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Introduction

Short-term rentals (STRs) in Chicago, locally known as "shared housing," are legal but subject to strict regulations enforced by the City of Chicago. Hosts are required to register with the city and obtain a business license, complying with zoning laws and property inspections. Successful properties typically include urban apartments, particularly in neighborhoods popular with tourists, like the Loop and River North. Each unit rented must be the host's primary residence, limiting the market primarily to owners rather than investors operating multiple units. Chicago's STR market is heavily influenced by tourism, particularly given its status as a vibrant city with attractions like Millennium Park and numerous conventions, although there is also demand from business travelers. The Chicago Department of Business Affairs and Consumer Protection (BACP) oversees these regulations, with comprehensive guidelines available on their official website. For further details, visit the City of Chicago’s page on shared housing regulations at.

Occupancy restriction

Two persons are allowed per bedroom

Length of Stay
30 days or less
Registration & Licensing Fees
A recurring fee of ($500.00)
Licenses or Permits Required
Yes,Shared Housing Unit Operator License (SHUOL)
Property Inspection
Inspections are required and it's one-time
Guest Record
Yes, and it must be maintained for 3 years.
Zoning

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Occupancy taxes and fees

Accommodation Tax (15%)

Insurance requirement

Yes ($1,500 - $2,500)

Does any Building, Health & Safety Regulation affects STR?

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Parking Requirement

Adequate parking must be provided for guests

Advertising Requirement

Yes, a license number is required for advertisement

Noise regulation

Yes, Quiet time should be observed by 8 pm - 8 am

Neighbor Notification

Hosts are not required to notify neighbors

Limitation on number of STR owned

Yes, (shouldn’t be more than 5 dwelling units in a building )

Regulations on hosting events or parties in STR

No, there are no specific regulations on hosting events or parties.

Regulations on hosting events or parties in STR

No, there are no specific regulations on hosting events or parties.

Hosting events regulations
Restrictions on number of reservations

No, there are no restrictions

Waste disposal regulations

Yes, there are specific waste disposal regulations

Accessibility Requirement

Yes, there are accessibility requirements

waste disposal regulations
Waste disposal regulations

Yes, there are specific waste disposal regulations

Emergency Contact Information

Yes, it is required

What is short term rental?

Short-term rentals (STRs) in Chicago, locally known as "shared housing," are legal but subject to strict regulations enforced by the City of Chicago. Hosts are required to register with the city and obtain a business license, complying with zoning laws and property inspections. Successful properties typically include urban apartments, particularly in neighborhoods popular with tourists, like the Loop and River North. Each unit rented must be the host's primary residence, limiting the market primarily to owners rather than investors operating multiple units. Chicago's STR market is heavily influenced by tourism, particularly given its status as a vibrant city with attractions like Millennium Park and numerous conventions, although there is also demand from business travelers. The Chicago Department of Business Affairs and Consumer Protection (BACP) oversees these regulations, with comprehensive guidelines available on their official website. For further details, visit the City of Chicago’s page on shared housing regulations at.

Are there STR regulations that affect property owners?

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Is there any short-term rental-related tax?

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Is it only individuals that are permitted to operate short-term rental?

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What are the procedures and requirement for the neighborhood approval?

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Do I need a neighborhood approval?

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Building, Health & Safety Regulation
Which of these taxes does Airbnb or other booking company collect?

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What zoning laws affect Short Term Rentals?

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Is there any guest record requirement?

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Do i require any license(s) for STR?

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Which tax(es) am i obligated to collect and remit?

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Which tax(es) am i obligated to collect and remit?

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Tax
What ZIP Codes have been prohibited for STR use?

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What types of properties are eligible for short-term rentals?

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Does occupancy limit affect STR?

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What STR regulations affect me as an Owner?

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What are the procedures or requirements for keeping the guest records?

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Notification
What are the occupancy limits for STR?

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What other STR regulations am i obligated to observe?

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What are the penalties and fines for non compliance?

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Is there any official regulatory body or authority?

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How can i contact the authority?

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Which jurisdictions are exempted from the regulations?

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What are the requirements and fees for the permit (s)?

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Basic Information
Length of Stay
30 days or less
Occupancy taxes and fees

Accommodation Tax (15%)

Licenses or Permits Required
Yes,Shared Housing Unit Operator License (SHUOL)
Building and Health Regulation
Registration & Licensing Fees
A recurring fee of ($500.00)
Accessibility Requirement

Yes, there are accessibility requirements

Property Inspection
Inspections are required and it's one-time
Zoning Regulations
STRs are only allowed in specific zones
Guest Record
Yes, and it must be maintained for 3 years.
Occupancy Restriction

Two persons are allowed per bedroom

Regulations on hosting events or parties in STR

No, there are no specific regulations on hosting events or parties.

Noise Regulation

Yes, Quiet time should be observed by 8 pm - 8 am

Insurance Requirement

Yes ($1,500 - $2,500)

Restrictions on number of reservations

No, there are no restrictions

Waste disposal regulations

Yes, there are specific waste disposal regulations

Limitation on number of STR owned

Yes, (shouldn’t be more than 5 dwelling units in a building )

Emergency Contact Information

Yes, it is required

Neighbor Notification

Hosts are not required to notify neighbors

Does any Building, Health & Safety Regulation affects STR?

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Parking Requirement

Adequate parking must be provided for guests

Advertising Requirement

Yes, a license number is required for advertisement

Regulations on hosting events or parties in STR

No, there are no specific regulations on hosting events or parties.

Hosting events regulations
waste disposal regulations
Waste disposal regulations

Yes, there are specific waste disposal regulations

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Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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