Airbnb registration renewal issues with multifamily property in Chicago

Chicago, Illinois
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Airbnb registration renewal issues with multifamily property in Chicago

Jeff DavisPro Member
Chicago · Member since 2021 · 50 posts · 30 votes

Hey all! 

Has anyone else had an issue with renewing their Airbnb registration with the city of Chicago on a multifamily property? We live in a 2-unit multifamily (our primary residence) and the city is giving us the run around on renewing our registration because our documentation doesn't have the unit number of the apartment that we converted into an Airbnb even though we own and live in the property. The reasoning is they say that the registration is based on unit number not ownership of the building - which I do not understand at all. 

Looking to see if anyone else has encountered this issue and how they went about resolving it. 

Thanks for any help folks can offer!

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Brie SchmidtBusiness Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
2y

@Jeff Davis - the reason is because the ordinance does not allow you to list a seperate unit in the building even if you live in the property.  You can only list the unit you occupy for 120 days a year.

The city started cracking down on this and so far it is basically impossible to get a seperate unit registered again.  

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  • Michael Thach
    Member since 2019 · 144 posts · 93 votes
    2y

    Hi Jeff, 

    can you check if your property is registered as multi family 2 units or as a single family ? 

    I think it's because the way your property is registered with the city which limits you on the renewal. Regulations did change over time and your property might be effected.

    0Reply
  • Jeff Davis
    Member since 2023 · 3 posts · 0 votes
    2y
    Quote from @Michael Thach:

    Hi Jeff, 

    can you check if your property is registered as multi family 2 units or as a single family ? 

    I think it's because the way your property is registered with the city which limits you on the renewal. Regulations did change over time and your property might be effected.

    Michael - 

    Thanks for the quick response. They have confirmed that we are registered as two separate legal units. Not sure if that also means a multifamily on their end. Do you know what system they are using to confirm classification of our building? Is it possible to change the way we are classified on their end?

    They are just not being helpful at all and it’s really frustrating.


    0Reply
  • Conrad LegéPro Member
    Chicago, IL · Member since 2017 · 104 posts · 35 votes
    2y

    Hi Jeff,

    Same thing happened to me. Just update your address with whomever you bank with the unit # of your Airbnb and submit a recent bank statement. I was able to get approved in a few days after I did that. Shoot me a message if you have any other questions.



    1Reply
  • Michael Thach
    Member since 2019 · 144 posts · 93 votes
    2y
    Quote from @Jeff Davis:
    Quote from @Michael Thach:

    Hi Jeff, 

    can you check if your property is registered as multi family 2 units or as a single family ? 

    I think it's because the way your property is registered with the city which limits you on the renewal. Regulations did change over time and your property might be effected.

    Michael - 

    Thanks for the quick response. They have confirmed that we are registered as two separate legal units. Not sure if that also means a multifamily on their end. Do you know what system they are using to confirm classification of our building? Is it possible to change the way we are classified on their end?

    They are just not being helpful at all and it’s really frustrating.



     No, there is no way to change that. Is registered with the city and tax assessor. We got the same problem in Las Vegas Nevada. New regulation is you can not do short-term with multifamily. You can only do Short-term rentals when your home is fully home owner occupied and you don't exceed 3 bedrooms ( which kills 95% of all short-terms here in Vegas ). 

    0Reply
  • Jeff DavisPro Member
    OP
    Chicago · Member since 2021 · 50 posts · 30 votes
    2y
    Quote from @Conrad Legé:

    Hi Jeff,

    Same thing happened to me. Just update your address with whomever you bank with the unit # of your Airbnb and submit a recent bank statement. I was able to get approved in a few days after I did that. Shoot me a message if you have any other questions.




    Very helpful, @Conrad Legé. Will take that route to hopefully resolve the renewal. Thanks for the help and being willing to answer any additional questions. 

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    2y

    @Jeff Davis - the reason is because the ordinance does not allow you to list a seperate unit in the building even if you live in the property.  You can only list the unit you occupy for 120 days a year.

    The city started cracking down on this and so far it is basically impossible to get a seperate unit registered again.  

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    1Reply
  • Jeff Davis
    Member since 2023 · 3 posts · 0 votes
    2y
    Quote from @Brie Schmidt:

    @Jeff Davis - the reason is because the ordinance does not allow you to list a seperate unit in the building even if you live in the property.  You can only list the unit you occupy for 120 days a year.

    The city started cracking down on this and so far it is basically impossible to get a seperate unit registered again.  

    Thanks for the additional information, @Brie Schmidt. Very helpful. 

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    2y
    Quote from @Jeff Davis:
    Quote from @Brie Schmidt:

    @Jeff Davis - the reason is because the ordinance does not allow you to list a seperate unit in the building even if you live in the property.  You can only list the unit you occupy for 120 days a year.

    The city started cracking down on this and so far it is basically impossible to get a seperate unit registered again.  

    Thanks for the additional information, @Brie Schmidt. Very helpful. 


     So what Conrad suggested is lying about what unit you occupy to get it approved.  Otherwise there is no other way as they are denying all commissioner's adjustments

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
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