Overview

Yes, short-term rentals are allowed in Effingham, IL. Short-term rentals are permitted as special use permits within specific commercial and industrial zoning districts (B-1 Neighborhood Shopping District, B-2 General Commercial District, B-3 Central Business District, and M-1 Light Industrial District) subject to comprehensive regulations and approval requirements.

Starting a Short-Term Rental Business in Effingham

Step-by-Step Process

Step 1: Zoning Compliance Verification

• Confirm your property is located within an approved zoning district (B-1, B-2, B-3, or M-1)
• Note that special use permits are evaluated on a case-by-case basis

Step 2: Application Submission

• Submit a petition for special use permit as the property owner
• Include a conceptual plan meeting all specified requirements
• Pay the non-refundable $100 application fee

Step 3: Planning Review

• The City Council will evaluate whether the STR will be injurious to surrounding properties
• Assessment includes impact on property values and orderly development of adjacent areas
• Review considers existing and intended uses of subject and surrounding properties

Step 4: Compliance Verification

• Meet all operational requirements before operation
• Pass initial inspection by Building and Life Safety Codes
• Obtain Certificate of Occupancy from Building Official

Step 5: Ongoing Compliance

• Maintain annual inspection requirements
• Adhere to all operational restrictions and reporting obligations

Required Documents, Permits, and Licenses

Special Use Permit Application Package

Conceptual Plan Requirements:

• Scaled drawing with North Arrow
• Property address
• Owner name and phone number
• Authorized manager name and phone number and email
• Location map
• Maximum number of guests
• Detailed notes depicting all required items

Floor Plan Components:

• Layout of subject property with building floor plan
• Labels for all rooms and spaces (bedrooms, bathrooms, kitchen, living/family room, laundry)
• Parking locations and street access
• For partial building usage: horizontal and vertical limits of each STR space

Parking Compliance Documentation:

• B-1, B-2, M-1 Districts: Minimum 2 designated off-street parking spaces per STR with signage
• B-3 District: Minimum 2 designated off-street parking spaces per STR on first floor

Legal Documentation:

• Written acknowledgment agreeing to liability limitations and indemnification requirements
• Certificate of Occupancy (required before operation)
• Guest registration system establishment

B-3 Central Business District Additional Requirements:

• Must obtain and comply with Special Use Permit (39) for Mixed Commercial/Residential Use on first floor

Ongoing Compliance Documents

Operational Records:

• Guest register with names, ages, arrival/departure dates (accessible to City officials)
• Property management contact information
• Current STR listing copy
• HOA attestation (if applicable) confirming no bylaws prohibiting STR use

Life Safety Documentation:

• Fire Department approved life safety code compliance
• Evacuation diagrams posted inside entrance door
• Emergency contact information

Specific Regulations

Zoning and Permitting Limits

Permit Cap: No more than 4 special use permits per owner (including spouse, trustee/beneficiary, corporate members, LLC members, partners)

Occupancy Requirements:

• Maximum 4 unrelated persons age 18 or older per STR
• Length of stay limited to 29 consecutive days maximum
• Must be owner-occupied and/or have authorized manager available 24/7 with contact information on file

Guest Restrictions

Adult Occupancy: Maximum 4 unrelated guests age 18 or older per stay

Minor Occupancy Rules:

• Minors under 18 must be accompanied by family member age 18+ (as defined in Municipal Code)
• Alternative: Minimum 2 chaperones age 21+ per 6 minors
• Chaperones must provide written authorization from parents/legal guardians

Operational Requirements

Contact and Information Posting:

• Name and 24/7 telephone number of owner and/or authorized manager
• Evacuation diagram identifying all egress routes
• Current listing copy
• HOA attestation (if applicable)

Listing Content Requirements:

• Cancellation and check-in/out policies
• ADA accessibility statement
• Parking availability and restrictions
• Recreational facilities and amenity restrictions
• Property description (sleeping rooms, bathrooms)
• Maximum guest count and age/family relationship restrictions

Prohibited Activities:

• No food or beverage service provided

Tax and Inspection Requirements

Tax Compliance: Subject to Chapter 23, Article VII - Hotel Motel Tax

Inspection Schedule:

• Initial inspection prior to operation
• Minimum annual inspection for Building and Life Safety Code compliance
• Additional inspections may be conducted based on guest complaints
• Certificate of Occupancy may be revoked for non-compliance

Lake Sara Area Special Provisions

Effingham Water Authority (EWA) Requirements:

• EWA governs STR activities in the Lake Sara area
• Annual license fee: $1,000 (effective July 1, 2025)
• Minimum adult supervision: 2 adults per 6 minors
• Parking: 1-4 spaces provided if available
• Occupancy: Maximum 8 adults on property
• Names and ages of all minors must be provided

Lake Sara Violation Process:

• $75 fine for violations
• After 3 violations: license revocation
• 24-hour correction window (correction doesn't eliminate violation)
• Immediate license revocation possible for uncorrected violations

Enforcement and Remedies

Dissolution Triggers:

• Violation of any STR regulations
• Maintenance of nuisance premises (Chapter 12, Article 2)
• Non-payment of water/sewer bills
• Failure to maintain required inspections or certifications

Variance Limitations: Requirements cannot be subject to variance

Lake Sara Area Additional Considerations

The Lake Sara area operates under EWA jurisdiction with specific additional requirements:

• STR allowed since October 2020
• Updated ordinance effective July 1, 2025
• Enhanced adult supervision ratios
• Clarified parking allowances
• Streamlined violation and revocation processes

State-Level Context

Illinois state law (65 ILCS 5/11-13-1) grants zoning authority to municipalities like Effingham. The city exercises this authority through its Municipal Code special use provisions, ensuring STR operations comply with broader land use and community welfare objectives.

Contact Information

City of Effingham Departments

Building Department:

• Responsible for Certificate of Occupancy issuance
• Handles building and life safety code inspections
• Contact through Effingham City Hall for current information

Fire Department - Fire Prevention Bureau:

• Approves life safety code requirements
• Determines specific code requirements (NFPA, ILSC, LSC, City Ordinance)
• Reviews and approves emergency egress plans

Police Department:

• Access to guest registration records
• Enforces occupancy and conduct regulations

City Clerk's Office:

• Processes special use permit applications
• Maintains official records of STR permits

Effingham Water Authority

For Lake Sara area properties:

• Contact EWA directly for license applications and renewals
• Handles violation enforcement and fee collection
• Provides guidance on Lake Sara-specific requirements

Important Notes for Investors

1. Owner Limitation Strategy: The 4-permit cap applies across ownership structures, so plan accordingly if you wish to operate multiple properties

2. Zoning Proactive Assessment: Confirm zoning district before purchasing property; some areas may require rezoning which can be complex and uncertain

3. Insurance Considerations: Enhanced liability coverage recommended given the indemnification requirements and increased guest turnover

4. Local Relations: Maintain positive relationships with neighbors and local authorities; the special use permit process considers community impact

5. Lake Sara Premium: Properties in the Lake Sara area may command higher rental rates but face additional EWA regulations and higher licensing fees

Source References

• City of Effingham Ordinance No. 015-2020: Special Use Permit Regulations for Short-Term Rentals

• Effingham Daily News Article: Changes Made to Lake Sara Short-Term Rental Rules

• Yahoo News Summary: Lake Sara Short-Term Rental Updates

• XFM Radio Coverage: Water Authority Approves STR Ordinance Changes

This guide provides comprehensive information for investors considering short-term rental investments in Effingham, Illinois. Always verify current requirements with local authorities before making investment decisions, as regulations may be subject to amendments.