As dozens of property owners in Waukegan rent homes, apartments or other dwellings on a short-term basis, city officials are in the process of potentially setting rules and requiring a license, as is mandated for larger landlords.
Many of the visitors to Waukegan and other nearby communities arrive in town for weekly graduation ceremonies of recruits becoming sailors at Naval Station Great Lakes. Renting a home or an apartment on a short-term basis is a choice many make.
Todd Johnson, who lives in Near North Historic District on Sheridan Road, said he operates several short-term rentals in that area. He said most of his guests come for activities at the naval base. Hugo Rodriguez, who operates five short-term rentals, said the Navy provides his renters.
“Short-term rentals have brought guests into our city who otherwise would not have visited our city,” Johnson said. “We do suggest they go to the local restaurants, the local liquor stores, the local venues in town. It increases business for everybody.”
Naval graduations alone bring an average of $45 million a year into the area around Naval Station Great Lakes, including Waukegan, according to information provided to the city by the Navy.
As the practice of short-term rentals grows in Waukegan, George Bridges Jr., Mayor Ann Taylor’s chief of staff, said the lack of regulations has created some uncertainty with property owners. Legislation is being proposed.
The Waukegan City Council’s Community Development Committee will continue its discussion of the proposed short-term rental ordinance Dec. 2 at City Hall in hopes of finalizing the new legislation for a vote for the council that night.
As currently proposed, short-term rentals can be no less than 48 hours and cannot exceed 30 days. Stewart Weiss, an attorney with corporation counsel Elrod Friedman, said renting to a person for more than 30 days in other than a hotel gives them tenant rights under the law.
“Concerns arise you are taking a commercial use and putting into a residential area,” Weiss said.
Any home or apartment used for short-term rentals must have exterior security cameras and comply with city rules for maximum occupancy, according to the proposed ordinance. Those rules, along with a copy of the owner’s license, must be posted on the door.
Requirements also mandate off-street parking needs to be provided. Short-term rentals must be at least 1,000 feet from each other if they are in separate buildings. If contained in a larger apartment complex, no more than 50% can be rented for a term of less than 30 days.
Individuals who wish to rent dwellings on a short-term basis must apply for a license from the city for an annual fee of $300, plus a $25 application fee. The annual license starts on Jan. 1 of each year. Violations can result in a $5,000 fine.
Initially, the number of licenses will be limited to 100. Though some counsel members questioned the limit, Noelle Kischer-Lepper, the city’s director of planning and economic development, said at the meeting it was 25% more than research showed was needed.
After initially considering the proposed ordinance Monday, committee members agreed to postpone the rest of their discussion until the Dec 2 meeting. They had questions and wanted to see what their constituents thought.
While some committee members questioned requiring a stay of at least 48 hours, Ald. Lynn Florian, 8th Ward, said it would prevent people from renting a place for a night for a large party.
“I think 48 hours is a great idea because you’re going to prevent people from renting a place just to throw a big party and then leave,” Florian said. “They’re not just going to be here for one night. They’re coming from all over the country. Graduation is a weekend event.”
With most of the units he rents near each other, Johnson said he is concerned about the 1,000-foot provision of the proposed legislation. He said he closely scrutinizes all his renters, and has received no complaints from neighbors
“There should be appeals or an exception process for people who have demonstrated a record of maintaining a high quality property that does not disturb the neighbors,” he said.
