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

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

Short-term rentals, such as those offered through booking platforms like Airbnb and VRBO, have become increasingly popular in Will County, Illinois. However, hosts must navigate a complex web of state and local regulations to operate legally. This article provides an overview of the key rules and requirements for short-term rentals in Will County.

Starting a Short-Term Rental Business in Will County

To start a short-term rental business in Will County, hosts must first ensure their property complies with local zoning laws. The Will County Land Use Department's Current Planning & Zoning Division assists applicants with administrative variances and temporary use permits authorized under the county's Zoning Ordinance.

Hosts may also need to obtain a business license, depending on the specifics of their rental operation. If renting out two or more units in a building with at least four units, a license from the Illinois Department of Public Health is required. However, those renting space in their primary residence for up to 30 consecutive days are exempt from licensing, but must still register with the state.

In addition to licensing, many municipalities in Will County require short-term rental permits. These typically involve providing property details, paying an annual fee, and ensuring compliance with safety standards. For example, the Village of Tinley Park defines a short-term rental as "a dwelling unit that is used as a primary residence by owners or renters, or portion of such a unit, that is rented for less than thirty (30) days".

Hosts must also adhere to the county's building codes and regulations, which are enforced by the Building Division of the Will County Land Use Department. The division reviews permit applications and conducts inspections to ensure compliance with health and safety requirements outlined in the Will County Building Ordinance.

Another key consideration for short-term rental hosts is insurance. Many jurisdictions, such as Chicago, require hosts to maintain comprehensive liability coverage, often with limits of $1 million or more. Hosts should consult with their insurance provider to ensure they have adequate protection for their rental operation.

Finally, hosts must collect and remit various state and local taxes, including the Illinois Hotel Operators' Occupation Tax and any applicable county or municipal lodging taxes. In some areas, like Chicago, additional taxes such as the Illinois Sports Facilities Hotel Tax and the Metropolitan Pier and Exposition Authority Hotel Tax may apply. Proper registration with the Illinois Department of Revenue is essential to avoid penalties for non-compliance.

By carefully researching and complying with all relevant zoning, licensing, permitting, building, insurance, and tax requirements, hosts can legally operate successful short-term rental businesses in Will County. Consulting with local authorities and professional advisors can help navigate this complex regulatory landscape.

Short-Term Rental Licensing Requirement in Will County

To operate a short-term rental in Will County, hosts must navigate a variety of licensing and permitting requirements at both the county and municipal levels. The specific rules can vary based on the property's location and characteristics.

At the county level, the Will County Land Use Department's Current Planning & Zoning Division handles administrative variances and temporary use permits for STRs under the county's Zoning Ordinance. Depending on the scope of the rental operation, hosts may need to obtain a business license.

For hosts renting out two or more units in a building with at least four units, a license from the Illinois Department of Public Health is mandatory. However, those renting space in their primary residence for up to 30 consecutive days are exempt from this state-level licensing, although registration is still required.

Many municipalities within Will County have their own STR permitting processes. For example, the Village of Tinley Park defines an STR as "a dwelling unit that is used as a primary residence by owners or renters, or portion of such a unit, that is rented for less than thirty (30) days". Tinley Park's ordinance limits STRs in multi-family buildings to no more than 25% of total units.

Another example is the Village of Frankfort, which requires a Vacation Rental License with a $200 application fee and a $100 annual renewal fee. The application must include proof of ownership, a site plan, parking details, and other relevant information.

To obtain the necessary licenses and permits, hosts typically need to submit:

• Completed application forms
• Proof of ownership or landlord approval
• Site plans and floor plans
• Parking details
• Fire and safety inspection reports
• Proof of insurance
• Applicable fees

Application fees vary by jurisdiction but often range from $100-$500. The approval process can take several weeks to a few months, depending on the complexity and the municipality's workload.

Failure to secure proper licensing can result in significant fines and penalties. In Tinley Park, operating an unlicensed STR incurs a fine of $350-$750 per day. Will County's general code enforcement provisions allow for fines up to $1000 per day for zoning violations.

