4,550 Chicago AirBNB Hosts But Why Are Chicago’s 23 B&Bs Being Assessed $20,000-$60,000 More?

The rise of Airbnb in recent years has rocked the foundation of the hospitality industry in cities around the world. Now we know exactly how much of that growth has been in Chicago, thanks to new data from the popular vacation rental website.

The San Francisco-based company, which allows residents to rent their homes to visitors relatively easily, today released the results of a year-long study on its reach in the Chicago market, revealing where Airbnb listings are most densely populated around the city and where most of their guests stay.

During the year ended June 30, there were 4,550 Airbnb hosts in the Chicago market who hosted a total of 165,800 guests, according to the report.

Those hosts, who spanned more than 70 Chicago neighborhoods, pulled in a total of $33.9 million in rental income during the 12-month period, or more than $7,400 per host.

Here’s the Problem – Few Pay Taxes

Short-term rental properties require vacation-rental licenses from the city of Chicago, for example. But as of February, only 125 residential units in the city had such licenses. Even fewer had bed-and-breakfast licenses, which are required for single-room rentals.

Taxes are a bigger gripe from hoteliers, which must pay a 16.4 percent hotel tax that gets split among the city, state and other taxing bodies. Airbnb hosts are required to collect and remit only the 4.5 percent city portion of the tax.

And Here’s  Chicago’s House of Two Urns

‘We may be forced out of business by year’s end by the local Property Tax Assessor, Joe Berrios, who is increasing property taxes on only the 23 licensed Bed and Breakfasts in the County by an estimated $20,000 – $60,000/per B&B next year.” Please assist us by signing this petition if you wish to see not just Two Urns, but all the licensed B&BS in Cook County survive past 2015: Say NO to Joe Berrios – Save our B&BS.