Once again Investors in Chicago are going to have to pivot their business operations or even the entire model with the new rules that went into effect June 1, 2021. This time the changes are for property owners that are renting out their condos, apartments, and homes to short term guests such as properties on the well known AirBnb and HomeAway platforms.
With this new regulation, the City Of Chicago is requiring the short term Landlords to register their homes directly with the City Of Chicago in order to make sure city officials can hold those who break the rules accountable for issues that may arise around illegal activity or homes being used for huge parties. Property owners can lose their ability to lease short term after even just one incident at a rental property or two complaints within one year. There are also huge proposed fines if the property is used for drug trafficking or gang related activity.
These new regulations come with a new annual license fee per unit and restrictions around single night rental durations. This is in addition to the existing taxes already put in place in 2017 and 2018.
Chicago investors are resilient and have become used to regulation or the ways you need to do business in Chicago so they will get past this. However, this will push many short term investor property owners to convert their properties to long term rentals. This is what GC Realty & Development, LLC specializes in and if you are a Chicago investor looking to take your short term rental and start leasing it on a long term basis we can help you in that transition understand the paperwork, laws, and pitfalls we want you to avoid.
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