City Rental License Landlord FAQ
What does it mean to have a rental license program?
Many suburban areas have adopted a rental licensing and inspection program for residential rental properties. A rental license may be required for a single family property, individual townhomes and/or condominium units. The purpose of a rental licensing program is:
- To protect public health, safety and welfare of the people of the city by ensuring rental units comply with minimum standards for habitation, occupancy, construction maintenance, proper use, and appearance.
- To protect the character and stability of residential neighborhoods and areas.
- To correct and prevent housing conditions that adversely affect or are likely to adversely affect the life, safety, general welfare and health of persons occupying dwellings.
- To prevent overcrowding of properties by requiring compliance with minimum space standards per occupant for each unit.
- To facilitate the enforcement of minimum standards for the maintenance of existing residential buildings and thus to prevent slums and blight.
In order to obtain the rental license, there is usually an application, a licensing fee, and a property inspection. Most times, the license is renewed annually. The initial fee may only cover one inspection and there may be additional inspection fees if multiple inspections are required. It is important to understand the regulations and costs involved regarding the city requirements as they are expenses you need to plan for. In one suburb, failure to comply may result in a fineable ticket up to $750.00 per day.
What is an occupancy certificate?
Some cities require a rental license, some require an occupancy certificate, and some require both. Some cities require an inspection be performed prior to tenant occupancy. If any violations are identified, a reasonable time will be given to correct them. After the repairs are completed, a re-inspection of the property will be scheduled. There may be additional fees for each inspection. The property must pass the inspection before an occupancy certificate is issued.
An occupancy inspection must occur prior to a tenant taking possession. Some occupancy inspections are valid for one year and others must be completed only after approving a tenant for the property. It is important to understand the rules regarding occupancy certificates as they vary depending on the location of the rental property.
What is a Point of Sale Inspection?
When selling a property, a point of sale inspection may be required by the village to check for obvious building code violations prior to the closing of the sale. These inspections typically require a small fee to be paid by the seller. During the inspection, a representative from the village will inspect the property per the local ordinances. After the inspection is complete, a list of repairs is given to the seller and the seller is given a specified period of time to correct the issues. Every attempt must be made for items noted on the point of sale inspection to be corrected prior to the sale being finalized. If the repairs cannot be completed prior to the closing, the village may require the seller to pay an escrow. The village may also require a signed affidavit from the buyer indicating the work will be completed within a certain amount of time after the closing. and/or a surety bond at the buyer’s expense to be placed with the city so that the work is guaranteed to be completed by the buyer. After repairs are completed, the inspector will return to re-inspect the property. Keep in mind the property must pass the point of sale inspection with no outstanding repairs to be completed prior to closing. Villages will not allow ownership changes, water bill changes, or rental licenses/occupancy permits to be issued if the point of sale inspection has not been completed and all issues corrected.
It is the responsibility of the buyer to confirm whether or not a point of sale inspection is required and if it has been completed. If a point of sale inspection is required, but not completed before the closing, you, as the new owner, will be responsible for the inspection and all repairs. This can be extremely costly. The inspector may require repairs to items not listed on your home inspection such as replacing a cracked garage floor or repouring a cement front walkway. These are costs you may not have budgeted for and will affect the overall financial performance of your investment.
