If there is one County in Illinois that I would tell everyone is the best county to invest in real estate in, that county would be DuPage county and within DuPage County Naperville is the largest city.

Naperville is one of the top-rated suburban cities in Illinois and the Midwest. The prime location is ideal for real estate investors and Landlords. Known for its nationally ranked schools, vibrant downtown, and low crime rates, Naperville consistently attracts high-quality tenants, making rental demand strong. But, behind its polished image, there’s an entire set of local ordinances, HOA restrictions, and property management nuances that landlords must understand.

Whether you’re a homeowner looking to move out and lease your property, or an investor looking to make some purchases in Naperville, this comprehensive guide outlines everything you need to know to legally and effectively rent a property in this dynamic Illinois suburb.

Why Naperville Appeals to Landlords

As one of the largest suburban cities in Illinois, Naperville offers a unique blend of suburban charm and urban convenience. With a population of over 149,000 people, it’s consistently ranked among the “Best Places to Live in America” by Niche and by Livability.com.

From a landlord’s perspective, the city has:

• A stable tenant base, including professionals, those in tech, finance, and healthcare

• Higher-than-average median household income ($135K+)

• Excellent local school districts, including Naperville Community Unit School District 203 and Indian Prairie School District 204

• Strong property values and appreciation rates

• Lots of jobs within and surrounding communities

• A commuter-friendly layout with access to Metra, I-88, and I-355

These factors make Naperville ideal for single-family rentals, townhome investments, and long-term tenant retention—provided landlords are aware of local rules and responsibilities.

1. Rental Licensing Requirements in Naperville

Unlike Chicago or neighboring communities like Aurora, Naperville does not require a general rental license for residential properties. This includes:

• Single-family homes

• Condominiums and townhomes

• Duplexes and small multi-unit buildings

However, this does not mean landlords are free from compliance oversight.

The Naperville Property Maintenance Code requires all rental units to meet minimum habitability and safety standards. Code enforcement officers may inspect rental properties in response to:

• Tenant complaints

• Neighbor reports

• Health or safety concerns

Situations That May Trigger Special Requirements

• Short-Term Rentals: Since 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.

• Medium-Term Rentals: These are rentals that are leased for 30 days or more are allowed but there are restrictions.  

• HOA Regulated Communities: If your property is part of a townhome or condo association, the HOA may require that landlords register rental units or submit lease copies for approval.  HOA rules and regulations seem to be the toughest guidelines you will need to follow so understanding what you are buying into really matters in Naperville.

• Multi-Family Properties: Buildings with five or more units may face stricter fire safety, egress, and occupancy code requirements.

2. Crime-Free Housing and Lease Addendum

Naperville does not currently require all landlords to attend a Crime-Free Housing seminar or participate in a program as part of renting their properties. However, many surrounding suburbs such as Aurora, Bolingbrook, and Downers Grove do.

While not mandated, Naperville strongly encourages landlords to use a Crime-Free Lease Addendum. This addendum allows landlords to terminate a lease early if the tenant or their guests engage in criminal activity on or near the premises.

Best Practices:

• Include the crime-free addendum in your lease to protect your property. We include the crime-free addendum across all suburb leases to ensure we have uniformity.  

• Keep a working relationship with the Naperville Police Department in case of future incidents.

• Use thorough screening procedures to mitigate risk from the beginning.

3. County-Level Compliance: DuPage and Will County Considerations

Naperville spans two counties: DuPage and Will. This creates unique obligations depending on where your property sits.

DuPage County

• No additional landlord-tenant ordinance like Cook County’s RTLO.

• Follows standard Illinois landlord-tenant law.

• Evictions and court filings go through the 18th Judicial Circuit Court (Wheaton).

Will County

• Also no separate RTLO, but compliance with state statutes is strictly enforced.

• Eviction hearings take place in the 12th Judicial Circuit Court (Joliet).

If you’re unsure which county your property falls in, check your tax bill or use the city’s property lookup tools. 

4. HOA and Condo Association Rules

A large percentage of Naperville’s rental market consists of condominiums and townhomes in managed communities. This adds a layer of complexity for landlords.

HOAs may enforce rules such as:

• Minimum lease term (usually 12 months)

• Rental caps (e.g., no more than 20% of units may be rented at once)

• Board or property manager approval of tenant applications

• Required lease rider forms or legal disclosures

• Move-in/move-out fees or refundable elevator deposits

Failure to follow HOA regulations can result in fines, denied lease approvals, or legal action.

Pro tip: Secure written approval from the HOA before listing your property for rent.

5. Security Deposit Regulations

Illinois does not have a statewide security deposit interest law unless you're operating in Chicago. However, landlords in Naperville must:

• Return the security deposit within 30 days after tenant move-out (with an itemized list of deductions)

• Provide written notice of any deductions (e.g., damage, cleaning fees)

• Avoid using the deposit for ordinary wear and tear

If you own more than 25 units in Illinois at a single location, you must:

• Provide interest on security deposits

• Keep deposits in an account separate from personal or business funds

Failure to follow deposit rules can result in double damages and attorney’s fees under the Illinois Security Deposit Return Act.

