Chicago
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Chicago
Market Saturation Index
STR Regulations for Chicago
Short-Term Rental Regulations in Chicago, IL
Overview of STR Legality
Short-term rentals are legal in Chicago, but with strict regulations and licensing requirements. Hosts must comply with city ordinances to operate legally.
How to Start a Short-Term Rental Business
Registration and Licensing Requirements
- Shared Housing Registration
- All short-term rental units must obtain a registration number
- Register through the Shared Housing Registration Portal
- Registration varies based on property type:
- Single-family homes/2-4 unit buildings: Must be primary residence
- 5+ unit buildings: Maximum of 1/4 of total units or 6 units (whichever is less)
- Licensing
- Shared Housing Unit Operator License (SHUOL) required for hosts with multiple rental units
- Apply through Chicago Business Direct
Eligibility Criteria
- Property must meet zoning requirements
- Must comply with occupancy limits
- Obtain necessary insurance (minimum $1,000,000 commercial general liability)
Specific Regulations
Occupancy Limits
Short-term rentals are limited to:
- Two persons per guest room
- One person per 125 square feet
- Maximum allowed by building code
Safety Requirements
- Install smoke and carbon monoxide detectors
- Display emergency contact information
- Provide clean linens and sanitized spaces
- Maintain guest registration records for three years
Tax Obligations
Hosts must collect and remit multiple taxes:
- Chicago Hotel Accommodation Tax (4.5%)
- Chicago Vacation Rental Surcharge (4%)
- Domestic Violence Surcharge (2%)
- Cook County Hotel Tax (1%)
- Illinois Hotel Operators Occupation Tax (5.98-6.17%)
Contact Information
Department of Business Affairs and Consumer Protection (BACP)
- Email: houseshares@cityofchicago.org
- Address: 121 N. LaSalle Street, 8th Floor, Chicago, IL 60602
Important Links
Market Insights
- Average annual revenue: $13,800
- Average daily rate: $140.90
- 70% of listings are entire homes
- 89% of listings are seasonal (up to 90 nights)
Penalties for Non-Compliance
- Fines starting at $1,500 for lack of registration
- Potential legal consequences for zoning violations
Recommended Next Steps
- Verify property zoning eligibility
- Complete registration process
- Obtain necessary licenses
- Set up tax collection mechanism
- Implement safety and operational standards
DISCLAIMER: Regulations can change. Always consult the most recent official sources and consider legal advice for comprehensive compliance.
Photos of Chicago
Overview of Chicago
Chicago, Illinois, is a major city in the United States, known for its vibrant cultural scene, iconic architecture, and robust economy. With a population of approximately 2.7 million people, it is the third-largest city in the country. Chicago is located around 180 miles north of Indianapolis and approximately 300 miles northwest of St. Louis. It is well-connected to other major cities via extensive road and rail networks, as well as O'Hare International Airport, one of the busiest airports in the world.
Chicago's appeal for short-term rentals is multifaceted. Visitors are drawn to its rich history, diverse neighborhoods, and numerous attractions. Key landmarks and attractions include:
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Millennium Park: Home to the famous "Cloud Gate" sculpture (commonly known as "The Bean"), Millennium Park is a central gathering place for art, music, architecture, and landscape design. (Website: Millennium Park)
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The Art Institute of Chicago: This renowned museum boasts an extensive collection of art spanning thousands of years, including works such as Grant Wood's "American Gothic" and Georges Seurat's "A Sunday on La Grande Jatte." (Website: The Art Institute of Chicago)
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Navy Pier: This iconic entertainment complex stretches over 3,000 feet along the shoreline of Lake Michigan, offering shops, restaurants, an IMAX theater, and the Centennial Wheel. (Website: Navy Pier)
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Willis Tower: Formerly known as the Sears Tower, it features the Skydeck with The Ledge, a glass balcony extending four feet outside the 103rd floor of the building. (Website: Willis Tower Skydeck)
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Chicago Riverwalk: A pedestrian path along the Chicago River, the Riverwalk is lined with bars, restaurants, and rental spots for kayaks and boats. (Website: Chicago Riverwalk)
Chicago's thriving food scene, renowned for its deep-dish pizza and Chicago-style hot dogs, further enhances the city's appeal. The city's diverse neighborhoods, each with their unique charm and attractions, make it an ideal destination for short-term stays, catering to a wide range of interests and preferences.
Given these attractions and the city's strategic location, Chicago continues to be a favorite for travelers seeking short-term rental accommodations, providing a genuine urban experience combined with the comfort and convenience of temporary lodging.