Bloomington Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Bloomington, Illinois?

Bloomington, Illinois, has enacted regulations for short-term rentals (STRs) like Airbnb and VRBO to balance the interests of property owners, residents, and visitors. These rules are outlined in the city's zoning ordinances and aim to preserve the character of residential neighborhoods while allowing for responsible STR operations.

Starting a Short Term Rental Business in Bloomington

To start a short-term rental business in Bloomington, property owners must adhere to the following requirements:

• Zoning: STRs are permitted in any district that allows one-family residential dwellings, two-family residential dwellings, multiple dwellings, bed and breakfasts, hotels, and/or motor hotels. The property must comply with the specific zoning requirements for the district in which it is located.
• Conditional Use Permit: Property owners must apply for a conditional use permit with the City Clerk and Planning and Zoning Department. The application is processed in the same manner as special use permits and must be approved by the Joint Planning and Zoning Commission and City Council.
• Standards: To be approved for a conditional use permit, the STR must meet certain standards, including:
  - Compliance with building, fire, and safety codes
  - Adequate off-street parking
  - Commercial liability insurance coverage of at least $1,000,000 per occurrence
  - Registration for hotel/motel tax collection and remittance

1. Occupancy Limits: The maximum occupancy for an STR is determined by the number of bedrooms, with a limit of two guests per bedroom plus two additional guests.
2. Licensing: No person, partnership, corporation, or association shall operate an STR without first obtaining a conditional use permit for each location. If a property has multiple units, only one conditional use permit is required for that location.
3. Taxes: STR owners must collect and remit the City of Bloomington's 6% Short-Term Rental Tax, which applies to the gross rental charge for any dwelling rented for overnight accommodations for less than 30 consecutive days.

The approval process for Bloomington's STR ordinance involved input from various stakeholders, including property owners, neighborhood associations, and the Bloomington-Normal Area Convention and Visitors Bureau. The regulations aim to strike a balance between the benefits of STRs, such as increased tourism and economic activity, and the potential impacts on neighborhoods, such as noise, parking, and housing affordability.

Property owners can successfully operate short-term rentals while contributing positively to the community by understanding and complying with Bloomington's STR regulations. The city's enforcement efforts, including inspections and fines for violations, help ensure a level playing field for all lodging providers and protect the quality of life for residents.

Short-Term Rental Licensing Requirement in Bloomington

Property owners must obtain a conditional use permit from the city to legally launch a short-term rental business in Bloomington, Illinois. This permit serves as the STR's license and ensures compliance with local zoning regulations, building codes, and safety standards.

The process for obtaining a conditional use permit involves the following steps:

1. Application: Property owners must submit a completed application to the City Clerk and Planning and Zoning Department. The application requires information such as the property address, owner's contact details, and a description of the proposed STR operation.
2. Fees: A non-refundable application fee of $250 must be paid at the time of submission. This fee covers the administrative costs associated with processing the application and conducting necessary inspections.
3. Public Hearing: The Joint Planning and Zoning Commission will hold a public hearing to consider the conditional use permit application. Property owners within 250 feet of the proposed STR will be notified of the hearing and have the opportunity to provide input.
4. Approval: Following the public hearing, the Joint Planning and Zoning Commission will make a recommendation to the City Council. The City Council will then vote on whether to approve the conditional use permit. If approved, the permit will be issued by the City Clerk.
5. Renewal: Conditional use permits for STRs are valid for one year from the date of issuance. Property owners must apply for renewal at least 30 days before expiration. A renewal fee of $100 is required.

It's important to note that a separate conditional-use permit is required for each STR location. However, if a property has multiple units, only one permit is needed for that location.

In addition to the conditional use permit, STR owners must also comply with other licensing requirements, such as registering with the City of Bloomington for hotel/motel tax collection and remittance. Failure to obtain the necessary permits and licenses can result in fines and legal action.

Required Documents for Bloomington Short-Term Rentals

Property owners must submit several required documents to apply for a conditional use permit and operate a short-term rental in Bloomington, Illinois. These documents ensure that the STR complies with local regulations and meets safety standards. The following is a list of the necessary documents:

