Short-Term Rental Players Win Delay of Chicago Restrictions

Chicago’s short-term rental players gained some wiggle room in their fight to prevent aldermen from gaining the power to ban leases of less than a month in their wards.

A push to tighten regulations on Airbnb and similar platforms in Chicago faced a setback Wednesday as a proposed ordinance, introduced by Alderman Anthony Napolitano, was delayed in the city council, Crain’s reported. Despite initial smooth progress through committee, the measure encountered significant resistance from the city’s business community.

Illinois Realtors and various chambers of commerce mobilized against the ordinance, arguing that it could infringe on property owners’ rights by allowing local aldermen to ban short-term rentals without sufficient community input.

Currently, aldermen can nix short-term rentals in precincts within their wards if 25 percent of registered voters in a precinct sign a petition in favor of a ban. The new ordinance would have turned around that process, by letting aldermen advance short-term rental bans in their precincts through city council that could then only be overturned if 15 percent of registered voters within the area sign a petition in favor of allowing the temporary leases.

A comprehensive citywide policy that respects property rights while addressing community concerns is needed, said Adriann Murawski, government affairs director at Illinois Realtors.

Napolitano, sensing the uncertain fate of his proposal, opted to delay the vote following discussions with License & Consumer Protection Committee chair Alderman Debra Silverstein.

In response to concerns raised during the deliberations, Napolitano showed willingness to collaborate on amendments that could address issues such as revenue allocation from Airbnb fees toward city programs supporting domestic violence victims and the homeless.

While the proposed ordinance aimed to give aldermen more control over short-term rentals, it would not impact existing legal rentals, which would be exempted under grandfather clauses. The new rule would only impact properties offered for short-term rentals in the future.

Jonathan Buckner, Chicago policy manager at Airbnb, acknowledged the dialogue surrounding the ordinance and thanked those who voiced concerns about its potential impacts on Chicagoans and the local tourism economy.

The delay marks a temporary pause in efforts to reshape short-term rental policies in Chicago, reflecting ongoing debates over balancing economic interests with community and regulatory concerns.