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

• Explicit answer: Based on the provided city code and ordinance sources, Berwyn, Illinois does not publish any city-specific short-term rental (STR) licensing, registration, or operational regulations (e.g., no “Airbnb/STR permit” requirements, caps, or hosting rules identified in the Berwyn Code of Ordinances or the city’s recent ordinance activity). In short, no city STR ordinance was found in the sources reviewed.
• Practical implication: If a property is located within Berwyn’s municipal boundaries and no other local overlay applies, operating an STR is not prohibited by city STR-specific law in the materials provided. You must still comply with general requirements such as business licensing, building and fire safety, zoning, and taxation, and you should verify that your zoning use and HOA rules allow short-term rentals.
• County context: Cook County’s Residential Tenant Landlord Ordinance (RTLO) applies to most suburban rentals, including STRs that rent for 32 days or more; rentals under 32 days are generally outside RTLO coverage. RTLO is enforced through individual right of action; the County’s Commission on Human Rights is not the enforcement agency.
• State overlay: No statewide STR ban or license exists in Illinois, but state tax and safety laws still apply (see State-level section below).

How to Start a Short-Term Rental Business in Berwyn

• Confirm zoning and property use:
  • Review the Berwyn Code of Ordinances for zoning to ensure your property use is permitted for lodging/hospitality in your district. The city’s Zoning Ordinance and Zoning Map are listed on the city’s ordinances page.
  • Check any covenants or HOA restrictions that may prohibit STRs.
• Obtain required city and state authorizations:
  • Business licensing: The city’s Building Permits Department includes a Business Licensing function; you will likely need a general business license to operate a rental business (license type and process should be confirmed directly with the city).
  • Building/fire compliance: For any unit offered to guests, ensure compliance with applicable building and fire codes. Contact the Fire Department and the Building Permits Department early to confirm life-safety requirements.
  • Sales and hotel/occupancy taxes: Illinois imposes state sales tax (6.25%) and, in many cases, local hotel/occupancy taxes. Cook County imposes a 1.75% Home Rule Tax on sales of tangible personal property and certain services. The city page shows a municipal “Grocery Retailers; Occupation Tax & Municipal Grocery Service Occupation Tax,” which illustrates the city’s use of local home rule taxes, but is not a hotel tax; your actual hotel/occupancy tax obligations depend on your location and how the rental is classified by the Illinois Department of Revenue.
• Set up operations and insurance:
  • Secure appropriate general liability and property insurance for STRs.
  • Prepare guest screening, house rules, and cancellation policies aligned with your platform and local laws.
• Launch:
  • Register your listing on your chosen platform (Airbnb, VRBO, etc.).
  • Collect and remit applicable sales and hotel/occupancy taxes. File returns as required by the Illinois Department of Revenue.
• Ongoing compliance:
  • Renew any required city business licenses annually.
  • Maintain building/fire safety standards and respond promptly to code enforcement or neighbor concerns.

Required Documents, Permits, Licenses, and Guidelines

• Berwyn municipal:
  • Business license (confirm type and requirements with Business Licensing in the Building Permits Department).
  • Zoning compliance (verify permitted use under the Berwyn Zoning Ordinance and Zoning Map).
  • Building/fire safety compliance (confirm smoke and CO detectors, egress, and any inspection requirements with the Building Permits Department and Fire Department).
• Cook County (RTLO for longer stays):
  • If you rent for 32 days or more, the Cook County RTLO covers the tenancy. RTLO prohibits lockouts, caps late fees, requires proper notices, and mandates habitability standards. The RTLO is enforced through individual right of action; consult legal resources for enforcement strategies.
• State of Illinois:
  • Register for Illinois state tax accounts (sales/use and hotel/occupancy taxes).
  • Comply with habitability and safety standards and any disclosure obligations that apply to rental housing under Illinois law.
• Federal:
  • Obtain an Employer Identification Number (EIN) for tax reporting.
  • Comply with applicable fair housing laws.
• Recommended internal documentation:
  • Guest screening criteria and policies
  • House rules and safety instructions
  • Written rental agreements (even for short stays)
  • Recordkeeping for taxes, repairs, and guest communications

Specific Regulations by Jurisdiction

City of Berwyn

• STR-specific ordinance: None identified in the sources reviewed.
• General ordinances of interest:
  • Berwyn Code of Ordinances is the official compilation of city laws; recent ordinances include topics such as vacant buildings, rodent abatement, and “Welcoming City” regulations (which focus on law enforcement interactions and do not regulate STRs).
  • City ordinances page links to the American Legal Publishing online library for the Berwyn Code.
  • The city’s Building Permits Department and Business Licensing functions will be your primary points of contact for license and compliance questions.
  • The Fire Department (including the Fire Prevention Bureau) should be consulted for life-safety compliance.

