Springfield, Illinois is experiencing robust performance in the short-term rental market, with a monthly short-term rental income of $2,087, a cash on cash return of 5.97%, and an occupancy rate of 52%, making it a viable investment opportunity.
Thriving Short-Term Rental Market in Springfield, Illinois
Springfield, Illinois, is experiencing a robust performance in the short-term rental market, making it an attractive destination for both investors and travelers. According to recent data, Springfield boasts a short-term rental occupancy rate of 52%, indicating a steady demand for these properties throughout the year.
The average daily rate for short-term rentals in Springfield stands at $99, which, combined with the occupancy rate, translates to a monthly short-term rental income of $2,087. This financial performance is further bolstered by a cash on cash return of 5.97% and a cap rate of 6.20%, highlighting the potential for profitable investments in this market.
Overall, Springfield's short-term rental market is characterized by its stability and growth potential, making it a promising option for real estate investors and a convenient choice for travelers seeking flexible and comfortable accommodations.
Short-Term Rental Regulations in Springfield, Illinois for 2024
Types of Short-Term Rentals and Their Regulations
Type 1: Owner-Occupied Primary Residences
- Allowed in single-family residential zoning districts.
- Can be rented up to 95 days per year when the owner is not present.
- Must obtain city approval and a business license.
Type 2: Not Owner-Occupied
- Allowed in multi-family residential zoning districts.
- No limit on rental days.
- Maximum 2 units per property.
- Must obtain city approval, business license, and certificate of occupancy.
- Requires a meeting with adjacent property owners within 500 feet, and 55% of those neighbors must sign an affidavit in support of the short-term rental.
Type 3: Not Owner-Occupied
- Allowed in commercial/mixed use zoning districts.
- No limit on rental days.
- Maximum 2 units per property.
- Must obtain city approval, business license, and certificate of occupancy.
General Requirements
Registration and Licensing
- All short-term rentals must register with the state Department of Revenue.
- Must obtain a city business license and certificate of occupancy.
Taxation
- Must charge guests the 6% state hotel tax plus the 2% city hotel tax.
- A 5% lodging tax applies to the entire gross receipts of short-term rentals for stays under 30 days.
Enforcement and Compliance
- The city plans increased enforcement efforts against illegal unregistered short-term rentals.
- Fines for non-compliance start at $100 per violation and can escalate with repeat offenses.
- Business licenses can be revoked for non-compliance.
Safety and Community Standards
- Vacation rental properties cannot be rented solely for parties or other events.
- Operators must comply with zoning laws and safety codes.
Annual Licensing Fees
- Licensing fees range from $25 to $350 based on gross rental receipts.
High-Revenue Neighborhoods for Airbnb in Springfield, Illinois
Downtown Springfield
- Proximity to Historical Sites: Downtown Springfield is centrally located near major attractions such as the Abraham Lincoln Presidential Library and Museum, the Illinois State Capitol, and other historical sites.
- Walkability: Guests can easily walk to many Lincoln sites, restaurants, and other amenities, making it a highly convenient location.
- Modern and Historic Charm: Properties here often blend vintage charm with modern comfort, appealing to a wide range of guests.
West Side
- Convenient Access: The West Side offers easy access to entertainment, amenities, and historical sites, making it an attractive location for guests.
- Family-Friendly: This area is known for its family-friendly environment and proximity to parks and other family-oriented attractions.
Areas Near Washington Park
- Scenic and Peaceful: Neighborhoods around Washington Park provide a peaceful and scenic environment, with easy access to the park's amenities.
- Proximity to Hospitals and Shopping: These areas are also close to hospitals, restaurants, and shopping centers like White Oaks Mall, enhancing their appeal.
Areas Close to the State Fairgrounds
- Event-Driven Demand: Neighborhoods near the State Fairgrounds benefit from the high demand during events like the Illinois State Fair, attracting a diverse group of guests.
- Convenient Access: These areas are also close to other attractions and amenities, making them highly sought after.
Historic Neighborhoods Near Lincoln Park
- Historic Charm: Neighborhoods such as those around Lincoln Park offer historic charm and are close to scenic parks and other Lincoln attractions.
- Well-Equipped Properties: Properties here often feature fully equipped kitchens, laundry facilities, and other amenities that enhance the guest experience.
