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

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

Kane County, Illinois has specific regulations governing short-term rentals like those listed on Airbnb and VRBO. These rules are designed to balance the rights of property owners with the interests of the surrounding community.

Starting a Short-Term Rental Business in Kane County

To legally operate a short-term rental in Kane County, there are several key requirements:

Zoning Compliance: Check that STRs are allowed in your property's zoning district. Regulations can vary based on the specific zone. Contact the Kane County Development and Community Services Department for guidance.

Obtain a License: Apply for a Kane County business license for each STR property. This involves submitting a Building Permit Application and paying the associated permit fee.

Health Department Rules: Ensure your STR complies with all local Health Department regulations, such as occupancy limits, safety requirements, etc.

Municipality-Specific Rules: If your property is located in an incorporated municipality within Kane County (e.g. Batavia, Elburn), check with your local city/village government for additional STR ordinances. For example:

The City of Batavia has held discussions on regulating STRs booked through sites like Airbnb.

In June 2023, the Village of Elburn approved allowing STRs in residential neighborhoods, amending an ordinance originally passed in November 2022.

Failure to comply with applicable STR regulations can result in fines and legal penalties. Kane County has stated it will continue investigating properties illegally operating as STRs without proper licensing and zoning approval.

By carefully reviewing the requirements, obtaining necessary permits and licenses, and operating your STR in accordance with county and municipal rules, you can legally run a short-term rental business in Kane County. Consult with local officials and real estate groups for the most current and comprehensive regulatory information.

Short-Term Rental Licensing Requirements in Kane County

To legally operate a short-term rental in Kane County, Utah, property owners must obtain a Kane County business license for each STR property. The licensing process involves several key steps:

Zoning Compliance: Verify that your property is located in a zone that allows STRs. Zoning regulations can vary, so contact the Kane County Land Use Authority office for guidance.

Building Permit Application: Submit a completed Building Permit Application to the Kane County Building Department. This application must include:

• Property owner information
• Physical address of the STR property
• Approval signature from the Southwest Utah Public Health Department
• Approval signature from the Kane County Building Department

Health Department Approval: Obtain approval from the Southwest Utah Public Health Department to ensure your STR meets all health and safety requirements.

Pay Licensing Fee: Pay the required Kane County business licensing fee. As of 2023, the fee for an STR business license is $150 per year.

Submit Documentation: Provide all necessary documentation to the Kane County Building Department, including:

1. Completed Building Permit Application
2. Health Department approval
3. Proof of valid property insurance
4. Parking plan (if required)

Any additional forms required by the specific property zone

Once all requirements are met and the application is approved, Kane County will issue your STR business license. The entire process typically takes several weeks to a few months, depending on application volume and how quickly requirements are satisfied.

Penalties for Non-Compliance

Operating an STR without a valid Kane County business license is illegal and can result in significant penalties:

1. Fines of up to $200 per day
2. Misdemeanor charges punishable by up to 90 days in jail under Utah state law

Kane County has stated it will continue investigating properties illegally operating as STRs without proper licensing and zoning approval. To avoid legal issues, always ensure your STR has a current business license and complies with all county regulations before accepting guests.

For the most current licensing information and requirements, contact the Kane County Building Department at (435) 644-4985 or visit the official Kane County STR website.

Required Documents for Kane County Short-Term Rentals

To legally operate a short-term rental (STR) in Kane County, Utah, property owners must obtain and submit the following required documents:

1. Kane County Business License Application: This is the primary application form for obtaining an STR business license. It includes property owner information, the physical address of the STR, and signature lines for Health Department and Building Department approval. Submit the completed application to the Kane County Building Department.
2. Southwest Utah Public Health Department Approval: STRs must meet all health and safety requirements set by the Southwest Utah Public Health Department. Obtain their signed approval on the Business License Application form.
3. Kane County Building Department Approval: The Building Department must also sign off on the Business License Application, confirming the STR property meets all applicable zoning and building codes.
4. Proof of Valid Property Insurance: Provide documentation showing your STR has current, valid property insurance coverage. This helps protect both the property owner and guests.
5. Parking Plan (if required): Depending on the property's location and zoning, a parking plan may be required to ensure adequate off-street parking for STR guests. Check with the Kane County Land Use Authority office for specific requirements.
6. Additional Zoning-Specific Forms: Some zones within Kane County may have additional requirements or forms that need to be submitted. Contact the Kane County Land Use Authority office at (435) 644-4966 or planning@kane.utah.gov to determine if any extra documentation is needed for your STR's specific zoning district.

All required documents must be submitted to the Kane County Building Department as part of the STR business licensing process. The department will review the application and issue the license once all requirements are satisfied and the annual $150 licensing fee is paid.

