Trustee Madej previously requested information regarding short term rental requirements in the village. The village adopted regulations for short term rentals in September 2015. The code was adopted as a result of an analysis related to a tree house at a single-family property that was being used as a short-term rental in the village at that time. The code amendment included provisions for various types of rentals, including short term rentals, boarding houses, rooming houses, and bed and breakfast establishments in residential districts. The amendment also included revisions to the licensing section of the municipal code and the zoning ordinance.

This issue of short term rentals was previously presented to Committee of the Whole (COW) at their July 16, 2024 meeting. A copy of the memo from that meeting is attached to your packets. The committee members were provided with an updated list of locations with complaint(s), police data related to complaints for short-term rentals, survey from other municipalities regulating short-term rentals, and options for board consideration. The committee members held a discussion regarding short term rentals and verbally agreed to 1) continue stringent enforcement related to nuisance ordinance and 2) increase the license fee to ensure full cost recovery. 

The latter half of the discussion included policy related questions initiated from the various options for the board to consider. The committee eventually decided to defer the item.  As part of deferment, the Board had asked staff to monitor the situation and research further on the topic which received favor.

Those include the following - 

• Grant short term rental licenses to property owners with a homestead exception only

• Evaluate a minimum distance requirement between short-term rentals
• Limit total number of licenses
• Limit maximum number of rental bookings of short-term rentals in a year

This memo includes a response of the 2 discussed (enforcement and fees) action items and a summary of the four above-mentioned bullet points