Naperville bans short-term residential rentals citywide under Title 3 Chapter 18 of the Municipal Code (added by Ordinance 20-087, effective September 1, 2020). Stays under 30 days for compensation are unlawful regardless of platform (Airbnb, Vrbo, Booking.com). Long-term rentals (30 days or more) of accessory dwelling units are allowed where the underlying zoning permits two-family or higher use and any PZC conditions are satisfied; landlords should register with Naperville Finance for utility handling. Tenancies are governed by the Illinois Landlord and Tenant Act (765 ILCS 705/) and the Security Deposit Return Act (765 ILCS 710/). Illinois prohibits rent control under 50 ILCS 825/.
Naperville's rental regime is among Illinois's strictest on short-term rentals. Title 3 Chapter 18 (Ordinance 20-087, August 18, 2020, effective September 1, 2020) makes it unlawful to operate, use, offer for rent, or advertise for rent or use any Naperville property as a short-term residential rental, defined as a stay of fewer than 30 consecutive days for compensation. Fines run $1,000 per day for a first violation and $2,500 per day for subsequent violations within a 12-month period (Title 3 Chapter 18 Section 3-18-6). Limited transition relief applied only to bookings signed before August 19, 2020 for stays through October 19, 2020 — long expired. Long-term rentals (30+ days) remain lawful and operate under: (1) the Illinois Landlord and Tenant Act (765 ILCS 705/) for general lease terms; (2) the Security Deposit Return Act (765 ILCS 710/) requiring return within 30 to 45 days with itemized deductions; (3) the Security Deposit Interest Act (765 ILCS 715/) imposing interest on deposits held by landlords with 25 or more units; (4) the Forcible Entry and Detainer Act (735 ILCS 5/9-101 et seq.) for evictions in DuPage County Circuit Court (18th Judicial Circuit) or Will County (12th); (5) the Rental Property Utility Service Act (765 ILCS 735/) governing utility deposit handling; (6) Naperville's voluntary landlord registration through the Finance Department, which holds tenant utility deposits and reduces lien exposure. Rent control is preempted statewide under the Illinois Rent Control Preemption Act (50 ILCS 825/1 et seq.). Fair housing applies under the federal Fair Housing Act, the Illinois Human Rights Act (775 ILCS 5/), and Naperville's nondiscrimination provisions.
Operating any short-term rental in Naperville violates Title 3 Chapter 18: $1,000 per day for first violations, $2,500 per day for subsequent violations within 12 months, cease-and-desist orders, and advertising-takedown demands. Failing to register a long-term rental with Naperville Finance: city declines to hold tenant utility deposits, exposing the owner to liability for tenant utility delinquencies under the Rental Property Utility Service Act. Security deposit return violations under 765 ILCS 710/: tenant recovers double the deposit plus court costs and reasonable attorney fees. Fair housing violations carry Illinois Human Rights Commission and HUD enforcement.
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