These neighborhoods are appealing due to their proximity to major attractions, convenient access to amenities, and the blend of modern comfort with historic charm, which collectively contribute to higher occupancy rates and increased revenue for Airbnb hosts.
Furnishing and Design Tips for an Inviting Airbnb in Springfield, Illinois
Understanding Springfield's Unique Style
- Springfield is known for its rich historical significance, particularly its association with Abraham Lincoln, and its vibrant cultural scene. Reflect this in your design by incorporating classic American styles, quaint cottage aesthetics, or rustic farmhouse designs.
Key Furniture and Decor Considerations
- Modern yet Classic Furniture: Choose stylish, modern furniture that blends with vintage charm to appeal to families and history enthusiasts. Opt for timeless, sturdy pieces that will last.
- Comfortable Bedding: Ensure high-quality bedding, including solid beds with easy-to-clean surfaces and memory foam mattresses for superior comfort and durability.
- Well-Equipped Kitchens: Furnish your kitchen with modern, high-end appliances and essential cookware, utensils, and dinnerware. Include a coffee maker, microwave, toaster, and kettle, along with a good blender and sharp knives.
Amenities and Features
- Outdoor Spaces: Provide outdoor spaces such as patios or covered areas for relaxation and entertainment, which are highly sought after by guests.
- Family-Friendly Items: Include family-friendly items like playpens, games, and laundry facilities to enhance guest satisfaction.
- Storage and Organization: Use smart storage solutions like beds with drawers, wall hooks, and stackable containers to keep the space tidy and organized.
Neighborhood and Location
- Prime Neighborhoods: Invest in properties located in Downtown Springfield, the West Side, and areas close to Washington Park, which offer convenient access to historical sites, entertainment, and amenities.
- Proximity to Attractions: Ensure your property is close to major attractions like the Abraham Lincoln Presidential Library and Museum, the Illinois State Capitol, and other historical sites.
Aesthetic Touches
- Neutral Palettes with Bold Accents: Use neutral color palettes with bold accents to create a welcoming environment that appeals to a wide demographic.
- Mirrors and Lighting: Use mirrors to make the space feel bigger and brighter, and ensure good lighting with desk lamps and easy access to power outlets.
Guest Convenience
- High-Speed Internet and Workspaces: Provide high-speed internet and a dedicated workspace with a sturdy desk and comfy chair, which are crucial for business travelers and digital nomads.
- Basic Toiletries and Essentials: Offer basic toiletries, a hairdryer, and a first-aid kit to make a significant difference in guest satisfaction.
Accessibility and Safety
- Accessibility Features: Consider making your Airbnb accessible to guests with disabilities by including ramps, wide doorways, and grab bars in bathrooms.
- Safety Equipment: Install smoke detectors, carbon monoxide detectors, and a first aid kit to ensure guest safety.
Discover Springfield, Illinois: Local Attractions and Insider Tips
Historical and Cultural Attractions
- Abraham Lincoln Presidential Library and Museum:
- An immersive experience into the life of the 16th President. A must-visit for history buffs.
Tip: Plan for at least half a day to fully explore the museum and its interactive exhibits.
Lincoln Home National Historic Site:
- Visit the home and law offices of Abraham Lincoln, offering a glimpse into his life before presidency.
Tip: Take a guided tour to get the most out of your visit.
Lincoln's Tomb and War Memorial State Historic Site at Oak Ridge Cemetery:
- The final resting place of Abraham Lincoln and his wife. Don't miss the lucky-rub-nose tomb.
Tip: Be respectful of the site and other visitors.
Dana-Thomas House:
- Designed by Frank Lloyd Wright, this house is a masterpiece of early 20th-century architecture.
- Tip: Book a tour in advance as spots fill up quickly.
Museums and Educational Sites
- Illinois State Museum:
- Features exhibits on Illinois history, natural history, and Native American heritage. Includes the Mary Ann MacLean Play Museum for kids.
Tip: Check out the interactive exhibits and the play area for children.
Sign Museum:
- A unique indoor display of neon and other signs from Springfield and Route 66, restored by a local sign-making company.
Tip: Great for photography and learning about the history of signage.
Route 66 Motorheads Bar, Grill and Museum:
- A collection of Route 66 memorabilia and a great place for dinner or sunset views.
