Palatine — Ch. 12 Existing Structures Maintenance and Occupancy § 12-54
Licensing of the operation of rental dwelling units
Operative Text
(a) No person shall operate a rental dwelling unit unless they hold a current, unrevoked rental dwelling license (rental dwelling license) issued by the village manager in their name for the specifically named rental dwelling units. Additionally, no owner of a rental dwelling unit shall apply for or obtain a homeowners' exemption, or other similar exemption, from the county for property tax relief during the term of the rental dwelling license without having first received approval from the village manager. (b) (1) Rental dwelling licenses for multiple dwelling units under common ownership with common facilities (laundry, garage, furnace and storage rooms, etc.) and/or utilities (heat, water, etc.), and for those multiple dwelling units in the process of converting to condominiums, where the conversion of the entire building has not been completed, shall be used for a period of one year from the date of application, unless sooner revoked, and may be renewed for successive periods not to exceed one year. (2) Rental dwelling licenses for all other rental dwelling units (condominium, townhome, or single-family home) shall be used for a period of one year from the date of application, unless sooner revoked, and may be renewed for successive periods not to exceed one year. (3) Rental dwelling licenses shall not be transferable. Each new owner of a rental dwelling unit must obtain a rental operating license. (4) The code official may grant conditional approval of a rental dwelling license for a term not exceeding six months to those rental dwelling units which cannot be fully licensed due to special circumstances, (e.g., weather conditions, unavailability of required materials or services, or other circumstances as approved by the code official). All requests for a conditional approval of a rental dwelling license shall be submitted in writing to the code official. The conditional term shall be subtracted from the remaining one-year license period. All properties which have not completed full licensure by the end of the conditional term shall be considered unlicensed and shall forfeit all paid fees. (c) The village manager is hereby authorized, upon application therefor, to issue new rental dwelling licenses and renewals thereof in the names of applicant owners or operators of rental dwelling units. No such rental dwelling license shall be issued unless the rental dwelling unit, in connection with which the rental dwelling license is sought, is found after inspection to meet all applicable rules and regulations pursuant thereto. Rental dwelling units that change ownership will be required to be inspected before a new rental dwelling license can be issued. No such license shall be issued unless the rental dwelling unit is found after inspection to meet all applicable requirements of this chapter and applicable rules and regulations pursuant thereto. (d) No rental dwelling license shall be issued or renewed unless the applicant owner or operator has first made application therefor on a fully completed application in the format provided by the village manager or designee. The village manager shall develop the format for such applications and make the same available to the public. If any change occurs to the contact information provided in the application for the applicant owner or operator, or if any change occurs to the contact information provided for any designated agent, including the addition and/or removal of an agent, the applicant owner or operator shall give notice of such changes to the village's code official in writing within 14 days. (e) No rental property shall be scheduled or inspected, nor will a rental dwelling license be issued or renewed unless the completed application form for each building is accompanied by payment of the appropriate license fee, cancellation fee, re-inspection fee, and/or late fees, as applicable. (f) No rental dwelling license shall be issued or renewed for a nonresident applicant, unless such applicant designates in writing to the code official the name of the agent for the receipt of service or notice of violation of the provisions of this chapter and for service of process pursuant to this chapter. (g) No rental dwelling license shall be issued or renewed for a resident applicant unless such applicant has first designated an agent for the receipt of service for violations of the provisions of this chapter when said applicant is absent from the village for 30 days or more. Such a designation shall be made in conjunction with each application form. (h) No rental dwelling license shall be transferable. Every person holding a rental dwelling license shall give notice to the village's code official within 24 hours after having transferred or otherwise disposed of the legal control of any rental dwelling unit. Such notice shall include the name and address of the person succeeding to the ownership or control of such rental dwelling unit. (i) Whenever, upon inspection of a licensed rental dwelling unit, the code official 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, they shall serve the owner or operator with notice of such violation in accordance with article VI of this chapter. Unless the violations cited are corrected within the timeframe indicated in the notice, the rental dwelling license may be suspended. (j) Any person whose rental dwelling license to operate a rental dwelling unit has been suspended shall be entitled to a review of the order by the village manager in the manner hereinafter provided by this chapter. If no request for review or appeal is made within 14 days following the issuance of the order of suspension, the rental dwelling license shall be revoked; except that prior to revocation, any person whose rental dwelling license has been suspended may request inspection upon showing that the violations cited in the notice have been corrected. (k) If, upon re-inspection, the code official finds that the rental dwelling unit in connection with which the notice was issued is now in compliance with this chapter and with the applicable rules and regulations issued pursuant thereto, the code official shall reinstate the rental dwelling license. A request for re-inspection shall not extend the suspension period unless the code official grants such request.
Palatine's Ch. 12 § 12-54 establishes a mandatory licensing system for every rental dwelling unit operated within the village. No one may rent out a dwelling without holding a current, unrevoked rental dwelling license issued by the village manager, and that license must be obtained in the operator's own name for each specific unit. Licenses last one year, are not transferable between owners or units, and require a passing inspection before issuance or renewal. Conditional approvals of up to six months are available under limited circumstances, and violations found during inspections can lead to suspension or revocation of the license.
Plain English — not legal advice.
Under Palatine Ch. 12 § 12-54, compliant rental property operators maintain a current rental dwelling license for each unit they rent, renew it annually, and ensure each unit passes inspection before a license is issued or renewed. When ownership of a rental unit changes hands, the new owner must apply for a fresh license—no license carries over from a prior owner. Operators also keep their contact information current with the code official, notify the village within 24 hours of transferring control of any unit, and designate a local agent in writing if they are a nonresident or expect to be absent from the village for 30 or more days.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Palatine Ch. 12 § 12-54 requires that any dwelling unit being rented to you be covered by a valid, unrevoked rental dwelling license—meaning the property has been inspected and found to meet the village's maintenance and occupancy standards. If you have reason to believe your unit is being operated without a current license, or that violations exist, you may contact the village's code official, who has authority to inspect the property and, if violations are found, issue notices and ultimately suspend or revoke the landlord's license. Tenant-rights organizations familiar with Palatine's municipal code can help you understand what options are generally available when a rental unit may be out of compliance with § 12-54.
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 9, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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