City of Chicago sues Airbnb for repeatedly violating Shared Housing Ordinance, consumer protection laws
The City of Chicago is suing Airbnb, saying the rental company has repeatedly violated the city's Shared Housing Ordinance and other consumer protection laws.
The lawsuit names Airbnb, Inc., its affiliate Airbnb Living LLC, Slumber Stay LLC, which the city said is one of the most active hosts in Chicago, and Slumber Stay manager Milan Rubenstein, and was filed in the Circuit Court of Cook County.
According to the lawsuit, the defendants profited from unlawful short-term rentals while evading requirements in city law designed to protect short-term renters, protect the quality of life for neighborhood residents and maintain a supply of affordable housing.
According to the complaint, Slumber Stay LLC was cited nearly 200 times in 2024 and 2025 for allegedly repeatedly failing to register short-term rental units with the city, using a non-transferable hotel license number across multiple unrelated properties, and continuing to list and rent units unlawfully after admitting to similar misconduct and paying fines for other units.
The complaint also alleges Airbnb and Airbnb Living LLC processed bookings for unregistered and unlicensed units, which facilitated illegal rentals, thus prioritizing profit over compliance with city laws.
Chicago's Shared Housing Ordinance was enacted in 2016 to regulate the rapidly expanding short term rental industry. It was then amended and strengthened by the Chicago City Council in 2020, imposing restrictions on short-term rentals to certain neighborhoods, limiting the number of short-term rentals in a building, allowing HOAs to prohibit rentals and requiring registration to ensure the safety and security of renters, residents and neighbors.
The city is asking the court for fines and to have the companies' profits from the rentals that violate municipal code to be awarded to the city, as well as injunctive relief to prevent the companies rom renting or brokering illegal short-term rentals in the future.
