Elgin's Residential Rental Program Ordinance requires every rental dwelling, including short-term rentals on Airbnb or Vrbo, to be licensed and inspected before tenants occupy the unit. Owners apply through the City of Elgin Rental Licensing office at 150 Dexter Court, pay a tiered fee starting at $149 for 1-5 units, complete a landlord training class, and renew the license each year (a three-year license is granted after a clean inspection).
Elgin operates under home rule and regulates rentals (including stays under 31 days) through its Residential Rental Program rather than a stand-alone STR ordinance. Any person, firm, partnership, or corporation operating, maintaining, or offering rental property must hold a current license; it is unlawful to occupy an unlicensed rental. Applications are filed online or at the Rental Licensing office at 150 Dexter Court, Elgin, IL 60120. Fees are tiered by dwelling-unit count: $149 for 1-5 units, $224 for 6-10, $300 for 11-15, scaling up to $1,567 for 96-100 units, plus $75 for each additional 5 units above 100. The initial license runs one year; properties that pass inspection without violations and whose responsible party completes the City landlord training class receive a two-year extension (three-year total). Code officers inspect the entire exterior and interior of single-family rentals, and exteriors, common areas, and 20 percent of units in multi-unit buildings. Inspectors check for plumbing defects, broken windows, peeling paint, electrical hazards, overcrowding, and strictly enforce the Illinois Smoke Detector Act (425 ILCS 60) and the Carbon Monoxide Alarm Detector Act (430 ILCS 135). Licenses are not transferable; new owners must apply within 30 days of closing. Illinois has no statewide STR preemption, so Elgin's license plus zoning compliance is the controlling local authority. STR operators must also collect the Illinois Hotel Operators' Occupation Tax (35 ILCS 145, 6 percent state) plus Elgin's local hotel/motel tax on stays under 30 days. Contact Rental Licensing at (847) 931-6100 or Rental License Manager Jabez Etienne at (630) 574-4449 / etienne_j@cityofelgin.org.
Operating or occupying a rental dwelling in Elgin without a current City rental license, failing to apply within 30 days of closing, refusing inspection access, or failing to remit the Illinois Hotel Operators' Occupation Tax under 35 ILCS 145 is enforced by Elgin Rental Licensing and Code Administration. The City may deny or revoke the license, cite property maintenance violations, and pursue penalties through the administrative hearing process under the Elgin Municipal Code general penalty provisions.
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