This guide consolidates the available public information from the Village of Oak Lawn and Cook County to help STR investors and operators understand what is permitted, how to comply, and where to go for approvals. It focuses only on Oak Lawn (Cook County). Where city-specific rules are not provided, this guide notes the absence and flags what remains unclear.

Overview: Are short-term rentals allowed in Oak Lawn?

Explicit status. The Village of Oak Lawn has not published any city-specific short‑term rental licensing, zoning, or prohibition ordinances in the provided sources. The municipal website emphasizes a comprehensive rental property registration requirement under Village of Oak Lawn Ordinance No. 6‑5B, requiring all property owners to register all rental property in the village. However, no separate short-term rental (STR) license or prohibition is provided. In practice, the absence of a STR-specific ban, together with the village’s general rental registration requirement, implies that STRs may operate provided the operator registers the property and meets all applicable local property standards, and any state and county obligations.

What this means for investors. Before listing, confirm: (1) that an STR use is permitted on the subject property under Oak Lawn’s zoning (you will likely need a zoning determination/letter from the Village), and (2) that the property registration requirements and any relevant safety codes can be satisfied. If the municipality later adopts STR‑specific rules, expect compliance and potential licensing changes.

How to start a short-term rental business in Oak Lawn

Step-by-step process:

1. Confirm zoning and use. Contact the Village of Oak Lawn Community Development/Building Division to confirm that an STR use is permitted on the specific parcel (single‑family, townhome, condo, multi‑unit, etc.). Request a written zoning determination if needed.
2. Register the rental property. Complete the Village of Oak Lawn rental property registration under Ordinance No. 6‑5B. If 2024 forms are unavailable, fill out the posted questionnaire to be notified when updated forms are released.
3. Maintain safety and property standards. Ensure compliance with Oak Lawn property maintenance and related ordinances (e.g., rodent control per Ordinance 21‑20‑91, and applicable building/fire code provisions).
4. Prepare for inspections. The Village may inspect properties as part of registration and code enforcement. Be ready to address life‑safety, sanitation, and occupancy standards.
5. Business licensing and tax posture. Determine whether a village business license applies to your STR operation (no city‑specific STR license rule is shown). Register for Illinois state tax accounts (e.g., sales/use and hotel operators’ tax) and any applicable local taxes. This guide does not identify a specific Oak Lawn “hotel tax,” but it may exist or be adopted later—verify directly.
6. Insurance and host documentation. Secure appropriate property and liability coverage and maintain guest identification and house rules consistent with any state/local requirements that apply to lodging businesses.
7. Ongoing compliance. Monitor local code updates, respond to village inquiries, and keep registration/permit documentation current.

Required documents, permits, licenses, and guidelines

• Rental Property Registration (Village). All rental property in Oak Lawn must be registered under Ordinance No. 6‑5B. The Village’s Property Maintenance Division manages registration and posts forms and updates online. 2024 forms were listed as unavailable; complete the posted questionnaire to receive notice when forms are released.
• Zoning compliance. A zoning determination or written confirmation from the Building/Zoning Division that an STR use is permitted for the property. This is critical where STR‑specific rules are not codified.
• Business license. No city‑specific STR license is shown on the Oak Lawn site. Confirm whether a general business license applies to STR operations.
• Taxes. Register for Illinois sales/use tax and hotel operators’ tax if engaged in lodging. Investigate any village/county hotel or municipal taxes applicable to transient accommodations.
• Safety and property standards. Comply with applicable building, fire, and health codes; note the Village’s property maintenance rules and rodent control ordinance as examples of standards likely to apply to any residential rental activity.
• Guest-related policies. Prepare policies consistent with local codes, including occupancy limits, parking, identification, and safety procedures. Where codes do not specify, adopt conservative, verifiable standards to reduce risk.