To ensure compliance and avoid costly mistakes, prospective STR hosts in Will County should carefully research the specific requirements in their local municipality, consult with the Will County Land Use Department, and consider engaging a knowledgeable attorney to assist in navigating the licensing and permitting process. Proper due diligence upfront can prevent expensive headaches down the road.

Required Documents for Will County Short-Term Rentals

To operate a short-term rental in Will County, hosts must submit various documents to demonstrate compliance with county and municipal regulations. The specific requirements may vary depending on the property's location and characteristics, but generally include the following:

1. Completed Application Forms: Hosts must fill out and submit the appropriate application forms for county-level permits and any required municipal licenses. These forms typically request property details, contact information, and acknowledgment of STR rules and regulations. Forms are available through the Will County Land Use Department's Current Planning & Zoning Division and the relevant municipal offices.
2. Proof of Ownership or Landlord Approval: Applicants must provide evidence of their legal right to operate an STR on the property. This may include a copy of the property deed, a signed lease agreement, or a notarized letter from the landlord granting permission for STR use.
3. Site Plans and Floor Plans: Detailed site plans and floor plans are often required to illustrate the property layout, room designations, and parking arrangements. These plans should be clear, legible, and prepared by a qualified professional if required by local ordinances.
4. Parking Details: Hosts must submit information about available off-street parking spaces to ensure compliance with local parking requirements. This may include photographs, site plans, or narrative descriptions of parking arrangements.
5. Fire and Safety Inspection Reports: Many municipalities require STRs to pass fire and safety inspections before issuing permits. Hosts must arrange for these inspections and submit the resulting reports as part of the application process. Inspection requirements are outlined in local STR ordinances and building codes.
6. Proof of Insurance: STR operators are typically required to maintain liability insurance coverage. Hosts must provide proof of appropriate insurance, such as a certificate of insurance or a policy declaration page, as part of the permit application.
7. Tax Registration Documentation: Hosts must register with the Illinois Department of Revenue and obtain a tax ID number to collect and remit applicable state and local taxes. Proof of tax registration is often required when applying for STR permits.
8. Good Neighbor Policy or House Rules: Some municipalities may require hosts to submit a written good neighbor policy or house rules outlining expectations for guest behavior, noise levels, and parking. These policies aim to mitigate potential negative impacts on surrounding residents.
9. Affidavit of Compliance: In some cases, hosts may need to sign an affidavit affirming that their STR complies with all relevant zoning requirements, building codes, and other regulations. This sworn statement holds the host accountable for maintaining compliance.

By gathering and submitting these required documents, STR hosts in Will County can demonstrate their commitment to operating legally and responsibly. Careful attention to local requirements and close coordination with county and municipal authorities can help ensure a smooth permitting process and ongoing compliance.

Will County Short-Term Rental Taxes

Short-term rental operators in Will County, Illinois must navigate a complex web of state and local taxes. Understanding these tax obligations is crucial for maintaining compliance and optimizing your rental business. This section provides a detailed breakdown of the taxes that apply to short-term rentals in Will County and potential deductions to minimize your tax liability.

State Taxes

At the state level, short-term rental operators in Will County are subject to the following taxes:

1. Illinois Hotel Operators' Occupation Tax: This tax ranges from 5.98% to 6.17% of the listing price, including any cleaning fees, for reservations of 29 nights or shorter. The tax is filed using Form RHM-1, Hotel Operators' Occupation Tax Return, and the filing deadline aligns with that of the Hotel Operators' Occupation Tax.
2. Illinois Sales Tax: The state sales tax rate is 6.25%, which applies to any tangible personal property sold or rented as part of the short-term rental, such as linens, toiletries, or other amenities.

County and Municipal Taxes

In addition to state taxes, Will County and its municipalities may impose their own lodging taxes on short-term rentals. These taxes can vary by location, so it's essential to check with your local tax authority for specific rates and requirements.

Taxable Revenue

In Illinois, anything the host requires the guest to pay to use the accommodation is considered part of the rental fee and subject to lodging taxes. This includes items such as cleaning fees, pet fees, extra person fees, and other mandatory charges. Optional fees for services like laundry or food and beverage purchases are not subject to lodging taxes but may be subject to sales taxes.

