AirBnB Requirements in Chicago

Chicago, Illinois
Short-Term & Vacation Rental Discussions
4yFollow

AirBnB Requirements in Chicago

Josie Sweeney-Rogers
Member since 2021 · 3 posts · 3 votes

Just purchased a home with a second unit upstairs that we are converting into an AirBnB. We close at the end of this month and want it up and running ASAP as the busy summer months are approaching... From what I've read online the requirements to start an AirBnB in Chicago include a utility bill under your name, which we could not get of course until 1 month after close. 

Is this true, and what steps have others taken to expedite their AirBnB listing? Are there any other requirements that we may have an impact on our listing? I understand Chicago has loads of red tape....

1Reply
77 views

Most Popular Reply

Martin M.
Member since 2021 · 104 posts · 78 votes
4y

@Josie Sweeney-Rogers

Hi Josie, you may have seen this site already, but posting in case not.

https://www.chicago.gov/city/en/depts/bacp/supp_info/sharedhousingandaccomodationslicensing.html

The Shared Housing Ordinance link on that page may have some info. that's helpful to you.

Also, I know there was a ban put in place on one night rentals a year or so ago. If I remember right, the mayor was looking to crack down on units being rented for parties or something like that. I don't know if that's still in place. Worth looking into if you were planning to allow 1 night rentals

2Reply
See this reply in the discussion

11 Replies

Jump to latestLatest
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    4y

    @Josie Sweeney-Rogers - I hear it is taking about 6 weeks to approve your application.  You are only allowed to do the unit you occupy so if you want to do a vacant unit you need to apply for an adjustment

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
  • Martin M.
    Member since 2021 · 104 posts · 78 votes
    4y

    @Josie Sweeney-Rogers

    Hi Josie, you may have seen this site already, but posting in case not.

    https://www.chicago.gov/city/en/depts/bacp/supp_info/sharedhousingandaccomodationslicensing.html

    The Shared Housing Ordinance link on that page may have some info. that's helpful to you.

    Also, I know there was a ban put in place on one night rentals a year or so ago. If I remember right, the mayor was looking to crack down on units being rented for parties or something like that. I don't know if that's still in place. Worth looking into if you were planning to allow 1 night rentals

    2Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    4y

    @Josie Sweeney-Rogers - Since you are doing it as an owner occupant it should NOT be too difficult.  You used to be able to register on AirBnB and get your property listed before you got your license number, but I am not sure that is still the case.

    We are closing on a Chicago AirBnB condo today so I'll keep you posted on how ours goes and how long it takes.

    [email protected]
    Quality Builders4.966 Reviews
    WebsiteView Page
    1Reply
  • Josie Sweeney-Rogers
    OP
    Member since 2021 · 3 posts · 3 votes
    4y

    @Jonathan Klemm - this is very helpful! We began filling out the application for the rental on the city of Chicago's website and it is requiring a bill to show that we live there... Let me know if you experience anything different? We are wondering if we could ask the gas company to send a bill earlier to speed up the process. 

    1Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    4y

    Good to know @Josie Sweeney-Rogers will definitely keep you posted.  So you had to register through the city of Chicago website, not Airbnb?

    [email protected]
    Quality Builders4.966 Reviews
    WebsiteView Page
    0Reply
  • Josie Sweeney-Rogers
    OP
    Member since 2021 · 3 posts · 3 votes
    4y

    @Jonathan Klemm Prior to registering on Airbnb, you will need to register with the city so they can properly tax you (of course lol). The Airbnb website will ask for your registration number that the city provides to you in order to list the property on their website. 

    1Reply
  • Michael K.
    Investor · Chicago, IL · Member since 2018 · 352 posts · 176 votes
    4y

    @Josie Sweeney-Rogers

    Need to register with the city of Chicago, its a $125 fee for the first unit. Paid yearly. https://webapps1.chicago.gov/c...

    There is also a lot of city-specific info on Airbnb's own website, including the local, state, and county taxation laws for Chicago https://www.airbnb.com/help/ar...

    Hope this helps! I 

    0Reply
  • Vraj Patel
    Rental Property Investor · Chicago, IL · Member since 2020 · 7 posts · 1 vote
    4y

    @Josie Sweeney-Rogers I manage an AirBnB for an owner in Chicago and he used his comed bill to apply for the permit and took about few days to get the permit number. Chicago changed the ordinance back in June 2021, they don't allow anymore to list on AirBnb until you have gotten approved; however, you can still list it for 32 days or longer.

    I would suggest to get your listing ready with proper pricing and discount beforehand so when you actually go live, the new listing boost will help you to get your calendar booked quicker. Also, I would suggest using dynamic pricing tool to help you with pricing automation as it looks at market data and automatically adjusts your rate, I use pricelabs for dynamic pricing. 

    1Reply
  • Alex Talcott
    Attorney · Durham, NH · Member since 2019 · 292 posts · 126 votes
    4y

    Hi, Josie. I lived in Chicago for six years, haven't invested there.

    I recommend the Straight Up Chicago Investor podcast and Mark Ainley, GC Realty & Development.

    For me, it's scared me away from putting in the work to own investment properties in the city, but if you're gonna do it, it's a must-listen.

    2Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    4y

    @Vraj Patel - That's great info and advice about Chicago AirBnBs.  List is it for 32 days or longer to start.

    We use pricelabs for our dynamic pricing because it syndicates to all 3 major platforms.

    [email protected]
    Quality Builders4.966 Reviews
    WebsiteView Page
    0Reply
  • Usman S.
    Investor · Greater Chicago · Member since 2022 · 26 posts · 7 votes
    4y

    Anybody know if the suggestions in this thread would be applicable to Evanston also ? I am guessing maybe not all as Evanston has it's own set of rules. I have a multifamily under contract which i would like to position as an Airbnb also - It has a basement unit with a separate walkout which has a good potential for Airbnb but needs further evaluation.

    @Josie Sweeney-Rogers Don't want to hijack your thread but was not sure if i need to post a new one or if it would be good to have consolidated info here. If you have any suggestions plz let me know. :--)

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free