DuPage County, Illinois Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in DuPage County, Illinois?

Short-term rental regulations in DuPage County, Illinois vary by municipality. Some cities have strict ordinances that prevent or limit Airbnb and VRBO rentals, while others are more permissive. It's important to research the specific rules in the town or city where you plan to operate a short-term rental.

Starting a Short-Term Rental Business in DuPage County

Before starting a short-term rental business in DuPage County, be aware that some municipalities have banned or heavily restricted the practice:

• The City of Naperville passed an ordinance in August 2020 making it unlawful to operate short-term rentals within city limits. Fines can be as high as $1,000 per day and up to $2,500 per day for multiple offenses within a 12-month period.
• The City of Wheaton allows short-term home sharing rentals as an accessory residential use, subject to certain conditions and requirements. Hosts must obtain a permit and comply with occupancy limits, parking restrictions, and other rules.
• The Village of Bloomingdale enacted a moratorium on renting residential housing as a commercial enterprise in 2020. Check with the village for the current status of short-term rental regulations.

Other DuPage County cities may have their own ordinances, so it's crucial to contact the local government where you want to operate. Online forums like Bigger Pockets can also provide insights from local real estate investors.

When choosing a location for a short-term rental in DuPage County, consider proximity to commuter train stations and expressways for easy access to downtown Chicago. Also be aware that parts of Naperville are in Will County, which may have different rules than DuPage.

In summary, thoroughly research the short-term rental regulations, permitting requirements, and zoning restrictions in your specific DuPage County municipality before investing in an Airbnb or VRBO property. The rules vary significantly across the county.

Short-Term Rental Licensing Requirement in DuPage County

Based on the information provided on the official DuPage County website, there are no specific licensing requirements for short-term rentals in unincorporated areas of the county. The DuPage County Building & Zoning Department handles building projects and permits for unincorporated areas, but does not mention any rules specific to Airbnb, VRBO, or other short-term rental properties.

However, it's important to note that many municipalities within DuPage County have their own ordinances regulating short-term rentals:

1. The City of Naperville passed an ordinance in August 2020 making it unlawful to operate short-term rentals within city limits. Fines can be as high as $1,000 per day and up to $2,500 per day for multiple offenses within a 12-month period.
2. The City of Wheaton allows short-term home sharing rentals as an accessory residential use, subject to certain conditions and requirements. Hosts must obtain a permit and comply with occupancy limits, parking restrictions, and other rules.
3. The Village of Bloomingdale enacted a moratorium on renting residential housing as a commercial enterprise in 2020.

Therefore, if you plan to operate a short-term rental in an incorporated city or village within DuPage County, you must research the specific licensing requirements, fees, and approval process for that municipality. Contact the local government directly for the most up-to-date information.

Failing to obtain the proper license or permit where required by a DuPage County municipality can result in significant daily fines and penalties. For example, in Naperville, fines can reach $1,000 per day and up to $2,500 per day for repeat violations.

In summary, while DuPage County itself does not appear to require licenses for short-term rentals in unincorporated areas, many of its municipalities have enacted strict regulations, bans, or permit requirements. Thoroughly research the rules for your specific location within the county to ensure compliance and avoid costly penalties.

Required Documents for DuPage County Short-Term Rentals

Based on the information available on official DuPage County websites, there do not appear to be any specific documents required by the county itself for operating a short-term rental in unincorporated areas. The DuPage County Recorder's Office provides various real estate forms and fee schedules, but none are directly related to short-term rental licensing.

However, many incorporated cities and villages within DuPage County have their own ordinances regulating short-term rentals that may require certain documents:

1. In the City of Wheaton, hosts must obtain a permit and comply with occupancy limits, parking restrictions, and other rules to operate a short-term rental legally. Contact the city directly for details on the required application forms and supporting documents.
2. The City of Naperville has banned short-term rentals entirely within city limits as of August 2020. No permits or licenses are available.
3. The Village of Bloomingdale enacted a moratorium on short-term rentals in 2020. Check with the village for any updates to this policy and whether any permits are currently being issued.

Therefore, the specific documents needed to operate a short-term rental legally will depend on the requirements of the municipality where your property is located within DuPage County. It's crucial to research the rules for your specific area and contact the local government for the most current information on required forms, permits, licenses, and fees.

Some common documents that may be required by DuPage County municipalities for short-term rental permits could include:

1. Completed application form
2. Proof of property ownership or landlord approval
3. Floor plan of the rental space
4. Parking plan
5. Proof of insurance
6. Fire and safety inspection certificates
7. Signed affidavit agreeing to comply with occupancy limits, noise ordinances, etc.

