New Law Regulates Short-Term Rentals In Skokie

SKOKIE, IL — The Skokie Village Board passed a new law this week that defines and regulates short-term rentals operating within the village.

The new ordinance, which passed Monday with a vote of 5-1, established an 18-month pilot program that will run from May 1 to Oct. 31, 2027. The program aims to provide clear enforcement and regulation for short-term rentals in Skokie.

"The pilot program is intended to balance the need to preserve housing availability and neighborhood quality of life, while recognizing STR’s community-serving uses, such as accommodating family visits or others seeking extended stay options," officials said in a statement.

The new regulations require all owners of existing short-term rentals in Skokie to apply for a license and register any dwellings they plan to offer for rent. Properties currently operating as investor-owned short-term rentals that are registered may continue to operate, but no new investor-owned properties will be allowed to register as a rental unit under the new ordinance.

Going forward, short-term rentals have a minimum stay requirement of five days and must provide a notice to neighbors within 250 feet that the property will be used for short-term rentals. Individual properties are also capped at 18 stays per calendar year.

Short-term rentals in Skokie will only be allowed in primary residential structures on any property. For multi-family buildings, short-term rentals are only allowed if the property owner lives on the property.

The total number of short-term rentals allowed to operate in a residential neighborhood is limited to one per block. Trustees said this is meant to limit the impact on residential neighborhoods.

Skokie residents expressed their support for regulations within the village, emphasizing the need to protect long-term housing availability.

"It would be lovely if someone visits Skokie and decides 'I want to move here and buy a house,' but that is not what people who rent short-term rentals do," one resident said. "Communities that have a lot of short-term rentals, like our neighbor Evanston, are losing those very small, more affordable starter homes at an appalling rate because they are being snapped up by investors."

Violations of the village's rules may result in a fine of up to $1,500 per day, as well as a revocation or suspension of the owner's short-term rental license.

The village is currently developing application forms and informational program materials and guidance to help owners navigate the new requirements. Updates will be posted to Skokie's short-term rentals webpage.

The board plans to monitor the program for the next 18-months and provide regular updates, which may include modifications. The first review is scheduled to take place at a special meeting sometime during the summer.