Is Berwyn, Illinois Good for Airbnb Investment?

To start an Airbnb in Berwyn, Illinois, begin by researching local regulations as Berwyn requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically restrict rentals to no more than 30 days in residential areas. Contact Berwyn City Hall at 6700 26th Street to obtain the necessary permits, including a business license ($50-100 annually) and ensure your property meets fire safety codes and building requirements. Find a suitable property in residential zones, preferably single-family homes or condos that allow short-term rentals per HOA agreements if applicable. Furnish the space with essential amenities including Wi-Fi, linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers as required by Cook County health codes. Create your Airbnb listing with professional photos, competitive pricing (average $80-120/night in Berwyn as of 2023), and detailed descriptions highlighting proximity to Chicago (15 miles west). For management, establish check-in procedures, maintain cleanliness standards, respond promptly to guests, and consider hiring local cleaning services like those found through Berwyn Chamber of Commerce. Ensure compliance with Illinois state tax requirements by collecting and remitting the 6.25% state sales tax plus Cook County's additional taxes, and maintain detailed records for annual business tax filings with both state and local authorities.

To identify profitable short-term rental properties in Berwyn, Illinois, focus on properties within walking distance of the CTA Blue Line stations (Berwyn and Harlem) as this provides easy access to downtown Chicago, typically increasing demand by 30-40%. Target 2-3 bedroom single-family homes or vintage apartments built between 1920-1950 with original hardwood floors, updated kitchens, and parking spaces, as these features command premium rates of $120-180 per night in the area. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 25%, typically finding sweet spots in the $200,000-350,000 purchase price range. Research competition within a 1-mile radius using Airbnb and VRBO searches, looking for gaps in availability during peak periods like summer festivals and Cubs games, while monitoring occupancy rates of existing listings through tools like AllTheRooms. Utilize Berwyn-specific resources including the City of Berwyn's zoning maps to ensure STR compliance, partner with local property management companies like Chicago Getaway Homes, and leverage Cook County property tax records through the Assessor's website to identify undervalued properties near Proksa Park and the historic downtown district where walkability scores exceed 70.

To obtain an Airbnb/STR permit in Berwyn, Illinois, you must first contact the Berwyn City Clerk's office at 6700 26th Street to inquire about their short-term rental licensing requirements, as the city requires registration for properties rented for less than 30 days. You'll need to submit a completed business license application, proof of property ownership or lease agreement allowing short-term rentals, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you live more than 25 miles away. The application fee is approximately $150-200 annually, with additional inspection fees of around $75. Required documents also include a valid state of Illinois business license, Cook County short-term rental permit, and compliance with all zoning regulations (typically limited to R-1 and R-2 residential zones with owner-occupancy requirements). The city requires properties to maintain guest registries, post emergency contact information, provide adequate parking, and limit occupancy to 2 people per bedroom plus 2 additional guests. The approval process typically takes 4-6 weeks after submission of complete documentation, including a mandatory property inspection by the Building Department. You must also register with the Illinois Department of Revenue for tax collection purposes and comply with Cook County's short-term rental ordinance, which may require additional permits and fees of approximately $250-300.

Short-term rentals (STRs) in Berwyn, Illinois are generally prohibited under the city's current zoning ordinances, which restrict residential properties to long-term occupancy only. The city has maintained strict regulations against transient accommodations in residential zones, effectively banning platforms like Airbnb and VRBO from operating legally within city limits. Berwyn's zoning code does not provide special permits or exceptions for short-term rental operations in residential areas, and the city has not adopted specific STR licensing frameworks that many other Illinois municipalities have implemented since 2018-2020. Property owners found operating unlicensed short-term rentals face code violations and potential fines, as the city prioritizes maintaining residential neighborhood character and preventing commercial activities in residential zones. Unlike neighboring communities such as Oak Park or Chicago that have developed regulated STR programs, Berwyn has maintained its restrictive stance without recent legislative changes to accommodate the short-term rental industry.

The best areas for Airbnb investment in Berwyn, Illinois include the historic downtown district along Ogden Avenue, which attracts visitors interested in the city's Czech heritage and proximity to Chicago's western suburbs. The residential neighborhoods near the Berwyn Metra station on the BNSF Railway line are particularly attractive due to easy access for business travelers commuting to downtown Chicago, typically 25-30 minutes away. The area around Proksa Park and the surrounding tree-lined streets offer appeal to families visiting the region, while properties near Roosevelt Road benefit from proximity to shopping and dining options. The neighborhoods closest to the border with Cicero and Oak Park are desirable due to spillover demand from visitors to those areas, especially during events at nearby venues. Additionally, the residential areas near MacArthur Elementary and surrounding blocks attract extended-stay guests due to the quiet, family-friendly atmosphere while maintaining convenient access to Chicago via public transportation, making these locations ideal for both business and leisure travelers seeking affordable alternatives to downtown Chicago accommodations.