However, the exact requirements will vary based on the city or village. Start by contacting your local building department, zoning office, or village hall for guidance on the short-term rental regulations and required documents in your community.

DuPage County Short-Term Rental Taxes

When operating a short-term rental business in DuPage County, Illinois, it's important to be aware of the various taxes that may apply. While there are no specific county-level taxes on short-term rentals, hosts must still comply with state and local tax requirements.

Illinois Hotel Operators' Occupation Tax

The state of Illinois imposes a Hotel Operators' Occupation Tax (HOOT) of 6% on the gross rental receipts from the renting, leasing, or letting of hotel rooms, including short-term rentals like Airbnb and VRBO properties. This tax is collected by the host and remitted to the Illinois Department of Revenue.

Municipal Taxes

Some municipalities within DuPage County may impose additional taxes on short-term rentals. For example, the City of Naperville imposes a 5.5% Hotel/Motel Tax on the gross rental receipts from the renting, leasing, or letting of hotel rooms, including short-term rentals. Check with your specific municipality for any local taxes that may apply.

Sales Tax

In addition to the HOOT and any municipal taxes, short-term rental hosts in DuPage County must also collect and remit the combined state and local sales tax on their rental income. As of 2024, the minimum combined sales tax rate for DuPage County is 6.25%, which includes the Illinois state sales tax rate of 6.25% and the DuPage County sales tax rate of 0%. However, the total rate for your specific address could be higher depending on any additional local taxes.

Possible Write-Offs and Deductions

Short-term rental hosts in DuPage County may be able to claim certain expenses as tax deductions to offset their rental income. Some possible write-offs include:

1. Mortgage interest
2. Property taxes
3. Cleaning and maintenance costs
4. Utilities
5. Insurance
6. Repairs and improvements
7. Depreciation of the rental property
8. Supplies and amenities provided to guests
9. Advertising and marketing expenses

It's important to keep accurate records of all expenses related to your short-term rental business and consult with a tax professional to ensure you are claiming all eligible deductions.

In summary, while there are no specific DuPage County taxes on short-term rentals, hosts must collect and remit the 6% Illinois Hotel Operators' Occupation Tax, any applicable municipal taxes, and the combined state and local sales tax on their rental income. Keeping track of expenses and claiming eligible deductions can help offset the tax burden on your short-term rental business.

Illinois Wide Short-Term Rental Rules

In addition to the specific regulations in DuPage County and its municipalities, short-term rental hosts must also comply with statewide rules in Illinois. These requirements apply to all hosts operating in the state, regardless of their specific location.

Registration and Tax Requirements

All short-term rental hosts in Illinois must register with the Illinois Department of Revenue and obtain a certificate of registration. This applies to any host renting out a room, apartment, house, or other dwelling for periods of less than 30 consecutive days. Hosts must also collect and remit the 6% Illinois Hotel Operators' Occupation Tax on their rental income.

Safety Requirements

Short-term rentals in Illinois must meet basic safety standards, including having working smoke detectors, carbon monoxide detectors, and fire extinguishers. The state also requires hosts to provide guests with emergency contact information and evacuation procedures.

Liability Insurance

While not explicitly required by state law, it's highly recommended that short-term rental hosts in Illinois obtain appropriate liability insurance coverage. Many municipalities, including some in DuPage County, may require proof of insurance as part of their local permitting process.

Zoning and Building Codes

Short-term rentals in Illinois must comply with all applicable zoning regulations and building codes. In some cases, hosts may need to obtain special use permits or zoning variances to operate legally. It's crucial to research the specific zoning rules in your municipality within DuPage County.

Record Keeping

The state of Illinois requires short-term rental hosts to maintain detailed records of their rental transactions, including guest names, dates of stay, and amounts paid. These records must be kept for at least three years and made available to state authorities upon request.

Neighbor Notification

Some Illinois municipalities require short-term rental hosts to notify their neighbors of their intention to operate a rental property. While not a statewide mandate, it's a good practice to maintain positive community relationships and address any concerns proactively.

By understanding and complying with these statewide regulations, in addition to the specific rules in DuPage County and its cities, short-term rental hosts can operate their businesses legally and avoid potential fines or penalties. As always, it's essential to research the most current requirements and consult with local authorities and legal professionals to ensure full compliance.

Does DuPage County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that DuPage County's enforcement of short-term rental regulations varies significantly by municipality. Some cities, like Naperville, have taken a hard stance against Airbnb and VRBO rentals, while others are more permissive.

