Executive overview: Short‑term rentals are explicitly allowed in Elgin, Illinois. There are no city‑specific short‑term rental licensing, zoning, or occupancy rules that differ from the standard rental program. Consequently, all short‑term rentals must comply with Elgin’s general residential rental licensing and property standards (inspection, landlord training, occupancy limits, safety equipment, and addenda). See Sources [1] and [2] for the municipal ordinance and the city’s rental‑license program page.

Note: This guide focuses on Elgin (Kane County). Where the city has not adopted STR‑specific requirements, Illinois state‑level rules do not generally impose separate licensing or taxes on residential STRs, but many Illinois municipalities do (e.g., Chicago and Tinley Park). See the State‑Level section for examples. Always confirm with Elgin before listing.

1) How to start a short‑term rental business in Elgin

Because Elgin does not regulate STRs separately from other rentals, the process to legally operate an STR is the same as for any residential rental.

• Determine eligibility

  • Non‑owner‑occupied properties require a license. Owner‑occupied rentals are exempt unless the owner rents out additional units (e.g., a room in the same building). Hotels, motels, and licensed bed & breakfast inns are excluded from the rental‑license regime. See Source [1], §6.37.040(D).
  • Out‑of‑state owners must designate an Authorized Agent who lives in or maintains an office in Kane County or within 10 miles of the Elgin city limits. The agent must be ≥18 and authorized to receive notices, schedule/attend inspections, and act in emergencies. If the agent changes, owners must notify the city within 15 business days. See Source [1], §6.37.030 and §6.37.050(A)(4)–(5).

• Confirm zoning and physical suitability

  • Any change in the number of units (e.g., adding a unit) requires prior approval from the Code Official. The city will review zoning, building, and property maintenance code requirements. See Source [1], §6.37.050(A)(7).
  • Single‑family, townhouse/condo owner‑occupied dwellings are not required to be licensed for owner‑occupied use. If you convert any such property to rental (including short‑term rental), licensing and inspection are required. See Source [1], §6.37.040(D).

• Apply for the Rental License

  • Use the city application form. For properties with more than one street address but sharing an internal layout (e.g., “upper/lower” or “A/B/C”), include the Additional Dwelling Units/Room Measurements Form so the city can count units correctly. See Source [2].
  • Application filing: Mail or drop off the application and fee to the City of Elgin at 150 Dexter Court, Elgin, IL 60120. See Source [2].
  • Transfer of license: Licenses do not transfer to a new owner or to a different property. A new owner has 30 days from closing to apply. See Source [2].

• Schedule and pass inspection

  • You will be scheduled for a licensing inspection within 120 days of license issuance (initial or renewal). The inspection covers the exterior, common areas, basement, accessory structures, and a sample of units (20% of dwelling units and 20% of rooming units, minimum one of each). The city determines which units are inspected. See Source [1], §6.37.060(C).
  • Code officers check property maintenance and life‑safety issues (e.g., smoke/CO alarms, plumbing/electrical, structural, sanitation, overcrowding, illegal basement sleeping). See Source [2] and the city’s inspection checklist. [Links to checklist available in Source [2].]

• Satisfy occupancy and posting requirements

  • The owner/agent must provide each guest the maximum occupancy number (as determined by the city’s property maintenance code). This must be included in the written lease/agreement or, if oral, otherwise provided in writing before occupancy. See Source [1], §6.37.100(C).
  • Post the emergency contact name and 24‑hour phone number in the main entryway and provide it to each guest. See Source [1], §6.37.100(B).

• Meet owner/agent obligations

  • Maintain tenant/guest records (names, unit assignments). Produce records on request. See Source [1], §6.37.100(A)–(D).
  • Crime Free Lease Addendum: Include this addendum in every lease/agreement and collect signatures from all occupants; provide copies at inspection. See Source [1], §6.37.100(A) & (F).
  • Landlord training: The owner and authorized agent must complete an accredited landlord training class within one month of license issuance/renewal. The city class fee is $22 per person. Prior professional training (e.g., NARPM MPM) may qualify for a waiver. See Source [1], §6.37.100(E).
  • Operating restrictions while unlicensed: It is unlawful to advertise, rent, or allow occupancy without a valid license. See Source [1], §6.37.040(B)–(C) and §6.37.080(A).