1. Completed Application Form: The STR conditional use permit application form must be filled out entirely, providing accurate information about the property owner, the rental unit, and the proposed STR operation.
2. Property Deed or Lease Agreement: Applicants must provide a copy of the property deed or lease agreement, demonstrating their legal right to operate an STR at the specified location. If the applicant is not the property owner, written permission from the owner is required.
3. Floor Plan: A detailed floor plan of the STR unit must be submitted, clearly indicating the number and location of bedrooms, bathrooms, and common areas. The floor plan should also specify the maximum occupancy allowed in the unit.
4. Site Plan: A site plan is required to show the location of the STR unit on the property and the designated parking spaces for guests. The site plan should also include any outdoor amenities, such as patios or decks.
5. Proof of Insurance: STR owners must provide proof of commercial liability insurance coverage with a minimum limit of $1,000,000 per occurrence. The insurance policy must be specific to the STR operation and cover any potential damages or injuries that may occur on the property.
6. Fire and Safety Inspection Report: The STR unit must pass a fire and safety inspection conducted by the Bloomington Fire Department. The inspection report, confirming compliance with all applicable building, fire, and safety codes, must be submitted with the application.
7. Hotel/Motel Tax Registration: STR owners are required to register with the City of Bloomington for the collection and remittance of the 6% Short-Term Rental Tax. Proof of registration must be provided as part of the conditional use permit application.
8. Neighborhood Notification: Applicants must provide evidence that they have notified property owners within 250 feet of the proposed STR location about their intent to operate a short-term rental. This notification can be in the form of a letter or a copy of the public hearing notice.

By gathering and submitting these required documents, STR owners in Bloomington can demonstrate their commitment to operating their rental properties responsibly and in compliance with local regulations. Failure to provide any of these documents may delay or deny the conditional use permit application.

Bloomington Short-Term Rental Taxes

In addition to obtaining a conditional use permit, short-term rental owners in Bloomington, Illinois, are required to collect and remit various taxes. These taxes help support local services and infrastructure, ensuring that STRs contribute to the community in which they operate. The primary tax applicable to STRs in Bloomington is the Short-Term Rental Tax.

Short-Term Rental Tax: The City of Bloomington imposes a 6% Short-Term Rental Tax on the gross rental charge for any dwelling rented for overnight accommodations for less than 30 consecutive days. This tax is in addition to any other applicable taxes, such as state and local sales taxes.

STR owners are responsible for collecting the Short-Term Rental Tax from their guests and remitting it to the City of Bloomington on a monthly basis. The tax is due on the 20th day of the month following the month in which the rental occurred. For example, taxes collected in January must be remitted by February 20th.

Registration and Remittance: STR owners must register with the City of Bloomington's Finance Department to comply with the Short-Term Rental Tax requirements. The registration process involves completing a form and providing information about the STR operation, such as the property address and owner's contact details.

Once registered, STR owners will receive a unique identification number and instructions for remitting the collected taxes. The City of Bloomington provides an online portal for tax remittance, allowing STR owners to easily submit their tax payments and required documentation.

1. Record Keeping: STR owners must maintain accurate records of all rental transactions, including the dates of stay, rental amounts, and taxes collected. These records should be kept for a minimum of three years and made available for inspection by the City of Bloomington upon request.
2. Penalties and Interest: Failure to collect and remit the Short-Term Rental Tax in a timely manner may result in penalties and interest charges. The City of Bloomington imposes a penalty of 10% of the tax due for each month or fraction thereof that the tax remains unpaid, up to a maximum of 50%. Interest is also assessed at a rate of 1% per month on any unpaid tax, penalty, or interest.

Bloomington Wide Short-Term Rental Rules

In addition to the licensing and tax requirements, short-term rental owners in Bloomington, Illinois, must adhere to a set of city-wide rules and regulations. These rules are designed to protect the quality of life for residents, maintain the character of neighborhoods, and ensure the safety of guests. The following are some of the key STR rules in Bloomington:

1. Occupancy Limits: The maximum occupancy for an STR is determined by the number of bedrooms in the unit. The limit is set at two guests per bedroom and two additional guests. For example, a two-bedroom STR can accommodate up to six guests.
2. Parking: STRs must provide off-street parking for their guests. The number of required parking spaces is based on the maximum occupancy of the unit, with a minimum of one space per bedroom. Guests should be provided with information on the designated parking areas and any parking restrictions in the neighborhood.
3. Noise and Nuisance: STRs are subject to the city's noise and nuisance ordinances. Guests should be informed of quiet hours, typically from 10:00 PM to 7:00 AM, and asked to respect the peace and tranquility of the surrounding neighborhood. STR owners are responsible for addressing any complaints related to noise, trash, or other nuisances caused by their guests.
4. Safety Requirements: All STRs must comply with applicable building, fire, and safety codes. This includes having working smoke detectors, carbon monoxide detectors, and fire extinguishers in the unit. The STR must also have clearly marked emergency exits and a first-aid kit readily available for guests.
5. Signage: STRs are prohibited from displaying any exterior signage advertising the rental unit. This helps maintain the residential character of neighborhoods and prevents the commercialization of STRs.
6. Trash and Recycling: STR owners must provide adequate trash and recycling receptacles for their guests. The receptacles should be stored neatly and orderly, and trash should be disposed of according to the city's waste management schedule.
7. Inspections: The City of Bloomington has the right to inspect STRs for compliance with local regulations. With proper notice, STR owners must allow city officials to enter the rental unit to conduct inspections related to building, fire, and safety codes.
8. Good Neighbor Policy: STR owners are encouraged to establish a good neighbor policy and provide guests with information on being respectful of the surrounding community. This may include parking, noise, and trash disposal guidelines, as well as contact information for the STR owner or property manager in case of any issues.

