Rental License and Inspection Program
Addison
DuPage County
Addison’s Rental License and Inspection Program is a fee-funded inspection and grading system designed to hold landlords accountable, incentivize high property maintenance standards, and improve the safety and quality of rental housing.
Background
The Residential Rental License Program was started in the early 1980s as a tool to maintain strong property values in neighborhoods with a variety of housing stock, including both rental and ownership housing. Deferred maintenance led to deteriorating conditions, inviting blight and crime to areas that were suffering from disinvestment. Unable to satisfy the volume of service requests, the licensing program was put in place to hold landlords accountable to tenants and preserve the quality of rental housing in the village.
Rental housing has traditionally made up a large percentage of Addison’s overall housing stock. With the recent infusion of single-family homes and condos into the rental market, rental housing now makes up about a third of Addison’s approximately 13,370 dwelling units. Four Village inspectors support the licensing program, which is funded through the collection of annual licensing fees, inspection fees and other related fines.
How It Works
The continuing success of Addison’s licensing program is anchored by a grading system that provides incentives for landlords to maintain their properties up to Village code. Each year, all landlords are required to apply for an annual residential rental license by the end of April, at the cost of $75 per dwelling/dwelling unit plus an additional flat fee for multifamily buildings that ranges from $50 to $150 based on the number of units in the building. Single Family Homes are charged a flat license fee of $150, and Condo & Townhouse Units are charged a flat license fee of $75.00. This annual license fee includes a full annual inspection but does not cover any subsequent costs that a landlord may incur after their inspection takes place (i.e., re-inspections, semi-annual inspections).
The annual rental inspection for a multifamily building includes the inspection of all exterior areas, 20 percent of all dwelling units in a building, and all other common interior areas. For a single-family home, the annual rental inspection involves all exterior areas and the full interior of the house. The annual inspection for a condo unit or townhouse unit involves the inspection of the interior of the unit only. The inspection grade that a rental property receives is determined by dividing the total number of violations at the time of the annual inspection by the total number of inspection areas (generally the sum of interior units, one interior common area and the exterior common area that have been inspected for a multifamily building). Landlords can earn an inspection grade of “very good,” “satisfactory” or “unsatisfactory”. A rental property that has a score of one or less violations on average receives an inspection grade of “very good,” which exempts the building from the next annual license fee and inspection process. A rental property that has on average more than one but not more than three violations receives a grade of “satisfactory”. Rental properties that have on average more than three violations receive a grade of “unsatisfactory,” where a semi-annual inspection is conducted, which is the equivalent to an annual inspection, but without a grade, and takes place in the same license year. Landlords whose properties receive “unsatisfactory” grades are subject to all of the additional fees charged for semi-annual and reinspection processes. There is a formal procedure in place for property owners who wish to appeal an inspector’s decision.
Property owners that are required to apply for a rental license must also attend a mandatory crime-free multi-housing training and utilize a crime-free lease addendum. At the time of this training, the Community Development Department gives a presentation about Addison’s Rental Program, how it works and what the landlords can expect at their inspections. This collaborative effort between Addison’s police and community development departments has resulted in stronger landlord-tenant relations and safer neighborhoods.
Goal
To set higher benchmarks for rental property maintenance and improve the safety, living conditions, and health outcomes for Addison residents.
Target
Single-family and multi-family rental properties.
Financing
The total cost to run the program is about $450,000, all funded through annual licensing fees and supplementary fees related to inspection.
Success
Since the program’s inception, about 50% of rental properties receive an inspection grade of “very good,” up from 25% when the program first started, and the number of unsatisfactory rental sites has dropped by over 10%.
Lessons Learned
Providing incentives for landlords to maintain their properties has led to improved tenant-landlord relations and has been an effective tool in the preservation of quality rental housing.
Public Involvement
The Residential Rental License Program was changed in 2000–2001 to include additional inspections for landlords who were not in full compliance with established maintenance standards. Property owners had mixed reactions to this proposal, but as soon as the benefits of the grading system were realized, support for the program grew.
The Community Development Department holds an open meeting for questions and discussion when the Village adopts new versions of the International Property Maintenance Code and makes any other major changes to Village Code Amendments that affect the Rental Program. The Village has a rentals email address where landlords and tenants can send inquiries about the program or ask questions regarding an inspection. This email address is used to send pertinent information out to landlords currently registered in the Rental Program as well as to prospective rental property owners.
Addison’s licensing and inspection process is completely electronic at this time through the use of proprietary software. Landlords or their designated contact are required to create a portal account. With this account, the portal user can manage their license contacts, view correspondence sent by the Village and can even pay fees online. This has allowed for quick, clear communication. Notices and reports are sent to a designated email contact where all documents are legible and easy to read. The main benefit of the portal is that access is available outside of Village hours which allows for better customer service.
Contact Information
Village of Addison Community Development Department, www.addisonadvantage.org
This case study was last updated in February, 2026.
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