🎯 STRisker: Bulletin - St. Charles, IL
St. Charles Steps Toward Regulating Short-Term Rentals
A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.
St. Charles Steps Toward Regulating Short-Term Rentals
Big changes may be coming for short-term rentals in St. Charles as city leaders begin crafting rules for platforms like Airbnb and Vrbo, which currently operate in a regulatory gray area. At a June 9 Planning and Development Committee meeting, city staff recommended a series of new regulations and taxes aimed at bringing oversight and revenue to this fast-growing industry.
Right now, short-term rentals aren’t defined in the city’s zoning code, and operators aren’t taxed. That may soon change. Community Development Director Russel Colby and Business Alliance Director Jenna Sawicki proposed steps to address the growing number of rentals—now estimated at 47, more than triple the count from five years ago. Most are located in single-family homes.
Suggested actions include formally defining short-term rentals in city code, limiting where they can be located through zoning rules, requiring a licensing or registry system, and imposing a tax similar to the city’s 5% hotel tax. That tax alone could have brought in over $70,000 last year, Colby noted, based on 2024’s reported $1.27 million in STR revenue.
The city has received only a handful of complaints about short-term rentals, but officials say the lack of oversight makes it hard to respond to issues. A licensing program could help establish clear standards and allow the city to enforce violations more effectively. Some residents, however, say issues are already affecting their neighborhoods.
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Ward 2 Alderman Ryan Bongard echoed these concerns, saying his area—north of Route 64 and east of Persimmon Drive—has been especially impacted. He emphasized the importance of regulating STRs in residential zones, especially near schools.
Despite some positives, like bringing in more tourism dollars without adding infrastructure, city officials agree that clearer “guard rails” are needed. Staff will now begin drafting code amendments and a fee structure, which will be brought back to the committee at a future date for review.
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