Overview: Are Short-Term Rentals Allowed in Peoria, IL?

Yes, short-term rentals are allowed in Peoria, Illinois, but the requirements differ depending on whether the property is within city limits or in unincorporated Peoria County.

City of Peoria (Incorporated Areas): Short-term rentals are permitted but require proper licensing and may require additional approvals depending on the specific circumstances.

Peoria County (Unincorporated Areas): Short-term rentals are allowed but require Special Use approval from the Peoria County Board in most zoning districts.

How to Start a Short-Term Rental Business in Peoria

For Properties Within City of Peoria Limits:

1. Initial Consultation: Call 309-494-8600 or email communitydevelopment@peoriagov.org to determine if you need a Special Use Permit before applying for your license.

2. Determine Zoning Compliance: Verify your property's zoning allows for short-term rental operations.

3. Apply for License: Submit your application through the online portal at Short-Term Rental License & Tax Portal.

4. Obtain Insurance: Maintain appropriate liability insurance coverage.

5. Set Up Tax Collection: Prepare to collect and remit the 8% Municipal Hotel/Motel/Room Rental Tax.

For Properties in Unincorporated Peoria County:

1. Contact Planning & Zoning: Reach out to a Planner in the Department of Planning & Zoning to discuss the Special Use approval process.

2. Submit Special Use Application: Apply for approval from the Peoria County Board, which typically reviews Overnight Accommodations requests.

3. Attend Public Hearings: Be prepared to present your case at public hearings before the County Board.

4. Comply with Conditions: Meet any conditions imposed as part of the Special Use approval.

Required Documents, Permits, Licenses, and Guidelines

City of Peoria Requirements:

Short-Term Rental License:

• Annual license fee: $75 per rental unit
• License must be renewed by January 31 each year
• Each unit requires its own license
• Apply online through the designated portal

Tax Obligations:

• Municipal Hotel/Motel/Room Rental Tax: 8% per rented unit, per 24-hour period
• Rentals of 30 days or longer are exempt from this tax
• Submit annual city tax return form with supporting documents
• Payment options: monthly, quarterly, or annually through the same portal as licensing

Insurance Requirements:

• Maintain appropriate liability insurance
• Submit certificate of insurance with license application

Additional Documentation:

• Proof of property ownership
• Property management information (if applicable)
• Emergency contact information
• Guest rules and house policies

Peoria County (Unincorporated) Requirements:

Special Use Permit:

• Required for Overnight Accommodations in most zoning districts
• Approval from Peoria County Board required
• May involve public hearings and neighborhood notification
• Subject to conditions and ongoing compliance requirements

Specific Regulations for Short-Term Rentals

City of Peoria Current Regulations:

Density Limits:

• Currently, up to 3% of homes within a 0.25-mile radius can be short-term rentals
• Proposed changes would reduce this to 1% within a half-mile radius
• Minimum distance requirements being considered (proposed 1,500 feet between rentals)

Occupancy and Operations:

• No specific occupancy limits mentioned in current regulations
• Noise and disturbance regulations apply
• Standard residential property maintenance requirements

Enforcement:

• Properties operating without proper licenses are subject to $300 citations
• Code Enforcement Department handles violations
• Repeat violations can result in court orders to cease operations

Peoria County (Unincorporated) Regulations:

Zoning Classification:

• Short-term rentals classified as "Overnight Accommodations"
• Includes various types: bed and breakfast, hotel, motel, boarding house, rooming house
• Applies to properties advertised on platforms like Airbnb and VRBO

Approval Process:

• Special Use approval required in most zoning districts
• Case-by-case review by County Board
• Conditions may be imposed based on location and neighborhood impact

State of Illinois Regulations:

While specific state-level short-term rental regulations were not detailed in the provided content, operators should be aware of:

• Illinois state sales tax obligations (6.25%)
• State hotel and retail sales tax requirements
• Building and safety code compliance
• Local municipality ordinances typically govern STR operations

Contact Information for Local Authorities

City of Peoria:

Community Development Department:

• Phone: 309-494-8600
• Email: communitydevelopment@peoriagov.org
• Address: 419 Fulton St. Rm. 111, Peoria, IL 61602
• Office Hours: Monday - Friday, 8:00 AM - 5:00 PM

Property Registration:

• Phone: 309-494-8588
• Email: rentalregistration@peoriagov.org
• Mailing Address: 419 Fulton St. Rm. 111, Peoria, IL 61602

Main City Contact:

• Phone: 309-494-2273
• Address: 419 Fulton Street, Peoria, IL 61602

Peoria County:

Department of Planning & Zoning:

• Contact through main county directory
• Address: Peoria County Courthouse, 324 Main Street, Peoria, IL 61602
• Phone Directory: Available at peoriacounty.gov/directory

Additional County Services:

• Building Inspections: Available through county website
• Code Enforcement: Contact through main directory
• Fee Schedule: Available at Peoria County Fee Schedule

Important Notes and Upcoming Changes

Proposed Regulatory Changes (Under Discussion):

The Peoria City Council has been considering amendments to short-term rental regulations, including:

• Stricter density limitations (reducing from 3% to 1% in larger radius areas)
• Increased minimum distances between properties
• Enhanced neighbor notification processes
• Streamlined licensing processes (potentially moving to comptroller's office)

Note: These changes were under discussion as of December 2023 but had not been implemented at the time of the provided content.

Enforcement Actions:

The city has demonstrated active enforcement, with at least one property accruing approximately $13,500 in fines for operating without proper permits.

Market Considerations:

As of the provided information, approximately 80 short-term rentals were operating in Peoria, indicating a moderately sized but regulated market.

Source Links

1. Peoria County Short-Term Rental Property Information
2. City of Peoria Residential Property Registration
3. City of Peoria Short-Term Rental License Portal
4. City of Peoria Non-Owner Occupied Registration Application
5. City of Peoria Short-Term Rental Tax Return Worksheet
6. Peoria County Fee Schedule
7. Peoria County Ordinances Online
8. City Council Discussion on STR Regulations (25News Now)
9. City of Peoria Permits and Licenses

Disclaimer: This guide is based on information available as of the provided content. Regulations may change, and investors should verify current requirements with local authorities before making investment decisions.