Chicago, Illinois has specific regulations for non-owner occupied short-term rentals (STRs) as of February 2025:Licensing Requirements:

• Non-owner occupied STRs are classified as vacation rentals in Chicago.
• Operators must obtain a Vacation Rental License from the city4.
• The license application process involves property inspection, zoning compliance verification, and providing contact information for a responsible agent4.

Location Restrictions:

• In buildings with fewer than five units, vacation rentals are generally not allowed unless they are the host's primary residence7.
• Buildings with five or more units may have more flexibility for non-owner occupied STRs7.

Operational Requirements:

• Properties must pass inspections to ensure compliance with health, safety, and building code requirements4.
• Operators must secure commercial general liability insurance with a minimum coverage of $1,000,0003.
• A local contact person must be designated for prompt issue resolution4.
• Occupancy limits are imposed based on property size and number of bedrooms4.

Taxes and Fees:

• Hosts are responsible for collecting and remitting certain taxes directly to Chicago4.
• License fees vary, with an annual fee of $250 per unit as of 20225.

Compliance and Renewal:

• Licenses typically need to be renewed annually5.
• Ongoing compliance with Chicago's ordinances regarding noise, occupancy, and safety is mandatory2