Overall, DuPage County seems less Airbnb-friendly compared to other parts of Illinois and major cities nationwide. The county's patchwork of local ordinances makes it challenging for hosts to operate legally, as the rules can change drastically from one town to the next.

Despite the regulatory hurdles, some hosts do continue to operate short-term rentals in DuPage County, particularly in areas with laxer enforcement. However, the risk of fines and penalties is substantial, especially in places like Naperville where the city has explicitly banned non-owner occupied rentals.

On the BiggerPockets forums, several local investors have cautioned against buying properties in DuPage County solely for Airbnb use, citing the strict regulations and active enforcement in certain towns. They recommend thoroughly researching the specific rules for each municipality before investing.

Similarly, Reddit discussions highlight the challenges of operating short-term rentals in DuPage County. Some hosts have reported receiving cease and desist letters from their local governments, while others have had to navigate complex permitting processes and zoning restrictions.

In summary, DuPage County is not particularly Airbnb-friendly compared to other markets, with certain municipalities taking a strong stance against short-term rentals. While some hosts do operate under the radar, the risk of enforcement action is significant. Investors should carefully weigh the regulatory landscape before purchasing properties for Airbnb use in DuPage County.

How to Start a Short-Term Rental Business in DuPage County

Starting a short-term rental business in DuPage County requires careful planning and compliance with local regulations. Here are the key steps to get started:

1. Research local zoning laws and ordinances

• Check the specific rules for short-term rentals in your municipality within DuPage County. Some cities, like Naperville, have banned non-owner occupied rentals, while others have permitting requirements and occupancy limits.
• Contact your local building department, zoning office, or village hall for the most current information on short-term rental regulations in your area.

2. Develop a business plan

• Create a detailed plan outlining your target market, pricing strategy, marketing approach, and financial projections.
• Consider your location and ideal guest profile when deciding how to furnish and equip your rental property.

3. Register your business and obtain necessary licenses

• Register your short-term rental business with the Illinois Department of Revenue and obtain a certificate of registration.
• Apply for any required local permits or licenses in your DuPage County municipality. This may involve submitting an application, paying fees, and undergoing inspections.

4. Prepare your property for guests

• Ensure your rental meets all safety requirements, including working smoke detectors, carbon monoxide detectors, and fire extinguishers.
• Provide guests with emergency contact information and evacuation procedures.
• Invest in high-quality furnishings, linens, and amenities to create a welcoming and comfortable space for guests.

5. Establish house rules and rental agreements

• Develop clear house rules covering issues like occupancy limits, noise levels, parking, and pet policies.
• Create a rental agreement that outlines the terms of the stay, payment procedures, and cancellation policies.

6. Implement a pricing and marketing strategy

1. Research comparable short-term rentals in your area to determine competitive nightly rates.
2. List your property on popular platforms like Airbnb and VRBO, using high-quality photos and detailed descriptions to showcase your rental's unique features.
3. Develop a marketing plan to attract your target guests, potentially including social media advertising, email marketing, and partnerships with local businesses.

7. Manage bookings and guest communication

1. Use a reliable system for managing reservations, including blocking off dates for personal use or maintenance.
2. Communicate promptly with guests before, during, and after their stay to ensure a positive experience and gather feedback.
3. Consider hiring a professional property management company if you prefer a more hands-off approach.

8. Comply with tax requirements

1. Collect and remit the 6% Illinois Hotel Operators' Occupation Tax on your rental income.
2. Charge the applicable combined state and local sales tax (minimum 6.25% in DuPage County) on your rentals.
3. Keep accurate records of all rental transactions and consult with a tax professional to ensure compliance.

9. Maintain your property and address neighbor concerns

1. Regularly clean and maintain your rental to keep it in top condition for guests.
2. Address any neighbor complaints or concerns promptly and respectfully.
3. Consider notifying adjacent property owners of your short-term rental business to foster positive community relationships.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in DuPage County. Remember to prioritize guest satisfaction, maintain open communication with local authorities, and adapt to any changes in the regulatory landscape to ensure long-term success.

Who to Contact in DuPage County about Short-Term Rental Regulations and Zoning?

To get the most accurate and up-to-date information about short-term rental regulations and zoning in DuPage County, it's best to contact your local municipality directly. Each city and village within the county may have its own specific rules and requirements.

However, here are some general resources and contact information that may be helpful:

DuPage County Building & Zoning Department

• Phone: 630-407-6700
• Email: building@dupageco.org
• Address: 421 N. County Farm Road, Wheaton, IL 60187
• Website: https://www.dupagecounty.gov/government/departments/stormwater_management/building_and_zoning.php

The Building & Zoning Department can provide information on zoning regulations and permitting requirements for unincorporated areas of DuPage County. They may also be able to direct you to the appropriate contact for your specific municipality.

