O'Fallon CHAPTER 120: RESIDENTIAL RENTAL LICENSES § 120.01
RESIDENTIAL RENTAL LICENSE REQUIRED; DEFINITIONS
Operative Text
(A) License required. No person shall operate rental housing or allow rental housing owned by him or her to be operated on his or her behalf without a current, unrevoked, residential rental license issued by the city in the owner’s name (and jointly in the operator’s name if different from the owner), specifically licensing such rental housing. (B) Rental housing defined. For purposes of this chapter, RENTAL HOUSING shall constitute any dwelling unit being made available to an occupant that does not meet this chapter’s definition of an immediate family member. RENTAL HOUSING shall also include: (1) Lots or pads made available for placement of mobile homes thereon; and (2) Properties that primarily operate as hotels and motels. (C) Exceptions. Rental housing, for the purposes of this chapter, shall not include the following: (1) Lawfully operating housing for the elderly that meets the definition of “housing for older persons,” as provided in 42 U.S.C. § 3607; (2) Lawfully operating group homes governed by the Specialized Living Centers Act, 405 ILCS 25/1 et seq., as amended, dealing with the developmentally disabled, and also such other similar non-profit uses governed by state or federal laws, rules or regulations if provided such similar uses are required to be exempted by law; (3) Owner-occupied single-family dwellings having not more than one authorized boarder; and (4) Any dwelling occupied by an immediate family member (mother, father, brother sister, child) as verifiable as such by the crime-free coordinator. (D) Owner. For the purposes of this chapter, OWNER shall mean any person, partnership, trust, corporate or business entity, or condominium, townhouse or homeowner association that has a fee interest in the rental housing, including the officers, employees and agents of the owner; provided that nothing herein shall require a license of an independent agent for such matters as may be preempted by state law. (E) Prohibited rental uses. Short-term rentals of 30 days or less are not permitted in residential zoning districts. (Prior Code, § 120.01) (Ord. 3657, passed 3-1-2010; Ord. 3797, passed 5-6-2013; Ord. 4037, passed 5-7-2018) Penalty, see § 120.99
O'Fallon § 120.01 requires that anyone operating residential rental housing within the city hold a current, unrevoked residential rental license issued in the owner's name—and jointly in the operator's name if different. The rule broadly defines rental housing to include standard dwelling units, mobile home lots, and hotel or motel properties, while carving out specific exceptions such as qualifying elderly housing, certain group homes, owner-occupied single-family homes with no more than one boarder, and units occupied by immediate family members. Additionally, short-term rentals of 30 days or less are flatly prohibited in residential zoning districts under this same section.
Plain English — not legal advice.
Under O'Fallon § 120.01, compliant rental property owners obtain and maintain a current residential rental license from the city before allowing any tenant to occupy a unit, and ensure the license is issued in the owner's name—with the operator jointly named if management is delegated to a third party. Operators generally review whether their property qualifies for any of the enumerated exceptions, such as the owner-occupied single-family boarder exemption or the immediate family member exemption, and document that status accordingly. Because § 120.01 expressly prohibits short-term rentals of 30 days or less in residential zones, compliant operators do not list or rent such properties on short-term platforms in those districts.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
O'Fallon § 120.01 establishes that any landlord renting a dwelling unit to a non-family member is generally required to hold a valid residential rental license, which can be a meaningful protection for tenants. Tenants may wish to verify whether their landlord holds a current license with the city, as an unlicensed operation may constitute a violation of this chapter and could be raised in relevant proceedings. Tenant-rights organizations familiar with O'Fallon's licensing requirements can help individuals understand what options—such as reporting an unlicensed rental to the city or raising the violation as a defense—may be available under § 120.01 and the associated penalty provision at § 120.99.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 11, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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