Tax Collection and Remittance

Short-term rental operators in Will County are responsible for collecting applicable taxes from guests and remitting them to the appropriate state and local tax authorities. However, some vacation rental marketplaces, such as Airbnb, may collect and remit certain taxes on behalf of hosts. It's crucial to verify which taxes, if any, are being collected by your platform to ensure full compliance.

Potential Deductions and Write-Offs

To minimize your tax liability, consider the following potential deductions related to your short-term rental business in Will County:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Utilities
5. Cleaning and maintenance costs
6. Repairs and replacements
7. Supplies and amenities
8. Advertising and marketing expenses
9. Legal and professional fees
10. Depreciation of the rental property and furnishings

Consult with a tax professional to determine which deductions apply to your specific situation and to ensure proper documentation and reporting.

By understanding the various state, county, and municipal taxes that apply to short-term rentals in Will County, Illinois, and taking advantage of available deductions, you can optimize your rental business while maintaining full tax compliance.

Illinois Wide Short-Term Rental Rules

In addition to the specific regulations implemented by Will County and its municipalities, short-term rental hosts must also comply with state-level rules and requirements. These Illinois-wide regulations provide a baseline framework for the operation of short-term rentals, with local ordinances often building upon these standards.

One of the most significant state-wide regulations is the Illinois Hotel Operators' Occupation Tax Act, which requires hosts to collect and remit state taxes on short-term rental income. This tax ranges from 5.98% to 6.17% of the listing price, including any cleaning fees, for reservations of 29 nights or shorter. Hosts must file Form RHM-1, Hotel Operators' Occupation Tax Return, to report and pay these taxes.

Another key state-level consideration is the Illinois Bed and Breakfast Act, which establishes licensing requirements for certain types of short-term rentals. Under this act, hosts renting out two or more units in a building with at least four units must obtain a license from the Illinois Department of Public Health. However, those renting space in their primary residence for up to 30 consecutive days are exempt from this licensing requirement, although they must still register with the state.

Illinois also has specific safety requirements for short-term rentals, including the installation of smoke alarms and carbon monoxide detectors. Hosts must ensure their properties meet these safety standards to operate legally and protect the well-being of their guests.

In terms of zoning and land use, the state of Illinois grants municipalities the authority to regulate short-term rentals through local ordinances. This means that hosts in Will County must not only comply with state-level rules but also navigate the specific zoning requirements and permitting processes established by their local jurisdiction.

It's important to note that Illinois is considering legislation, such as HB 2919, that would limit the ability of municipalities to regulate short-term rentals. If passed, this bill would require that any local short-term rental ordinance be justified on the grounds of protecting public health, safety, sanitation, traffic control, solid or hazardous waste control, pollution control, or other specified circumstances. Hosts should monitor the progress of this legislation and any other state-level changes that may impact their short-term rental operations.

By understanding and complying with Illinois-wide short-term rental rules, in addition to Will County's specific regulations, hosts can ensure they are operating their businesses legally and responsibly. Staying informed about state and local requirements is essential for the success and sustainability of any short-term rental venture in Will County.

Does Will County Strictly Enforce STR Rules? Is Will County Airbnb Friendly?

Based on discussions among Airbnb hosts on platforms like Bigger Pockets and Reddit, it appears that Will County takes a relatively hands-off approach to enforcing short-term rental regulations compared to other cities in Illinois. While Will County does have some rules in place, such as requiring hosts to obtain permits and pay taxes, many hosts report being able to operate without facing significant scrutiny from local authorities.

On the Bigger Pockets forum, several hosts have described Will County as "Airbnb friendly," noting that the county's regulations are less burdensome than those in Chicago or other nearby cities. One host mentioned that they have been operating multiple short-term rentals in Will County for several years without encountering any major issues with local officials.