6. Lease Requirements in Naperville

There is no mandatory lease template provided by the City of Naperville, but your lease must comply with:

• Illinois Landlord and Tenant Act

• Fair Housing laws

• Radon Disclosure

• Flood Disclosure
  
  

Required documents to attach:

• Lead paint disclosure form for properties built before 1978

• Crime-Free Lease Addendum (strongly recommended)

• Contact information for repairs/maintenance

• Move-in checklist signed by both parties

We strongly recommend using a lease prepared by a local real estate attorney or leasing professional who is familiar with DuPage and Will County standards.

7. Marketing Your Property and Setting Rent

How to Price Rent in Naperville

Naperville rent prices are heavily influenced by:

• School district in the immediate vicinity

• Metra train station access

• Access to downtown Naperville amenities

• Property type, square footage, and features

A 3-bedroom townhome in school District 204 may command $2,600.00 - $3,100.00 per month, while a 2-bedroom condo in school District 203 could command a higher amount.

Use tools like  our free Free Rent Analysis, Zillow, or Rentometer

Listing Strategy

• List 30–45 days prior to vacancy.

• Use professional photography.

• List on all major platforms: Zillow, HotPads, Apartments.com, MLS (if using a licensed agent).

• Understand all the pitfalls and scams going on out there.

8. Maintenance and Property Standards

Naperville’s Property Maintenance Code requires landlords to maintain rental units in habitable condition. Common maintenance violations include:

• Non-functioning smoke/carbon monoxide detectors

• Leaking windows or faulty HVAC

• Occupancy 

• Up to date smoke detectors (see new smoke detector law)

• Missing screens or weatherstripping

• Non-permitted additions

• Improperly functioning plumbing fixtures

Inspections: The city does not mandate periodic inspections, but may inspect units if complaints are filed.

Frequently Asked Questions from Naperville Landlords

Q: Do I need a license to rent in Naperville?
 A: No, but you must maintain your property to city code and comply with short-term rental regulations.

Q: Can I do short term rentals in Naperville?
 A: No, this was banned in 2020 by the City of Naperville.  There are heavy penalties for anyone trying to sneak this in.

Q: Can I use a Chicago lease for Naperville?
 A: We do not recommend it. There are different compliance standards and should use a lease tailored to local and county requirements.  Each area is different, and we follow the ordinances set by that area. 

Q: Should I offer a month-to-month lease?
 A: While legal, most HOAs prohibit short-term rentals. Annual leases are standard.  We see landlords wanting to transition tenants month-to-month leasing believing they can remove a tenant, but the same steps to evictions always occur the same way.

Q: Is eviction easier outside of Chicago?
 A: Typically, yes. But you still need to follow Illinois eviction law and file in the appropriate County Circuit Court.  If you had to evict someone in Naperville you can expect it to take you 75-120 days from the time your 5-day notice expires to the day the Dupage or Will County Sheriff shows up (dependent on property area).  

Q: What if my tenant damages the unit?
 A: Keep in mind there is a difference between damage and normal wear and tear.  Take photos or videos at move-in and move-out. Use your move-in checklist and provide detailed receipts to deduct from the deposit.  We like to use a software application that provides 360 views of all rooms.

Should You Hire a Property Manager in Naperville?

Managing a rental property in Naperville might seem straightforward—until you're coordinating maintenance, chasing payments, or facing an HOA violation. A professional property manager can:

• Set proper rental rate

• Market your listing

• Screen tenants

• Handle HOA paperwork

• Respond to maintenance issues

• Provide peace of mind with full legal compliance

• Understand and predict what is around the corner based on experience

• Give you hours back of your time per year or up to 80-100 hours back on a year when you have a move out and move in

At GC Realty & Development, we manage dozens of properties in Naperville and across the entire Chicagoland area! We understand the laws, neighborhoods, tenant base, and strategies that protect your investment.

If you have a property in Naperville, then you are in a great position for a long term rental strategy.  It is tough to find a great rental investment in Naperville in today’s market because of current market pricing, which can outpace rents making it tough to cash flow.

It is important to have cash flow or at least break even but remember there are 5 ways you make money investing in real estate.  Investing in Naperville knowing this can be the difference between holding a property long term or selling off a huge financial opportunity.

1. Hedge against inflation

2. Loan principle paydown

3. Income tax liability reduced

4. Property appreciation

5. Cash flow

To make investments work here you have to put a larger down payment down.  This isn't the case if you bought before 2022, put down a larger payment, or have a super low interest rate.  Many Naperville property owners do not realize what type of gold mine they are sitting on.

We tell people all the time that Naperville is the “blue chip” stock of owning property in the Chicago market.  Over time you will never regret investing here or holding onto it.  The journey of a real estate investor is easier when you go at it with a team so reach out anytime and we can share with you everything we know. 

Free Rent Analysis

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