Can I Airbnb My Apartment In Chicago?
What Are the Rules for Renting Out Your Apartment on Airbnb in Chicago?
Besides registration, there are a few other major requirements and regulations to operate as a host for Airbnb. One of the important rules is that you can only rent out your primary residence—meaning if you have a few properties, your vacation house or investment property is not allowed on Airbnb unless it's also the place you're living in.
Chicago also has a limit on the number of days per year you can rent out your apartment on a short-term basis. If you are renting out a unit in a building containing more than one unit—for example, an apartment building or condo complex—you can only rent out the unit for 90 days per year if you are not present in the unit. Of course, if you're living in the apartment yourself during a guest stay—i.e., renting out a room or part of your home—there is no limit on the days you may rent it.
So, this 90-day cap applies when the unit is not your principal residence. A good example would be if one were renting a second property in Chicago that one does not occupy full time, then you follow this rule. If it goes over 90 days in a year, there will be some sort of penalty or fine issued.
What Taxes and Fees Are There to Rent Your Apartment on Airbnb in Chicago?
As a host in Chicago, it’s important to know that you’ll be subject to taxes and fees when renting out your apartment on Airbnb. Chicago has a hotel tax that applies to short-term rentals, meaning you’ll need to collect and remit a 4.5% tax on the cost of your rental. This tax is applied to each booking and should be included in the price
For most of the bookings, Airbnb collects and remits the tax on your behalf, but you should know what your hosting responsibilities are and ensure that you are meeting all your obligations. The city of Chicago can also require certain forms or reports to be filed to track your income from Airbnb rentals.
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How Do Airbnb Hosts in Chicago Protect Themselves and Their Guests?
Other than that, one more essential step would be to keep in mind, the right insurance on your property before listing it. Most typical homeowner's or renter's insurance policies do not cover you for short-term rentals; you should look into specialized insurance as an Airbnb host. This type of insurance will protect you from property damages, injury, and other liabilities in case anything goes awry during a guest's stay.
It also provides its own insurance coverage, an example being the Airbnb Host Guarantee, against theft or vandalism damage to your property up to a certain amount. That is very helpful insurance coverage, but not the kind that replaces your coverage; it's always good to have more in store for one's peace of mind.
In addition to getting insurance, it is also advisable to set some ground rules about house rules and regulations to be observed during their stay about issues such as smoking, parties, noise, and security. Having set guidelines assures that your apartment is respected during one's guest stay and prevents problems that would have easily resolved in the future.