Evanston, IL Short-Term Rentals: Short-Term Rental Permits (2026)

Section 5-9-3 sets three rules. Under subsection (A) it is unlawful to operate a short-term rental in Evanston without a current, valid short-term rental license. Under (B) it is unlawful to list or advertise a short-term rental unit without a current, valid short-term residential rental intermediary license. Under (C) every license runs one year from the date of issuance and must be renewed under Section 5-9-8. Ordinance 2-O-26, adopted February 23, 2026, repealed and reenacted Chapter 9 in its entirety; the chapter previously licensed "vacation rentals" and now covers short-term rentals.

The license reaches any dwelling unit or portion of one offered for rent for fewer than thirty consecutive days to anyone outside the owner's household. Hotels and motels licensed under Title 3, Chapter 2, shared housing providers under Title 5, Chapter 2, bed and breakfast establishments under Title 8, Chapter 19, home sharing under Subsection 6-4-1-14(B), registered fixed-lease and month-to-month rentals under Title 5, Chapter 8, and rentals tied to a contract to sell the unit are excluded.

The owner applies by the method the Building and Development Services Manager prescribes. A lessee or manager cannot apply without the owner's written consent. The application must name a property manager who lives or keeps a working office within three miles of Evanston, and an authorized agent aged 21 or older (18 to 20 with an Illinois real estate license) who lives or has an office in Cook County. City staff inspect the unit before the application is reviewed, and the owner pays a non-refundable application fee plus an annual license fee, both set by City Council action.

Approval is not automatic. Section 5-9-6 caps licenses at one per 100 long-term rental units registered under Title 5, Chapter 8, and requires no negative cumulative neighborhood effect, a passed Property Maintenance Code inspection, full compliance with the chapter, and no nuisance premises declaration in the last five years. Rent-restricted or City-subsidized housing cannot operate as a short-term rental. A denied applicant can appeal in writing to the Manager and receive a hearing before the Planning and Development Committee; if the denial stands, reapplication waits one year.

Renewal requires the hotel-motel, bed and breakfast, and vacation rental tax to be paid, no revocation or suspension in the prior year, and a passed annual inspection. A license not renewed within 60 days of expiration is lost and a new application is required. A new owner or a structural alteration also forces a new application.