I've just closed on a two flat with an illegal basement that's already fully-furnished. The previous owner used it as an occasional crash pad. I don't need to monetize the basement to make this deal work, but based on the location, it would be great for AirBNB, so I want to find a way. So far, everyone's basically just told me A: It's not legal, and I can't advise you on how to make it legal, and B: Oh man, you're going to make so much money AirBNBing that thing. My real estate lawyer on closing couldn't even answer if I could legally put a pool table down there for my own purposes. The basement is 900 sqft, and the building is very much only zoned for two units. So I can't make it a third unit. I just want to treat is as part of my second-floor unit (where I live--there are tenants on the first floor) and AirBNB it.

I've been told it was only ever illegal because it only has one exit and is over 800 sqft, but my read on the new building code is that that's fine, as the maximum egress distance is under 75 feet. But my armchair opinion on the new code counts for squat, and either way, I'm sure there's some sort of certification process.

How does this work? How would I go about getting someone to "sign off" on this basement being habitable, even if just for my own purposes? Let's say I wanted to include it in the first floor's lease--who would sign off on that?

A couple of details here that might be relevant. 1: It's likely prohibitive to install an egress window, as the existing windows are way over 44" off the ground, meaning we'd have to dig a hole, tear up the wall, and extend the windows down. 2: The basement has one exit, to the rear enclosed stairwell. From the exit, you take five steps up, and you're outside. 3: The basement does include a full kitchen and 3/4 bath, although the seller disconnected the stove and put it in a closet for closing, for reasons that I didn't fully grasp. I took this as akin to tearing up toilets before the tax inspector comes by.

Chicago, Illinois

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