On June 22, 2016, the City Council passed the Shared Housing Ordinance, which changed the regulation of short-term rental activity in the City of Chicago. For more information about the ordinance, please view a summary of the ordinance. In addition, please view a copy of the Shared Housing Ordinance.
Frequently Asked Questions About the Shared Housing Ordinance
Q: What is a short term residential rental intermediary? What is a short term residential rental advertising platform?
A: Short term residential rental intermediary means any person who, for compensation or a fee: (1) uses a platform to connect guests with a short term residential rental provider for the purpose of renting a short term residential rental, and (2) primarily lists shared housing units on its platform (i.e. Airbnb, etc.). A short term residential rental advertising platform (1) uses a platform to connect guests with a short term residential rental provider for the purpose of renting a short term residential rental, and (2) primarily lists licensed bed-and-breakfast establishments, vacation rentals or hotels on its platform (i.e. VRBO or HomeAway, etc.).
Q: When does the Shared Housing Ordinance go into effect?
A: All provisions of the ordinance go into effect on December 17, 2016 with the exception of the provision allowing BACP to obtain building information for the Prohibited Buildings List, which went into effect on July 15, 2016.
Q: I’m the owner of a building containing five or more dwelling units, and I want to prohibit short term rental activity in my building. What should I do?
A: If you own a building containing five or more dwelling units, or the building is otherwise governed by a homeowners association, condo association, or building cooperative, you may complete, sign, and notarize an Affidavit for Inclusion in Prohibited Buildings List. Please send the completed, signed, and notarized affidavit to:
Department of Business Affairs and Consumer Protection
Attn: Prohibited Buildings List
121 N. LaSalle, Room 805
Chicago, IL 60602
You may also include in your residential rental agreements or lease agreements that short term rental activity is prohibited.
Q: I’m a host and I want to make sure I comply with the rules applying to hosts. Where can I find information about the rules applying to hosts?
A: Please review the ordinance, and specifically Section 4-14-040 of the Code for legal duties of shared housing hosts.