Failing to obtain and maintain a current Kane County business license for an STR can result in significant penalties, including fines of up to $200 per day and potential misdemeanor charges. Ensure you have all necessary approvals and documentation before beginning to operate your Kane County STR.

Kane County Short-Term Rental Taxes

When operating a short-term rental in Kane County, Utah, property owners are responsible for collecting and remitting several types of taxes:

1. Utah State Sales Tax: STRs in Kane County must collect and remit the statewide sales tax rate of 4.85% on all rental transactions. This tax is administered by the Utah State Tax Commission.
2. Kane County Transient Room Tax: Kane County imposes a 4.25% transient room tax on all short-term lodging rentals, including STRs. This tax is in addition to the state sales tax and must be remitted to the Kane County Treasurer's Office.
3. Municipal Transient Room Taxes: If your STR is located within an incorporated municipality like Kanab City or Orderville, there may be additional local transient room taxes. For example, Kanab City imposes a 1% municipal transient room tax on top of the county and state taxes. Check with your local city or town office for specific rates.

In total, STRs in unincorporated Kane County will typically collect and remit 9.1% in combined state and county taxes (4.85% state sales tax + 4.25% county transient room tax). STRs within incorporated municipalities may have slightly higher tax rates due to additional local taxes.

As an STR operator, you are responsible for collecting these taxes from your guests and remitting them to the appropriate state and local agencies on a regular basis, typically monthly or quarterly. Failure to properly collect and remit taxes can result in penalties and legal issues.

Tax Deductions and Write-Offs

STR owners can often deduct certain expenses related to operating and maintaining their rental property, which can help offset some of the taxes owed. Common tax deductions for STRs may include:

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

Consult with a qualified tax professional to determine which deductions apply to your specific STR business and to ensure you are properly tracking and claiming them on your tax returns.

By understanding and complying with all applicable tax requirements, Kane County STR owners can avoid legal issues and maintain a successful, compliant rental business.

Illinois Wide Short-Term Rental Rules

In addition to Kane County's specific regulations, short-term rental hosts must also comply with state-wide rules and requirements in Illinois. These state-level laws provide a broader framework for the operation of vacation rentals.

One key state-wide regulation is the Illinois Hotel Operators' Occupation Tax Act, which requires STR hosts to collect and remit state taxes on their rental income. This includes the Hotel Operators' Occupation Tax, ranging from 5.98% to 6.17% of the listing price for stays of 29 nights or less.

Illinois legally defines a short-term rental as any rental of a residential dwelling unit for 31 days or less. This encompasses entire home rentals, private or shared rooms, accessory dwelling units, and vacation homes.

Hosts renting out two or more units in a building with four or more units (like condos or apartments) must obtain a license from the Illinois Department of Public Health. This involves an application, fee, inspection, and renewal process. Non-compliance can result in fines.

The Illinois Electric Vehicle Charging Act, effective January 1, 2024, is designed to facilitate the installation and use of EV charging stations in residential and commercial properties. This applies to new single-family homes and multi-unit residential buildings constructed or renovated after the effective date.

Illinois has also introduced legislation to protect tenants from discrimination based on immigration status. During tenant screening, Illinois landlords and property managers should avoid requesting immigration documents if other forms of identification are available for verifying identity and conducting background/credit checks.

Kane County STR hosts must stay informed about these state-wide regulations and ensure compliance alongside local county requirements. Adhering to both state and local laws helps minimize legal risks and contributes positively to the communities where they operate.

Does Kane County, Illinois Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on platforms like Bigger Pockets and Reddit, Kane County appears to be relatively strict in enforcing its short-term rental regulations compared to some other Illinois counties. Many hosts report that the county actively investigates properties suspected of operating illegally without proper licensing and zoning approval.

Kane County officials have stated they will continue cracking down on STRs that fail to comply with local ordinances. This has led some hosts to describe Kane County as less "Airbnb friendly" than nearby counties with more relaxed enforcement.

However, despite the strict enforcement, there are still numerous active Airbnb listings in Kane County, particularly in popular areas like Geneva and St. Charles. This suggests that while the county takes STR compliance seriously, it is still possible to legally operate a short-term rental if all requirements are properly met.

Hosts on forums generally recommend carefully reviewing and complying with all Kane County licensing, zoning, and operational rules before listing a property on Airbnb or other platforms. Many stress the importance of obtaining required permits and approvals to avoid fines and legal issues.

The consensus among experienced Kane County hosts is that operating "under the radar" is not advisable given the county's active enforcement efforts. Most agree that while the regulatory hurdles can be challenging, operating legally is the best path to long-term STR success in Kane County.