Cook County

• RTLO (Residential Tenant Landlord Ordinance) — applies to most suburban Cook County rentals, including STRs rented for 32 days or more.
• Key RTLO points:
  • Prohibits lockouts and self-help evictions; only the Cook County Sheriff can enforce a court eviction order.
  • Caps security deposits at 1.5x monthly rent; requires itemized statements if any deductions are made.
  • Caps late fees and requires proper notice periods (e.g., 5-day notice for nonpayment of rent; 10-day notice for material non-compliance).
  • Requires landlords to maintain essential services and meet habitability standards (heat from Sept 15 to June 1: 68°F during 8:30 a.m.–10:30 p.m.; 66°F otherwise).
  • Bedbug provisions: landlord must provide pest control within 10 days after notice and keep records for 3 years.
  • Notice requirements for unit entry (2 days’ notice, with exceptions for emergencies).
  • Exemptions apply to small landlords and certain housing types; properties exempt from the RTLO (except anti-lockout rules) must be disclosed in writing before accepting fees.
• Enforcement: The Cook County Commission on Human Rights is not the enforcement agency for the RTLO. Enforcement is by individual right of action; see the Legal Resources section below.

State of Illinois

• STR-specific law: No state-level ban or statewide STR registration.
• Taxes:
  • State sales tax (6.25%) generally applies to most charges for lodging.
  • Cook County imposes a 1.75% Home Rule Tax on sales of tangible personal property and certain services, which can affect total sales tax on lodging transactions.
  • Local hotel/occupancy taxes may also apply depending on your location; confirm with the Illinois Department of Revenue.
• Housing standards and safety: Illinois law imposes habitability and safety standards. If renting for 32 days or more, RTLO and state rules on habitability and notices will apply.
• Bedbugs: State and local rules govern response, treatment, and recordkeeping timelines (e.g., RTLO’s 10-day response and 3-year record requirement).
• Lead-based paint: Properties built before 1978 are subject to federal Lead Disclosure Rule (not cited in the provided sources; included here as a standard industry requirement).
• Tenant law context: The Attorney General’s office provides guidance on Illinois laws that govern law enforcement interactions with immigrant communities (e.g., TRUST Act and VOICES acts). These do not directly regulate STRs but are relevant to operating policies and law enforcement interactions.

Local Contacts for STRs and Related Compliance

City of Berwyn

• Building Permits Department / Business Licensing
  • Phone: 708-788-2660
  • Website: See “Business Licensing” under the Building Permits Department listings on the city site.
• Fire Department (Fire Prevention Bureau)
  • Phone: 708-788-2660
  • Website: Fire Department and Fire Prevention Bureau listings on the city site.
• City Clerk
  • Phone: 708-788-2660
  • Website: City Clerk page (ordinances, agendas, minutes).
• Mayor’s Office / City Hall (general city inquiries)
  • Phone: 708-788-2660
  • Address reference: Berwyn, IL 60402
  • Note: Verify precise department phone numbers and street address with the City Hall directory, if needed.

Cook County

• Commission on Human Rights (RTLO information only; not enforcement)
  • Website: Cook County Commission on Human Rights – Residential Tenant Landlord Ordinance page.
• Cook County Sheriff (for enforcement of court-ordered evictions)
  • Contact via Cook County Sheriff’s Office (find contact details on CookCountyIL.gov).
• Legal Resources for RTLO and housing issues:
  • Cook County Legal Aid for Housing and Debt
    • Website: www.cookcountylegalaid.org
    • Phone: 855-956-5763
  • Legal Aid Chicago
    • Website: www.legalaidchicago.org
    • Phone: 312-341-1070
  • North Suburban Legal Aid Clinic
    • Website: nslegalaid.org
    • Phone: 847-737-4042
  • CARPLS (Cook County’s largest provider of free legal services)
    • Website: www.carpls.org
    • Phone: 312-738-9200

Key Links to Source Materials

• City of Berwyn – Ordinances (including Code of Ordinances links)
  • www.berwyn-il.gov/government/ordinances
• The Berwyn, Illinois Code of Ordinances (American Legal Publishing)
  • codelibrary.amlegal.com/codes/berwyn/latest/overview
• Cook County – Residential Tenant Landlord Ordinance (RTLO) overview and documents
  • www.cookcountyil.gov/rtlo
• RTLO full ordinance (Cook County Legistar)
  • cook-county.legistar.com/LegislationDetail.aspx?ID=4603740&GUID=85BE57C0-2755-4BC7-93D8-043AACE567D8&Options=Advanced&Search=
• RTLO summaries (English, Spanish, Polish) – Cook County Commission on Human Rights
  • www.cookcountyil.gov/rtlo
• Illinois Attorney General – Laws Governing Law Enforcement Interactions with Immigrant Communities (Updated Jan 2025)
  • www.illinoisattorneygeneral.gov/Page-Attachments/ImmigrationLawGuidancetoLawEnforcement.pdf

Notes:

• The provided city sources do not list a dedicated STR permitting page or STR-specific ordinance; investors should contact the Building Permits Department and Business Licensing for current requirements and confirm zoning with the Zoning Ordinance and Map.
• If your property is within the City of Berwyn, use the city contacts listed; if located in unincorporated Cook County, consult the Cook County links and legal resources above.