Overview

Yes, short-term rentals are allowed in Highland, IL, but only with a Special Use Permit (SUP). The City of Highland, Madison County, Illinois has established a comprehensive regulatory framework for short-term rentals as of July 2021, requiring property owners to obtain city approval before operating. The city permits STRs as a special use to ensure proper oversight, safety compliance, and community compatibility while generating hotel-motel tax revenue.

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

Step-by-Step Process

1. Confirm Zoning Compliance: Verify your property is in a zoning district that allows short-term rentals as a special use
2. Obtain Special Use Permit: Submit SUP application to the City of Highland for your specific property
3. Register as Landlord: Complete landlord registration with the Building & Zoning Department
4. Schedule Initial Inspection: Request rental inspection and pay the required fee
5. Set Up Hotel/Motel Tax: Register with city for hotel/motel tax compliance
6. Annual Compliance: Maintain ongoing compliance with inspection and registration requirements

Key Application Requirements

• Owner-Controlled Operation: You must maintain direct control over the property - you cannot lease to someone who then operates it as an STR
• Property Identification: Clearly identify which living spaces within your principal structure will be used for short-term rental
• Maximum Occupancy: Must not exceed building code limits for overnight occupants
• Parking Documentation: Identify off-street parking locations on your SUP application
• Insurance Information: Provide emergency contact and insurance details to Highland Police Department

Required Documents, Permits, Licenses, and Guidelines

Required Permits and Registrations

Special Use Permit (SUP)

• Required before renting or advertising any short-term rental
• Application through Building & Zoning Department
• Must specify all living areas to be used for STR purposes

Landlord Registration

• Mandatory under Article VI of Highland Municipal Code (Sections 33-195 to 33-201)
• No registration fee required
• Submit Landlord Registration form to Building & Zoning Department

Hotel/Motel Tax Registration

• Required under Article II Hotel and Motel Tax (Sections 70-26 to 70-33)
• All STRs subject to applicable hotel and motel taxes

Required Inspections

Annual Health & Safety Inspection

• Required for all short-term rentals per Article VII Health Safety Inspection (Sections 33-211 to 33-260)
• $25 inspection fee required
• Must pass inspection before new tenant occupancy
• Follow-up inspections may be required for compliance

Supporting Documentation

• Owner and property identification information
• Emergency contact details
• Insurance information for Police Department
• Off-street parking location documentation
• Building code compliance verification
• Covenant and restriction compliance confirmation

Specific Regulations for Highland, IL

Operating Requirements

Minimum Stay Requirements

• No rental or advertisement for rental periods shorter than 20 hours
• Only one group of patrons permitted per 24-hour period

Food and Beverage Restrictions

• No prepared meals may be provided to guests
• Only pre-packaged food and drink items allowed
• Distinct from bed and breakfast establishments

Occupancy Limits

• Maximum overnight occupants cannot exceed building code allowances
• Must identify specific living spaces available for STR use
• Multiple living areas require individual identification and numbering on SUP application

Owner-Control Requirement

• STRs must be owner-controlled at all times
• Property owners cannot lease to third parties who then operate as STRs
• Professional management companies may be contracted, but only for management services (not leasing)
• Owner must maintain ultimate control and responsibility

Review Criteria for Special Use Permits

The Combined Planning and Zoning Board considers four key factors when reviewing SUP applications:

1. Compliance Verification: Confirmation that all subsection (b) requirements are met
2. Cumulative Impact Assessment: Evaluation of negative effects when combined with other STRs in the neighborhood
3. Adjoining Property Protection: Ensuring no substantial adverse impact on neighboring property use, enjoyment, or values
4. Community Health, Welfare, and Safety: Verifying no adverse effects on public health, welfare, or safety

Distinct Uses

• Short-term Rentals: One group of patrons per 24-hour period, no prepared meals, owner-controlled
• Bed and Breakfast: May provide prepared meals
• Hotel/Motel: Only permitted in non-residential zoning districts

Contact Information

Primary Contacts

City of Highland Building & Zoning Department

• Address: 2610 Plaza Drive, P.O. Box 218, Highland, IL 62249-0218
• Phone: (618) 654-7115
• Email: highlandzoning@highlandil.gov

City Hall

• Address: 1115 Broadway, P.O. Box 218, Highland, IL 62249-0218
• Phone: 618-654-9891
• Hours: Monday-Friday 8am-4:30pm

Departmental Contacts

Building & Zoning Department

• Location: 2610 Plaza Drive
• Phone: (618) 654-7115
• Email: highlandzoning@highlandil.gov

Highland Police Department

• Receives emergency contact and insurance information from STR applications

Forms and Applications

Available through the Building & Zoning Department or online through the "Forms & Applications" section:

• Landlord Registration form
• Rental Inspection Request form
• Special Use Permit application

Source Links

• Highland Municipal Code - Short-Term Rentals Ordinance
• City of Highland Rental Program
• Highland Municipal Code - Landlord Registration
• News Coverage - STR Parameters
• Highland Building & Zoning Department

Important Notes for Investors

Compliance Costs: Budget for the $25 annual inspection fee, potential setup costs for hotel/motel tax compliance, and any modifications needed to meet building and safety codes.

Legal Considerations: The owner-control requirement significantly impacts business models that rely on sub-leasing arrangements. Only property owners or those with professional management contracts (not lease arrangements) may operate STRs.

Market Positioning: Highland's 20-hour minimum stay requirement and one-group-per-day restriction limit certain business models but provide clarity for compliant operations.

Neighborhood Impact: The SUP review process considers cumulative impacts, meaning the concentration of STRs in any neighborhood will be a factor in individual permit decisions.