DuPage County Clerk's Office

• Phone: 630-407-5500
• Address: 421 N. County Farm Road, Wheaton, IL 60187
• Website: https://www.dupagecounty.gov/government/departments/county_clerk/index.php

The County Clerk's office can assist with questions regarding property records, tax bills, and other general inquiries that may be relevant to short-term rental hosts.

Local Municipality Contacts

For the most specific information about short-term rental regulations in your area, contact your city or village directly. Some key municipalities in DuPage County include:

• Naperville: 630-420-6111 (City Clerk's Office)
• Wheaton: 630-260-2000 (City Hall)
• DownersGrove: 630-434-5500 (Village Hall)
• Elmhurst: 630-530-3000 (City Hall)
• Lombard: 630-620-5700 (Village Hall)

Check your municipality's website for the most current contact information and department details.

Online Resources and Communities

In addition to contacting local officials, short-term rental hosts in DuPage County may find valuable information and support through online communities and forums. Some popular options include:

BiggerPockets Chicago Forum: https://www.biggerpockets.com/forums/312-chicago

Connect with local real estate investors and discuss short-term rental strategies and regulations.

Airbnb Community Center: https://community.withairbnb.com/

Access resources, ask questions, and engage with other hosts in the Airbnb community.

VRBO Community Forum: https://community.homeaway.com/

Similar to the Airbnb Community Center, this forum is geared toward VRBO hosts.

DuPage County Subreddit: https://www.reddit.com/r/dupagecounty/

While not specifically focused on short-term rentals, this subreddit can be a useful resource for local news, events, and discussions that may impact hosts.

By reaching out to local officials and engaging with online communities, short-term rental hosts in DuPage County can stay informed about the latest regulations and connect with others navigating the same challenges and opportunities.

What Do Airbnb Hosts in DuPage County on Reddit and Bigger Pockets Think about Local Regulations?

To get a sense of how short-term rental hosts in DuPage County feel about local regulations, I searched through relevant threads and forums on Reddit, BiggerPockets, and other online communities. Here are a few key takeaways from real-life experiences shared by local hosts:

Reddit - r/AirBnB

In a thread titled "Naperville, IL just banned Airbnb - what now?" a host shared their frustration with the city's decision to prohibit short-term rentals in August 2020. Several commenters sympathized and discussed strategies for adapting, such as switching to longer-term rentals or selling the property.

One host mentioned, "I've been operating an Airbnb in Naperville for two years without any issues. This ban came out of nowhere and really blindsided me. I'm considering selling my property and investing elsewhere, as I don't think the city is very hospitable to short-term rental businesses."

BiggerPockets Forum

On the BiggerPockets Chicago forum, a thread called "DuPage County STR Regulations" featured input from several local investors. The general consensus was that the regulatory landscape in DuPage is challenging and varies significantly by municipality.

An experienced host advised, "Before buying a property in DuPage County for Airbnb, make sure you thoroughly research the specific rules for that town or city. Places like Naperville and Wheaton have strict regulations or outright bans, while other areas may be more lenient. Don't assume you can operate freely just because a property is in DuPage."

Another investor shared, "I had to jump through a lot of hoops to get my Airbnb in Downers Grove approved and permitted. It took several months and required a lot of paperwork and inspections. But once I got everything squared away with the village, I've been able to run my rental without any major issues. Just be prepared for a lengthy and sometimes frustrating process."

Airbnb Community Center

In a post titled "Navigating Regulations in DuPage County, IL," a host sought advice on how to ensure compliance with local rules. Several hosts chimed in with their experiences and recommendations.

One host commented, "I've found that the best approach is to be proactive and communicative with your local officials. Reach out to your city or village hall and ask about the specific requirements for short-term rentals in your area. They appreciate when hosts make an effort to follow the rules and will often work with you to address any concerns."

Another mentioned, "It's also a good idea to connect with other local hosts, either in person or through online groups, to share experiences and stay up-to-date on any regulatory changes. The rules in DuPage County can shift quickly, so it's important to stay informed and adapt as needed."

Overall, the sentiment among Airbnb hosts in DuPage County seems to be that navigating local regulations is challenging but not impossible. The key is to research thoroughly, communicate proactively with local officials, and be prepared to adapt to changing rules. While some municipalities are more hostile to short-term rentals, hosts who are willing to put in the effort to ensure compliance can still find success in the DuPage market.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.