Prospect Heights CHAPTER 7 PROPERTY RENTAL CODE § 3-7-1

Every person, individual, firm, owner, corporation or landlord or combination thereof engaged in the business of leasing or renting any apartment building, multiple-unit, multiple dwelling, non-owner occupied, short-term rental property, dwelling or dwelling units whether compensated or not is hereby required to make application to and receive an annual license from the city before engaging or continuing in such business. The application shall be accompanied by the annual license fee and first inspection fee.


Annual License Fee:

Commercial space:
twenty-five dollars ($25.00)
Residential dwelling unit:
twenty-five dollars ($25.00)
Short-Term Residential Rental:
five hundred dollars ($500.00)





An application for a license required by this chapter shall be made in conformance with section 2-1-2 of this code. The city shall issue said license if the following conditions are met:


A. Code Compliance: The applicant's property is not in violation of any ordinance of the city.


B. Designation Of Agent: No operating license shall be issued or renewed for an applicant unless such applicant has first designated an agent for the receipt of service of complaints for violations of the provisions of this chapter or code and for service of process pursuant thereto when said applicant is absent from his or her normal place of business. Such a designation shall be made in writing, and shall accompany each application form.


C. Renewal Of License: An application for renewal of an operating license shall be made thirty (30) days prior to the expiration of the current operating license. An application form shall be mailed to owner at least forty five (45) days prior to the expiration of the current operating license. The city shall have the right to audit bookings and payments at the time of renewal for short-term rental properties to ensure all required payments were made to the city.


D. Notice Of Change In Ownership: Every person holding an operating license shall give notice in writing to the building official within ten (10) days after having transferred or otherwise disposed of legal control of any licensed apartment building, multiple unit, multiple dwelling, dwelling or dwelling units. Such notice shall include the name and address of the person or persons succeeding to the ownership or control of such apartment building, multiple unit, multiple dwelling, dwelling or dwelling units.


E. Term Of License: Every license shall be in effect for the current fiscal year (May 1 - April 30) unless sooner revoked for cause by the city. However, no new license for a short-term rental property shall be issued unless first authorized by the city council and is consistent with the requirements of the city's zoning ordinance. No license issued to a short-term rental property shall be transferable to another person or location.


F. Definitions.


OCCUPIED, NON-OWNER:
Any single-family, condominium, townhome dwelling unit the property owner does not occupy as their primary residence.

OWNER:
An individual with at least a fifty one percent (51%) ownership interest in the property on which the short-term rental property is situated.

SHORT-TERM RENTAL MARKETPLACE:
A platform through which the owner or authorized agent of the owner of the single-family or residential dwelling unit offers a short-term/vacation rental to an occupant/customer.

SHORT-TERM RENTAL PROPERTY:
A single-family dwelling, that is offered through a short-term rental market place for rent for a period shorter than thirty (30) consecutive days to any person other than a member of the owner's family. The term "short-term rental" shall not include hotels, motels, or lodging establishments licensed pursuant to this Code or a unit that is used for non-residential purposes such as educational, healthcare, retail, restaurant, banquet space, event center, or other similar uses.






(Ord. 0-01-35, 12-17-2001, eff. 12-27-2001; amd. Ord. O-23-04, 2-27-2023)