October 8, 2024
Investors seeking to venture into the short term rental market in Chicago, IL must familiarize themselves with the city's regulations surrounding short term rentals. This comprehensive guide provides answers to key questions, utilizing updated resources and research to assist potential investors.
In Chicago, a short-term rental is a residential property available for rent for less than 30 days. This includes various property types such as apartments, houses, and condominium units.
Yes, investors can own multiple short term rental properties in Chicago, provided each property complies with the city's regulations and zoning ordinances specific to short-term rentals.
Chicago has implemented zoning restrictions for STRs to preserve the character of residential neighborhoods. Investors should consult the city’s zoning map and regulations for detailed information.
Yes, investors can own and operate their Airbnb property as a business entity in Chicago, offering potential tax benefits and liability protection. Professional advice is recommended to understand the implications and requirements.
Investors in Chicago can register accessory dwelling units (ADUs), duplexes, and multi-family homes as short term rentals, ensuring compliance with city-set standards including zoning and licensing.
To obtain a Short Term Rental License in Chicago, properties must undergo inspection, comply with zoning laws, and owners must provide contact information for a responsible agent. The application process involves detailed property information submission and payment of required fees.
Costs include application fees, licensing fees, and potential inspection fees. Fees are subject to change, and the latest information should be checked on the city’s official website.
Chicago imposes occupancy limits on short term rentals based on property size and the number of bedrooms to ensure safety and comfort.
Chicago mandates property inspections before issuing an STR license to ensure compliance with health, safety, and building code requirements.
Short term rentals in Chicago must meet specific physical and structural requirements, including safety features like smoke detectors, carbon monoxide detectors, and secure locks.
Chicago requires STR owners to designate a responsible agent for prompt issue resolution and mandates specific insurance coverage to protect against liabilities.
The duration and renewal terms vary, with licenses typically valid for one to two years, subject to renewal before expiration and continued compliance with city regulations.
While Airbnb and VRBO may remit certain taxes on behalf of hosts, hosts are responsible for understanding and fulfilling all tax obligations, including those not covered by rental platforms.
Hosts are responsible for tracking and paying certain taxes directly to Chicago. For inquiries, contact the Department of Business Affairs and Consumer Protection (BACP) or visit the city’s official website.
Chicago regularly updates its laws and regulations on short term rentals. Investors are advised to check the city’s official website or consult legal professionals to stay informed of any changes.
Sources: Chicago Department of Business Affairs and Consumer Protection (BACP) official website, Domu’s Guide to Airbnb Chicago Laws, Rowland Group Real Estate’s Post on Running an Airbnb in Chicago.
