Overview: STR Status in Savanna, IL

Short-term rentals are explicitly allowed in Savanna, Illinois. The city does not prohibit short-term rental operations and has established a framework for their taxation and regulation. However, Savanna operates under a relatively light regulatory environment with few city-specific restrictions beyond tax collection and general zoning compliance.

Key Point: While the city permits STRs, hosts must comply with state tax requirements and general zoning laws. No special city permits or licenses are specifically mentioned for short-term rentals, though general rental licensing may apply.

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

Step 1: Zoning and Property Compliance

• Verify Zoning: Ensure your property is zoned appropriately for short-term rental use. Savanna applies general zoning laws to STRs rather than specific STR ordinances.
• Property Standards: Comply with general rental property standards, including basic safety requirements.

Step 2: Business Setup and Tax Registration

• State Tax Registration: Register with Illinois state authorities to collect and remit the Hotel Operators' Occupation Tax.
• Local Tax Registration: Register with the City of Savanna for local Hotel/Motel Tax compliance (5% rate).

Step 3: Insurance and Safety Compliance

• Insurance: Secure appropriate short-term rental insurance coverage.
• Safety Equipment: Install required safety equipment including smoke detectors and carbon monoxide detectors.

Step 4: Property Preparation

• Amenities: Ensure essential amenities are in place (heating, air conditioning, hot water, smoke alarm).
• Market Positioning: Consider amenities popular in the Savanna market (outdoor fire pits, BBQ grills, proximity to Mississippi River, Mississippi Palisades State Park, or Great River Bike Trail).

Step 5: Launch Strategy

• Platform Registration: List on major platforms (Airbnb, VRBO, etc.).
• Pricing Strategy: Implement dynamic pricing based on seasonality (peak season June-August, low season January-February).
• Local Market Approach: Target domestic travelers (98.6% of guests) primarily from Chicago area.

Required Documents, Permits, Licenses, and Guidelines

Tax Registration Documents

• Illinois Hotel Operators' Occupation Tax Registration
• Savanna Hotel/Motel Tax Registration
• Monthly tax return forms for both state and local taxes

Safety and Compliance Documentation

• Smoke detector installation verification
• Carbon monoxide detector installation verification
• Property safety inspection records (if required by general rental codes)

Business Licensing

• Potential General Business License: Check with city for any general business licensing requirements
• Zoning Compliance Certificate: Verify property zoning allows STR use

Insurance Requirements

• Short-term rental insurance policy (recommended but not specifically mandated)
• Liability coverage documentation

Guest Documentation

• House rules and regulations
• Emergency contact information
• Local amenity and attraction guides

Specific Regulations for Short-Term Rentals

City of Savanna Regulations

Taxation (Primary Local Requirement):

• Hotel/Motel Tax: 5% tax on all short-term rentals
• Monthly Reporting Required: Must remit tax returns monthly to city
• Exemption: "Permanent residents" (30+ consecutive days) are exempt
• Scope: Applies to all rooms rented within city limits

Zoning Compliance:

• Must comply with existing zoning designations
• No specific STR zoning categories mentioned
• General rental property standards apply

No City-Specific STR Ordinances:

• No caps on rental nights
• No registration requirements specifically for STRs
• No owner-occupancy requirements
• No neighborhood notification requirements

Carroll County Regulations

• No specific county-level STR regulations identified
• County zoning laws may apply to property use

Illinois State Regulations

Hotel Operators' Occupation Tax (35 ILCS 145/):

• State tax collection and remittance required
• Definition of "permanent resident" (30+ consecutive days)
• Monthly reporting to state required
• Separate from local Savanna tax obligations

General Safety Requirements:

• Smoke detector installation required
• Carbon monoxide detector installation required
• Standard rental property safety standards apply

Contact Information for Local Authority

City of Savanna - Primary Contact

City Hall

• Website: savanna-il.us/
• Building & Zoning Department: Available through City Hall for zoning compliance questions
• Municipal Office: Contact for general business licensing and tax registration

Key Municipal Services:

• Submit Requests/Concerns: savanna2.portal.iworq.net/portalhome/savanna2
• City Codes & Search: codelibrary.amlegal.com/codes/savannail/latest/overview
• Permits & Applications: Available through Building & Zoning department

Illinois State Authorities

Illinois Department of Revenue

• State Tax Registration: For Hotel Operators' Occupation Tax compliance
• Website: www.revenue.state.il.us

Recommended Initial Contacts

1. City Hall - For local tax registration and zoning verification
2. Building & Zoning Department - For property compliance questions
3. Illinois Department of Revenue - For state tax registration

Source Links and References

Primary Sources

1. City of Savanna - Hotel/Motel Tax Information

   • savanna-il.us/city_of_savanna/hotel_motel_tax.php
   • Primary source for local tax requirements and regulations

2. Illinois State Statute - Hotel Operators' Occupation Tax Act

   • www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=589&ChapterID=8
   • State legal framework for tax requirements

3. City of Savanna - Code Library

   • codelibrary.amlegal.com/codes/savannail/latest/overview
   • Comprehensive municipal code reference

Market Analysis Sources

4. AirROI Market Analysis

   • www.airroi.com/report/world/united-states/illinois/savanna
   • Market performance data and regulatory environment assessment

5. Summer.com STR Management Guide

   • www.gosummer.com/vacation-rental-management/savanna-illinois
   • Market overview and regulatory compliance guidance

Additional Resources

6. Proper Insurance - State Regulations Overview

   • www.proper.insure/regulations/
   • General regulatory framework reference

7. City of Savanna - Request Portal

   • savanna2.portal.iworq.net/portalhome/savanna2
   • Municipal service requests and inquiries

Important Notes for Investors

Regulatory Environment: Savanna operates with a low-regulation approach to STRs, providing operational flexibility for investors.

Tax Considerations: Be prepared to manage both state and local tax obligations with monthly reporting requirements.

Market Opportunity: With only 34 active listings and strong growth trends (13.1% YoY), there appears to be room for market expansion.

Due Diligence Required: While current regulations are minimal, always verify current requirements with city authorities before investing, as regulations can change.