Running an Airbnb in Chicago

Disclaimer: We are not a law firm, this is not legal advice and we can't guarantee the accuracy or completeness due to changes in Chicago City or Illinois State regulations. Please get legal advice if you have any questions concerning your specific situation.

We've seen a few things and learned from mistakes. 

Greetings, esteemed hosts and hospitality aficionados! Today, let's delve into the art of renting out your abode in the vibrant city of Chicago. Whether you're considering shared housing, running a cozy bed & breakfast, offering a vacation rental, or even contemplating the grandeur of a hotel experience, there are some essential guidelines to follow.

let's talk about shared housing

Since the implementation of Chicago's Shared Housing Ordinance in 2016, hosts are required to register their shared housing units directly through the Department of Business Affairs and Consumer Protection's Shared Housing Registration Portal. Each unique address must have its own registration, and the fee for registration or renewal stands at $125.

Moving on to Inns and bed & breakfasts, an enchanting options indeed! For such ventures, a specific license is mandated by the city. Be sure to peruse the Municipal Code section 4-6-290 for the licensing process and responsibilities. It's imperative to register with the BACP and obtain approval before listing your charming establishment on platforms like Airbnb.

And what about vacation rentals, you ask? Ah, another delightful venture! The City of Chicago requires licensing for such endeavors under section 4-6-300 of the Municipal Code. Similarly, hosts must register with the BACP and secure authorization before showcasing their vacation rental on platforms like Airbnb.

What is the difference between a B and B and a vacation rental?

Ah, let's explore the delightful world of accommodations, shall we? Inns and B&Bs, oh how they charm with their room-by-room pricing, inviting guests to indulge in the cozy sanctuaries they offer. Imagine slipping into a dreamy bed after a day of exploration, knowing that every corner holds a touch of comfort and elegance. And for those lucky souls who stumble upon a DINE inn, prepare to be pampered beyond compare with their thoughtful extras and exquisite dining experiences.

Now, onto vacation rentals—they beckon with the allure of unit-based charges, perfect for larger groups seeking a budget-friendly retreat. Yet, my dear friends, do not expect the same level of curated luxury and attention to detail found in the snug embrace of an inn or B&B. However, do keep an eye out for those charming Airbnbs that surprise with their little touches of extravagance. Oh, the wonders of modern hospitality!

In the realm of vacation rentals, one may encounter a myriad of options—whether it be an entire house or a cozy room nestled within a welcoming home. But ah, the allure of an inn! With its promise of guestroom privacy and enchanting common areas, along with sprawling gardens and grounds to explore, it's a haven for weary travelers seeking solace and serenity.

For those seeking respite in the company of loved ones, a whole-house rental beckons, offering ample space for shared memories and cherished moments. And fear not, for many inns graciously open their doors to larger groups, ensuring that family reunions and weddings are celebrated in style.

And let us not forget the enchantment of romantic getaways, where couples and small travel groups bask in the intimacy of suites and double-room units. Here, the worries of meal preparations fade away, replaced by the gentle embrace of indulgence and pampering—a true oasis for the soul.

Handling Vacation Rental Taxes in Chicago

And let's not overlook the financial aspects! Chicago levies various taxes and surcharges, including the Hotel Accommodations Tax, Shared Housing Surcharge, and Domestic Violence Surcharge. Additionally, Cook County imposes its own Hotel Accommodations Tax for reservations of 29 nights or less.

Here is a link to the IRS in reference to Renting residential and vacation property [Click Here]

But wait, there's more! It's essential to consider homeowner association restrictions, insurance requirements, building inspections, and ongoing housekeeping expenses to maintain your rental property in tip-top shape.

In essence, dear hosts, while the path to hosting in Chicago may seem intricate, with due diligence and attention to detail, you can transform your humble abode into a haven for travelers and connoisseurs of hospitality alike.