Skokie launches program, rules for Airbnb-type short-term rentals

The Skokie Village Council approved an 18-month pilot program to regulate short-term rental properties, establishing new requirements for permits, fees and operating limits while officials study the units’ impact on the community.

The board voted Feb. 2 to launch the pilot program, which is expected to begin May 1. Village officials said the program will be reviewed every six and 12 months to evaluate its effectiveness and determine if adjustments are needed.

“I believe our obligation is to put something on the books so that we can begin the registration process to provide protection to residents who are near investor-owned units where there have been problems,” Mayor Ann Tennes said. “The sooner we have an order, the sooner staff can start working towards that May 1 registration. »

The village defines a short-term rental, or STR, as a unit or portion of a unit rented for five to 29 consecutive nights to people who are not members of the owner’s immediate family.

Under the pilot program, owner-occupied STRs must demonstrate that the rental unit is the operator’s legal primary residence or that it is located on the same parcel as the residence. New investor-owned short-term rentals will be prohibited, although existing units will be allowed to continue operating if they were already registered or in the process of obtaining rental registration before January 16.

Key elements of the program include:

• Created licensing and registration requirements for short-term rental operators, including fees. The monthly probationary license fee will be $100.

• An annual license renewal fee of $400 after the probationary period.

• Graduated registration fees based on property type. Initial registration for owner-occupied short-term rentals will cost $2,450 for the first year probationary period, with an annual renewal fee of $1,800.

• Initial registration for investor-owned short-term rentals will cost $3,600 for the first year probationary period, with an annual renewal fee of $3,000.

• A minimum stay of five consecutive nights and a limit of 18 stays per property during the pilot program.

• Short-term rentals must be located within the main residential structure and not in an accessory building. They can carry out their activities in multi-unit buildings or condominiums if certain conditions are met.

• Only one short-term rental will be permitted per block, and operators must notify neighbors within 250 feet when a short-term rental is in operation.

“This allows for clear enforcement and regulation of this use,” said Johanna Nyden, director of community development.

Nyden said the village currently estimates there are between 75 and 90 short-term rentals in Skokie, including owner-occupied and investor-owned units.

Tennes said it has received complaints about investor-owned rentals, including trash, parking and visitors going to the wrong homes.

“We need to put an ordinance in place that provides (protection) to neighbors who live near investor-owned units that have not been subject to regulations other than registration,” she said. “I think we have to err on the side of providing them with protection with the pilot.”

Trustee Gail Schechter cast the lone vote against the measure.

“I think it’s all very arbitrary but not very scientific at all,” she said.

The Council previously discussed regulating short-term rentals in September and again at its Jan. 20 meeting, when officials moved from a proposed seven-day minimum stay to a five-day minimum and began considering a pilot approach instead of immediate permanent rules. Trustee Keith Robinson advocated for the pilot structure.

“We’re going to learn a lot,” Robinson said. “That’s the joy of having that as a pilot: having more voices and more time.”