Photographer’s modern Bucktown B & B flourishes

Ray Reiss is a photographer. In a twist of fate and amid a housing boom in Bucktown, he became a small-business owner of a successful, renowned bed and breakfast. A distinctive spot in an unlikely neighborhood, Ray’s Bucktown B &B has managed to turn a solid profit since first emerging in March 2005. It has attracted over 2,000 guests, including people from the business world, as well as the international sphere and has recently expanded to include another property on the block.

In 1981, Reiss purchased the three-story, one-bedroom, one-bathroom house at 1883 N. Leavitt St., on an all residential block in Bucktown for $26,000; his property tax was $900 a year. Ten years later, when property taxes had reached about $1,300 and rising, Reiss qualified for a Long-Term Homeowner’s Exemption, which locked in his property tax at $1,500 a year until 2004, when it became obsolete. At that point, property taxes had spiked to $6,500, which on Reiss’ photographer’s income, was steep.

Selling his beloved home was not an option, so Reiss, known by his buddies for wild parties, Bears brunches and Scrabble nights, decided to become a full-time host. But he had reservations about the idea of transforming his home into a bed and breakfast.

“I’m a creative type,” Reiss says. “I knew I was a good enough businessman and the building was big enough, but I hated getting up for breakfast and hated the frumpy Martha Stewart decorations of the classic bed and breakfasts. But the big thing was emotionally how I would feel having strangers in my home.”

Nevertheless, Reiss began the extensive process of obtaining a license and initiated construction for a four-and-a-half-bathroom addition, a sauna and steam room and a conversion of darkrooms and offices to bedrooms, a project that resulted in $230,000 in debt.

As for the prospect of a bed and breakfast in Bucktown, Reiss says he was confident there would be a demand.

“I knew the neighborhood had changed,” Reiss said. “There were a lot of restaurants and stores. As a small-business, though, I couldn’t afford to do any real market research.”

In March 2005, Reiss finalized the license and opened for business. It was Bucktown’s first and only bed and breakfast, with four guest rooms available 365 days a year, for $129 a night.

Reiss quickly learned the key to capturing guests: the Internet. So, he purchased a listing on Bedandbreakfast.com for $250 for the year and laid out $100 for membership with the Chicago Bed and Breakfast Association. The investments proved to be a successful business move; within a day, he was receiving calls for reservations from people who found Ray’s Bucktown B&B on the sites.

In the original business plan, Reiss projected a 10% occupancy rate for the first year, with a $35,000 gross revenue. In its first year of operation, the bed and breakfast was booked at an average 65 percent occupancy rate, with $150,000 in gross revenue. The following year, 2006, Ray’s had a 75 percent occupancy rate. Summers are fully booked, as well as most weekends throughout the year. The nightly room rate has increased to $139 to $159, based on the size of room. The DaVinci room, the largest, with an attached sitting room and a second sink and vanity, goes for $159.

“It’s a very profitable business as far as I’m concerned,” says Reiss. “But I’m a simple boy from Kansas!”

“Not your parent’s b and b,” is Reiss’ motto for his business, and a visit to the art deco house-turned-bed and breakfast confirms the claim. Large-scale photographs line the white walls, a video projector television lights up the comfortable, but stylish living room and a huge display of bright orange teal and yellow pottery dishes adorns the kitchen.

Besides creating an alluring space, Reiss has ensured that his guests have access to the modern amenities, typically not associated with traditional bed and breakfasts, including WiFi, TiVo, satellite cable, two Macs for guest use and printers. He also prides himself on the extra goodies available for guests, including the stack of Time Out magazines, unlimited access to bottles of water, coffee, pastries and fruit.

One-third of the guests are business people, one-third are tourists tired of downtown hotels and one-third are people with relatives that live in the area, Reiss estimates. Approximately 80 percent of guests are American and 20 percent are international tourists, who are more accustomed to bed and breakfasts.

Reiss attributes the success of the business to the blossoming Bucktown area, the Internet listings and reviews, such as a four-out-of-five star review on TripAdvisor.com and the unique quality of the place. Also, its close proximity to downtown Chicago is an appeal.

“The attraction is Chicago. With rural bed and breakfasts that don’t get nearly the high occupancy rates that we do, the attraction is the actual bed and breakfast,” said Paige Billette, manager of Ray’s Bucktown B&B.

As far as continuous costs, Reiss spends between $5,000 and $8,000 a year on upgrades and repairs, and he pays the salaries of two full-time employees, including himself, and three part-time employees. He plans to hire two additional full-time people for the busy summer months.

Despite the b and b’s success, Reiss never abandoned his first love; he still works as a freelance photographer, and is commissioned by major companies like McDonald’s Corp.

As for the early reservations about pursuing a bed and breakfast, he says, “there hasn’t been a single morning that I have gotten up and said, ‘Oh, my God, what have I done?’”