Short-term rentals spark policy discussion in Winnetka

Winnetka officials on Tuesday laid the foundation for a new ordinance that would regulate short-term rentals, such as those listed on popular sites Airbnb and VRBO.

Taking a prompt from Village staff, trustees directed staff to draft a policy that could define short-term rentals while outlining the responsibilities of rental-property owners and prospective renters.

The discussion on Tuesday was driven by a local property listed on AirBnb. Village staff tracked down details on the listing, which dates back to 2021, according to village documents, and the property owner reportedly told the Village that renters are typically former Winnetka residents or visitors of Winnetka residents who stay for various amounts of time.

Short-term rentals are prohibited in Winnetka based on the fact they are not mentioned in the village’s zoning code, but Community Development Director Scott Marcum told trustees that without language in the code rentals can be difficult to enforce. Staff wanted the Village Council’s direction to building a policy that distinguishes a short-term rental from a traditional rental property.

Marcum cited a 2023 survey of neighboring suburbs that shows 11 of 20 responding communities — including Northfield and Wilmette — prohibit short-term rentals with stays less than 30 days. Another four municipalities have a specific ordinance to regulate short-term rentals. More recently, the Skokie Village Board this February passed regulations on short-term rentals and, amid enforcement difficulties, the City of Highland Park revisited its short-term-rental policies.

A majority of Winnetka trustees on Tuesday supported a policy that sets the floor for short-term rentals at 60 days.

In the meeting documents, several communities’ short-term-rental policies are summarized, and Trustees Kim Handler and Brigit Orsic said they like Lincolnshire’s, which regulates the length of stays, the number of unique renters in one year and the responsibility of the property owner, among other things.

Trustee Tina Dalman also suggested an occupancy limitation to limit renters “cramming” as many people as possible into a property and she suggested maintenance requirements for the property owners.

The council directed village counsel Peter Friedman to help develop the first draft of a policy for further discussion and resident feedback at a future council session.

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