Key Takeaways
- Chicago accused Airbnb and one of the city’s most active hosts of profiting from illegal short-term rentals
- Slumber Stay allegedly received nearly 200 citations in 2024 and 2025
- The city wants fines, rental profits and a court order blocking future violations.
The city of Chicago has filed a lawsuit against Airbnb, alleging repeated violations of its Shared Housing Ordinance as well as consumer protection laws.
According to “CBS News,” Chicago filed the complaint in Cook County Circuit Court against Airbnb, Inc., its affiliate, Airbnb Living LLC, Slumber Stay LLC —which the city described as one of Chicago’s most active hosts — and Slumber Stay manager Milan Rubenstein.
The city claims the defendants made money from illegal short-term rentals while ignoring rules meant to protect guests, neighborhoods and Chicago’s housing supply.
Slumber Stay was cited nearly 200 times in 2024 and 2025, according to the lawsuit.
The company allegedly failed to register units, reused one hotel license number across unrelated properties, and continued renting homes after earlier violations and fines.
The complaint also accuses Airbnb and Airbnb Living of processing bookings for unregistered and unlicensed properties,
Related: Airbnb Plus made uncertified listings look riskier, study finds
Airbnb defends its role in Chicago’s economy
Chicago adopted its Shared Housing Ordinance in 2016 and tightened the rules in 2020. The law limits short-term rentals in some neighborhoods and buildings, allows HOAs to ban them and requires hosts to register with the city.
The lawsuit asks the court to impose fines, turn over profits tied to illegal rentals and block the companies from listing or managing unlicensed properties in the future.
In a statement to CBS, a spokesperson for Airbnb responded to the lawsuit, saying, “We can’t comment on active litigation, but we are proud to provide everyday Chicagoans with economic opportunity at a time when costs continue to rise for them.”
“Overwhelmingly, Chicago Airbnb hosts have one listing and share their homes to cover rising costs of living. The benefits of Airbnb in Chicago extend beyond our hosts. Airbnb has helped generate over $777 million annually for the Chicago economy, contributing approximately $209 million in total tax revenue and supporting approximately 8,000 jobs,” the statement concluded.
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