Does Bloomington Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, Bloomington appears to have a moderate approach to enforcing its short-term rental regulations compared to other cities. While the city has established rules and requirements for STRs, the general consensus is that Bloomington is relatively Airbnb-friendly, striking a balance between the interests of property owners and the community.

Several BiggerPockets and Reddit users have noted that Bloomington's STR regulations are clear and well-defined, making it easier for hosts to understand and comply with the requirements. While thorough, the city's conditional use permit process is generally seen as fair and straightforward. Many hosts appreciate the city's efforts to create a level playing field for all STR operators while still allowing for the growth of the short-term rental market.

Compared to some cities that have taken a more restrictive stance on STRs, Bloomington is considered to be more accommodating. The city has not ban STRs in residential neighborhoods outright or implemented strict density limitations. Instead, Bloomington has focused on ensuring that STRs meet specific standards and do not negatively impact the quality of life for residents.

While some hosts may operate STRs without obtaining the necessary permits or complying with all the regulations, the prevailing opinion is that Bloomington's not worth the risk. The city has the authority to issue fines and revoke permits for non-compliance, and the potential consequences can outweigh any short-term gains.

Most successful STR hosts in Bloomington emphasize the importance of working within the city's regulatory framework and maintaining open communication with city officials and neighbors. By being proactive and responsible, hosts can operate profitable STRs while contributing positively to the community.

How to Start a Short-Term Rental Business in Bloomington

Starting a short-term rental business in Bloomington, Illinois, can be a rewarding venture for property owners who are willing to navigate the city's regulations and prioritize responsible operations. To help you get started, follow these step-by-step instructions:

Research and Plan:

1. Familiarize yourself with Bloomington's STR ordinances and zoning requirements.
2. Assess the local market demand and competition for STRs in your desired location.
3. Develop a business plan that outlines your goals, target audience, pricing strategy, and marketing approach.

Choose a Suitable Property:

1. Select a property that meets the zoning requirements for STRs in Bloomington.
2. Consider factors such as location, amenities, and potential rental income when making your choice.
3. Ensure that the property can accommodate the necessary parking and occupancy requirements.

Prepare Your Property:

1. Make any necessary renovations or upgrades to ensure that your STR meets building, fire, and safety codes.
2. Furnish and equip the rental unit to provide guests a comfortable and inviting experience.
3. Install required safety features, such as smoke detectors, carbon monoxide detectors, and fire extinguishers.

Obtain Necessary Permits and Licenses:

• Apply for a conditional use permit with the City Clerk and Planning and Zoning Department.
• Submit all required documents, including the application form, property deed or lease agreement, floor plan, site plan, proof of insurance, fire and safety inspection report, and hotel/motel tax registration.
• Attend the public hearing and await approval from the Joint Planning and Zoning Commission and City Council.

Register for Taxes:

• Register with the City of Bloomington's Finance Department to collect and remit the Short-Term Rental Tax.
• Set up a system to accurately track rental transactions and tax collections.
• Familiarize yourself with the tax remittance process and deadlines.

Create Your Listing:

• Choose a reputable STR booking platform like Airbnb or VRBO to list your property.
• Develop an attractive and informative listing that showcases your property's unique features and amenities.
• Set competitive rates based on your research of the local market and your target audience.

Manage Your STR:

• Establish a system for managing bookings, guest communication, and check-in/check-out procedures.
• Provide guests with clear instructions and guidelines for parking, noise, trash disposal, and other house rules.
• Be responsive to guest inquiries and concerns to maintain high customer satisfaction.

Comply with Regulations:

• Ensure ongoing compliance with Bloomington's STR rules and regulations.
• Maintain accurate records of rental transactions and tax collections.
• Renew your conditional use permit annually and keep all required documents up to date.

Be a Good Neighbor:

• Foster positive relationships with neighbors and the surrounding community.
• Address any concerns or complaints promptly and professionally.
• Participate in local events and initiatives to demonstrate your commitment to being a responsible STR operator.

