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

Yes, short-term rentals appear to be allowed in McHenry, IL with minimal restrictions. Based on available information, McHenry has not implemented specific regulations for short-term rentals. The city's code of ordinances does not contain explicit mentions of STRs, placing them in a largely unregulated category. However, investors should note that general zoning, building, and business license requirements still apply to STR operations.

Important Note: The information available is primarily from 2021 and may not reflect current regulations. Investors should verify current requirements with local authorities before proceeding.

How to Start a Short-Term Rental Business in McHenry

1. Property Research and Selection

• Verify Zoning Compliance: Use the city's interactive planning maps and zoning ordinance to confirm your property is suitable for short-term rental use
• Review Building Codes: Ensure your property complies with applicable building codes (International Building Code 2015, International Residential Code 2015, with amendments)
• Assess Neighborhood Compatibility: Consider local property maintenance codes and neighborhood characteristics

2. Business Structure and Registration

• Business License: Contact the City Clerk's office to determine if a business license is required for STR operations
• Business Registration: Complete any required business registration with the city
• Tax Registration: Obtain necessary tax ID numbers for revenue reporting

3. Property Preparation and Safety

• Code Compliance: Ensure compliance with fire codes, electrical codes, and property maintenance standards
• Safety Equipment: Install required smoke detectors, carbon monoxide detectors, and fire extinguishers
• Accessibility: Review Illinois Accessibility Code requirements if applicable

Required Documents, Permits, Licenses, and Guidelines

Building and Safety Requirements

• Building Permits: Required for any structural modifications or significant renovations
• Fire Safety Compliance: International Fire Code 2015 compliance
• Electrical Compliance: National Electric Code 2014 compliance
• Plumbing Compliance: Illinois State Plumbing Code compliance

Potential Business Requirements

• Business License: Contact City Clerk for STR-specific requirements
• Zoning Compliance Letter: Verify zoning allows short-term rental use
• Property Maintenance Registration: Ensure compliance with International Property Maintenance Code 2015

Planning and Development

• Zoning Review: Confirm permitted use under residential or commercial zoning districts
• Parking Assessment: Review off-street parking and loading requirements
• Landscaping Compliance: Meet landscaping and screening requirements if applicable

Disclaimer: Specific permit requirements may vary. Always confirm current requirements with city authorities.

Specific Regulations for Short-Term Rentals

City-Level Regulations (McHenry, IL)

Current Status: No Specific STR Regulations

• No explicit short-term rental ordinances identified in city code
• General zoning ordinances apply
• Standard building and safety codes required
• Business license requirements to be confirmed

County-Level Regulations (McHenry County)

McHenry County Stormwater Management Ordinance

• Adopted by City of McHenry in 2008
• May impact properties with significant land alterations
• Requires compliance for drainage and stormwater management

State-Level Regulations (Illinois)

Illinois Accessibility Code

• Current edition effective April 24, 1997
• Applies to properties open to public accommodation
• May require accessibility upgrades for commercial STR operations

Key Zoning Considerations

Residential Districts:

• STRs may be considered accessory uses or require special approval
• Check specific residential zoning district requirements

Commercial Districts:

• May have different permitted use requirements
• Review commercial zoning district permitted and conditional uses

Contact Information for Local STR Authorities

City of McHenry - Primary Contact

Address: 333 S. Green Street
McHenry, IL

Phone: (815) 363-2100

Community Development Department:

• Building permits and codes
• Zoning compliance
• Planning and development

City Clerk's Office:

• Business licenses
• Business registration

Hours of Operation: Monday through Friday: 8:00 a.m. - 4:30 p.m.
Saturday & Sunday: Closed

Additional Contacts

Planning & Zoning Commission:

• Zoning questions and approvals
• Land use permits

Building Department:

• Building permits and inspections
• Code compliance

Property Maintenance Division:

• Property maintenance codes
• Compliance issues

Source Links

Primary City Resources

1. City of McHenry - Codes and Ordinances cityofmchenry.org/your_government/departments/community_development/codes_and_ordinances1.php

2. McHenry City Code Library codelibrary.amlegal.com/codes/mchenryil/latest/overview

3. McHenry Zoning Ordinance codelibrary.amlegal.com/codes/mchenryil/latest/mchenry_il/0-0-0-24566

4. McHenry County Stormwater Management Ordinance codelibrary.amlegal.com/codes/mchenrycounty/latest/mchenrycounty_il/0-0-0-38559

5. Building Permits and Applications cityofmchenry.org/our_residents/permits,_applications,_forms.php

Market Analysis Resources

6. BuildYourBNB McHenry STR Overview (2021 Data) www.buildyourbnb.com/us-airbnb-and-short-term-rental-regulations/mchenry

Investment Considerations and Recommendations

Market Performance (2021 Data)

• Average Daily Rate: $399
• Occupancy Rate: 29%
• Average Monthly Revenue: $2,761
• Number of STR Listings: 676

Key Investment Factors

1. Minimal Regulatory Barriers: Lack of specific STR regulations reduces startup complexity
2. Established Market: 676 existing listings indicate established STR activity
3. Revenue Potential: $399 ADR suggests strong rate potential
4. Growth Trajectory: Population stable with modest appreciation trends

Due Diligence Recommendations

1. Verify Current Regulations: Confirm no new STR ordinances have been adopted since 2021
2. Neighborhood Analysis: Research local attitudes toward STRs in specific areas
3. Competition Assessment: Analyze local STR performance and saturation levels
4. Infrastructure Requirements: Assess parking, utilities, and maintenance needs

Final Note: While McHenry currently shows minimal STR-specific regulations, the regulatory environment for short-term rentals can change rapidly. Investors should maintain ongoing monitoring of municipal code updates and consider the potential for future regulation when evaluating investment opportunities.