Overview: Are Short-Term Rentals Allowed in Evanston?

Short-term rentals (STRs) are currently permitted in Evanston but under significant restrictions and a temporary moratorium. As of September 8th, 2025, the City Council approved a 90-day moratorium on new vacation rental license applications, effective immediately. This means no new STR licenses are being accepted at this time. However, existing licensed operators may continue to operate and renew their licenses during this period.

The city is actively revising its STR regulations, with new ordinances under development that may impose citywide caps, ward-by-ward limits, and stricter requirements for non-owner-occupied properties. Investors should monitor these policy developments closely, as the regulatory landscape is shifting rapidly.

How to Start a Short-Term Rental Business in Evanston

Current Status (September 2025)

New applications are temporarily suspended due to the 90-day moratorium. Current licensees can renew, but new applicants must wait for the moratorium to lift and new regulations to be implemented.

When Applications Resume (Projected Late 2025/Early 2026)

Based on current draft proposals, the process will likely involve:

For Owner-Occupied Properties:

• Primary residence requirement (owner occupied >50% of the year, or 183+ days under proposed changes)
• Property Standards inspection
• Staff review and approval
• Annual license fee payment ($150 current, proposed increase to $500 for renewals)
• Compliance with posting requirements

For Non-Owner-Occupied Properties (if permitted):

• Property Standards inspection
• Planning and Development Committee review
• City Council approval
• Compliance with potential caps and restrictions
• Required property manager within 10 miles of Evanston
• Higher fees and stricter oversight

Application Process Steps (Post-Moratorium)

1. Pre-Application Preparation

   • Prepare all required documentation
   • Ensure property meets Property Maintenance Code standards
   • Confirm HOA approval (if applicable)
   • Submit 250-foot radius notices to neighboring property owners

2. Application Submission

   • Online application through city portal
   • Payment of application fees
   • Supporting document upload

3. Inspection and Review

   • Property Standards inspection scheduling
   • Correction of any violations
   • Committee review (non-owner-occupied only)

4. Final Approval and Licensing

   • License fee payment
   • Certificate issuance
   • Compliance setup

Required Documents, Permits, Licenses, and Guidelines

Essential Documents

• Floor plans of each dwelling unit with room dimensions
• Property-wide floorplan/drawing showing entire layout
• Evacuation diagram identifying all means of egress
• Copy of proposed STR listing from hosting platform
• HOA letter confirming bylaws permit STR use (if applicable)
• Military duty affidavit (if owner on active duty)
• Proof of mailed notices to 250-foot radius property owners

Licenses and Permits

• Vacation Rental License (primary requirement)
• Property Standards Compliance (annual inspection)
• Business Registration (general business license)

Compliance Requirements

• Quarterly Hotel-Motel Tax remittance
• Emergency contact posting inside property
• Maximum occupancy posting with evacuation diagram
• Current listing display including license number
• License certificate display
• Street cleaning/snow removal schedule posting
• HOA compliance attestation (if applicable)

Specific Regulations for Short-Term Rentals

City of Evanston Regulations

Current Framework:

• Definition: Dwelling units rented for less than 30 consecutive days to non-family members
• Owner-Occupied Requirement: Property occupied by owner >50% of the year for license eligibility
• Platform Inclusion: Properties listed on Airbnb, VRBO, and similar platforms fall under this category
• Exempt Properties: Hotels/motels, lodging establishments, bed & breakfasts, home sharing arrangements

Proposed Changes (Under Review):

• Broadened Definition: Furnished dwellings rented for less than one year
• Owner-Occupied Definition: Increased to 183+ days per year
• Potential Caps: Up to 35 licenses per ward (citywide maximum)
• Per-Owner Limits: Discussion of maximum 1-2 non-owner-occupied licenses per owner
• Property Manager Requirement: Must reside within 10 miles for non-owner-occupied units

Tax Requirements:

• Hotel-Motel Tax: Remitted quarterly on all STR revenues
• State Sales Tax: May apply to short-term rental transactions

Cook County Regulations

No specific county-level STR regulations were identified in the provided content.

Illinois State Regulations

No specific state-level STR regulations were identified in the provided content. Standard Illinois business licensing and tax requirements apply.

Contact Information for Local Authority

Primary Contact:

• Department: Property Standards (Building & Development Services)
• Phone: (847) 448-4311
• Email: nsaric@cityofevanston.org
• Address: 909 Davis Street, Evanston, IL 60201

Online Resources:

• Citizen Portal: aca-prod.accela.com/Evanston/default.aspx
• 311 System: Dial 311 or (847) 448-4311

Key Staff:

• Program Administrator: nsaric@cityofevanston.org
• Building & Development Services Manager: Anderson Roman

Committees:

• Planning and Development Committee: Reviews non-owner-occupied applications
• Housing and Community Development Committee: Developing new STR regulations

Source Pages

Primary Sources:

1. Vacation Rental License - City of Evanston
2. Rental Registration - City of Evanston
3. City to take 90-day break on issuing vacation rental licenses - Evanston RoundTable
4. Evanston staff present two draft ordinances on vacation rentals - Citizen Portal

Related Resources: 5. Evanston, IL, Vacation Rental License - APA KnowledgeBase

Important Note for Investors: The STR regulatory environment in Evanston is currently in flux. The 90-day moratorium is scheduled to end around December 2025, but new regulations may significantly restrict non-owner-occupied STRs. Investors should closely monitor City Council meetings and consider the temporary nature of current licensing opportunities before making investment decisions. The Housing and Community Development Committee is scheduled to discuss STR policy on October 21, 2025, with final regulations expected by early 2026.