Prepared for investors, property owners, and managers who need a clear, compliance‑focused roadmap to start and operate a short‑term rental (STR) in the City of Carrollton, IL.

1. Overview – Are Short‑Term Rentals Allowed in Carrollton?

Direct answer: The City of Carrollton’s Zoning Code (Chapter 40) does not contain a separate “short‑term rental” use category. Consequently, an STR that does not fit into an existing, expressly listed use is prohibited by the Code’s “Unlisted Uses Prohibited” rule (Section 40‑3‑7).

The only ways an STR can operate lawfully are:

| Path | What it Means | Zoning District(s) Where It May Be Permitted | |------|----------------|----------------------------------------------| | 1. Operate as a “Motel/Motor Hotel” | A transient‑lodging building that provides sleeping units without individual cooking facilities. | B‑2 – Highway Business District (Permitted use, see § 40‑4‑47). | | 2. Operate as a “Boarding House” | A residential‑type lodging for ≥ 3 but ≤ 10 non‑family guests, with meals provided. | No district lists it as a permitted use in the code; it would require a Special‑Use Permit (see § 40‑10‑24). | | 3. Home‑Based Business (Home Occupation) | If the STR is a single‑family dwelling rented out for short stays while the owner remains on‑site and meets the home‑occupation limits (e.g., no signage, no external storage, limited number of guests). | All residential districts (SR‑1, SR‑2, MR‑1, MR‑2) but only as a special use and only when the activity fits the narrow definition of a home occupation. | | 4. Rezone the Property | Petition the City to change the zoning to a district that already permits transient lodging (e.g., B‑2). | Requires a Zoning Amendment (procedures in Article X). |

Bottom line: An STR that cannot be classified as a motel, boarding house, or home‑based home occupation is not allowed under current city law. Investors must first decide which of the above routes (or a combination) they will pursue.

2. Zoning Classification for an STR

| Use Definition (as written in the code) | Where It Appears | Zoning Implications | |------------------------------------------|------------------|---------------------| | Motel or Motor Hotel – “a series of attached, semi‑attached or detached sleeping or living units for the accommodation of transient guests and not customarily including individual cooking or kitchen facilities.” | § 40‑2‑2 (definitions) – listed as a Permitted Use in the B‑2 Highway Business District (§ 40‑4‑47). | Must locate in B‑2, meet all B‑2 bulk & parking standards, and obtain a Certificate of Zoning Compliance (Initial & Final). | | Boarding House – “a building other than a hotel or restaurant where meals are provided for compensation to three (3) or more persons, but not more than ten (10) who are not members of the keeper's family, but not open on a daily, overnight or per‑meal basis to transient guests.” | § 40‑2‑2 (definition). Not listed as a permitted use in any district, so it would be a Special Use (requires a Special‑Use Permit per § 40‑10‑24). | If approved, the Board of Appeals can attach conditions (e.g., parking, signage limits). | | Home Occupation – “any business, profession, or occupation conducted for gain entirely within a dwelling or on residential premises in conformity with the provisions of this Code.” | § 40‑2‑2 (definition). Permitted as a Special Use in all residential districts (see § 40‑4‑11, § 40‑4‑16, etc.). | Must meet the accessory‑use restrictions in § 40‑3‑16 (no signage, no external storage, ≤ 25 % of rear‑yard coverage, etc.). The STR would be considered a home occupation only if it complies with those limits. |

Note: The Zoning Administrator determines whether a proposed STR fits any of the above definitions. Early consultation is essential to avoid a “use not listed” determination.

3. How to Start a Short‑Term Rental Business in Carrollton

Below is a step‑by‑step workflow that reflects the city’s zoning process, state tax obligations, and general business‑start requirements.

3.1. Pre‑Application – Site & Zoning Check

1. Identify the Zoning District of the property (SR‑1, SR‑2, MR‑1, MR‑2, B‑1, B‑2, I‑1, etc.).
   If the property is not already in B‑2, you must either rezone or select an alternative route (boarding‑house or home‑occupation).

2. Confirm Lot‑Size & Bulk Requirements for the target district (minimum lot area, setbacks, height, parking).
   These are found in the “Area‑Bulk Regulation Schedule” at the end of Chapter 40 (refer to the city’s official zoning map).

3. Engage the Zoning Administrator (the city’s “Administrator” per § 40‑2‑2) for a pre‑application conference. The Administrator can:

   • Confirm whether the proposed STR qualifies as a motel, boarding house, or home occupation.
   • Outline any required Special‑Use Permits or Variance applications.

3.2. Obtain Zoning Approvals

| Path | Action | Required Documents | |------|--------|--------------------| | Motel (B‑2) | 1. Submit Initial Certificate of Zoning Compliance (Application Form – typically available on the city website). 2. Provide site plan, building plans, parking layout, fire‑exit plan, and proof of ownership. 3. Await Administrator’s review. | • Site Plan (scale, north arrow, lot dimensions). • Building Plans (floor‑by‑floor, elevations). • Parking Layout (per Article V). • Fire‑Safety/Exit Plan (Illinois Fire Protection District). • Title/Easement Documentation. | | Boarding House (Special Use) | 1. File Special‑Use Permit Application with the Zoning Board of Appeals (see § 40‑10‑24). 2. Submit the same supporting documents as for a motel, plus a Statement of Compliance with the boarding‑house definition. 3. Attend a public hearing before the Plan Commission and Zoning Board of Appeals. | • Application form (provided by the City Clerk). • Site/Building Plans. • Parking Calculations. • Narrative describing the boarding‑house operation (number of guests, meals, duration). • Proof that the use will not violate the “Accessory‑Use Restriction” (no accessory structure as a dwelling). | | Home‑Based STR (Home Occupation) | 1. Apply for a Special‑Use Permit in the applicable residential district (if not already a permitted accessory use). 2. Demonstrate compliance with