|
Municipality |
Rental Program |
Rental License Application / Fee |
Contact for More Info |
|
Addison |
Y |
Rental License Fee; $75 - $150 (Annual) |
630/543-4100 |
|
Alsip |
Y |
Crime Free Housing License Application; $40 (Annual) |
708/385-6902 |
|
Arlington Heights |
N |
No requirement |
847/368-5000 |
|
Aurora |
Y |
Rental License Fee; $90 (Annual) |
630/844-3613 |
|
Bannockburn |
N |
No requirement |
847/945-6080 |
|
Bartlett |
N |
No requirement |
|
|
Beach Park |
Y |
Rental Dwelling Certification Application; $75 (Annual) |
847/746-1770 |
|
Bedford Park |
N |
No requirement |
708/458-2067 |
|
Bellwood |
Y |
No requirement |
708/547-3500 |
|
Bensenville |
Y |
Rental Registration; $211 (Annual) |
630/766-8200 |
|
Berkeley |
N |
No requirement |
708/449-8840 |
|
Berwyn |
N |
No requirement |
708/788-2660 |
|
Bloomingdale |
N |
No requirement |
630/893-7000 |
|
Blue Island |
Y |
Notice of Intent to Rent; $75 |
708/597-8606 |
|
Bolingbrook |
Y |
Landlord License; $35 (Annual) |
630/226-8400 |
|
Bridgeview |
Y |
Property Registration; $20 (Annual) |
708/594-2525 |
|
Broadview |
|
|
708/681-3600 |
|
Brookfield |
N |
No requirement |
708/485-7344 |
|
Buffalo Grove |
Y |
Rental Housing Program Application; $85 (Annual) |
847/459-2500 |
|
Burbank |
Y |
Property Registration |
708/599-5500 |
|
Calumet City |
Y |
Rental Application; $50 (Annual) |
708/891-8110 |
|
Calumet Park |
Y |
Rental Registration |
708/389-0850 |
|
Carol Stream |
Y |
Rental Application; $75 (Annual) |
|
|
Carpentersville |
Y |
Rental Application; $125 (Annual) |
847/426-3439 |
|
Chicago Heights |
Y |
Rental Application; $100 (Annual) |
708/756-5328 |
|
Chicago Ridge |
N |
|
708/425-7700 |
|
Cicero |
N |
No requirement |
708/656-3600 |
|
Country Club Hills |
Y |
Rental Application; $100 (Annual) |
708/798-2616 |
|
Countryside |
Y |
Rental Application; $50 (Annual) |
708/354-1860 |
|
Crest Hill |
Y |
Rental Registration |
815/741-5100 |
|
Crestwood |
Y |
Rental Registration ($100 Every two years) |
708/371/4800 |
|
Deerfield |
N |
No requirement |
847/719-7484 |
|
DeKalb |
Y |
Rental Registration; $50 (Annual) |
|
|
Des Plaines |
Y |
Rental Application; $100 (Annual) |
847/391-5300 |
|
Dolton |
Y |
Rental Application; $50 (Annual) |
708/201-3295 |
|
East Dundee |
Y |
Rental Application; $100 (Annual) |
847/426-2822 |
|
Elgin |
Y |
Rental Application; $149 (Annual) |
847/931-6100 |
|
Elmhurst |
N |
No requirement |
630-530-3030 |
|
Elk Grove Village |
Y |
Crime Free Housing Application ; $100 (Annual) |
847/357-4000 |
|
Elmwood Park |
Y |
Rental Application; $125 (Annual) |
708/452-7300 |
|
Evanston |
Y |
Rental Registration; $200 + $20 (Annual) |
847/328-2100 |
|
Evergreen Park |
Y |
Rental Registration; $35 (Annual) |
708/422-1551 |
|
Forest Park |
N |
No Requirement |
708/615-6276 |
|
Fox Lake |
Y |
Rental Registration; $50 (Annual) |
847/587-2151 |
|
Fox River Grove |
N |
No requirement |
847/639-3170 |
|
Franklin Park |
Y |
Rental Registration (Annual) |
847/671-8245 |
|
Glen Ellyn |
N |
No requirement |
630/469-5000 |
|
Glendale Heights |
Y |
Rental Application; $300 (Annual) |
630/260-6000 |
|
Glenwood |
Y |
Rental Registration; $100 (Annual) |
708/758-5155 |
|
Hanover Park |
Y |
Rental Application; $100 (Annual) |
630/372-4200 |
|
Harvey |
Y |
Rental Registration (Annual) |
708/210-5300 |
|
Harwood Heights |
N |
No requirement |