• Manage licensing timeline

  • Licenses expire on the last day of the month that is one year from the registration date. If the property passes the inspection with two or fewer non‑life‑safety violations (corrected within 10 business days) and the landlord training requirement is satisfied, the license receives a two‑year extension at no cost (no second physical license is issued). See Source [1], §6.37.050(A) and §6.37.060(G).

• Renewal process

  • Renewal applications follow the same process as new applications. Upon fee payment, the property is scheduled for inspection, and an inspection letter is sent to the owner and the property manager (if on file). See Source [2].

2) Required documents, permits, licenses, and guidelines

• City Rental License Application (completed, signed). See Source [2].
• Additional Dwelling Units/Room Measurements Form (if applicable). See Source [2].
• License fee based on the number of dwelling/rooming units. See “Fees” below and Source [2].
• Owner information and agent designation
  • Names, addresses, emails, and phone numbers for all owners and current lawful tenants/guests.
  • Out‑of‑state owners: name/address/email/phone for the authorized agent (within 10 miles of Elgin or in Kane County), including agent change notifications within 15 business days. See Source [1], §6.37.050(A)(4)–(5).
• Total living/sleeping square footage (per city’s property maintenance code). See Source [1], §6.37.050(A)(6).
• Approved unit count
  • Any change in the number of units requires prior written approval from the Code Official. See Source [1], §6.37.050(A)(7).
• Tenant/guest records
  • Full legal names of all current lawful occupants; records available for city inspection. See Source [1], §6.37.100(A)–(D).
• Crime Free Lease Addendum
  • Signed by all current lawful occupants and attached to every lease/agreement; copies provided at inspection. See Source [1], §6.37.100(A) & (F).
• Occupancy and contact posting
  • Written notice to each guest of maximum occupancy (per city standards); emergency contact posted in the main entryway and provided to guests. See Source [1], §6.37.100(B)–(C).
• Landlord training proof
  • City or accredited landlord training class completion certificate/record (required for owner and authorized agent within one month of license issuance/renewal). See Source [1], §6.37.100(E).
• Inspection scheduling and compliance
  • Coordinate inspection, correct violations within the city‑set timeframe, and schedule any required reinspection. See Source [1], §6.37.060.
• Payment of all outstanding city fees and closure of open/expired permits (permits must be scheduled for inspection within 10 business days of application). See Source [1], §6.37.060(B).

3) Specific regulations for short‑term rentals in Elgin

Elgin regulates STRs through its general Residential Rental Property ordinance (Chapter 6.37) rather than a standalone STR ordinance. The key provisions for STR operators include:

• License requirement and exemptions
  • All rental residential properties, including those listed/let on short‑term platforms (e.g., Airbnb, VRBO), must be licensed. It is unlawful to advertise, rent, or allow occupancy without a valid license. See Source [1], §6.37.040(A)–(C).
  • Exemptions include owner‑occupied single‑family dwellings; single‑family homes occupied by the owner’s immediate family; townhouse/condo owner‑occupied dwellings; hotels, motels, and bed & breakfast inns; state/federally licensed facilities; and certain owner‑occupied single‑family or two‑unit properties. See Source [1], §6.37.040(D).
• Authorized agent (out‑of‑state owners)
  • Required; must be ≥18, reside in/office in Kane County or within 10 miles of Elgin, and be empowered to receive notices and act in emergencies. See Source [1], §6.37.030 and §6.37.050(A)(4)–(5).
• Licensing and inspections
  • Licensing inspections cover exterior, common areas, basement, accessory structures, and 20% of units (minimum one of each) within 120 days of issuance. Violations set a compliance timeframe; failure to correct leads to suspension/revocation. See Source [1], §6.37.060(C)–(H).
• Extension and compliance
  • If the initial inspection shows full compliance (or two or fewer non‑life‑safety violations corrected within 10 business days) and landlord training is complete, the license receives a two‑year extension (no new license issued). See Source [1], §6.37.060(G).
• Owner obligations
  • Maintain guest records; include Crime Free Lease Addendum; post/provide occupancy limits and emergency contact; complete landlord training within one month of license issuance/renewal. See Source [1], §6.37.100.
• Enforcement, penalties, and vacancy orders
  • Violations include operating without a license, failing inspections, exceeding occupancy, unlawful basement sleeping, charging rent while unlicensed/suspended/revoked, and more. Penalties include fines (minimum $100/day for certain violations), license suspension/revocation, and 60‑day orders to vacate for guests/tenants if the license is revoked or the property is unlicensed. See Source [1], §6.37.080–§6.37.130.
• Miscellaneous fees
  • Reinspection fees, late payment penalties, missed inspection fees, and fees for suspension/revocation. See Source [1], §6.37.135.
• Zoning and unit changes
  • Changes in unit count require prior approval; all units must meet zoning, building, and property maintenance codes. See Source [1], §6.37.050(A)(7).

