Aurora Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Aurora

Aurora, Illinois allows short-term rentals (STRs) in residential areas, but hosts must navigate a variety of state and local regulations. STRs are defined as rentals of a residential dwelling unit for 31 days or less, including entire homes, apartments, condos, and private or shared rooms rented on platforms like Airbnb and Vrbo5.

To legally operate an STR, the property must be the host's primary residence. Investment properties that are not the owner's main home are prohibited from short-term renting in most residential zones13. Hosts should also check with their homeowners association and landlord, as STRs may be restricted by HOA rules or lease agreements even if allowed by city code13.

Short Term Rental Licensing Requirement in Aurora

All STR operators in Aurora must obtain a general business license from the city18. This involves registering with the city and paying a $43 fee for the initial two-year license, with a $26 renewal fee every two years thereafter317. The business license number must be included in any online STR listings1.

Certain multi-unit buildings have additional licensing mandates. Hosts renting out two or more units in a building with at least four units total are required to get a special license from the health department5. However, renting a private room in one's own residence for up to 30 days is exempt from the extra licensing, though a regular business license is still needed15.

Required Documents for Aurora Short Term Rentals

To register an STR, Aurora hosts must submit a business license application along with some key documents:

• A completed "Landlord-Tenant Lease Addendum" form detailing information about the rental property and owner8
• Proof of primary residence at the STR address, such as a driver's license, voter registration card, or utility bill3
• Background check affidavits for all adult occupants age 18+14
• The total number of occupants, including minors14
• Proof of insurance coverage for the rental activity13

Apartment complexes with over 8 units that assist emergency responders with surveillance systems may provide their own management documentation in lieu of the city's standard forms14. For unleased properties at the time of application that are rented by the inspection date, the city charges an extra 100% license fee for late paperwork14.

Aurora Short Term Rental Taxes

The City of Aurora imposes an 8% lodger's tax on the listing price of STRs rented for less than 30 nights1814. This is in addition to the state's 6.25% hotel operators' occupation tax5.

Airbnb, Vrbo, and some other booking platforms collect and remit the lodger's tax on behalf of hosts114. However, STR operators are ultimately responsible for ensuring the tax is paid, so those using websites that don't withhold taxes must collect and remit them directly to the city13.

The lodger's tax applies to the entire listing price, including cleaning fees, for stays under 30 days14. It's filed monthly or quarterly along with regular sales tax1. Failing to pay could result in fines or property liens1.

Aurora-wide Short Term Rental Rules

Aurora's city code allows STRs in residential areas as a home occupation, but they may be restricted by HOA covenants18. Non-owner occupied STRs are banned in single-family zoning districts5.

Key requirements include:

• STRs are limited to the operator's primary residence15
• Rentals must be in legal dwelling units, not structures like sheds5
• Only one booking at a time is permitted, but it can be for multiple rooms37
• Entire-home STRs are capped at 180 days per year7
• Occupancy is restricted by the number and size of bedrooms5

Hosts must make a good faith effort to quickly resolve any negative neighborhood impacts stemming from their STR activity3. The property has to meet building code and safety standards, including having working smoke and carbon monoxide detectors in each bedroom35.

Does Aurora strictly enforce STR rules?

Aurora proactively enforces its short-term rental regulations through inspections, fines, and potential license revocation for non-compliant properties27. The city can request proof of primary residence from STR operators and issue $1,000 per day penalties to booking platforms that facilitate reservations of unlicensed units37.

Compared to other Illinois municipalities, Aurora takes a moderate approach - allowing STRs with reasonable restrictions to balance tourism needs and community character2. It's more permissive than Chicago which heavily regulates STRs in residential areas but stricter than some smaller towns with little oversight5.

Still, some Aurora hosts operate without fully adhering to the city's rules, based on discussions on real estate investing forums15. While not officially sanctioned, STRs that avoid disturbing neighbors seem to fly under the radar if no complaints arise15.

Is Aurora Airbnb friendly?

Aurora is moderately Airbnb-friendly compared to other cities in Illinois. The city allows short-term rentals in residential zones with some restrictions to balance the interests of residents and tourists2. Hosts must obtain a business license, pay lodging taxes, and follow safety and neighborhood impact rules13.

This approach is more permissive than Chicago, which has stringent limits on non-owner occupied STRs in residential areas5. But Aurora is stricter than some smaller Illinois towns that have minimal regulations5.

Discussions on real estate forums suggest that while Aurora enforces its STR ordinances, some hosts still operate without perfect compliance15. Units that don't generate complaints from neighbors may avoid scrutiny even if not fully licensed15. Overall, Aurora seems open to Airbnb and Vrbo if hosts make a good faith effort to meet the city's standards.

Do hosts operate in Aurora despite the rules?

Based on discussions on real estate investing forums like Bigger Pockets, some Aurora hosts do operate short-term rentals without fully complying with the city's regulations15. While this is not officially permitted, STRs that avoid disturbing neighbors and generating complaints seem to be tolerated in practice even if not perfectly licensed15.

However, Aurora can and does enforce its rules by inspecting properties, revoking permits, and fining platforms that allow bookings of unregistered units27. The city takes a proactive approach and has the authority to request proof of primary residence and other documentation from hosts3.

So while operating under the radar is possible to an extent, it carries risks. The city has the tools to crack down on seriously non-compliant properties. Hosts are better off making a good faith attempt to follow Aurora's STR ordinances.

How to Start a Short Term Rental Business in Aurora

Here's a step-by-step process to legally establish a short-term rental in Aurora135:

• Verify your property is eligible under the zoning code and HOA rules
• Apply for a city business license and lodger's tax permit
• Submit the required documents like lease addendums and background checks
• Post your business license number in any online listings
• Collect and remit the 8% lodger's tax to Aurora
• Follow building safety codes and neighborhood impact standards
• Renew your license every two years and maintain compliance

Who to contact in Aurora about Short Term Rental Regulations and Zoning?

For questions about Aurora's STR requirements, reach out to:

Aurora Finance Department, Tax and Licensing Division
Address: 15151 E. Alameda Parkway, Ste. 5700, Aurora, CO 80012
Phone: 303-739-7800
Website: https://www.auroragov.org/business_services/licenses/

The division manager, Trevor Vaughn, can also provide guidance on navigating the city's STR rules and procedures2.

What do Airbnb hosts in Aurora on Reddit and Bigger Pockets think about local regulations?

On the Bigger Pockets forums, an Aurora host noted the STR market "seems to work rather well" and the numbers made sense for investment properties, but emphasized researching local laws and HOA restrictions15.

Another user asked about STR feasibility for a single-family home near a specific neighborhood. Respondents advised checking the granular zoning and HOA rules for that area, as location makes a big difference15.

A Reddit thread about finding short-term housing in the Chicago suburbs mentioned Aurora as an option. People suggested looking further out from the city center for more affordable STRs that could work for a temporary stay16.

In summary, Aurora permits short-term rentals but has various licensing, tax, and operating regulations that hosts must carefully follow. While not the toughest town on STRs, Aurora does enforce its rules and revoke permits for serious violations. Prospective hosts should thoroughly understand their obligations and seek guidance from city officials before listing on Airbnb or Vrbo.