Submitted By
Tammie Grossman, Director, Development Customer Services
Reviewed By
AMZ
Agenda Item Title
Title
Second Reading and Adoption of An Ordinance Amending Chapter 8 ("Business Licensing") of the Oak Park Village Code by Adding a New Article 40 ("Short-Term Rentals")
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Overview
Overview
This Ordinance creates a licensing framework for the leasing, renting, and letting of short-term rental dwelling units that are inspected and approved by the Village, provides for standards of operation, and limits the maximum number of persons allowable in a short-term rental unit.
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Recommendation
Recommendation
Staff recommends approval of the Ordinance.
Fiscal Impact
Since the exact number of short-term rental units located within the Village is not known at this time, staff is unable to calculate the revenue that will be collected from the licensing framework, if approved by the Village Board.
It should also be noted that the Village's 4.0% Transient Occupancy Rental Unit Tax applies to short-term rentals. Below is a summary of Airbnb collections, by year, since imposition of the municipal transient occupancy rental unit tax:
2016 (collections for November and December, 2016 only) = $2,552.16
2017= $30,131.71
2018= $49,435.61
2019= $79,837.60
2020= $37,641.02
2021 (collections through August, 2021) = $56,410.85. Staff estimates FY21 totals could reach as high as $73,000 to $79,000.
Background
The short-term rental trend came into prominence in 2007 and offered benefits to both guests and owners, while promoting tourism in Oak Park. In 2016, collection began to occur regarding Oak Park's municipal transient occupancy rental unit tax. Although staff believes that a majority of the short-term rental units are operated without issues, complaints have been received by the Village. Complaints usually involve large parties being held, trash accumulating, excessive noise and situations where a rental units' occupancy limits may be exceeded. On May 23, 202...
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