What should Dekalb hosts know about the 5-room threshold is the?

The 5-room threshold is the dividing line for city regulation; standard residential STRs are currently 'invisible' to city code.

What should Dekalb hosts know about a new state-level short-term rental?

A new state-level Short-Term Rental Occupation Tax (6%) applies to all Illinois STRs regardless of room count as of 2025.

What are the key requirements for Dekalb hosts?

DeKalb's Landlord-Tenant Ordinance (Chapter 10) explicitly exempts 'tourist homes' and transient occupancies from its requirements.

DeKalb IL Short-Term Rental Laws & Licensing Guide

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Verified: Feb 8, 2026

Summary

Short-term rentals with five or fewer rooms are currently exempt from City of DeKalb licensing and hotel-motel tax requirements.

Restriction Level

✅

Permissive

Score: 0 (restrictive)

Why this classification:

•No STR-specific permit required
•No night cap
•No primary residence requirement
•No STR-specific fee
•Tenants can host

In Plain English

In the City of DeKalb, typical short-term rentals (5 rooms or fewer) do not require a local business license or the payment of the city's hotel tax. However, hosts must still register with the Illinois Department of Revenue to collect state taxes. Larger operations with 6 or more rooms are classified as hotels and must meet strict licensing and tax collection rules.

At a Glance

Permit Required

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

Processing Time

2-4 weeks

3 Things Hosts Often Miss

Regulation Details

Eligibility(5)

•Dekalb: You can have a co-host or property manager help manage your listing.
•Dekalb does NOT require the property to be a primary residence. Investment properties are allowed.
•Dekalb allows tenants to host STRs. Requirements: Transient occupancy (under 30 days) is generally exempt from the Landlord-Tenant ordinance, but individual leases may prohibit subletting.

Requirements(8)

•Dekalb STR warning: The 5-room threshold is the dividing line for city regulation; standard residential STRs are currently 'invisible' to city code.
•Dekalb: Tenants CAN host STRs but must get written landlord approval first. Keep documentation.
•Dekalb does not require liability insurance for STR hosts, but it is strongly recommended.

Application Process(7)

•Dekalb: To apply for an STR permit, you'll need: Illinois Retail Occupation Tax Number, Federal Employer ID (FEIN).
•Dekalb STR permit - Step 2: Register with Illinois Department of Revenue. Obtain a Certificate of Registration from the state to collect and remit the Illinois Hotel Operators' Occupation Tax (HOOT). Required documents: SSN or FEIN, Business description. Time: 1-2 weeks.

Taxes(2)

•Illinois has a state sales tax of 0.06% that applies to STR rentals.
•Dekalb: A new state-level Short-Term Rental Occupation Tax (6%) applies to all Illinois STRs regardless of room count as of 2025.

Limits & Restrictions(2)

•Dekalb limits stays to a maximum of 30 nights.
•Dekalb enforces quiet hours: 10pm-7am.

Safety Requirements(1)

•Dekalb requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher.

Penalties(2)

•Dekalb: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Dekalb enforces the following penalties for STR violations: First offense: $300 fine. Second offense: $500 fine. Third offense: $1000 fine. Daily fine: $1000 per day. Permit may be revoked for violations.

Exemptions(3)

•Dekalb exempts the following from STR regulations: long-term rentals (30+ days), extended stays, Rentals with 5 or fewer rooms, Hospitals, Retirement homes.
•Dekalb: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other Illinois Markets

Schaumburg

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Prohibited

Schaumburg requires an annual short-term rental license, mandatory safety inspections, and a crime-free housing seminar, with strict limits on corporate ownership and density.

Permit requiredNight limitsPrimary residence

0.1% total tax

Naperville

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Prohibited

Short-term rentals of residential properties for periods of less than 30 consecutive days are strictly prohibited in the City of Naperville.

Night limits

0.1% total tax

Galena

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Strict

The City of Galena strictly regulates short-term rentals under its 'Guest Accommodation' ordinance. Permits are generally restricted to commercial zones or specific residential areas with an overlay, and there is a limit of one license per owner.

Permit required

0.1% total tax

Chicago

Illinois

Moderate

Chicago strictly regulates short-term rentals through a dual system of 'Shared Housing' registrations (for platform users) and 'Vacation Rental' licenses. Hosts must pay a combined tax rate of 17.4% (including state and county portions) and ensure their building is not on the City's 'Prohibited Buildings List'.

Permit required

0.2% total tax

Dekalb

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Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

3 Things Hosts Often Miss

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Regulation Details

Eligibility(5)

Requirements(8)

Application Process(7)

Taxes(2)

Limits & Restrictions(2)

Safety Requirements(1)

Penalties(2)

Exemptions(3)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Naperville

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Dekalb

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

3 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in DeKalb?

2What is the TOT tax rate in DeKalb?

3Are there rental night limits in DeKalb?

4What are the penalties for non-compliance in DeKalb?

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