708/867-7200 |
|
Hazel Crest |
Y |
Rental Registration (Annual) |
708/335-9600 |
|
Highwood |
Y |
Rental Registation; $100, $150 (Annual) |
847/432-1924 |
|
Hillside |
N |
No requirement |
708/449-6450 |
|
Hoffman Estates |
Y |
Rental Application; $150 (Annual) |
847/882-9100 |
|
Indian Head Park |
N |
No requirement |
708/246-3080 |
|
Island Lake |
Y |
Rental Registration; $50 (Every two years) |
847/526-8764 |
|
Joliet |
Y |
Rental Registration; $100 (Annual) |
815/724-4070 |
|
Justice |
N |
No requirement |
708/458-2520 |
|
Lake Forest |
N |
No requirement |
847/234-2600 |
|
Lake Villa |
N |
No requirement |
847/356-6100 |
|
Lansing |
Y |
Rental Application; $100 (Annual) |
|
|
Lisle |
N |
No requirement |
630/271-4100 |
|
Lynwood |
N |
No requirement |
708/758-6101 |
|
Lyons |
N |
No requirement |
708/447-8886 |
|
Markham |
Y |
Rental Application; $75 (Annual) |
708/331-4905 |
|
Matteson |
Y |
Rental Registration |
708/283-4900 |
|
Maywood |
Y |
Rental Registration; Annual |
708/344-1200 |
|
Melrose Park |
N |
No requirement |
708/343-4000 |
|
Midlothian |
Y |
Rental Registration; $30 (Annual) |
708/389-0200 |
|
Mount Prospect |
Y |
Rental Registration; $75 (Annual) |
847/392-6000 |
|
Norridge |
N |
No requirement |
708/453-0800 |
|
Northlake |
N |
No requirement |
708/343-8700 |
|
North Riverside |
Y |
Rental Applicaion; $50 (Annual) |
708/447-4211 |
|
Oak Forest |
Y |
Rental Applicaion; $100 (Annual) |
708/687-4050 |
|
Oak Lawn |
Y |
Rental Registration; $200 (Annual) |
708/499-7800 |
|
Oak Park |
Y |
Rental Registration; $10 (Annual) |
708/383-6400 |
|
Olympia Fields |
Y |
Rental Registration |
708/503-8000 |
|
Orland Park |
Y |
Rental License; $50 (Annual) |
708/403-5300 |
|
Palatine |
Y |
Rental License; $83 (Annual) |
847/358-7500 |
|
Park Forest |
N |
No requirement |
708/748-1112 |
|
Park Ridge |
N |
No requirement |
847/318-5200 |
|
Port Barrington |
N |
No requirement |
847/639-7595 |
|
Prospect Heights |
Y |
Rental Application; $25 (Annual) |
847/398-6070 |
|
Richton Park |
N |
No requirement |
708/481-5086 |
|
Riverdale |
Y |
Rental Application; $50 (Annual) |
708/841-2200 |
|
River Forest |
N |
No requirement |
708/366-8500 |
|
River Grove |
N |
No requirement |
708/453-8000 |
|
Riverside |
N |
No requirement |
708/447-2700 |
|
Rolling Meadows |
Y |
Rental Application; $75 (Annual) |
847/394-8500 |
|
Sauk Village |
Y |
Rental Registration |
708/758-3330 |
|
Schaumburg |
Y |
Rental License; $65 (Annual) |
847/895-4500 |
|
Schiller Park |
Y |
Rental Registration (Annual) |
847/678-2550 |
|
South Chicago Heights |
Y |
Rental Registration |
708/755-1880 |
|
South Holland |
Y |
Rental License; $75 (Annual) |
708/210-2900 |
|
Steger |
N |
No requirement |
708/754-3395 |
|
Stickney |
N |
No requirement |
708/749-4400 |
|
Streamwood |
Y |
Rental License; $150 (Annual) |
630/837-0200 |
|
Summit |
N |
No requirement |
708/563-4823 |
|
University Park |
Y |
Rental Registration |
708/534-4811 |
|
Villa Park |
N |
No requirement |
630/834-8505 |
|
Wauconda |
N |
No requirement |
847/526-9600 |
|
Westchester |
N |
No requirement |
708/345-0020 |
|
West Chicago |
Y |
Rental Application; $265 (Annual) |
630/293-2200 |
|
Wheeling |
Y |
Rental Application; $100 (Annual) |
847/459-2600 |
|
Wood Dale |
Y |
Rental Registration; $150 (Annual) |
|
|
Woodridge |
Y |
Rental Registration; No fee (One-time) |
630/719-4712 |
