The Skokie Village Board has approved an 18-month pilot program aimed at regulating short-term rental properties, establishing new licensing requirements, fees and operating limits while officials study the impact of the units on the community.
The board voted Feb. 2 to launch the pilot program, which is scheduled to begin May 1. Village officials said the program will be reviewed at six- and 12-month intervals to evaluate its effectiveness and determine whether adjustments are needed.
“I believe our obligation is to get something on the books so we can start the process of registration to provide protection to the residents who are proximate to investor-owned units where there have been problems,” Mayor Ann Tennes said. “The sooner we get an ordinance on the books, the sooner staff can start working toward that May 1 registration.”
The village defines a short-term rental, or STR, as a dwelling or part of a dwelling rented for five to 29 consecutive nights to people who are not immediate family members of the property owner.
Under the pilot program, owner-occupied STRs must demonstrate that the rental unit is the operator’s legal primary residence or is located on the same parcel as the residence. New investor-owned short-term rentals will be prohibited, though existing units will be allowed to continue operating if they were already registered or were in the process of obtaining rental registration prior to Jan. 16.
Key elements of the program include:
• Creation of licensing and registration requirements for short-term rental operators, including fees. Monthly probationary license fees will be $100.
• An annual license renewal fee of $400 following the probationary period.
• Tiered registration fees based on ownership type. Initial registration for owner-occupied short-term rentals will be $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 be $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 primary residential structure and not in an accessory building. They may operate in multi-unit buildings or condominiums if certain conditions are met.
• Only one short-term rental will be allowed per block, and operators must notify neighbors within 250 feet when a short-term rental is in operation.
“This provides clear enforcement and regulation of this use,” Community Development Director Johanna Nyden said.
Nyden said the village currently estimates there are between 75 and 90 short-term rentals in Skokie, including both owner-occupied and investor-owned units.
Tennes said she has received complaints about investor-owned rentals, particularly involving trash, parking and visitors going to the wrong homes.
“We need to have an ordinance in place that provides (protection to) the 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 feel all of it is very arbitrary but not very scientific at all,” she said.
The Board previously discussed short-term rental regulation in September and again at its Jan. 20 meeting, when officials shifted 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 are going to learn a lot,” Robinson said. “That is the joy in having this as a pilot — having more voices and more time.”
https://www.chicagotribune.com/2026/02/17/skokie-launches-rules-short-term-rentals/
