Overview: Are short-term rentals allowed in Charleston, IL?

• Yes—short-term rentals are allowed in Charleston, IL, under Illinois law. Because no city-specific STR ordinance was identified in the provided materials, Illinois’ statewide framework applies at both the city and county level (Coles County). In practice, that means you can operate a short-term rental (typically ≤30 days), but you must register, collect state and local taxes, and comply with all standard local laws (zoning, health and safety, fire, building, noise, trash, parking, etc.). Investors should assume general municipal requirements for lodging businesses are in force. For clarity: Charleston, IL does not have a dedicated short-term rental licensing program identified in the materials provided, so state-level rules and baseline municipal/business compliance requirements govern operations.

How to start a short-term rental business in Charleston, IL

1. Confirm zoning and land-use feasibility

• Confirm with the City of Charleston Planning & Development or Coles County that the subject property is an allowed use for lodging/hospitality. If in doubt, request a zoning verification letter or use determination before purchase.
• If in a residential district, verify whether short-term rental use is permissible as a home-based business or if a commercial classification/approval is required. If historic district overlays or neighborhood-specific restrictions exist, check those before listing.

2. Secure property condition and safety

• Maintain safe electrical, HVAC, plumbing; install working smoke alarms and carbon monoxide detectors; ensure fire extinguishers and egress safety. If applicable, coordinate with the Fire Marshal for inspection or compliance guidance.

3. Register and obtain required business credentials

• File a Municipality of Charleston business registration (required before conducting business within city limits).
• Obtain a Certificate of Sale/Use from the Illinois Department of Revenue (IDOR) to collect Hotel Operators’ Occupation Tax (HOOT) and state/local sales tax when applicable. Activate MyTax Illinois to file and remit.
• If you will employ staff, obtain an Illinois Employer Identification Number (EIN) via the IDOR or IRS.

4. Establish tax collection and remittance

• Collect HOOT and state/local sales tax where applicable on each booking. Operate a simple, transparent booking ledger; remit taxes per IDOR frequency (monthly/quarterly, depending on volume) via MyTax Illinois.
• Track and remit local taxes if/when required by Charleston/Coles County; use IDOR guidance as the primary pathway for accommodation taxes.

5. Put compliance and guest management in place

• Publish a Good Neighbor Guide for guests covering quiet hours, parking, trash/recycling, occupancy limits, and emergency procedures. Maintain a local contact who can respond 24/7 to neighbor complaints and safety issues.
• Establish house rules and cancellation policies consistent with your platform’s terms and local ordinances (noise, occupancy, party restrictions).

6. Platform listing and data hygiene

• When listing, include your business registration number (where required), local contact, emergency information, and quiet-hours policy. Maintain consistent, accurate address details for licensing, tax, and complaint response.

Required documents, permits, licenses, and guidelines

• Municipality of Charleston business registration.
• IDOR Certificate of Sale/Use (Hotel Operators’ Occupation Tax).
• EIN (Illinois/IRS, if employing staff).
• Basic liability insurance for lodging operations (recommended).
• Safety documentation: smoke/CO alarms, fire extinguisher placement, posted emergency egress info.
• Good Neighbor Guide: quiet hours, parking, trash, occupancy, contact.

Note: If Charleston issues any additional lodging permits or zoning approvals specific to short-term rentals, they will appear on city planning and building/zoning pages. The materials provided do not show a dedicated STR license program.

Specific regulations applicable in Charleston, Coles County, and Illinois Because no Charleston-specific STR ordinance was identified, operations must follow Illinois state-level accommodation rules plus baseline local ordinances. The following state rules and best practices govern.

Illinois (state-level)

• Hotel Operators’ Occupation Tax (HOOT) and state/local sales tax: Operators who provide lodging to guests for ≤30 days must collect and remit HOOT (Illinois’ primary accommodation tax) and state/local sales tax, as applicable. Register with IDOR, obtain a Certificate of Sale/Use, and file returns via MyTax Illinois on the required schedule. See IDOR resources at www2.illinois.gov. HOOT is also referenced in IDOR materials; the NLC Action Guide is provided as a general guide for local regulation frameworks at www.nlc.org/wp-content/uploads/2022/05/Short-Term-Rental-Regulations.pdf.

Charleston, IL (city-level; general compliance, not an STR-specific ordinance)

• Zoning and land use: Verify with city planning that the property may be used as lodging; if in a residential district, confirm STR/home-based business status.
• Business registration: Required before conducting business; complete Charleston’s business registration process.
• Health, safety, and nuisance: Standard municipal code requirements for safe housing, noise control, trash, parking, and occupancy apply. Hosts must maintain safe premises and ensure guests follow local rules.
• Complaint handling: Residents typically report issues via city non-emergency numbers or online complaint portals; operators should be prepared to respond promptly and maintain compliance.

Coles County (county-level)

• The materials provided do not indicate countywide STR rules. County zoning and general nuisance regulations still apply, and the Coles County Sheriff’s Office would handle general safety complaints. For county permits/requirements, contact the County Clerk/Zoning Office.

Best practices aligned with the National League of Cities (NLC) guidance (adopt proactively)

• Permits/registration tied to the host, not the parcel, to enable natural attrition (transfer upon sale).
• Simple rules: occupancy caps (e.g., two adults per bedroom), clearly posted good neighbor guide, quiet-hours enforcement.
• Clear fines and enforcement mechanisms (e.g., progressive fines, “three strikes,” revocation for repeated violations).
• Tax collection clarity: collect and remit HOOT and state/local sales tax; consider platform data-sharing or compliance tools to identify unregistered operators.
• Online registration and complaint systems; a 24/7 contact number for STR properties; ongoing stakeholder engagement.

Contact information (local authority, IL)

• City of Charleston (general municipal info)
  • Address: 1416 4th Street, Charleston, IL 61920
  • Phone: 217-345-2011
  • Website: www.charlestonil.gov
• Illinois Department of Revenue (tax registration, HOOT, MyTax Illinois)
  • Phone: 217-782-3336
  • Website: www2.illinois.gov
• Coles County (general county contact)
  • Phone: 217-348-0521
  • Website: www.colescounty.illinois.gov
• Charleston Tourism (for visitor information/partnerships)
  • Phone: 217-345-2011 (City Hall)
  • Website: www.charlestonil.gov

Source pages (links)

• City of Charleston, IL — official site: www.charlestonil.gov
• Illinois Department of Revenue — HOOT, MyTax Illinois, and registration guidance: www2.illinois.gov
• National League of Cities — Short-Term Rental Regulations: A Guide for Local Governments: www.nlc.org/wp-content/uploads/2022/05/Short-Term-Rental-Regulations.pdf

How to confirm whether additional Charleston or Coles County requirements apply

• Check the City’s municipal code and planning/community development pages for zoning and business licensing details.
• Contact Charleston Planning & Development at 217-345-2011 or via the city website to confirm whether short-term rentals require any specific approvals beyond city business registration.
• Confirm with IDOR whether your volume requires monthly or quarterly remittance for HOOT and state/local sales tax.

Important note for investors

• The materials provided do not include Charleston-specific STR licensing or quota rules. Because local regulations can change and are often neighborhood-specific, confirm all requirements directly with the city and IDOR before listing. Always maintain full tax compliance (HOOT and state/local sales tax) and adhere to standard municipal health, safety, and nuisance ordinances.