4) Fees

Application fee (new or renewal) is based on the number of dwelling or rooming units. See Source [2] and Source [1], §6.37.050(B):

• 1–5 units: $149
• 6–10: $224
• 11–15: $300
• 16–20: $373
• 21–25: $448
• 26–30: $524
• 31–35: $597
• 36–40: $670
• 41–45: $746
• 46–50: $821
• 51–55: $897
• 56–60: $970
• 61–65: $1,045
• 66–70: $1,121
• 71–75: $1,194
• 76–80: $1,270
• 81–85: $1,345
• 86–90: $1,418
• 91–95: $1,494
• 96–100: $1,567
• Each additional 5 units above 100: +$75

Other charges (Source [1], §6.37.135):

• Reinspection (after prior reinspection): $100
• Late payment (30–60 days overdue): +25% of imposed fee
• Late payment (>60 days overdue): +50% of imposed fee
• Missed inspection / more than one rescheduling: $50
• Suspended license: $100
• Revoked license: $500 (plus new license fee)

5) Contact information (local authority in charge of STRs)

• Code Compliance / Neighborhood Services

  • Physical address: 150 Dexter Court, Elgin, IL 60120
  • Phone: 311 (local 847‑931‑6001)
  • Email: elgin311@cityofelgin.org
  • See “Rental License” page for contacts and resources (Source [2]).

• Rental License Manager

  • Jabez Etienne
  • Phone: (630) 574‑4449
  • Fax: (847) 931‑6790
  • Email: etienne_j@cityofelgin.org
  • Source [2].

6) County‑ and state‑level considerations (Illinois)

County: Kane County does not publish separate STR licensing requirements for unincorporated areas in the provided sources. Contact the Kane County Planning and Building Department for any county‑level building, zoning, or public health rules that may apply to STRs.

State (Illinois): The provided sources do not show a statewide STR‑specific license or tax. However, many Illinois municipalities regulate STRs heavily. Two common examples:

• Chicago
  • Requires registration/licensing for short‑term rental intermediaries and hosts; collects hotel accommodation tax; platform obligations to register hosts and remit taxes; detailed application, fee, and documentation requirements. See Source [4].
• Tinley Park (example of a suburb with STR rules)
  • Short‑term rental license required; must be owner’s primary residence; inspections for life safety; $1,000,000 liability insurance; one STR per location per year; 500‑foot separation between STRs; maximum 25% of units in multi‑family buildings can be STRs; $50 license fee. See Source [4].

For Elgin specifically, operate under the city’s rental licensing program; verify any updates before listing.

7) Source links

• Revised Residential Rental Program Ordinance (Chapter 6.37): elginil.gov/DocumentCenter/View/73271/Revised-Residential-Rental-Program-Ordinance
• City of Elgin — Rental License Program Page (overview, checklist links, forms, contact, fee schedule): elginil.gov/317/Rental-License
• BuildYourBNB — Elgin STR overview (notes lack of STR‑specific