Illinois Landlord Rights When Tenants Run Airbnbs

 Posted on August 26, 2025 in Civil law

Landlords in Illinois – and across the country - are facing new headaches thanks to the increase in short-term rental platforms like Airbnb and Vrbo. Especially in cities like Chicago, Springfield, and Evanston, the popularity of Airbnbs has exploded. Tenants may view this as an easy way to earn a few extra dollars, perhaps even while they are away on their own vacations.

These tenants may believe that as long as they pay their rent, they can sublet for a few days or a week if they wish. However, unauthorized subletting can potentially expose landlords to legal, safety, and financial risks. Landlords do have rights when tenants convert their rentals into unauthorized Airbnb properties. If you are a landlord in this position, it is crucial to speak to a knowledgeable Naperville, IL civil litigation lawyer.  

What is Illinois Law on Subletting and Short-Term Rentals?

Whether a tenant can sublet an apartment or rent it as an Airbnb is primarily determined by local ordinances and the terms of the lease agreement. If the lease does not mention subletting and local ordinances do not prohibit it, a tenant may legally be able to sublet without landlord permission, but it is generally advisable to speak to the landlord before subletting. If a lease allows subletting but requires landlord consent, the landlord can refuse a subtenant based on the same reasons used to screen tenants.

 Short-term rentals like Airbnbs are heavily regulated in many Illinois municipalities, often requiring registration and licensing, so local ordinances are crucial to the issue. The rental may be required to meet specific safety and sanitation standards, and many municipalities impose taxes on short-term rentals as well (In Chicago, the Hotel Accommodations Tax covers short-term rentals).

Some municipalities may prohibit short-term rentals altogether, while others may limit the number of days a property can be rented out. Short-term rental regulations may also charge an annual permit fee.  Condominium associations may have specific rules or restrictions in the bylaws that apply to short-term rentals. Landlords always have the right to restrict or prohibit Airbnb rentals in lease agreements. While not specifically mentioning short-term rentals, recent changes to Illinois landlord-tenant law took effect on January 1, 2025, and are outlined in Public Act 103-0809.  

What Are the Risks for Landlords and What Are Landlord Rights?

When tenants engage in unauthorized subletting or short-term rentals, the standard landlord or rental insurance may not cover damages from or injuries to short-term guests. There may be increased wear and tear from frequent turnover that the landlord must deal with, along with safety and security concerns for other tenants. The landlord could be fined for allowing unlicensed short-term rentals through the municipality if there are zoning and ordinances against short-term rentals.

When the lease prohibits short-term rentals or subletting, the landlord can evict the tenant due to breach of lease terms. The tenant may also be liable for any damages caused by short-term renters. Landlords can also add stronger lease clauses to prevent future Airbnb use, and may engage in regular inspections and monitoring of tenants. Owners of the property can work with property managers to determine how best to enforce rules prohibiting short-term rentals and subletting.   

Contact a DuPage County, IL Landlord Evictions Lawyer

If you are an Illinois landlord dealing with a tenant who is operating an unauthorized Airbnb, you do not have to handle the situation on your own. A knowledgeable Naperville, IL civil litigation attorney from Appelman Law LLC can review your leases, enforce your rights, and help you protect your property from unauthorized short-term rentals. Attorney Appelman is dedicated to delivering the highest quality representation to local landlords. Call 630-717-7801 to schedule a free consultation.