Chicago requires short-term rental operators to submit monthly data reports under new law

Short-term rental (STR) operators in Chicago are now required to submit data to the city every month under a new amendment to the Municipal Code.

The amendment requires STR licensees to send a monthly report to the Department of Business Affairs and Consumer Protection (BACP). The report must include:

• A current telephone number for the operator or local contact person
• The registration number, address, and ward of all STRs listed during the reporting period
• The number of nights each STR unit was rented and the amount of rent paid by guests
• The number of nights each STR unit is booked for rental during the remaining months of the calendar year
• The total tax paid by an STR marketplace to the city for each STR unit

Every quarter, BACP is required to send a report to each city alderman offering information on STRs in their ward, including citations, violations, or other disciplinary actions related to the STR. 

Chicago approved its STR ordinance in 2016. Chicago calls STRs “short-term shared housing,” defined as “the rental of residential dwelling units to guests for 31 days or fewer through an online intermediary platform.” To be eligible, properties:

• Must be a dwelling unit with six or fewer sleeping rooms
• Must not be in a Restricted Residential Zone and must not be on the Prohibited Buildings List, Scofflaw List, or Problem Landlord List
• Cannot list units if rental agreements or HOAs prohibit short-term renting

Shared housing operators are required to obtain an annual license from the city and follow rules on zoning, safety, and sanitation, among other requirements. 

Violations are subject to fines of between $2,500 and $10,000 per offense. Shared housing licenses may be suspended or revoked if the STR is the site of “a single egregious condition,” or two or more separate incidents of illegal activity or objectionable conditions during a 12-month period while rented to guests. 

In Illinois, STR operators are required to register with the Illinois Department of Revenue and collect lodging taxes. As of July 1, 2025, all Illinois STRs are subject to the state Hotel Operators’ Occupation Tax on stays of less than 30 consecutive days. Previously, hotels were subject to the tax, but STRs weren’t. While STR business owners are responsible for paying the tax, they may reimburse themselves by collecting the tax from guests. 

In Chicago, other state-administered taxes on STRs include:

• Sports Facilities Hotel Tax
• Metropolitan Pier and Exposition Authority Hotel Tax
• Municipal Hotel Tax

Operators must file lodging tax returns with the state on a monthly, quarterly, or annual basis. Starting January 6, 2026, STR marketplaces such as Airbnb and Vrbo will be required to pay Illinois lodging taxes and can collect these taxes from guests when the stay is paid for.

Chicago STR operators must also collect the city’s Hotel Accommodations Tax and Vacation Rental and Shared Housing Surcharge on stays of 31 days or fewer and remit them to the city. STR marketplaces such as Airbnb and Vrbo are required to collect city lodging taxes on all their rental transactions and submit them to the city. Operators who don’t use a third-party platform must create a tax account and remit lodging taxes themselves.

Avalara MyLodgeTax can help Chicago STR hosts automate and simplify lodging tax compliance on the local and state level, including tax registration and filing. For more on lodging taxes in Illinois, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.