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CHICAGO - Chicago has filed a lawsuit against Airbnb and a high-volume host, claiming they repeatedly broke city rules for short-term rentals.
What they're saying:
Mayor Brandon Johnson's administration announced Tuesday that the city is suing Airbnb and Airbnb Living LLC, as well as Slumber Stay LLC and the company's manager.
The lawsuit alleges the defendants operated short-term rentals that did not comply with Chicago's Shared Housing Ordinance.
City officials said the ordinance, first approved in 2016 and strengthened in 2020, was designed to prevent residential properties from being turned into "party houses" or hotels and includes rules on registration, limits on the number of rental units in buildings and restrictions in some neighborhoods.
"Requiring short-term rental companies to follow the same rules as everyone else is critical to our work of building a safer, more affordable Chicago," Mayor Brandon Johnson said in a statement.
According to the city, Slumber Stay received nearly 200 citations in 2024 and 2025. Officials claim the company failed to register rental units, improperly used a hotel license number across multiple properties and continued renting units that were not allowed under city rules.
"The City will deter bad actors from attempting to slip under the regulatory radar and ensure that the industry is operating fairly and safely both for our residents and visitors to our great city," Johnson said. "At a time when affordability remains front of mind, our administration will continue to prioritize the needs of our residents, stability within our neighborhoods, and responsible business practices."
The city also alleges Airbnb and its affiliate processed bookings for some unregistered and unlicensed units, putting profits ahead of compliance with city laws.
"When a licensee chooses to operate outside of City law, it undermines that community of responsible businesses and the consumers who depend on it," said Ivan Capifali, commissioner of the Department of Business Affairs and Consumer Protection.
Airbnb has not yet commented on the lawsuit.
What's next:
The city is asking a Cook County judge to impose fines, require the defendants to give up profits tied to the alleged violations and block future illegal short-term rentals.
"This action levels the playing field by holding everyone to the same standard, including the larger platforms profiting from short-term rentals," Capifali said. "We take enforcement seriously, and we will always act to protect the integrity of the marketplace."
The Source: The information in this story came from a City of Chicago press release.