Requirements

Short term rentals or tourist homes, which are commonly booked through AirBnb and VRBO, are required to obtain a limited use permit prior to beginning operations. The tourist home must also remit the local occupancy tax (7% hotel/motel tax) directly to the City of Crystal Lake.

Applications

Apply for a limited use permit through the City's online portal (ez APP): Development Applications

Occupancy tax remittance form to be completed monthly or quarterly: Hotel Tax Remittance Form 2023.11

(Please direct any questions about the tax remittance to the Finance Department at 815-459-2020)

Regulations

General:

  • A tourist home may only be operated in the F, E, RE, R-1, R-2, R-3A, R-3B, R-O, or B-4 Zoning Districts pursuant to the terms and conditions of a limited use permit and applicable criteria set forth in the City Code.
  • A tourist home must be located in a structure that is permitted in the zoning district in which it is located.
  • Accessory structures cannot be utilized as a tourist home.
  • Occupancy. A tourist home shall be restricted as follows: A maximum of five bedrooms are permitted in a tourist home. All occupants shall have bedroom space which meets the following criteria: 70 square feet of bedroom space shall be provided in each bedroom occupied by not more than one person. If more than one person occupies a bedroom, such bedroom shall contain not less than 50 square feet per person. Kitchens, bathrooms, hallways, and closets are not considered habitable rooms for sleeping purposes.
  • No tourist home may be rented for a period of less than 24 hours.
  • Off-street parking: The site shall comply with the required number of parking spaces identified in Section 4-200, Off-street parking and loading. Parking areas having fewer than 10 spaces are not required to meet the landscaping requirements.
  • Tourist homes do not include rooming or boardinghouses in which a tenant shall contemporaneously occupy a dwelling unit (or portion thereof) with the owner or long term tenant of the dwelling unit. Tourist homes also do not include: a) a dwelling unit that is used for any nonresidential purpose, including event center, banquet facility, wedding venue, or another similar uses; or b) a bed-and-breakfast establishment as defined by Section 2 of the Illinois Bed and Breakfast Act (50 ILCS 820/2).
  • Life safety. No premises may be operated as or used for a tourist home unless and until a certificate of occupancy has been issued for such use by the City. As a condition for any such certificate of occupancy, the premises shall be required to pass a life safety inspection administered by the City or a City designee.
  • The limited use permit for any tourist home that is found to have violated provisions of City Code Chapter 364, Nuisances, four times in any twelve-month period will be revoked.
  • The limited use permit for any tourist home shall be revoked if:
    i. The operator of the tourist home fails to register with the City in accordance with the § 467-42; or
    ii. The operator of the tourist home fails to comply with the requirements of Article VIII of Chapter 467 of the City Code and fails to correct such noncompliance with 30 days after the latest of: A) a notice sent pursuant to § 467-45; B) the conclusion of a hearing pursuant to § 467-45; or C) the conclusion of an appeal pursuant to § 467-46.
  • The owners, renters, and guests of a tourist home shall be jointly and severally liable for any fines or penalties incurred as a result of violations of City Code provisions occurring on the premises of such tourist home.
  • The limited use permit application must contain contact information for a person who can be reached locally in case of emergencies.