- Tip: Enjoy the memorabilia and the menu, which offers good value.
Outdoor and Recreational Attractions
- Washington Park Botanical Garden:
- Features a greenhouse, conservatory, and various themed gardens. A great spot for birding and outdoor activities.
Tip: Take advantage of the free guided tours for groups and enjoy the seasonal events.
Thomas Rees Memorial Carillon:
- The 5th largest carillon in the world, offering weekly concerts and stunning views from its observation decks.
Tip: Attend a concert or festival, and sign up for a tour to learn more about the carillon.
Adams Wildlife Sanctuary:
- A popular spot for nature enthusiasts and birders.
- Tip: Bring binoculars for birdwatching and enjoy the serene environment.
Unique and Quirky Attractions
- Defiant Tomb Of Mr. Accordion:
- The tomb of Roy Bertelli, built on the way to Lincoln's tomb as a joke and to irritate the cemetery owners.
Tip: A quirky stop for those interested in unusual landmarks.
Hot Dog Muffler Man:
- Located in nearby Atlanta, this iconic figure is a must-see for Route 66 enthusiasts.
Tip: Combine this visit with other Route 66 attractions in the area.
World's Largest Covered Wagon and Big Lincoln:
- In Lincoln, Illinois, this giant covered wagon and Lincoln statue make for a fun photo opportunity.
- Tip: Stop by on your way to or from Springfield for a unique photo op.
Insider Tips
- Custom Cup Coffee:
A local microroastery with custom and roast-to-order coffee. Perfect for a coffee break or to warm up during colder months.
Cozy Dog Drive In:
The birthplace of the corn dog, a great place to try this local specialty.
Local Events:
- Check out the International Carillon Festival, and other community events that take place throughout the year.
By sharing these attractions and tips, you can help your Airbnb guests make the most of their visit to Springfield, Illinois, and enjoy the city's rich history, unique landmarks, and outdoor activities.
Practical Tips to Run a Successful Short Term Rental Business in Springfield, Illinois
To operate a successful short term rental business in Springfield, Illinois, several practical tips can enhance the guest experience and ensure compliance with local regulations.
Noise Regulations and Guest Communication
Inform your guests about quiet hours to maintain a peaceful environment for both the guests and the neighbors. Include this information in your digital and physical house manual to set clear expectations.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual helps guests navigate the property easily and reduces the need for frequent inquiries.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with photos of the lock and any other relevant entry points.
Parking Instructions
Include parking instructions with photos in your house manual to help guests find and use designated parking areas. This reduces confusion and potential issues with neighbors or local authorities.
By implementing these tips, you can ensure a smooth and enjoyable experience for your guests while adhering to Springfield's short term rental regulations, such as those related to noise and zoning.
Here is a brief list of house cleaning providers in Springfield, Illinois:
House Cleaning Services
Golden Rule Cleaning & More
- Offers maid and janitorial services, residential and commercial cleaning, move-out cleaning, and more.
- Uses eco-friendly and sanitizing cleaning products.
- Provides personalized cleaning services based on client preferences.
Maids "R" Us
- Provides reliable residential and commercial cleaning services.
- Offers regular and deep cleaning services, including dusting, polishing, and vacuuming.
- Known for traditional cleaning methods and affordable rates.
Merry Maids of Springfield, IL
- Offers expert home cleaning services with 40 years of experience.
- Provides time-tested processes and advanced cleaning products.
- Restores balance to your life by taking care of your home.
Cardinal Cleaning
- Offers weekly, bi-weekly, monthly, or one-time cleaning services.
- Provides detailed and professional cleaning tailored to individual needs.
- Helps prepare homes or businesses for special events or regular maintenance.
For additional options, you can also refer to the list of 38 house cleaning services in Springfield, IL, available through Care.com.
Springfield, Illinois, Short-Term Rental Management Fees: A Breakdown
In Springfield, Illinois, the fees for managing short-term rentals can vary significantly based on the level of service provided. Typically, these fees range from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often starting at around 20% of the revenue.
Basic services, which may only include minimal support like booking management, can cost less. Additionally, hosts may incur extra fees for services like cleaning, repairs, and design, which can be charged separately or included in the overall management fee. These additional costs can vary depending on the property manager and the specific needs of the rental property.