Elgin, IL Short-Term Rentals: Taxes & Fees (2026)

Chapter 6.37 of the Elgin Municipal Code defines "rental residential property" to expressly include properties listed or let for occupancy on a short-term basis, independently or through online services such as AirBnB or VRBO (Section 6.37.030). Because that definition sweeps in short-term rentals, any owner offering an Elgin home on those platforms must obtain a rental license before advertising or renting the unit and before allowing anyone to occupy it; operating without one is unlawful (Section 6.37.040A). Each new or renewal license application must be accompanied by a fee set according to the number of dwelling or rooming units on the property, in the amount fixed by the city's separately adopted annual fee ordinance, and the license expires on the last day of the month one year after the registration date (Section 6.37.050B).

Licensing requires a pre-license inspection within 120 days of issuance covering the exterior, common areas, and at least one-fifth of the units, and owners who complete a required landlord training class and pass inspection with no more than two minor violations earn a two-year renewal without another inspection fee (Section 6.37.060C, G). A missed inspection appointment triggers a separate missed-inspection fee under Section 6.37.135, and unresolved code violations can lead to suspension or revocation of the license, at which point occupants must vacate within sixty days or face fines (Section 6.37.090).

The chapter exempts owner-occupied single-family homes, units occupied by the owner's immediate family, vacant homes actively listed for sale, and, notably, hotels, motels and bed-and-breakfast inns, which are taxed and regulated separately under the city's own hotel/motel room rental tax chapter instead (Section 6.37.040D).