Short-Term Rental Investment Guide: Schaumburg, Illinois

Executive Summary

Yes, short-term rentals are explicitly allowed in Schaumburg, IL under specific regulations and licensing requirements. The Village has established a comprehensive framework for STR operations, requiring annual licensing, inspections, and compliance with both municipal and county regulations.

1. Overview: STR Allowance in Schaumburg

Short-term rentals are permitted in Schaumburg under Village Code Title 11, Chapter 123.03. The village has implemented a structured licensing system with specific requirements and restrictions. As of December 2024, Ordinance 24-088 has updated regulations, making Schaumburg's framework one of the more detailed municipal approaches to STR regulation in Illinois.

Key Point: STRs are allowed but heavily regulated with specific operational criteria, distance requirements, and ownership restrictions.

2. Starting Your STR Business

Step-by-Step Process

Phase 1: Pre-Application Preparation

1. Complete Crime Free Housing Seminar (Required first step)

   • Contact Schaumburg Police Department: (847) 348-7320
   • Take screenshot of completion page
   • This is mandatory before any rental license application

2. Property Assessment

   • Verify property compliance with 750-foot distance requirement from other STRs
   • Confirm maximum occupancy limits for your location
   • Assess if property can meet annual inspection standards

Phase 2: Application Process 3. Submit Short-Term Rental Application

• Use online application: Schaumburg IL OpenGov Portal
• Upload Crime Free Housing Seminar completion screenshot
• Provide all required documentation (see Section 3)

4. Payment Processing
   • Annual license fee: $300
   • Payment increases to $450 if past due (effective January 1 following due date)
   • Pro-rated fee: $150 if purchased after July 1
   • No phone payments accepted
   • Payment options: Mail to Temporary Village Hall, drop off, or pay online through WebPay

Phase 3: Post-Approval Operations 5. Annual Inspections

• Schedule with Community Development Department: (847) 923-4437
• Prepare property to meet all safety and code requirements
• Maintain compliance documentation

6. Ongoing Compliance
   • Collect and remit hotel tax to Village
   • Renew license annually (renewal notices sent in November)
   • Maintain valid license status continuously

3. Required Documents, Permits, and Guidelines

Core Requirements

Licensing Documents:

• Short-Term Rental License Application (Online via OpenGov)
• Crime Free Housing Seminar Completion Certificate/Screenshot
• Property ownership verification
• Valid ID and contact information

Financial Requirements:

• $300 annual license fee
• Hotel and Motel Tax registration and monthly remittance
• Property insurance (recommended but not explicitly required)

Operational Documentation:

• Maximum occupancy documentation
• Emergency contact information
• Local contact person information (if owner not local)
• Guest registration and management protocols

Forms and Applications

• Short-Term Rental Application
• Crime Free Multi-Housing Training Certification
• Hotel Tax Packet
• Rental License Information Change Form

4. Specific Regulations

Municipal Regulations (Schaumburg Village Code)

Operational Restrictions:

• Minimum Rental Period: No rentals shorter than 20 hours
• Food Service: Only pre-packaged food and drink items allowed for guests
• Occupancy Limits: Total occupancy cannot exceed maximum allowed for location
• Corporate Ownership: Prohibited (except trusts/estates with natural person beneficiaries)

Spatial Requirements:

• Distance Rule: Must be located at least 750 feet from another STR property line
• Single Operation: Only one STR allowed per location during any specific time period within the one-year license period

Financial Obligations:

• Hotel Tax: Must collect and remit to Village (rates established in Village Code)
• Annual License Fee: $300 (due by December 31, increases to $450 if past due)

Inspection and Compliance:

• Annual Inspections: Required for all STR properties
• Code Enforcement: Violations may result in citation, suspension, or revocation
• License Renewal: Required annually with November renewal notices

County Regulations (Cook County)

Just Housing Amendment (2019):

• Governs tenant screening processes
• Restricts use of criminal background checks
• Requires compliance with fair housing standards

Residential Tenant Landlord Ordinance (RTLO) 2021:

• Comprehensive tenant protection regulations
• Specific lease requirements and disclosures
• Security deposit regulations
• Rent increase limitations and notice requirements

State Regulations (Illinois)

• Illinois Human Rights Act compliance
• Smoke detector and carbon monoxide requirements
• Local health department regulations
• State tax collection and remittance requirements

5. Legal Status and Grandfathering

Legal Nonconforming Status: Properties lawfully operating as STRs as of December 10, 2024, retain legal nonconforming status as long as they maintain valid licenses. However:

• Status is immediately forfeited upon any transfer of ownership
• License revocation or non-renewal eliminates grandfathering protection
• Properties losing grandfathering cannot operate as STRs under current regulations

6. Contact Information

Primary Contacts

Code Enforcement Division (STR Specific):

• Phone: (847) 923-3700
• Primary contact for STR license questions and compliance

Finance Department (Licensing):

• Phone: (847) 895-4500
• License payment and renewal inquiries

Community Development Department (Inspections):

• Phone: (847) 923-4437
• Single family rental home inspection scheduling

Schaumburg Police Department (Crime Free Housing):

• Phone: (847) 348-7320
• Crime Free Housing Seminar scheduling

Village Administration

Temporary Village Hall:

• Address: 1000 E. Woodfield Rd., Schaumburg, IL 60173
• Phone: (847) 895-4500
• Dial 311 for non-emergency requests

Online Resources:

• Village Website: www.villageofschaumburg.com
• WebPay Portal: Available for online license payments
• OpenGov Portal: https://schaumburgil.portal.opengov.com

Email Contacts

• Rental License Questions: RentalLicense@schaumburg.com
• General Village Inquiries: Contact through village website

7. Source Documentation

• Schaumburg Village Code - Rental License Information
• Ordinance 24-088 - STR Amendments
• Municode Ordinance 24-088
• Short-Term Rental Application Portal
• Hotel Tax Requirements
• Crime Free Housing Training

Important Considerations for Investors

Market Dynamics:

• Schaumburg's regulations are among the more restrictive in the Chicago area
• The 750-foot distance requirement significantly limits supply
• Annual inspection requirements add operational complexity

Compliance Costs:

• Annual licensing: $300
• Crime Free Housing Seminar: Additional fees
• Annual inspections: Potential repair and compliance costs
• Legal nonconforming properties may command premium valuations but face ownership transfer restrictions

Risk Factors:

• Violations can result in immediate license suspension or revocation
• Corporate ownership prohibition limits institutional investment
• Transfer of ownership eliminates grandfathering protection

This framework provides a comprehensive foundation for STR investment in Schaumburg, requiring careful attention to both municipal and county compliance requirements. Success depends on thorough preparation, ongoing compliance management, and understanding the unique regulatory environment.