Chicago, IL Short-Term Rentals: Host Platform Liability (2026)

Municipal Code of Chicago § 4-13-235 makes it unlawful for any licensee under Chapter 4-13, Article II, the Short Term Residential Rental Intermediary license that covers Airbnb, Vrbo and similar booking platforms, to "process or complete any booking service transaction" for a shared housing unit unless it is first registered with the Department of Business Affairs and Consumer Protection under § 4-13-230(a), or for a vacation rental, bed-and-breakfast, or hotel unless that establishment is properly licensed under Chapter 4-6. The platform, not just the host, carries direct legal exposure for completing a transaction on an unregistered listing.

The same chapter layers on ongoing compliance obligations: § 4-13-240 requires each licensed intermediary to file a monthly report to the Department listing every short-term rental on its platform, the license or registration number, address, nights rented, rent collected, tax remitted under § 3-24-030, host/local-contact phone numbers, and the ward. Records must be kept for three years, and the Commissioner can subpoena de-anonymized host and guest data during an investigation of a crime or a suspected Chapter 4-13, 4-14 or 4-16 violation, with the intermediary given 21 calendar days to comply or file a written objection. Violations of Chapter 4-13, including § 4-13-235, are penalized under § 4-13-410.