Proposed short term rental regulation may impact all Evanston property owners

This Tuesday, May 28, a proposed ordinance will go before the Evanston Planning and Development Committee and possibly the City Council tightly regulating all residential rentals for periods of less than 29 days – the ordinance seeks to classify all short term rentals as a subcategory of a bed and breakfast.  This measure is in response to complaints from a small group of Evanston residents who live in a neighborhood where a house is being regularly rented for just days at a time. 

The concerns of these residents are valid, however any regulatory measures should distinguish property owners that need or desire to rent their home on a short term basis on a one-time or infrequent basis, as opposed to those renting out their property for days, week after week.

The ability to rent one’s property is included in the bundle of rights associated with property ownership and is well established in common law.  Financially distressed property owners may count on a one-time or occasional short term rental to pay their mortgage or even to put food on their table. 

And the need or desire to rent a property for less than 29 days is increasing.  Examples of those that may want to rent a property for a short period of time include those that travel across the country to Evanston for medical treatment, or an international researcher collaborating with a Northwestern University professor.  They may find a residential rental cheaper and better suiting to their needs than a hotel. 

Ironically, the proposal will create an environment where those that are operating quasi-hotels will be able to operate while most Evanstonians will be effectively prohibited from renting their property even once for less than 29 days.  The more one rents their property, the burden decreases.  An owner that rents their property 100 times in a year can probably comply with the requirement that they complete an application, pay a fee, obtain liability coverage, provide soap, submit a floor plan, maintain bathroom locks that can be opened from the outside, undergo inspections, and the like.  They can comply because the financial benefits exceed the costs.  On the other hand, an owner of a property in Evanston would find the requirements overly burdensome and prohibitive in order to rent out the property just one-time for three weeks to, say, a former Evanston couple that wants to spend some time back in Evanston visiting friends and family.  In effect, this ordinance empowers the properties it seeks curtail and disenfranchises those that were not the original target of this policy.

Most homeowners don’t anticipate renting their property on a short term basis, but if the need arises, the owner should not have to plead their case to city staff for permission to do so.  Evanston may have a need to regulate those running quasi-hotels out of their home, which have been the source of some complaints, but the City should leave the rest of Evanston property owners free of additional, unnecessary regulation.

Howard Handler is Government Affairs Director for the not-for-profit North Shore – Barrington Association of REALTORS® – the area’s leading private property advocate.  Handler, a licensed real estate broker, received his undergraduate degree from the University of Wisconsin – Madison, and his master’s degree in Public Policy and Administration from Northwestern University.  He can be reached at: hhandler@iar.org