Overview: Are Short-Term Rentals Allowed in Aurora, IL?

YES - Short-term rentals are explicitly allowed in Aurora, Illinois. The city permits short-term rental operations with proper licensing, inspections, and compliance with local regulations. Aurora defines short-term rentals as renting a residential unit for fewer than 30 consecutive days and has established a licensing system to regulate these operations.

How to Start a Short-Term Rental Business in Aurora, IL

Step 1: Research Local Requirements

Before purchasing or converting a property to a short-term rental in Aurora, conduct thorough research on local regulations. While the general framework is permissive, specific requirements exist for legal operation.

Step 2: Verify Zoning Compliance

Confirm that your property is located in a zoning district that permits short-term rentals. Aurora allows these rentals in specific residential districts, and certain zoning areas may require special use permits.

Step 3: Obtain Required Licensing

Apply for the Aurora Short-Term Rental License through the city's application process. This license is mandatory for legal operation.

Step 4: Complete Safety Inspection

Schedule and pass the required safety and building code inspection to ensure the property meets Aurora's standards for guest accommodation.

Step 5: Establish Local Management

Designate a local contact person who can respond promptly to issues, complaints, or emergencies within specified timeframes.

Step 6: Register for Tax Collection

Register with appropriate tax authorities to collect and remit Aurora's hotel taxes and comply with state sales tax requirements.

Step 7: Obtain Appropriate Insurance

Secure adequate insurance coverage for your short-term rental operations, including property damage and liability protection.

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements:

• Short-Term Rental License - Mandatory license from Aurora for vacation rental operations
• Safety/Building Code Inspection - Required inspection to ensure compliance with safety standards
• Annual License Renewal - Regular renewal with updated compliance verification

Essential Documentation:

• Proof of property ownership (deed or property tax statement)
• Detailed property information including floor plans and specifications
• Owner identification and contact information
• Local contact person information with 24/7 availability
• Insurance proof (if required)
• Safety compliance certifications
• Tax registration numbers for state and local tax collection

Operational Guidelines:

• Maximum occupancy limits based on property size and bedroom count
• Parking regulations compliance
• Noise control measures
• Collection and remittance of hotel taxes
• Adherence to building and safety codes

Specific Regulations for Aurora, IL

City-Level Regulations:

Definition and Scope:

• Short-term rentals defined as rental periods fewer than 30 consecutive days
• Applies to residential units throughout the city

Licensing Framework:

• Mandatory Short-Term Rental License required
• Annual licensing with renewal requirements
• Inspection-based approval process
• City application and approval system

Operational Standards:

• Zoning Requirements: Permitted in specific residential districts, with some areas requiring special use permits
• Local Contact Requirements: Must designate a local contact person available to respond to issues
• Occupancy Limits: Maximum occupancy restrictions based on property specifications
• Parking Compliance: Must adhere to city parking regulations
• Noise Control: Subject to noise ordinance enforcement
• Safety Standards: Required compliance with building and fire safety codes

Tax Obligations:

• Hotel Tax: 5% hotel tax rate on short-term rentals
• Sales Tax: State and local sales tax requirements apply

County-Level Regulations:

The provided content does not specify Kane County-level regulations for short-term rentals beyond Aurora's city requirements.

State-Level Regulations (Illinois):

State Framework:

• Illinois has a localized approach with minimal statewide oversight for short-term rentals
• No statewide licensing system exists
• General business registration requirements apply if operating as a formal business entity
• State building and safety codes establish minimum standards for all residential properties

State Tax Requirements:

• Sales Tax: 6.25% state sales tax applies to short-term rentals
• Local sales taxes may apply in addition to state taxes
• Income tax obligations on rental income (4.95% flat state rate)

State Oversight:

• Limited state intervention in short-term rental regulation
• Allows municipalities to establish their own frameworks
• Focus on local control rather than state uniformity

Contact Information for Local Authority

City of Aurora - Business Licensing Department

• Phone: Contact Aurora City Hall at (630) 256-4636
• Email: Contact through Aurora's official website contact forms
• Website: www.aurora.il.us

Additional Aurora Contacts:

• Planning/Zoning Department: For zoning verification and special use permits
• Building Department: For safety inspections and compliance
• Finance Department: For tax registration and hotel tax collection

Note: Specific direct contact information for Aurora's short-term rental program was not provided in the source materials. Contact the main city number and request direction to the appropriate department for short-term rental licensing.

Links to Source Pages

1. Illinois Short-Term Rental Laws - Checkmate Rentals: www.checkmaterentals.com/blog/illinois-short-term-rental-laws

Note: The second provided URL was for Aurora, Colorado (auroragov.org), which is not relevant to Aurora, Illinois regulations.

Investment Considerations

Aurora, Illinois presents a permissive market for short-term rental investors with established regulatory framework and reasonable requirements. The city's clear definition, licensing system, and reasonable tax rates create a viable environment for STR operations. However, investors should note that Aurora has specific requirements including local contact persons and zoning compliance that must be verified before purchase or operation.

The 5% hotel tax rate is competitive within Illinois, and the city's position as the state's second-largest municipality provides access to a substantial visitor base. As with any investment, thorough due diligence on specific property zoning and neighborhood compatibility remains essential for successful operation.