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

Section 14-4(e)(1) through (3) of the Waukegan City Code lays out the licensing path for short-term rentals. No property may operate as a short-term rental until it is first registered as rental property under Section 14-4(a) and separately issued a short-term rental unit license for the property or the specific dwelling unit. That license is annual, running from January 1 to December 31 of the same year unless it is terminated or revoked earlier. The application must include the applicant's full name and valid contact information, the location and proof of ownership of the unit, the full name and contact information of a Waukegan resident who will act as an emergency 24-hour contact if the owner does not live in Waukegan, and payment of the nonrefundable annual fee set in Section 14-1104.

Beyond the paperwork, Section 14-4(e)(4) requires the property to remain in compliance with the Code throughout the license period and subjects it to inspection by the city both before and during that period; owners must also produce any documentation the city requests about the short-term rental operation. For the 2025 license year the city council placed no cap on the total number of short-term rental licenses it will issue, though Section 14-4(e)(6) reserves the council's right to adopt a cap by ordinance for years after 2025.