Schaumburg — Ch. 123 Rental License, Association License and Vacant Building Registration § 123.02
RENTAL LICENSE REQUIRED
Operative Text
(A) License Required: No person shall engage in the business of renting without having obtained a license. For purposes of this chapter, the "business of renting" shall include, but not be limited to, the rental, offering for rent, or advertisement for rent of any property in the village. (1) Residential Property: It shall be unlawful to rent a residential dwelling or dwelling unit without first obtaining a rental license issued by the department of finance for the specific location. (2) Nonresidential Property: It shall be unlawful to rent a nonresidential building or structure without first obtaining a rental license issued by the department of finance for the specific location. (3) Short-Term Rental: It shall be unlawful to rent, offer for rent, or advertise for rent a short-term rental in the village without first obtaining a rental license issued by the department of finance for the specific location. (4) Accessory Structures: It shall be unlawful to rent any accessory building or structure on a residential property for human habitation. Any accessory structure may be utilized as an amenity at any specific location for which a rental license has been issued pursuant to this chapter. (5) Exception: This licensing requirement shall not apply to group homes governed by 405 ILCS 35/1 et seq., as amended, Specialized Living Centers Act, dealing with the developmentally disabled, or other similar uses governed by state or federal laws, rules or regulations. (B) Application: Application for a license hereunder shall be submitted and processed in accordance with chapter 110 of this title and shall submit the following information in an application provided by the village: (1) Name, address, and home and business telephone numbers of the owner of the property and, if property is held in trust, the name, address, home and business telephone numbers of the beneficiaries and the percentages of ownership of all the beneficiaries of the trust, appropriate corporate or partnership information. The name, address and phone number of the management company and agent representing an association shall be provided. (2) Name, address (no P.O. boxes), business and home telephone numbers of the owner or agent to be contacted when potential violations of municipal ordinances occur. (3) Telephone number of the owner or agent to be contacted when an emergency exists. (4) An acknowledgment that the agent or owner shall be reasonably accessible to the village and have a telephone number which shall be available to the village at any time. The owner or agent shall have a local office available for contact in Illinois. (5) In the event any of the information requested should change, it shall be the obligation of the owner to notify the village in writing within ten (10) days of the change. (6) No license shall be issued or renewed unless the owner, condominium, townhouse, or homeowners' association, or operator agrees in their application to inspection pursuant to this chapter as the village manager may require to determine whether the location in connection with which such license is sought is in compliance with the applicable provisions of this chapter and with the applicable rules and regulations pursuant thereto. (7) No license shall be issued or renewed for a short-term rental unless the director of community development, or their designee, finds the following standards have been met: (a) The proposed short-term rental will not cause a negative cumulative effect when its effect is considered in conjunction with the effect of other short-term rentals in the immediate neighborhood. (b) The proposed short-term rental will not have a substantial adverse impact on the use, enjoyment or property values of adjoining properties. (c) The proposed short-term rental will comply with all rules and regulations contained herein. (d) The proposed short-term rental is not likely to have an adverse effect upon the public health, welfare or safety. (e) The proposed short-term rental will otherwise be in the public interest. (f) Any short-term rental shall comply with the following criteria: 1. No rental or advertisement for rental for a period of time shorter than twenty (20) hours. 2. No short-term rental may provide for food or beverage to any guests with the exception of pre-packaged food and drink items. 3. No more than one (1) short-term rental shall be allowed during any specific time period at a specific location during the one-year period commencing on the date a license is issued, and at no time shall the total occupancy at the location exceed the maximum occupancy allowed for said location. Multiple short-term rentals at the same location during any specific time period are prohibited. 4. Any short-term rental shall be subject to the hotel and motel tax set forth in the village Code, as may be amended from time to time. 5. No corporate entity, including, but not limited to, corporations, LLCs, partnerships, franchises, or any other business entity, shall operate, manage, or own a short-term rental property, except properties owned by trusts or estates where the beneficiary or trustee is a natural person. 6. A short-term rental shall not be located within seven hundred fifty (750) feet of the property line from another short-term rental's property line. 7. Any short-term rental property lawfully operating as of the effective date of the ordinance enacting section 123.02 (7)(f)(6) of this Code shall be deemed a legal nonconforming use and shall retain such status as long as it maintains a valid license to operate a short-term rental. However, upon any transfer of ownership of the property, the property shall be reclassified as a nonconforming use and shall immediately forfeit its legal nonconforming status, thereby prohibiting any future operation of the property as a short-term rental under the prevailing regulations. Additionally, if a license is not renewed or is revoked in accordance with section 110.25 , then the property will forfeit it's legal nonconforming status. (C) License Fee: The cost of a license shall be as set forth in section 41.01 of this Code. (D) All persons applying for a rental license for residential property are subject to the requirements set forth in this section and section 99.10 of this Code. (E) Suspension or Revocation of a License: Should an owner or operator of a rental property, including a short-term rental, allow the property to be operated in a way that creates a nuisance may be subject to suspension or revocation of its license. Such actions will follow the procedures outlined in section 110.25 . (F) Inspections: The village manager may require inspections to determine whether the location in connection with which such license is in compliance with the applicable provisions of this chapter and with the applicable rules and regulations pursuant thereto. After inspection, no such license shall be issued unless the location is found to meet all applicable requirements of this chapter and applicable rules and regulations pursuant thereto. Locations that change ownership and comply with section 123.02 (7)(f)(6) of this Code may be required to be inspected before a new license can be issued. After inspection, no such license shall be issued unless the location is found to meet all applicable requirements of this chapter and applicable rules and regulations pursuant thereto. Whenever, upon inspection of the location, the director of community development or designee finds that conditions or practices exist which are in violation of the provisions of this chapter or of any applicable rules and regulations pursuant thereto, the owner shall be served with notice of such violation in the manner hereinafter provided. Such notice shall state that unless the violations cited are corrected within reasonable time, the license may be denied, suspended, or revoked per section 110.25 , or citations issued per section 43.02 .
Schaumburg § 123.02 establishes that anyone engaged in renting property within the village — whether residential, nonresidential, or short-term — must first obtain a rental license from the village's department of finance for each specific location. Renting, advertising, or offering any property for rent without that license is unlawful. Accessory structures on residential properties may not be rented for human habitation, though they can serve as amenities tied to a licensed location. Certain group homes and similar uses protected under state or federal law are exempt from this licensing requirement.
Plain English — not legal advice.
Under § 123.02, compliant property owners and managers in Schaumburg obtain a rental license from the department of finance before renting, advertising, or offering any residential, nonresidential, or short-term rental property. They keep their application information current — notifying the village in writing within ten days of any changes — and maintain a reachable local Illinois contact for both routine inquiries and emergencies. Operators of short-term rentals also ensure their properties meet the additional criteria set out in § 123.02(B)(7), including distance requirements, occupancy limits, and the prohibition on corporate ownership, and they remain prepared for inspections that may be required before a license is issued or renewed.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 123.02 requires that any landlord renting a residential dwelling or unit in Schaumburg hold a valid rental license issued for that specific address, which means tenants have a basis to verify whether their landlord is operating lawfully. If a property is found to be operating without a license or in violation of this chapter, the village may issue citations under § 43.02 or pursue license suspension or revocation under § 110.25. Tenants who believe their rental property is unlicensed or otherwise out of compliance with § 123.02 may consider contacting the village's department of community development or consulting a tenant-rights organization to understand the options available to them.
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 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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