Understanding the regulations surrounding short-term rentals (STRs) in Chicago is crucial for investors looking to enter the vacation rental market. This blog post answers key questions using updated resources and research to guide potential investors.
How does Chicago define a short-term rental (STR)?
In Chicago, a short-term rental is defined as a residential property available for rent for a short duration, typically less than 30 days. This definition encompasses various property types, including apartments, houses, and condominium units.
Can an investor own more than one vacation rental property in Chicago?
Yes, an investor can own more than one vacation rental property in Chicago. However, they must ensure that each property complies with the city’s regulations and zoning ordinances specific to short-term rentals.
Does Chicago have any zoning restrictions for STRs?
Chicago has implemented zoning restrictions for STRs to maintain the character of residential neighborhoods. These restrictions may limit the number of STRs in a particular area or require specific zoning classifications. Investors are advised to consult the city’s zoning map and regulations for detailed information.
In Chicago, can an investor own and operate their Airbnb property as a business entity?
Yes, in Chicago, an investor can own and operate their Airbnb property as a business entity. This allows for potential tax benefits and liability protection. It is recommended to consult with a legal professional to understand the implications and requirements.
In Chicago, can investors register accessory dwelling units (ADU), duplexes, and multi-family homes as Vacation Rentals?
Investors in Chicago can register ADUs, duplexes, and multi-family homes as vacation rentals, provided they meet specific requirements set by the city, including zoning and licensing standards.
What is Chicago’s requirement for obtaining a Vacation Rental License?
To obtain a Vacation Rental License in Chicago, the property must pass an inspection, comply with zoning laws, and the owner must provide contact information for a responsible agent. The application process involves submitting detailed property information and paying the required fees.
What are the costs associated with a Vacation Rental License in Chicago?
The costs associated with obtaining a Vacation Rental License in Chicago include an application fee, a licensing fee, and potential inspection fees. These costs vary and are subject to change, so it’s recommended to check the latest fees on the city’s official website.
Does Chicago have Vacation Rental occupancy limits?
Yes, Chicago imposes occupancy limits on vacation rentals to ensure safety and comfort. These limits are based on the size of the rental property and the number of bedrooms available.
Does Chicago require an inspection for investors to obtain an STR license?
Yes, Chicago requires an inspection of the property before issuing an STR license. This inspection ensures the property meets health, safety, and building code requirements.
What are the physical and structural requirements for a vacation rental?
Vacation rentals in Chicago must meet specific physical and structural requirements, including safety features like smoke detectors, carbon monoxide detectors, and secure locks on all doors and windows.
