Overview: Short-Term Rental Status in Vandalia, Illinois

Yes, short-term rentals are allowed in Vandalia, Illinois. According to market data, Vandalia currently has 17 active short-term rental listings, indicating an active and permitted STR market. The city demonstrates a moderate regulatory environment with a regulation score of 70 out of 100 on market analysis platforms, suggesting that while regulations exist, they are not overly restrictive for STR operators.

Market Performance Overview

Based on current market data, Vandalia's STR market shows:

• Annual Revenue: $18,400 (+3% year-over-year)
• Occupancy Rate: 50% (+4% year-over-year)
• Average Daily Rate: $224.70 (+3% year-over-year)
• Total Active Listings: 17 (+3% year-over-year)
• Revenue per Available Rental (RevPAR): $88.10 (+6% year-over-year)

How to Start a Short-Term Rental Business in Vandalia

Initial Steps

1. Property Assessment: Evaluate your property's zoning compliance and suitability for STR use
2. Business Planning: Develop a comprehensive business plan including financial projections
3. Market Research: Study local demand patterns and competitor pricing
4. Legal Compliance: Ensure all local, county, and state requirements are met

Operational Setup

1. Property Preparation: Ensure the property meets safety and habitability standards
2. Insurance: Obtain appropriate liability and property insurance coverage
3. Channel Management: Set up listings on platforms like Airbnb (76% market share) and VRbo (24% market share)
4. Guest Management Systems: Implement booking, communication, and check-in/out procedures

Required Documents, Permits, Licenses, and Guidelines

Municipal Requirements

Based on available inspection data, Vandalia requires:

• Home Inspection: Required prior to closing with fee included in building permit
• Building Permit: Required for STR operations, fees included in permit costs
• Contact for Permit Information: Vandalia Building Department at 618/283-1112

Documentation Requirements

Minimum Stay Requirements: Based on local listings analysis:

• 2-night minimum stay (41.2% of properties)
• 3-night minimum stay (5.9% of properties)
• 30+ night minimum stay (52.9% of properties)

Property Types: All listings are entire home rentals (100%), with no private room or shared room options currently active.

Specific Regulations for Vandalia, Fayette County, and Illinois

City of Vandalia Regulations

• Inspection Requirements: Home inspection required prior to closing; no specific rental property inspection requirements identified
• Building Permits: Required for STR operations with fees included in standard building permit costs
• Contact Information: Vandalia City Hall - 618/283-1112

Fayette County Regulations

• County-Level STR Regulations: No specific county-level STR regulations were identified in the provided sources
• Zoning Considerations: Properties must comply with local zoning ordinances

Illinois State Regulations

Landlord-Tenant Laws

Illinois state law provides the following framework applicable to STR operations:

Security Deposits:

• No legal limit on security deposit amounts
• Interest requirements for deposits held 6+ months in buildings with 25+ units
• Return requirements within 45 days under the Illinois Security Deposit Return Act

Tenant Rights and Responsibilities:

• Written lease agreements recommended
• Rent payment obligations
• Property maintenance responsibilities
• Prohibition against retaliatory eviction

Discrimination Laws:

• Prohibited discrimination based on race, color, religion, national origin, ancestry, sex, marital status, or disability
• Fair Housing Act protections for families with children

Eviction Process:

• Written notice requirements (5 days for nonpayment, 10 days for lease violations)
• Court proceedings required for evictions
• Tenant rights to legal representation, jury trial, and appeal

Inspection and Compliance Requirements

Municipal Inspection Schedule

Vandalia Specific Requirements:

• Single-Family Home Inspection: Required prior to closing
• Rental Property Inspection: No specific rental inspection requirements identified
• Fees: Home inspection fee included with building permit

Annual Requirements

• Property tax compliance
• Business license renewal (if required)
• Insurance policy renewals
• Platform compliance updates

Contact Information for Local Authority

Primary Contact

Vandalia City Hall

• Phone: 618/283-1112
• Address: [Contact city hall for specific address]
• Website: [Contact city hall for website information]

Recommended Initial Contacts

1. Building Department: For permit requirements and inspection scheduling
2. City Clerk: For business license information
3. Planning/Zoning Department: For zoning compliance verification

State-Level Contacts

Illinois Department of Human Rights:

• Chicago: (312) 814-6200, TDD: (312) 263-1579
• Springfield: (217) 785-5100, TDD: (217) 785-5125
• Housing Complaints: 1-800-662-3942

Illinois Attorney General:

• Chicago: 115 S. LaSalle Street, Chicago, IL 60603, (312) 814-3000
• Springfield: 500 S. Second Street, Springfield, IL 62706, (217) 782-1090

Links to Source Pages

1. Illinois Attorney General Landlord-Tenant Rights: illinoisattorneygeneral.gov/Page-Attachments/LandlordAndTenantRightsLaws.pdf

2. AirDNA Market Data for Vandalia: www.airdna.co/vacation-rental-data/app/us/illinois/vandalia/overview

3. Illinois REALTORS Municipal Inspection Requirements: www.illinoisrealtors.org/wp-content/uploads/2024/05/Final_Inspections_Handout_2024.pdf

4. VRBO Vandalia Listings Page: www.vrbo.com/en-ca/vacation-rentals/united-states/illinois/fayette-county/vandalia-il-vla-vandalia-municipal

Investment Considerations and Recommendations

Market Opportunities

• Growing market with 8% increase in active listings over the past year
• Strong occupancy rates (50%) with year-over-year growth
• Diverse property size offerings (1-5+ bedrooms available)

Risk Factors

• Regulatory environment may evolve (70 regulation score indicates existing controls)
• Competition from established operators (76% Airbnb market dominance)
• Seasonal variations in demand (46% seasonality score)

Best Practices for Vandalia STR Investors

1. Compliance First: Establish all required permits and inspections before listing
2. Insurance Protection: Maintain comprehensive liability and property coverage
3. Guest Experience: Focus on quality amenities (currently 100% offer parking, A/C, heating, and WiFi)
4. Pricing Strategy: Consider local market rates averaging $224.70 ADR
5. Legal Framework: Maintain proper lease agreements and understand tenant rights under Illinois law

Disclaimer: This guide is based on available public information as of the provided sources. Regulations and requirements may change. Investors should verify current requirements directly with Vandalia city officials at 618/283-1112 before proceeding with STR operations.