Similarly, on Reddit, hosts have discussed the relative ease of running Airbnb properties in Will County compared to other jurisdictions in the state. Some have even suggested that the county's more relaxed approach to enforcement has made it an attractive destination for investors looking to enter the short-term rental market.

However, this does not mean that hosts can operate with impunity in Will County. The county does require hosts to comply with basic regulations, such as obtaining a permit and paying applicable taxes. Failure to do so could still result in fines or other penalties, even if enforcement is less strict than in other cities.

Despite the rules, it is clear that many hosts continue to operate short-term rentals in Will County, taking advantage of the county's growing tourism industry and relatively permissive regulatory environment. While hosts should still make every effort to comply with local regulations, the general consensus among the Airbnb host community seems to be that Will County is a more welcoming and less rigorously regulated market compared to other parts of Illinois.

In summary, while Will County does have some short-term rental regulations on the books, enforcement appears to be less strict than in other nearby cities, making it a relatively Airbnb-friendly destination. Hosts on Bigger Pockets and Reddit have reported being able to operate successfully in the county, although compliance with basic rules around permits and taxes is still necessary to avoid potential penalties.

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

Starting a short-term rental business in Will County requires careful planning and adherence to local regulations. Follow these steps to successfully launch your venture:

Research local regulations: Familiarize yourself with Will County's zoning laws, building codes, and short-term rental ordinances. Contact the Will County Land Use Department's Current Planning & Zoning Division for guidance on permits, licenses, and other requirements specific to your property's location.

Tip: Attend local town hall meetings or join a local host community to stay informed about regulatory changes and best practices.

Obtain necessary permits and licenses: Apply for and secure all required permits and licenses before operating your short-term rental. This may include a business license, a short-term rental permit, and a tax registration certificate.

Advice: Begin the permitting process early, as it can take several weeks or months to complete. Engage with local officials to ensure you're meeting all requirements.

Prepare your property: Ensure your rental property meets all safety standards, building codes, and guest expectations. This may involve upgrades, repairs, and amenity installations.

Tip: Invest in high-quality furnishings, linens, and amenities to create a memorable guest experience and garner positive reviews.

Develop house rules and rental agreements: Create clear, comprehensive house rules and rental agreements that outline guest expectations, property care guidelines, and host policies. Have a legal professional review these documents to ensure enforceability.

Advice: Be transparent about house rules and expectations in your listing description to attract suitable guests and minimize misunderstandings.

Secure appropriate insurance: Obtain adequate liability and property insurance coverage for your short-term rental. Consult with your insurance provider to determine the best policy for your specific situation.

Tip: Consider additional coverage options, such as income protection or guest damage insurance, for added peace of mind.

Create a compelling listing: Craft an attractive, informative listing on popular short-term rental platforms like Airbnb or Vrbo. Use high-quality photos, detailed descriptions, and competitive pricing to stand out from other listings.

Advice: Highlight your property's unique features, local attractions, and amenities to appeal to your target audience.

Establish a cleaning and maintenance routine: Develop a thorough cleaning and maintenance schedule to ensure your property remains in top condition between guest stays. Consider hiring a professional cleaning service to maintain consistent quality.

Tip: Use a detailed cleaning checklist and conduct regular property inspections to identify and address any issues promptly.

Manage bookings and guest communication: Implement a system for managing reservations, guest inquiries, and communication. Respond promptly and professionally to guest questions and concerns.

Advice: Utilize vacation rental software or hire a property management company to streamline operations and provide 24/7 guest support.

Comply with tax obligations: Register with the Illinois Department of Revenue and any applicable local tax authorities. Collect and remit all required taxes, such as the Illinois Hotel Operators' Occupation Tax and local lodging taxes.

Tip: Maintain accurate records of all income and expenses related to your short-term rental business for tax purposes.

Continuously improve and adapt: Monitor guest feedback, market trends, and regulatory changes to identify areas for improvement. Adapt your business strategies as needed to remain competitive and compliant.

Advice: Regularly invest in property upgrades, amenity enhancements, and marketing initiatives to attract new guests and maintain high occupancy rates.

By following these steps and staying informed about local regulations, you can successfully launch and operate a thriving short-term rental business in Will County.

