Should St. Charles regulate short-term rental properties?

Hotels. Bed-and-breakfasts. Short-term vacation rentals?

A growing trend of property owners renting their homes to travelers has prompted St. Charles officials to consider whether such lodging options should be regulated. But some aldermen believe the city should stay silent, saying the enforcement process would be unnecessary and could become too complicated.

Typically facilitated through online platforms such as Airbnb, VRBO or HomeAway, short-term rentals have become a popular option for travelers seeking unique and inexpensive accommodations for less than 30 days, city planner Ellen Johnson said.

Thirteen properties in St. Charles are currently listed on those websites, she said, and the city occasionally receives inquiries about whether short-term lodging is permitted. But with no specific language on the books, staff members are unable to give potential operators a clear answer.

"There is definitely a gap in our ordinance in terms of how we administer it," said Rita Tungare, community and economic development director. Whether St. Charles should define and monitor the vacation rental properties, however, is up to the city council. "Really, it's a policy decision."

Aldermen acting as the planning and development committee on Monday were presented with three regulation options. The first would restrict short-term rentals to the city's downtown and business districts.

The second, which Johnson called a "balanced approach," would extend the use to multifamily residential districts. Private rooms or accessory dwelling units also could be rented within single-family neighborhoods, but the homeowner must be present during stays.

In the third option, which was supported by the city's advisory plan commission, an entire home could be rented within a single-family neighborhood, as long as it's the property owner's primary residence. That requirement aims to prevent businesses from acquiring a house for the sole purpose of renting it to travelers, Johnson said.

The plan commission also recommended adopting an annual registration program to keep track of short-term rentals operating in St. Charles.

Alderman Todd Bancroft, however, said he doesn't think the city should attempt to implement restrictions. Though the city could potentially collect some hotel/motel tax revenue, officials said the amount wouldn't be significant. And monitoring each property could prove to be more trouble than it's worth, he said.

"I just don't see a reason to go down this (path)," Bancroft said. "What's our interest, and why do we care?"

Alderman Ron Silkaitis said he'd prefer to regulate the vacation rental use and collect taxes out of fairness to the city's existing hotels. But, he admitted, "I don't know how we can enforce it."

Without defining short-term rentals in the code, Johnson said, the city has been falling back on its laws for hotel/motel and bed-and-breakfast uses, both of which are only permitted within certain commercial areas. Airbnb and similar platforms are different in nature and should be treated as such, she said.

Updating the city's ordinance could also give property owners guidance in operating vacation rentals, and peace of mind that they're doing so legally, Johnson said.

Alderman Maureen Lewis requested additional information on past complaints or other issues related to existing short-term rentals in the city. Other officials agreed the proposal needs more time, discussion and feedback from the community.