In Berwyn, Illinois, Airbnb hosts are subject to multiple lodging taxes including the Illinois Hotel Operators' Occupation Tax at 6% of gross rental receipts, Cook County's Hotel Accommodation Tax at 3.5%, and potentially a local Berwyn accommodation tax estimated at 2-4% though the exact rate varies by municipal ordinance. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties meeting certain criteria, with Airbnb remitting payments quarterly to the Illinois Department of Revenue and applicable local authorities. Hosts operating properties where Airbnb doesn't collect taxes must register with the Illinois Department of Revenue and local tax authorities, file monthly or quarterly returns, and remit taxes directly. The state tax applies to rentals of less than 30 consecutive days, while local taxes generally follow similar short-term rental definitions. Exemptions may include rentals to permanent residents, certain government employees on official business, and properties rented for 30 days or more, though hosts should verify current exemption criteria with local authorities as regulations frequently change.

The total cost to start an Airbnb in Berwyn, Illinois would be approximately $285,000-$320,000. Property purchase costs around $220,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property would require $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees in Berwyn typically include business license ($100-$200), short-term rental permit ($200-$500), and potential zoning compliance costs totaling $1,000-$2,000. Insurance for short-term rentals runs $2,000-$3,000 annually, with the first year paid upfront. Utilities setup and deposits for electricity, gas, water, internet, and cable would cost $1,500-$2,500. First six months of operating costs including utilities ($900/month), cleaning services ($150 per turnover, estimated 20 turnovers), maintenance and supplies ($200/month), platform fees (3% of estimated $3,000 monthly revenue), and property management software would total approximately $8,000-$12,000. Additional working capital of $5,000-$10,000 should be reserved for unexpected repairs and vacancy periods.

Airbnb properties in Berwyn, Illinois typically generate average monthly revenues of $2,800-$4,200 for 2-3 bedroom homes, with annual gross revenues ranging from $33,600-$50,400 based on 65-75% occupancy rates and nightly rates of $120-180. Operating expenses including mortgage payments, property taxes ($8,000-12,000 annually), insurance ($1,500-2,500), utilities ($200-300 monthly), cleaning fees ($40-60 per turnover), maintenance ($2,000-4,000 annually), and Airbnb's 3% host fee typically consume 60-70% of gross revenue. Net profit margins generally range from 15-25% for mortgage-free properties and 5-15% for leveraged properties, with successful hosts in Berwyn's Oak Park border areas achieving higher margins due to proximity to Chicago transit lines. Key success factors include strategic location near the Blue Line, professional photography, competitive pricing during peak Chicago event seasons, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. Properties within walking distance of Berwyn's Depot District and those offering parking typically outperform by 20-30%, while hosts who provide local Chicago guidebooks and maintain rapid response times achieve occupancy rates 10-15% above market average.

Airbnb investments in Berwyn, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in this Chicago suburb, with median home prices around $280,000-$320,000, can achieve average daily rates of $85-$120 depending on proximity to downtown Chicago and local amenities. Investors can expect to reach profitability within 18-24 months, with gross rental yields averaging 10-14% annually. The market benefits from Berwyn's location just 10 miles from downtown Chicago, attracting business travelers and tourists seeking affordable alternatives to downtown accommodations. Initial investment requirements typically range from $60,000-$80,000 for a 20-25% down payment, with monthly operating expenses including utilities, cleaning, and platform fees averaging $800-$1,200. Occupancy rates in the area generally maintain 65-75% throughout the year, with peak seasons during summer months and major Chicago events driving higher rates and occupancy.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Berwyn, Illinois. Local real estate agents like Coldwell Banker Realty, RE/MAX Suburban, and Baird & Warner have agents experienced in investment properties who understand the Berwyn market dynamics and can identify properties suitable for Airbnb conversions. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and Awning, a full-service platform that helps investors find, finance, and manage short-term rental properties. Local property management companies like RedAwning and Vacasa can assist with both property identification and ongoing management once properties are acquired. Real estate investment firms such as Roofstock and Arrived Homes occasionally feature properties in the Chicago suburbs including areas near Berwyn. Additionally, local real estate investors and wholesalers often network through Chicago Real Estate Investors Association (ChicagoREIA) and can provide off-market opportunities specifically suited for short-term rental conversions in Berwyn's residential neighborhoods.