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

When navigating the complex landscape of short-term rental regulations and zoning in Will County, it's essential to know who to contact for guidance and assistance. Here are the key resources and contact information for hosts seeking clarity on local rules and requirements:

Will County Land Use Department: The Will County Land Use Department is the primary authority for zoning, building codes, and land use regulations in the county. Hosts should contact the following divisions for specific inquiries:

Current Planning & Zoning Division: For questions about zoning, permits, and short-term rental ordinances, call (815) 774-3321.

Building Division: For inquiries related to building codes, safety requirements, and inspections, call (815) 727-8634.

Administration & Enforcement Division: To submit a code compliance complaint or report a potential violation, call (815) 774-7890 or email codeenforcement@willcountylanduse.com.

Municipal Zoning Offices: In addition to county-level regulations, hosts must also comply with any short-term rental rules set by their specific municipality. Contact your local zoning office or city hall for guidance on permits, licenses, and other requirements unique to your area.

Illinois Department of Revenue: For questions about state-level taxes, such as the Illinois Hotel Operators' Occupation Tax, hosts can contact the Illinois Department of Revenue at (217) 785-3707 or visit their website at www.tax.illinois.gov.

Short-Term Rental Host Communities: Connecting with other local hosts can be an invaluable resource for navigating regulations and sharing best practices. Consider joining online communities like the Airbnb Hosts Forum (https://community.withairbnb.com/t5/Hosting/ct-p/hosting) or the BiggerPockets Short-Term Rental Forum (https://www.biggerpockets.com/forums/530-short-term-vacation-rental-discussions) to network with experienced hosts and stay informed about regulatory changes.

Local Host Groups: Look for local short-term rental host groups in Will County or the surrounding areas. These groups often host meetups, workshops, and online discussions to support hosts and advocate for fair regulations. Check platforms like Facebook, Meetup, or Eventbrite for local host events and communities.

By proactively engaging with these resources and staying connected to the local host community, short-term rental operators in Will County can ensure they remain compliant with all applicable regulations while optimizing their businesses for success.

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

To gain insight into the experiences and opinions of Airbnb hosts in Will County regarding local regulations, we searched relevant online forums and communities. Here are some notable findings:

Reddit - r/AirBnB: In a thread titled "Short term rental ordinances," a user mentioned that they were an aspiring host looking at various areas, including Will County, for potential rental properties. They expressed concern about ordinances being passed in some areas that limit short-term rentals, require permits, or restrict the geographical locations where they are allowed. The user asked if anyone had been affected by these types of ordinances and how heavily they are enforced.

BiggerPockets Forum: In a post titled "What happens if regulations change in your market?", a user shared their concerns about investing in a short-term rental property only to have the local municipality enact new regulations that could put them out of business. They wondered if local governments typically "grandfather" in established businesses or if hosts simply risk losing their investment. While not specific to Will County, this post highlights the general concerns hosts have about changing regulations.

Reddit - r/airbnb_hosts: A former Airbnb host who operated a 10-unit building in Philadelphia shared their experience of having to shut down due to regulation changes in 2022. They now research STR regulation news around the US and provide insights to current, former, and aspiring hosts. In a weekly update post, they mentioned that the city council of Des Plaines, Illinois (located in Will County) is considering regulations on short-term rentals after an increase in concerns from officials and residents. A proposal from 2017 may be revived that would require a $100 annual rental license and limit rentals to 10 days per year.

While there are limited discussions specifically about Will County's short-term rental regulations on these forums, the general sentiment among hosts is one of concern and uncertainty. Many hosts worry about investing in properties only to have local regulations change, potentially jeopardizing their businesses. They also express frustration with navigating complex and sometimes inconsistent rules across different jurisdictions.

As Will County and its municipalities consider implementing or modifying short-term rental regulations, it is essential for hosts to stay informed, engage with local officials, and advocate for fair and reasonable policies that balance the interests of all stakeholders. Participating in online forums and connecting with other local hosts can provide valuable insights and support in navigating this ever-changing regulatory landscape.

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.