue.

Basic service packages, which may include only the essential management tasks, can start as low as 10% of the rental revenue. Additionally, hosts may incur extra fees for services such as cleaning, repairs, and interior design to enhance the property's appeal and guest experience.

It is important for hosts to consider these fees when selecting a management service, as they can impact the overall profitability of the rental property. Moreover, hosts must also comply with Peoria's local regulations, including obtaining a $75 annual license and remitting a 5% hotel/motel tax on all rental income.