Specific regulations affecting STRs

Municipal (Oak Lawn)

• Registration required. Ordinance No. 6‑5B requires owners to register all rental property in the village, occupied or vacant.
• Forms availability. The Village indicates “Rental Forms for 2024 are not currently available” and provides a questionnaire to subscribe for notifications when new forms are released.
• Property standards. The Village references Village Ordinance: Rental Occupancy Permit Program and Ordinance 21‑20‑91 (Rodent Control). These indicate an active property maintenance and code compliance regime.
• No STR‑specific ordinance. The provided sources do not contain a dedicated Oak Lawn STR ordinance. It is unknown whether STRs are treated as “lodging” requiring separate licensing, or as standard rentals subject to the general registration program.

County (Cook County)

• Residential Tenant Landlord Ordinance (RTLO). Cook County’s RTLO primarily governs long‑term residential tenancies. It does not specifically regulate STRs, but it provides important context for residential rental operations (e.g., anti‑lockout provisions, habitability standards, and notice requirements).

State (Illinois)

• No STR‑specific law at state level is cited in the provided content. Operators must confirm and comply with the Illinois Hotel Operators’ Act (sales/use tax on lodging) and any local lodging taxes.

What remains unclear

• Whether an STR use is a permitted principal or accessory use in Oak Lawn’s zoning for typical residential districts.
• Whether the Village treats STRs as “lodging” requiring a business license and/or hotel/motel tax.
• Any Oak Lawn “hotel tax” rate or collection mechanism (if applicable).
• Precise inspection triggers, timelines, and occupancy standards specific to STRs (if any).
• Whether “owner‑occupied” vs “non‑owner‑occupied” STRs are treated differently in local policy or fee structure.

Recommendation. Engage the Village directly to confirm the above items before listing or acquiring properties.

Contact information (Oak Lawn authority in charge of STRs)

• Community Development Department – Property Maintenance Division (Rental Property Registration)
  • Address: 9446 S. Raymond Ave., Oak Lawn, IL 60453
  • Phone: (708) 636‑4400
  • Website: Oak Lawn Community Development – Property Maintenance Division (Rental Property Registration)
    • www.oaklawn-il.gov/departments/community_development/property_maintenance_division/rental_property_registration.php
• Building/Zoning Division (for zoning determinations and permit guidance)
  • Phone: (708) 636‑4400
  • Village of Oak Lawn (general directory):
    • www.oaklawn-il.gov/departments/community_development/building_division/index.php
• Village Directory and Contact Portal:
  • www.oaklawn-il.gov/i_want_to/contact_us/index.php

If 2024 rental forms are still unavailable, complete the Village’s questionnaire on the registration page to receive updates when new forms are posted.

Source links

• Oak Lawn Rental Property Registration – includes Ordinance No. 6‑5B registration requirement and information about updated forms:
  • www.oaklawn-il.gov/departments/community_development/property_maintenance_division/rental_property_registration.php
• Village Ordinance: Rental Occupancy Permit Program (referenced on the rental registration page):
  • codelibrary.amlegal.com/codes/oaklawnil/latest/oaklawn_il/0-0-0-8540
• Oak Lawn Municipal Code (Ordinance 21‑20‑91 Rodent Control referenced in registration materials):
  • codelibrary.amlegal.com/codes/oaklawnil/latest/overview
• Oak Lawn Community Development – Building Division (contact/permit information):
  • www.oaklawn-il.gov/departments/community_development/building_division/index.php
• Oak Lawn Village Directory (contact reference):
  • www.oaklawn-il.gov/i_want_to/contact_us/index.php
• Cook County Residential Tenant Landlord Ordinance (RTLO) – county-level landlord‑tenant framework:
  • www.cookcountyil.gov/rtlo

Practical next steps for investors

• Call the Property Maintenance Division at (708) 636‑4400 and ask specifically about STR operations in Oak Lawn and whether any business license or hotel tax applies.
• Request a written zoning determination that the STR use is permitted on the target property.
• Register the property under Ordinance No. 6‑5B and monitor the Village’s website for updates to rental forms and any future STR‑specific ordinances.
• Register for state tax accounts and determine any local lodging tax obligations before listing.