Skokie trustees lock in regulations for short-term rentals — up to 90 of which exist in town

The Skokie Village Board voted 5-1 on Monday to create a new pilot program that will give the village the ability to govern how local short-term-rental units operate. 

Trustees Keith Robinson, Jim Iverson, Lissa Levy, Alison Pure Slovin and Kimani Levy voted in favor of approving the ordinance. Trustee Gail Schechter voted against it.

Owners of short-term rentals — residences listed on websites like Airbnb and rented out for fewer than 30 days at a time — now have until April 1 to register their unit with the village. 

In order to register, short-term-rental owners must obtain a $1,200 operator license, complete a village training program, pay at least $2,450 in registration fees, pass a building inspection and give notice to all surrounding properties within 250 feet of the unit. 

The law, which goes into effect on May 1, says short-term rentals can only accommodate 18 bookings a year, guests can only stay for a minimum of five days, only be one short-term rental can exist on a given block (unless grandfathered in), and no new investor-owned short-term rentals are allowed in Skokie. 

The ordinance states the regulations intend to “maintain the safety of guests,” “preserve the residential character of neighborhoods” and prevent the negative impact short-term rentals may have on the “availability and affordability of the village’s housing stock.”

Johanna Nyden, Skokie’s community development director, said on Feb. 3 the law also provides the village enforcement tools it needs to adequately respond to complaints neighbors have about issues like too much noise or not enough signage. 

“When we’ve suggested ‘make changes, do this,’ they’re not met with the response that would resolve the issue,” Nyden said of local short-term rentals before the vote. “And so some of putting this in the code starts to address some of those issues and those complaints. We have no teeth right now.”

Violating the ordinance will cost an short-term-rental owner $500 on the first infraction, $1,000 on the second and $1,5000 on the third. But Village Manager John Lockeby can give short-term-rental owners a five-day notice, at any time, for a hearing in which he can decide to revoke their license. 

Short-term-rental owners or Skokie residents may then appeal the village manager’s decision with the Village Board.

The ordinance will remain effective for at least 18 months, and trustees will convene to check in on how it is working at the six-month, 12-month and 18-month marks. Fees will not be refunded if the pilot program ends early, Nyden said. 

The board first discussed the ordinance on Jan. 20, but a number of trustees still expressed wishes to amend it down the road. 

Trustee Schechter said she was concerned the Village is attempting to regulate short-term rentals without data on “where the problems are.” 

Nyden said Skokie has approximately 75-90 short-term-rental units but could not verify how many are owner occupied or investor owned, and which category has garnered more complaints. 

Trustee Lissa Levy and Trustee Slovin indicated they believed the limit for 18 bookings a year might be too stringent for short-term-rental owners. 

Mayor Ann Tennes, however, encouraged trustees to put some regulations on the books so that short-term rentals can begin getting registered and Skokie residents living near STRs can soon get protection from ones causing neighborhood problems.

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