The City Council passed new rules for home sharing in June 2016, which updated Chicago’s short-term rental regulations. A short term rental is a part or all of a home that hosts rent out to guests for temporary occupancy. The following article will look at registration requirements for short term residential rentals.
Registration Requirements:
You may fall into one or more of these three categories if you host a short-term residential rental.
1. Shared Housing Unit
A shared housing host is an owner or tenant of a shared housing unit who rents the unit to guests. All hosts in Chicago should register shared housing units with the City to list their spaces on online home-sharing platforms, such as Airbnb. They can do this by following the processes set up by hosting platforms. Moreover, hosts must post their property’s license number on their listing.
2. Vacation Rental
A vacation rental is a dwelling unit that is rented out to guests. Vacation rentals require a license from the City in order to be rented on home-sharing platforms, such as Airbnb. Furthermore, they must apply and collect hotel accommodation tax and submit it to the city themselves. Vacation rental operators may advertise or list their spaces through home-sharing advertising platforms. Hosts must post their property’s license number on their listing.
3. Bed & Breakfast
Bed and breakfast is an owner-occupied residential building in which hosts rent out 11 or fewer rooms to guests. The City of Chicago requires a license for a ‘bed and breakfast.’ Bed and breakfast operators may advertise or list their spaces through home-sharing advertising platforms. Hosts must post their property’s license number on their listing.
Taxes
Chicago has imposed a Hotel Accommodation Tax of 4.5% for the listing price, including cleaning fees. Hosts must pay this tax for vacation rentals, bed and breakfasts, and other hotel accommodations. Additionally, Airbnb collects a 4% Shared Housing Surcharge Tax to send to Chicago.
Other Short Term Rental Regulations
As a responsible host, you must abide by other contracts or vacation rental rules and regulations that bind you. These include leases, community rules, HOA rules, or other guidelines set up by tenant associations. Feel free to reach out to your landlord, housing authority, or community council to find out more.
To get more information about other regulations, you can visit Chicago’s website and read the entire ordinance. Moreover, you can view the updates from September of 2020 here or contact us.