Whether you support or oppose short term vacation rental sites such as Airbnb, Homestay and the like, they show no signs of slowing down in Chicago.
Recent legislation enacted has put a cap on the number of units within a building that may be used as a short term rental. Building with fewer than five units may have only one unit listed at a time. Larger buildings are capped at six units, or 25 percent, whichever is less. Additionally, Airbnb will need to pay a $10,000 license to operate in Chicago, as well as a $60 charge for each Chicago address and a 4 percent tax on each rental. These fees will fund services for homeless as well as help to enforce the rules. To read more about the legislation, click here.
Owners looking to take advantage of or ban the use of short term rentals should check their association’s governing documents such as the Association’s Declaration, Bylaws and Rules and Regulations. Many policies already contain a prohibition on short term or vacation rental policies.
The city has requested that anyone who wishes to rent a unit must register with the city. Associations with a ban on short term rentals may request that the city add the building to the prohibited building list. If a unit is within the prohibited building list, the city will not register it and this should prevent registration on listing platforms such as Airbnb. For more information on regulation enforcements, click here.