Overview: Are Short-Term Rentals Allowed in Galena, IL?

Yes, short-term rentals are allowed in Galena, Illinois, but they are strictly regulated and subject to significant limitations. Short-term rentals (defined as vacation rentals for less than 30 days) require both a special use permit and an operating license from the City of Galena. However, the number of vacation rental licenses is capped by the City Council, and all available licenses have been fulfilled as of the current date. There is currently a substantial waitlist for prospective operators.

How to Start a Short-Term Rental Business in Galena

Current Licensing Status

The City of Galena has implemented a cap on the total number of vacation rental licenses available. All available licenses have been issued and there is currently a substantial waiting list. If you wish to operate a short-term rental in Galena, you must:

1. Join the Waiting List: Contact the City of Galena Zoning Administrator Jonathan Miller at jmiller@cityofgalena.org to be placed on the waitlist for future license availability.

2. Meet Dual Requirements: When a license becomes available, you will need both:

   • A special use permit from the city
   • An operating license for vacation rentals

3. Ensure Zoning Compliance: Vacation rentals are permitted in specific zoning districts as either:

   • Principal commercial land use in designated commercial areas
   • Accessory residential land use in certain residential zones

Geographic Restrictions

The city employs a density-based limitation system that restricts the number of vacation rentals within specific geographic areas to prevent over-concentration and protect neighborhood character.

Required Documents, Permits, Licenses, and Guidelines

City of Galena Requirements

Primary Permits:

• Special Use Permit (required before operating)
• Vacation Rental Operating License (annual renewal required)

Application Documentation:

• Completed application forms
• Property ownership documentation
• Floor plans and site plans
• Proof of compliance with safety requirements
• Neighborhood impact assessment (if required)

Safety and Building Requirements:

• Compliance with all building codes
• Fire safety equipment installation
• Adequate parking provisions
• Compliance with occupancy limits

Jo Daviess County Requirements

Guest Accommodations License: For properties outside Galena city limits or properties with 16 or fewer units, Jo Daviess County requires a Guest Accommodations License.

Required Documentation:

• Completed Guest Accommodations License application
• Annual application fee payment
• Proof of liability insurance coverage
• Well and septic system information (if applicable)
• Heating system inspection report
• Detailed floor plans

Safety Requirements:

• Hard-wired, interconnected smoke detectors in each bedroom and on each level
• Wireless smoke detection systems (approved alternatives)
• Carbon monoxide detectors on each floor
• GFI protection on electrical outlets
• Adequate handrails and balusters
• Two approved means of egress from each bedroom

Occupancy Limits:

• Properties with 7+ bedrooms: Maximum 16 overnight occupants
• Properties with fewer than 7 bedrooms: 2 people per bedroom plus 2 additional people per building
• Adults and minors count toward occupancy limits

Specific Regulations for Short-Term Rentals

City of Galena Regulations

Operational Requirements:

• Maximum occupancy as determined by special use permit
• Compliance with noise ordinances and quiet hours
• Proper waste management and disposal
• Adequate on-site parking
• No advertising signage beyond permitted limits

Zoning Restrictions:

• Vacation rentals are only permitted with approved special use permits
• Must comply with specific setback and density requirements
• Subject to historic district preservation guidelines where applicable

License Transfer:

• Licenses are tied to specific properties and operators
• Transfer requirements must be met when properties change ownership

Jo Daviess County Regulations

Annual Renewal:

• Guest Accommodations Licenses must be renewed annually by December 31st
• Renewal fees and updated documentation required

Property Transfer:

• Licenses transfer with property ownership
• New owners must notify the county and pay renewal fees
• Required information must be kept current

Inspection Requirements:

• Initial inspection required before license issuance
• Ongoing compliance monitoring
• Re-inspection may be required for renewals

State of Illinois Requirements

Tax Obligations:

• Hotel Operator's Occupation Tax (state level): approximately 6-8%
• Local lodging/occupancy taxes: 1-5% (varies by municipality)
• Combined tax rates can exceed 10-17% in some areas

Business Registration:

• Illinois Secretary of State business entity registration (if forming LLC or corporation)
• Illinois Department of Revenue tax registration
• Compliance with state transient accommodation laws

Contact Information for Local Authorities

City of Galena

Zoning Administrator: Jonathan Miller
Email: jmiller@cityofgalena.org
Phone: 815-777-1050
Address: 101 Green Street, Galena, IL 61036
Website: www.cityofgalena.org

Hours: Monday-Friday, 8:00 AM - 4:30 PM

Building Department: For building permits and inspections
Zoning Department: For special use permits and zoning compliance

Jo Daviess County Planning & Development

Phone: (815) 591-3810
Email: plan@jodaviesscountyil.gov
Address: 330 North Bench Street, Galena, IL 61036
Website: www.jodaviesscountyil.gov

Hours: Monday-Friday, 8:00 AM - 4:00 PM

Online Payments: Available for permits and licenses at pay.paygov.us/EndUser/PaymentAgency.aspx?ttid=16778

Illinois Department of Revenue

For state tax registration and compliance
Website: www2.illinois.gov/rev

Source Links and Additional Resources

City of Galena Vacation Rentals Information:
www.cityofgalena.org/businesses/vacation-rentals

Jo Daviess County Guest Accommodations:
www.jodaviesscountyil.gov/departments/planning___development/guest_accommodations.php

Galena Municipal Code - Guest Accommodations Licensing:
codelibrary.amlegal.com/codes/galena/latest/galena_il/0-0-0-33312

Galena Zoning Ordinance References:

• Vacation Rental Definitions: Section 154.015
• Commercial Land Use Regulations: Section 154.406(D)(18)
• Accessory Residential Land Use: Section 154.406(H)(9)

Jo Daviess County Fee Schedule:
Available through the Planning & Development Department

Vacation Rental Complaint Form (Galena Police):
form.jotform.com/223204910138143

Key Takeaways for Investors

1. Market Entry is Currently Limited: All vacation rental licenses in Galena are currently allocated with a substantial waiting list.

2. Dual Jurisdiction Compliance: Properties may need to comply with both city and county regulations depending on location.

3. Significant Regulatory Oversight: Both Galena and Jo Daviess County maintain strict safety, occupancy, and operational requirements.

4. Tax Implications: Combined state and local taxes can significantly impact profitability, with total rates potentially exceeding 15%.

5. Historic District Considerations: Properties in Galena's historic districts may face additional preservation requirements.

6. Community Engagement: Local opposition to vacation rentals exists, making compliance and good neighbor practices essential.

For current investors, staying informed about policy changes and maintaining active communication with local authorities is crucial for continued compliance and successful operation in this highly regulated market.