Skokie Approves Changes to Short-Term Rental Program

Skokie officials have approved changes to a short-term rental pilot program to make it more appealing for residents, providing an opportunity for them to earn extra income by listing homes on platforms such as Airbnb and VRBO. Initially adopted in February, this 18-month program seeks to regulate short-term rentals within the village, enhancing safety standards and preventing affordable housing from being converted into vacation properties.

Resident feedback over the first six months revealed that previous program mandates were considered overly restrictive and too costly by many former short-term rental hosts. Village documents noted fees ranging from $3,650 to $4,800, which were significantly higher than those in neighboring towns. In response, officials decided to amend the program, aiming to make compliance easier by decreasing fees and liberalizing certain mandates.

During the September 8 meeting, Skokie’s trustees approved key modifications: reducing the fee structure to $550—$400 as a unit registration fee and $150 for an operator rental license. The previous stay requirement was lowered from five nights to one night. However, hourly and partial-day rentals remain prohibited.

The restriction on the number of stays per property during the pilot period was lifted, allowing more frequent rentals. These changes will apply solely to owner-hosted properties, where homeowners are present during the visitor’s stay, not to owner-occupied or investor-owned properties.

“The simplest way to describe it is a little bit of a whack-a-mole because [operators] can delete their listing, the tool that we use to find this might see a [short-term rental] STR one week, then the next week it doesn’t,”

Community Development Director Johanna Nyden noted that of the two current short-term rental listings compliant with village licensing standards, neither is owner-hosted. Skokie has no registered investor-owned listings either. Operators must submit a formal application, attend training, notify neighbors, pass inspections, and pay applicable fees.

The program initially detected 129 active short-term rental listings, but only 10 applied for licenses. Of those, five met participation requirements, with only two becoming fully licensed. As of August, there are still 54 non-compliant operators in Skokie.

Trustees discussed enforcement challenges and the absence of reimbursement for prior fees paid by compliant operators. Vice Chair Lissa Levy criticized the disparity in fees for early program adopters. Trustee Gail Schechter expressed concerns about the program’s impact on affordable housing, while advocating for a re-evaluation of collected pilot data by an advisory committee.

A motion passed to mandate data review by a commission, with a 5-1 vote. Another amendment stipulates that only hosted properties with operator presence during visitor stays qualify under the recommendations.

“We’ve learned some information, I don’t think it’s bad to have some action steps in between as we move forward.”

Village Manager John Lockerby acknowledged enforcement difficulties regarding owner presence but suggested creative solutions could address it. Mayor Ann Tennes suggested stricter ordinance enforcement and spot testing for compliance.

Final approval for the modified program will be sought from the Village Board at an undetermined date.