411 on Airbnb Rentals If You’re a Chicago Homeowner
In 2018, Chicago Airbnb hosts earned more than $77 million in income. The same year, our city saw 58 million visitors. It’s not too late to join in the Chicago Airbnb game, but there are some things you’ll need to know!
- The annual license fee to offer your home as a shared housing rental property is $125, and registration information has to be submitted to the city.
- Vacation rental properties must also be licensed, with an annual licensing fee of $500.
- You can expect to pay 10.5% of the gross rental or leasing charge in taxes– meaning you’ll pay the taxes on the listing price + any cleaning fee. This is broken down as a 4.5% Hotel Accommodations Tax, 4% Shared Housing Surcharge, and 2% Domestic Violence Surcharge.
- You’ll need to purchase homeowners’ fire, hazard, liability insurance, and general commercial liability insurance.
- Some areas have a ban on home sharing, including the Southwest Side Ward and several areas in the 11th Ward and 23rd Ward.
- In an effort to reduce disruptive house parties, Chicago has a ban on one-night home sharing. You’ll need to set a minimum stay of at least 2 nights.
- Before renting any spaces, they’ll need to be inspected by someone from the city of Chicago Department of Buildings.
- The full, 38-page ordinance on home sharing in Chicago can be found HERE. Sure, it’s a lot to read, but penalties for not following the ordinance begin at $1,000 and can go up to $10,000. You can’t afford not to follow the laws!
If you’re thinking about sharing your home through the Airbnb platform, make sure you stay updated on the latest regulations. Ready to purchase an investment property? Contact one of our agents to start the search today!
WHO IS RI PRASAD LUXURY GROUP?
We are one of Chicago’s leading providers of comprehensive real estate services. We are home to an ever-growing team of savvy & reputable local realtors who are community experts and leaders and customer-service-oriented staff. Whether you’re looking to find a new home, sell your home, or invest in your future; let us be your trusted real estate advisors.
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