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

Short-term rentals are allowed in Galesburg, Illinois, but they must comply with existing rental licensing requirements and state-level regulations. The City of Galesburg operates under a rental licensing program that applies to all rental properties, including those intended for short-term rental use. While there are no specific short-term rental ordinances identified in the city code, investors must obtain standard rental licenses and comply with state regulations governing short-term rentals.

How to Start a Short-Term Rental Business in Galesburg

Step 1: Property Acquisition and Zoning Verification

Before acquiring a property for short-term rental use, verify that the property is located in an appropriate zoning district. Properties must comply with local zoning requirements, and short-term rentals must maintain the residential character of the neighborhood.

Step 2: Obtain Rental License

All rental properties in Galesburg require an annual rental license from the City Clerk's Office. This license must be secured before leasing or renting the property to any tenant, including short-term guests.

Step 3: Complete Required Inspections

All new rental units must undergo a City inspection before tenant occupancy. Short-term rentals fall under this requirement and must pass inspection to obtain occupancy approval.

Step 4: Register for State Tax Obligations

Short-term rental operators must register with the Illinois Department of Revenue to collect and remit state lodging taxes.

Step 5: Maintain Ongoing Compliance

Ongoing compliance includes annual license renewals, property maintenance standards, and adherence to state tax filing requirements.

Required Documents, Permits, Licenses, and Guidelines

City-Level Requirements

Rental License (Required)

• Annual Fee: $20 per rental unit
• Application Period: May 1st - May 31st for the following year
• Late Fee: $10 per unit if applied after May 31st
• Fee Waiver: Available for units that are fully sprinklered and have hard-wired detectors
• Prerequisites: No outstanding city fines or fees

Rental Inspection (Required)

• All new rentals must be City inspected before occupancy
• Three inspection categories exist: Self-Inspection, City Inspection, and City Inspection - Noncompliant
• 15-business day notification period for inspections
• Follow-up inspection after compliance timeline

Required Application Information

• Property owner details
• Property address and description
• Rental unit count
• Contact information for property management (if applicable)

State-Level Requirements

Illinois Department of Public Health License (Conditional)

• Required if renting 2+ units in buildings with 4+ units
• Includes formal application, fees, inspections, and periodic renewals

Illinois Department of Revenue Registration (Required)

• Required for tax collection and remittance
• Online registration available
• Provides taxpayer ID and filing instructions

Specific Regulations: City, County, and State Level

City of Galesburg Regulations

Rental Licensing Requirements

• Annual license required for each rental unit
• License must be renewed yearly between May 1-31
• Properties cannot have outstanding city fines or fees
• Units with full sprinkler systems and hard-wired detectors qualify for fee waiver

Inspection Requirements

• Mandatory pre-occupancy inspection for all new rentals
• Complaint-driven inspections available for existing units
• Inspections cover property maintenance and code compliance
• Notice periods and compliance timelines provided in inspection reports

Property Maintenance Standards Properties must comply with city property maintenance codes including:

• Grass and weed height limitations (maximum 12 inches)
• Proper trash containment and disposal
• Elimination of inoperable vehicles on property
• Safe structural conditions (no broken windows/doors)
• Appropriate outdoor storage practices

Nuisance Enforcement

• Complaint-based enforcement system
• Multiple reporting methods available
• Violation notices include municipal code sections
• Potential fines, fees, and court action for non-compliance

Knox County Regulations

No specific short-term rental regulations identified at the county level. County regulations would primarily address property taxation and zoning enforcement.

Illinois State Regulations

Short-Term Rental Definition

• Any rental of residential dwelling unit for 31 days or less
• Includes entire home rentals, private/shared room rentals, and accessory dwelling units

Licensing Requirements

• Illinois Department of Public Health license required for 2+ units in buildings with 4+ units
• Registration required for smaller operations renting up to 30 consecutive days

Tax Obligations

• Illinois Hotel Operators' Occupation Tax: 5.98-6.17% of listing price including cleaning fees
• Additional Chicago-area taxes for properties in those jurisdictions
• Local municipal hotel taxes may apply
• Foreign diplomats exempt from Hotel Operators' Occupation Tax

Safety and Inspection Requirements

• State licensing inspections by Department of Public Health
• Local safety inspections for permit acquisition
• Regular fire safety inspections per local regulations
• Post-renovation inspections to ensure code compliance

Filing Requirements

• Monthly filings due last day of following month
• Annual filings due by January 31
• Zero-dollar returns required even if no rental activity occurred

Contact Information for Local Authority

City of Galesburg - Community Development Department

Property Compliance Division

• Phone: (309) 345-3634
• Contact Person: Eric Heiden, Code Compliance Supervisor
• Email: Contact via Community Development email page (select Eric Heiden)
• Physical Address: City Hall, 55 W. Tompkins Street, Galesburg, IL 61402
• Office Location: Second floor of City Hall
• Office Hours: Monday - Friday, 8:00 a.m. - 5:00 p.m.

City of Galesburg - City Clerk's Office

Rental Licensing

• Phone: (309) 343-4181
• Physical Address: City Hall, 55 W. Tompkins Street, Galesburg, IL 61402
• Office Hours: Monday - Friday, 8:00 a.m. - 5:00 p.m.

Online Resources

• Public Service Request Portal: galesburgil.portal.iworq.net/portalhome/galesburgil
• City Website: www.ci.galesburg.il.us
• Municipal Code: codelibrary.amlegal.com/codes/galesburg/latest/overview

Illinois State Contacts

• Illinois Department of Revenue: www2.illinois.gov/rev/Pages/default.aspx
• Illinois Department of Public Health: Contact for licensing inquiries for larger properties

Source Links

1. City of Galesburg - Rental, Nuisance & Housing Inspections: www.ci.galesburg.il.us/government/community_development/rental,_nuisance___housing_inspections/index.php

2. Illinois Short-Term Rental Regulations (Hostaway Blog): www.hostaway.com/blog/airbnb-rules-in-illinois/

Note: The third source (Facebook post) contained a scam alert and was not relevant to STR regulations.

Investment Considerations

Advantages

• Clear rental licensing process with defined fees
• Reasonable inspection requirements
• No specific STR restrictions beyond standard rental requirements
• State-level regulatory framework provides consistency

Compliance Requirements

• Annual license renewal with specific timing constraints
• Property maintenance standards enforcement
• State tax registration and filing obligations
• Potential inspection requirements based on property type and size

Key Success Factors

• Timely license renewal (May 1-31 application window)
• Maintain property to city maintenance standards
• Register with state tax authorities before operations
• Monitor for any future city-specific STR regulations
• Consider property insurance for short-term rental operations

This guide provides the foundational information needed to launch a compliant short-term rental business in Galesburg, Illinois, while meeting all applicable city and state requirements.