Vendor Portal
Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
At GC Realty and Development, we focus exclusively on traditional long-term property management. We do not manage short-term rentals. But we are paying close attention to what is happening in the short-term rental space across Kane and DuPage counties, because it is directly affecting the decisions property owners are making right now. We are seeing a clear and growing trend: owners who have been operating on platforms like Airbnb and VRBO are moving back to traditional 12-month leases to avoid the regulatory burden that is landing on short-term operators in suburban Chicago. The counties are catching up, and a lot of owners are deciding it is not worth the hassle.
In January 2026, Kane County passed the first formal short-term rental ordinance for its unincorporated areas. DuPage County is not far behind with its own framework in development. This article breaks down what Kane County passed, who it affects, what operators must now do to comply, and what DuPage County property owners should expect as that process moves forward.
How Kane County Got Here
The push for STR regulation in Kane County started in the fall of 2025 when residents from a small cul-de-sac in unincorporated Kane County came before the county's Development Committee with documented complaints. Susan Blassick described loud parties, party buses, and overflowing street parking that had turned her quiet neighborhood into a recurring nuisance. Her neighbor, who lived directly next door to the rental, told the committee she routinely saw 15 to 25 people cycling in and out of the property on any given day. The cul-de-sac design of the street created a specific safety concern: the blocked access created a real obstacle for emergency vehicles.
The Development Committee had already been working on draft ordinance language with the county attorney's office before these residents appeared. The October 2025 hearing accelerated the process. A November 2025 committee meeting paused the ordinance after members pushed for stronger language around 24-hour agent availability, inspection frequency, and enforcement procedures. Staff was directed to redline the draft and return with revisions.
On January 6, 2026, the Development Committee voted to advance the revised ordinance to the full County Board, pulling it off the consent agenda to give it full floor consideration. The Executive Committee ratified that decision on January 7, 2026. The full County Board passed the ordinance at its January 13, 2026 meeting.
What the Kane County Ordinance Requires
The ordinance applies to any property in unincorporated Kane County that is rented for fewer than 30 days. If you own a property inside an incorporated municipality such as St. Charles, Geneva, or Elgin, this ordinance does not directly apply to you. Your city or village has its own local rules to follow.
For properties in unincorporated areas, here is what is now required:
Operators must obtain a county license before renting. There is a $200 annual licensing fee.
The property must pass an inspection confirming compliance with county building, health, and safety codes, including functioning smoke detectors and carbon monoxide detectors.
Occupancy is capped at two guests per bedroom with a hard maximum of 16 guests regardless of how many bedrooms the property has.
No more than 3 dogs or cats are permitted on the property during a rental.
Commercial vehicles, camper trailers, food trucks, and portable hot tubs are prohibited from the property during rental periods.
Rentals are limited to 12 rental contracts or 180 days per year, whichever is greater.
Owners must designate a 24-hour local contact who can respond to issues during a rental.
Owners are required to notify adjoining neighbors by mail before the first rental of each calendar year.
The license must be posted visibly inside the property.
Violations can result in fines or license revocation through the county's administrative adjudication process.
The County Board also passed companion amendments to the Nuisance Ordinance at the same time, adding specific decibel thresholds for daytime and nighttime noise and formally classifying trespassing as a public nuisance. These changes strengthen the enforcement toolkit available to both the county and the Kane County Sheriff's Office when responding to STR-related complaints.
Who This Affects
This ordinance is targeted at the unincorporated areas of Kane County, which includes large stretches of rural and semi-rural land across the county. If you own a single-family home, farmhouse, or other residential property outside of an incorporated village or city boundary and you have been renting it on Airbnb, VRBO, or any other platform for stays shorter than 30 days, you are now required to be licensed.
The county estimated at the time of the DuPage ordinance discussions that a similar volume of undocumented STRs exist in the suburban Chicago region. In Kane County, most of the properties that have generated complaints came to the county's attention not through proactive enforcement but through neighbor complaints. That dynamic is now changing. The ordinance creates a registry, which means the county will have a documented list of who is operating, and who is not.
Property management companies that oversee any unincorporated Kane County properties where the owner has been doing any STR activity need to have a direct conversation with those owners. Operating without a license now carries real consequences.
What DuPage County Is Working On
DuPage County is moving through a similar process, though it is a step behind Kane County in terms of where things stand today.
On October 14, 2025, the DuPage County Board approved a zoning text amendment that explicitly defines short-term rentals and lays the groundwork for a licensing and registration system in unincorporated areas. This was a significant first step. Prior to this vote, STRs in unincorporated DuPage County fell into a legal gray area under existing hotel and motel provisions in the zoning code.
The framework DuPage County is building includes the following elements:
Mandatory registration of all STR properties in unincorporated DuPage County.
Annual inspections to confirm compliance with county building, health, stormwater, and zoning codes.
An occupancy cap of no more than five unrelated adults, with an exception process for temporary special events.
An annual fee, the specific amount of which has not yet been finalized.
Revenue from fees directed toward affordable housing programs, including low-interest construction and housing loans.
County planning and zoning officials estimated between 65 and 300 short-term rentals may be operating in unincorporated DuPage County at any given time. As was the case in Kane County, most of those properties have come to the county's attention through neighbor complaints rather than any proactive monitoring.
The October 2025 vote was a text amendment approval, not a final ordinance. The actual ordinance with specific rules and the fee schedule still needs to be drafted, reviewed, and approved in a separate vote. That process is ongoing. DuPage County property owners and managers should expect a formal ordinance to move forward in 2026.
What This Means for Property Owners and Managers in the Region
The trend here is clear. Local governments in suburban Chicago are no longer willing to leave STR activity unregulated. Kane County has set the framework. DuPage County is close behind. It is reasonable to expect other suburban counties to watch these two ordinances closely and develop their own versions as enforcement patterns and complaint volumes increase.
For property owners operating STRs in unincorporated Kane County, the time to get into compliance is now. Licensing, inspections, and neighbor notifications are all required before you can legally continue operations. The $200 annual fee is a minor cost compared to the potential fines or license revocation that come with operating outside the ordinance.
For DuPage County property owners, the window to operate informally is closing. Tracking the ordinance development process and getting ahead of registration requirements before enforcement begins is the smart move.
What we are seeing on our end is telling. A number of owners who previously operated short-term rentals have reached out to GC Realty about transitioning to traditional 12-month leases. The licensing requirements, inspections, occupancy restrictions, annual renewals, neighbor notifications, and the exposure to fines have made the STR model feel significantly less passive than it once did. For many owners, the math has shifted. A reliable long-term tenant with a standard lease eliminates all of that overhead. No county licensing. No annual inspections. No neighbor notification letters. No occupancy caps to manage around. Just a lease, a screened tenant, and consistent monthly rent.
If you have been operating a short-term rental in Kane or DuPage County and you are weighing whether it still makes sense, we are happy to walk you through what your property could generate under a traditional lease structure. GC Realty manages properties across Kane, DuPage, and Cook counties, and we have direct experience with what the current rental market looks like in the communities where these ordinances are taking effect. Reach out to our team and we can give you a straight answer on whether the switch makes sense for your situation.
