Allowing or prohibiting short-term rentals (STRs) in your Chicago condo association is a community decision. There is no law mandating policies one way or another. Per the Illinois Condominium Property Act (ICPA), individual condo associations in Illinois are allowed to create their own rules and restrictions when it comes to renting individual owner units.
As associations weigh their options regarding STRs, they should consider several factors, including the community’s preferences, what the association’s governing documents dictate, and the potential impact amending the existing policy may have on residents.
What to Consider When It Comes to STRs in Your HOA
While some Chicago associations may choose to outright ban all leasing within the association, others may implement more lenient restrictions. As your HOA decides whether to enact limits on renting, here are some factors to consider:
- Community consensus – Assess the opinions and preferences of condo unit owners within the community. You can do this by conducting surveys or including the topic on board meeting agendas to gather input and determine the level of support or opposition to allowing STRs.
- Consider the benefits and impact – There are pros and cons to any decision. Be sure to weigh the potential benefits of allowing STRs, such as additional income for owners who choose to rent out their properties, against potential drawbacks. Also consider how allowing STRs may impact the overall atmosphere of the community. Will short-term renters disrupt the residential environment, lead to increased noise or traffic, or affect the sense of community among long-term residents?
- Liability implications – Condo associations that allow leasing should have a clear policy in place. The Condo Unit Owner’s Rights and Responsibilities Handbook specifies that unit owners are liable for any damage caused to the association by their tenants. Your board may decide that owners who engage in STRs are required to carry additional insurance coverage to adequately protect against potential risks associated with short-term rentals.
- Enforcement and governance – As with any policy, you need to consider enforcement, as it can come with challenges. You’ll also need to review and potentially amend your community’s governing documents, including the HOA’s bylaws, covenants, and rules and regulations. If the association will be voting to amend current documents, it will require a majority vote to pass.
For help understanding Chicago condo association’s rights and restrictions, give us a call at First Community Management. We offer full-service management to assist your board and property owners.