As a local Property Management firm in Naperville we have managed hundreds of townhouses, condos, & single family homes in Naperville since our start in 2003.  Naperville can be tricky for Landlords because it falls into two different counties, Will & DuPage, which means depending on what part of town you are in there may be different rules.  If you are renting now, or looking to rent your property in Naperville, these are a few things you must know to reduce your risk.

City Of Naperville Rental Requirements

1. Naperville Rental License Requirement - Good news here is that there is no rental license or occupancy permit requirement in Naperville for owners that want to rent their place out more than 31 days at a time. 

2. Naperville Rental License Inspection - Since there is no rental license or occupancy permit requirement in the Naperville that means there is no rental license inspection.  

3. Naperville Human Rights & Fair Housing Ordinance - Most people do not know this but Naperville has had a rule in their Fair Housing Ordinance about discriminating against income for many years even though it has just become a statewide law everywhere else.  What this means to Landlords is you are not able to simply say “I don't accept section 8 voucher holders”.  There are times when landlords don't have to accept a section 8 tenant but that is more along the lines of the financial numbers not working.  For example if market rent for a single family home is $3,500.00 and the Section 8 voucher program will only pay $2,400.00 then you are not forced to accept a section 8 voucher holder in those circumstances.  

4. Naperville Short Term Rentals - The Naperville City Council passed an ordinance banning short term rentals in the City of Naperville at the August 18, 2020 City Council meeting (Ordinance No. 20-087). Effective September 1, 2020, it is unlawful to operate, use, offer for rent, or advertise for rent or use, any property within the corporate limits of the City of Naperville as a short-term residential rental.  Fines for renting your place short term can result in fines as high as $1,000 per day and upwards of $2,500.00 per day if you have multiple offenses within a 12 month period.

5. Naperville Electric - Most parts of Naperville have power provided by Naperville electric.  Typically when a tenant moves into a rental in other parts of the Chicagoland market a tenant will place electric into their name with Comed and if the tenant doesn't pay then that debt follows the tenant and not the Landlord. Unfortunately in Naperville this is different.  If a tenant doesn't pay their Naperville electric bill, the Landlord can become responsible for this.  All the more reason to be sure you find a responsible tenant for your rental.  

6. Naperville Crime Free - Naperville has a voluntary crime free program, however, some homeowner associations require it even though the city doesn’t mandate it. If the association requires it, landlords are required to complete a course prior to renting out or managing any rentals in Naperville. 

7. DuPage County Naperville Rental Requirements - You’re in luck! There are no specific DuPage County rental/landlord laws you must follow.  Now of course this can change so be sure to stay up to date on what is going on or hire a Property Manager that is familiar with the requirements.

8. Will County Naperville Rental Requirements - If you are going down Il Rt 59 most areas south of 87th St fall in Will County but the good news is that WIll County has no real hurdles for Landlords.  The only thing that might be different is if you rent your property to a section 8 tenant then you will be part of Will County Joliet Housing Authority (HAJ) vs DuPage Housing Authority(DHA) in the DuPage County sections of Naperville.

With so much experience in Naperville over the last 20 years we are able to handle any of these rental requirements and know how to comply with all of the laws and regulations on behalf of our clients.  Below are some additional commonly asked questions when it comes to renting a property in Naperville:

Q. Do I have to obtain a rental license if I am going to rent my property in Naperville?

A: No.  There is no rental license or occupancy permit requirement in Naperville.

Q. If I am looking to rent my home in Naperville do I have to follow Cook County rules or is that just in Chicago?  

A: No. There is no part of Naperville that falls in Cook County.

Q. Is there a specific lease template I must use if I lease my home in Naperville?

A:  No. but you should consult an attorney, Realtor, or Property Manager for a quality up to date document for your use.

Q. Is there a limit to the rent amount I can ask for from a tenant?

A: No. There is no limit to what amount you can ask for but the renter pool will dictate supply and demand reaction.  When you ask too much you do attract little showing activity or less than qualified activity.  

Q. My condo/townhome in Naperville is within a Homeowners Association (HOA) so do I have to follow Naperville rules or just my HOA?

A: Yes. You must still follow Naperville rules in addition to the rules and regulations your Homeowners Association has in place.  I would seek permission to rent your condo/townhome from your HOA as soon as possible because there may be restrictions you are not aware of or a possible wait list for owners looking to rent.

Q. I live out of state so do I still need to take the Crime Free Seminar for my rental in Naperville?

A: It depends. You should check with your homeowner association to see if it is required. 

Q. I have been renting my rental in Naperville for 4 years and I never registered for the rental license or the crime free seminar and now that I know what should I do next?

A: Nothing. There is no rental license or occupancy permit requirement in Naperville.

Q. Should I hire a Property Manager to manage my rental in Naperville?

A.Yes. A Property Manager can take the risk off your back with our extensive experience managing properties in Naperville, working with the city of Naperville.  

Q. How much can I rent my home for in Naperville?

A: We would love to help you determine a rent range of what you home can demand in the open market so reach out to us today or feel free to to use our free rental analysis tool and get pricing and comparable properties on a single report immediately.

Q. Should I sell or rent out my home in Naperville in today’s real estate market?

A: To help determine your financial gain by renting out your property over selling we have developed a Sell Vs Rent Calculator where you can see what your wealth being built over time can look like by NOT selling and renting the property out.  Remember there are 5 ways to make money in being a real estate investor.

Q. Does it make sense to lease and manage my Naperville rental myself?

A: No, not if you value your time and want to limit your risk.  There are day to day obligations when renting your place in Naperville and it will take time to learn, plus there is a level of risk for each if not done 100% correctly.  I am not saying private housing providers are not able to figure it out and do it by the book, but I am saying your time is worth a lot more than what you will pay a company like GC Realty & Development to handle it all for you.  Not to mention the risk you pass on for us to reduce for you.

Q. How much does it cost to hire a Property Management or Property Manager in Naperville?

A: Less than most will think when you account for the time it takes you to operate a rental as a housing provider yourself in Naperville.  For 7-8% of the monthly rent we can handle 100% of the entire process saving you 30-40 hours per year and take so much of the risk off of your shoulders.  

Q. Do I have to hire a Property Manager for my Naperville rental or can I hire someone to just find me a qualified tenant and screen them properly?

A: Yes, real estate brokerage firms like GC Realty & Development, LLC offer “Tenant Placement” options only for their clients.   For one month's rent we can guide you through getting your place rent ready, handle all marketing, showing, screening, lease creation, and initial fund collection.  

Every day homeowners / housing providers have questions about renting their property in Naperville. We create these articles to help owners find this information easily and all together in one place. Oftentimes owners don’t know what questions to ask or what they need to know. We would love to talk more about your plans to rent or how things are going with your current tenants so you can reach out to us anytime.  Our goal is to provide value to housing providers like you through being a resource for all things when it comes to being an investor in Naperville. 

Disclaimer - All info in the chart and attached spreadsheet is subject to change without knowledge of GC Realty & Development, LLC. All info is deemed accurate as of 12/2/22.

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