Overview: Are STRs Allowed in Galena, IL?

Short-term rentals (STRs) are allowed in Galena, IL, but subject to strict regulation and permitting requirements. The City of Galena permits vacation rentals only through a capped licensing system, and all currently available licenses have been fulfilled, resulting in a substantial waitlist. Properties outside city limits (within Jo Daviess County) operate under a separate but related licensing framework.

How to Start a Short-Term Rental Business in Galena, IL

1. Determine Your Location: Your regulatory path depends on whether your property is within City of Galena limits or in Jo Daviess County outside the city.
2. City of Galena: Join the official waitlist by emailing the Zoning Administrator at jmiller@cityofgalena.org. Be prepared for a significant waiting period.
3. Jo Daviess County: Proceed directly to the application process for a Guest Accommodations License (see Required Documents section).
4. Property & Business Preparation: Secure appropriate liability insurance, prepare your property to meet all safety standards, and develop a business plan.
5. Application & Inspection: Submit all required applications and documentation. Successfully complete the mandatory safety inspection.
6. Obtain Licenses & Permits: Receive your City Operating License or County Guest Accommodations License.
7. Launch & Maintain: Begin operations while ensuring ongoing compliance with all regulations, tax requirements, and annual renewal deadlines.

Required Documents, Permits, Licenses, and Guidelines

City of Galena (Inside City Limits):

1. Special Use Permit: Approved by the City Council following a public hearing (Zoning Ordinance Reference: §154.406(D)(18) & §154.406(H)(9)).
2. Operating License: Issued after special use permit approval. Note: All licenses are currently issued; you must join the waitlist.
3. Compliance with City Code: Adherence to the Guest Accommodations Licensing section (§112).

Jo Daviess County (Outside City Limits):

1. Zoning Certificate: Required first for single-family homes. Application form available through the County Planning & Development Department.
2. Guest Accommodations License: Application form and a comprehensive application packet (including required documents) must be submitted. License must be renewed annually by December 31st.
3. Required Documentation for County License (including but not limited to):
   • Proof of liability insurance coverage.
   • Well & septic information.
   • Heating inspection report.
   • Detailed floor plans.
   • Completed application form with fee.

Specific Regulations for Short-Term Rentals

City of Galena:

• Licensing Cap: The City Council has limited the number of STR licenses. All available licenses are currently issued, and a waitlist is in place.
• Definition: A Vacation Rental is defined as a building or portion thereof with a dwelling unit(s) available to the public for less than 30 days (§154.015).
• Zoning: STRs are permitted as a principal commercial land use and as an accessory residential land use with a special use permit (§154.406).
• Complaints: The City provides a Vacation Rental Complaint Form for residents to report violations.

Jo Daviess County:

• Scope: The Guest Accommodations Ordinance requires licensing for all transient rental properties with 16 or fewer units (rented for less than 30 consecutive days).
• Inspection Requirements: Mandatory inspections cover:
  • Hard-wired, interconnected smoke detectors in each bedroom and on each level (or approved wireless alternative).
  • Carbon monoxide detectors on each floor.
  • GFCI protection on electrical outlets.
  • Adequate handrails and balusters.
  • Two approved means of egress from each bedroom.
• Occupancy Limits:
  • Homes with 7+ bedrooms: Maximum 16 guests overnight.
  • Homes with fewer than 7 bedrooms: Two people per bedroom, plus an additional two people per building.
• License Transfer: The license is tied to the property and transfers to the new owner upon sale. The County must be notified of ownership changes.

State of Illinois:

• Hotel Operators' Occupation Tax: A new 6% state tax on STRs goes into effect on July 1, 2025. This is in addition to local hotel taxes.

Contact Information

City of Galena (For Waitlist and City Licensing):

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

Jo Daviess County Planning & Development (For County Licensing):

• Phone: (815) 591-3810
• Email: plan@jodaviesscountyil.gov
• Address: 330 North Bench Street, Galena, IL 61036
• Website: jodaviesscountyil.gov/departments/planning___development/guest_accommodations.php

Links to Source Pages

• City of Galena Vacation Rentals Information: https://www.cityofgalena.org/businesses/vacation-rentals
• Jo Daviess County Guest Accommodations Information: https://www.jodaviesscountyil.gov/departments/planning___development/guest_accommodations.php
• City of Galena Zoning Ordinance §154.015 (Definitions): http://codelibrary.amlegal.com/codes/galena/latest/galena_il/0-0-0-36080#JD_154.015
• City of Galena Zoning Ordinance §154.406 (Land Use Regulations): http://codelibrary.amlegal.com/codes/galena/latest/galena_il/0-0-0-36944#JD_154.406
• City of Galena Code of Ordinances §112 (Guest Accommodations Licensing): http://codelibrary.amlegal.com/codes/galena/latest/galena_il/0-0-0-33312
• Jo Daviess County Code Title 4, Chapter 6 (Guest Accommodations Ordinance): https://codelibrary.amlegal.com/codes/jodaviesscoil/latest/jodaviessco_il/0-0-0-1339
• City of Galena Vacation Rental Complaint Form: https://form.jotform.com/223204910138143
• Illinois Department of Revenue (Hotel Tax Information): https://tax.illinois.gov/