Who to Contact in Bloomington about Short-Term Rental Regulations and Zoning?

If you have questions or concerns about short-term rental regulations and zoning in Bloomington, Illinois, there are several city departments and officials you can contact for assistance:

Planning and Zoning Department
Address: 109 E. Olive St., Bloomington, IL 61701
Phone: (309) 434-2226
Email: planning@cityblm.org

The Planning and Zoning Department is responsible for administering and enforcing Bloomington's zoning ordinances, including those related to short-term rentals. They can provide information on zoning requirements, conditional use permits, and the application process for STR licenses.

City Clerk's Office
Address: 109 E. Olive St., Bloomington, IL 61701
Phone: (309) 434-2240
Email: cityclerk@cityblm.org

The City Clerk's Office handles the application process for STR conditional use permits. They can assist with questions regarding the application form, required documents, and public hearing procedures.

Building Safety Division
Address: 109 E. Olive St., Bloomington, IL 61701
Phone: (309) 434-2226
Email: buildingsafety@cityblm.org

The Building Safety Division is responsible for ensuring that STRs comply with building, fire, and safety codes. They can provide information on required inspections, safety features, and occupancy limits for STRs.

Finance Department
Address: 109 E. Olive St., Bloomington, IL 61701
Phone: (309) 434-2255
Email: finance@cityblm.org

The Finance Department handles the registration and remittance of the Short-Term Rental Tax. They can assist with questions regarding tax registration, collection, and payment procedures.

Bloomington-Normal Area Convention and Visitors Bureau
Address: 3201 CIRA Dr., Suite 201, Bloomington, IL 61704
Phone: (309) 665-0033
Email: info@visitbn.org

While not a city department, the Bloomington-Normal Area Convention and Visitors Bureau can be a valuable resource for STR owners. They can provide information on local tourism trends, marketing opportunities, and best practices for operating a successful STR business.

In addition to these official contacts, you may also find helpful information and support from local STR associations, property management companies, or online forums dedicated to short-term rentals. Connecting with experienced STR owners in Bloomington can provide valuable insights into navigating the city's regulations and building a thriving business.

What Do Airbnb Hosts in Bloomington on Reddit and Bigger Pockets Think about Local Regulations?

To gain insight into the experiences and opinions of Airbnb hosts in Bloomington, Illinois, regarding local short-term rental (STR) regulations, we turned to popular online forums like Reddit and Bigger Pockets. Here are a few notable examples:

Reddit user "BloomingtonHost" on r/AirbnbHosts:

In a thread titled "Navigating Bloomington's STR Regulations," BloomingtonHost shared their experience with the city's conditional use permit process. They found the application process to be straightforward and appreciated the city's clear guidelines. BloomingtonHost also noted that the city's staff was helpful in answering questions and providing guidance throughout the process.

Bigger Pockets user "CentralILInvestor" on the Bloomington Real Estate Forum:

CentralILInvestor, an experienced real estate investor in the Bloomington area, shared their thoughts on the city's STR regulations in a post titled "Bloomington STR Update." They mentioned that while the regulations do require some effort to comply with, they are not overly burdensome compared to other cities. CentralILInvestor emphasized the importance of being proactive and communicating openly with city officials and neighbors to ensure a smooth operation.

Reddit user "BloomingtonAirbnb" on r/AirbnbHosting:

In a comment on a thread about Illinois STR laws, BloomingtonAirbnb shared their experience as a long-time Airbnb host in Bloomington. They noted that the city's regulations have evolved to strike a balance between the rights of property owners and the concerns of the community. BloomingtonAirbnb appreciated the city's efforts to create a level playing field for all STR operators while still allowing for growth in the market.

Bigger Pockets user "BloomingtonSTRHost" on the Illinois Real Estate Forum:

BloomingtonSTRHost, a successful STR owner in Bloomington, shared their insights in a post titled "Tips for Navigating Bloomington's STR Regulations." They stressed the importance of understanding and complying with the city's rules, including obtaining the necessary permits, paying taxes, and being a responsible neighbor. BloomingtonSTRHost also highlighted the benefits of joining local STR associations or forums to stay informed about regulatory changes and best practices.

These examples demonstrate that while Bloomington's STR regulations do require some effort to navigate, many hosts find them to be reasonable and manageable. The general consensus among Airbnb hosts in Bloomington is that the city's approach to STR regulation is relatively balanced, allowing for the growth of the STR market while addressing community concerns.

Successful hosts in Bloomington emphasize the importance of being proactive, complying with regulations, and maintaining open communication with city officials and neighbors. By operating responsibly and contributing positively to the community, STR owners can build thriving businesses in Bloomington's supportive and well-regulated environment.