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East Dundee adopts new short-term rental rules, sets licensing, inspections and neighbor notice
Summary
The Village of East Dundee approved a package of ordinances defining short-term rentals in multiple zoning districts, creating a short-term rental license and setting related fees; inspections will follow the village's three-year schedule and owners must hold title for at least one year, with existing listings subject to inspection and permitting.
The Village of East Dundee Board of Trustees approved a trio of ordinances on March 16 that establish how short-term rentals will be regulated in the village, including zoning changes, a new short-term rental license and a fee schedule.
Trustee (speaker 6) moved to approve an ordinance "amending sections 15703, 157030, and 157050 of the zoning ordinance defining short term rentals and creating short term rentals in the R-1, R-2, R-3E, B-1, B-2, and B-3 zoning districts," which the board approved after discussion.
Why it matters: The package replaces a special-use approach with a licensing regime that the board said aims to make compliance easier to administer while restricting rentals to certain property types and clarifying enforcement and public-notice requirements.
Key provisions and clarifications: trustees and staff explained the principal elements during debate. Staff said existing short-term rental properties will be "grandfathered into most of the requirements" but will still be required to obtain a license and undergo inspection. The board clarified ownership and occupancy limits: owners must have owned the property for at least one year to newly qualify. Neighbor notification will be required for properties within 100 feet so nearby residents are notified of rental activity. The code prohibits on-site food service except for prepackaged items and bars large gatherings—trustees said the ordinance prevents two separate groups from occupying the same property simultaneously and bans large parties or weddings on short-term rental properties.
On inspections and enforcement, a staff member (speaker 9) said inspections "will fall in the same triennial schedule as our long term rental inspection, so once every 3 years" and that the short-term rentals will follow the same residential property-safety checklist used for longer-term rentals. Trustees asked for clarity about whether inspections are annual or triennial; staff confirmed the three-year cadence.
The board also approved related ordinances to add a short-term rental license to Chapter 119 (rental license required) and to revise fee schedules to account for the new permits. Board members discussed grandfathering existing Airbnb/VRBO listings: while current listings will not be exempt from inspection and licensing, some timing relaxations apply for ownership-duration requirements.
What the board directed next: Trustees asked staff to ensure inspection and licensing procedures are clear to the public, and to post guidance explaining the ownership, inspection and neighbor-notice requirements. No additional implementation timeline beyond the standard ordinance-adoption process was set in the meeting.
The board moved on to other agenda items after approving the package.