So in summary, while Kane County may be somewhat less Airbnb-friendly than other areas of Illinois, it still has an active short-term rental market. Hosts can succeed by strictly adhering to all local regulations and licensing requirements. But attempting to skirt the rules is risky given the county's strict enforcement policies.

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

Starting a short-term rental business in Kane County, Utah involves several key steps to ensure compliance with local regulations and set yourself up for success:

1. Research Zoning Requirements: Determine if your property is located in a zone that allows STRs. Zoning regulations vary, so contact the Kane County Land Use Authority office at (435) 644-4966 or planning@kane.utah.gov for guidance. Familiarize yourself with all applicable zoning ordinances, as there may be additional rules specific to your property's zone. Ignorance of zoning laws is not a valid defense for violations, so thoroughly research requirements before proceeding.
2. Obtain Necessary Approvals: Secure approval signatures from the Southwest Utah Public Health Department and Kane County Building Department on your Business License Application. This ensures your STR meets all health, safety, and building code requirements. Start this process early, as inspections and approvals can take time. Promptly address any issues to avoid delays.
3. Apply for a Kane County Business License: Complete the Business License Application with all required information, including property owner details, STR physical address, and approval signatures. Submit the application and pay the $150 annual licensing fee to the Kane County Building Department. Double-check all application details for accuracy before submitting to avoid processing delays.
4. Obtain Required Insurance: Secure valid property insurance for your STR that meets Kane County requirements. This protects you and your guests in case of accidents or damages. Shop around for policies that offer adequate coverage at a competitive price. Consider additional liability coverage given the unique risks of STRs.
5. Register with the State of Utah: Register your STR with the Utah State Tax Commission to obtain a sales tax license. This is necessary for collecting and remitting required state taxes on your rental income. Keep detailed records of all rental transactions and taxes collected to simplify reporting and avoid issues.
6. Prepare Your Property: Outfit your STR with necessary amenities, safety features, and any upgrades needed to meet Kane County standards and appeal to your target guests. Consider hiring a professional photographer to showcase your property in its best light for online listings. Put yourself in your guests' shoes and anticipate their needs. Small touches like local guidebooks and thoughtful decor can greatly enhance the guest experience.
7. Create a Detailed Listing: Craft an accurate, compelling property listing on popular STR platforms like Airbnb or VRBO. Include high-quality photos, detailed descriptions, house rules, and all pertinent information guests need. Be transparent about your property's unique features and any limitations to manage guest expectations and garner positive reviews.
8. Establish Operational Processes: Develop efficient systems for managing bookings, guest communication, cleaning, maintenance, and other day-to-day tasks. Consider using STR management software or hiring a reputable property manager to streamline operations. Automate processes where possible to save time and ensure consistency. Well-defined systems are key to delivering great guest experiences as your business grows.

By following these steps and staying informed of any regulatory changes, you can launch a successful, compliant STR business in Kane County. Remember, operating an STR without proper licensing and approvals can result in significant fines and legal consequences, so prioritize compliance from the start.

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

When navigating the short-term rental regulations in Kane County, Utah, it's important to know who to contact for accurate, up-to-date information. The following resources can help you understand and comply with local STR rules:

1. Kane County Land Use Authority: For questions about zoning regulations and property-specific requirements, contact the Kane County Land Use Authority office at (435) 644-4966 or planning@kane.utah.gov. They can provide guidance on allowed uses, necessary approvals, and any additional rules based on your STR's location.
2. Kane County Building Department: To apply for your Kane County STR business license and schedule required inspections, contact the Building Department at (435) 644-4985. They can assist with the licensing process and ensure your property meets all health, safety, and building code standards.
3. Kane County Clerk's Office: For general questions about Kane County's STR business licensing requirements, contact the Clerk's Office at (435) 644-4906. They can provide information on application procedures, fees, renewals, and other licensing details.
4. Southwest Utah Public Health Department: STRs must comply with health department regulations. Contact the Southwest Utah Public Health Department at (435) 644-2537 for information on occupancy limits, safety requirements, and necessary approvals.

In addition to these official resources, connecting with other STR hosts in Kane County can provide valuable insights and support. Consider joining local host groups or online communities, such as:

1. The "Utah Airbnb Hosts" Facebook group, where hosts across the state share experiences, tips, and updates on STR regulations.
2. The "Investing in Southern Utah" BiggerPockets subforum, which includes discussions on STR opportunities and challenges in Kane County and nearby areas.
3. The "St. George, Utah Area" Airbnb host community on the Airbnb platform, where local hosts can connect, share resources, and stay informed about regional STR trends and policies.

Remember, while fellow hosts can offer helpful advice, always verify regulatory information with official Kane County sources to ensure accuracy and compliance. By staying connected with both local authorities and the broader host community, you'll be well-equipped to navigate Kane County's STR landscape successfully.

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.