Must Live in 2-4 unit to rent?!

Question

Hi everyone,

Looking for help in better understanding Chicago's ST regulations on 2-4 story units. Is it true that even if one owns the entire multiplex, they can only STR if they occupy one of the units? That would really be something else! If so, has anyone found an alternative path for STR in their multiplex?

Much appreciated,

J

Brie Schmidt · Answer

@Jessica Aldakar - no, you cannot list a unit as a STR if you live in another unit in the building.  You can only list the unit you occupy and you are limited to about 4 months a year

Jonathan Klemm · Answer

Hey there @Jessica Aldakar!  Everything you said is correct regarding short-term rentals here in Chicago.  No license unless you are listing your specific unit, not another within your 2-4 unit.

Even if you do mid-term rental you still won't be able to get an AirBnB license.  The only way to get an AirBnB license here in Chicago would be to show proof that you are living in the unit (i.e, bank statement with the listing address).

My unsolicited advice, is to only consider doing STR or MTR if you are going to make it your ONE thing and do that.  Picking one niche is honestly the only way to create the right systems and processes to scale...I have been good at trying way too many things instead of being a master on one...

Paul De Luca · Answer

I know @Jonathan Klemm has operated a STR in Chicago and I believe you are correct about the occupancy rules.

Like @Michael Baum said considering the mid-term rental strategy (30-90 days) may be a good strategy to get around STR rules. One of my clients has been using the MTR strategy on his 3-unit house hack.

Jessica Aldakar · Answer

Thanks Mike! I's already at a high LTR rate, so I just don't think MTR would bring that much more.

Michael Baum · Answer

As far as I know @Jessica Aldakar, you will have to reside on site in order to STR the others.

Several other members have had issues even when living in another unit. They were not able to get the licenses in order to rent the others.

If you already own the building, I would look at the longer term short term stay. Over 30 days. Know as mid term rentals. If the area is good for that, close to hospitals, universities etc. it might work.

Otherwise do the LTR in those and move on.

Amy Martin · Answer

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Jessica Aldakar · Answer

Yes I can see the benefit of picking a niche for sure!

Jay Thomas · Answer

Yes, according to Chicago's current regulations, even if you own the entire multiplex (2-4 story unit), you can only rent out units for short terms (less than 30 days) if you also occupy one of the units as your primary residence.  This is different from single-family homes, where owners can rent out the entire property without residing there. Unfortunately, legal alternatives for STRs in Chicago multi-units are currently limited. Long-Term Rentals: While not ideal for short-term stays, focusing on traditional long-term rentals can provide stable income and avoid regulation complexities. It's a good idea to keep an eye on any rule changes and check resources like the City of Chicago's website or talk to a local lawyer who knows about short-term rentals.

Must Live in 2-4 unit to rent?!

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