Arlington Heights Bans Short-Term Rentals

Arlington Heights is shutting the door on Airbnb-style rentals for the time being.

Village officials unanimously approved an ordinance Monday banning short-term rentals, prohibiting overnight stays of fewer than 30 consecutive days in residential properties. The rule, which takes effect July 1, effectively wipes out the handful of Airbnb and Vrbo listings currently operating in the northwest suburb, the Daily Herald reported.

But the ban may not be permanent. Local leaders signaled they could revisit the policy if the Chicago Bears ultimately build a stadium at the former Arlington Park racetrack, potentially creating a surge in demand for short-term lodging.

“I’m not looking forward to some permanent long-term ban,” Mayor Jim Tinaglia said during the meeting, suggesting a future task force could study the issue if a stadium development materializes. “There’s room for this to grow and be worked on. But something needs to be done now.”

Under the ordinance, short-term rentals are classified as “nuisances” in the village code. The restriction does not apply to hotels, motels or lodging rooms, nor to residential leases tied to a property sale, according to the publication.

Village officials estimate between 10 and 20 homes in Arlington Heights are currently listed on booking platforms like Airbnb and Vrbo, according to Jack Cascone, assistant to the village manager. The village plans to notify those companies of the new rules and will periodically monitor listings for compliance, though enforcement will rely largely on complaints from neighbors.

For years residents have raised concerns about party houses, noise and cleanliness issues tied to short-term guests — complaints that mirror tensions playing out across the Chicago region, as municipalities grapple with the rise of app-based vacation rentals.

Arlington Heights is far from alone in tightening restrictions.

In nearby Skokie, officials approved an 18-month pilot program in February that bars new investor-owned short-term rentals, while allowing some owner-occupied units to continue operating under strict limits. The ordinance caps licenses at one per block, requires a minimum five-night stay and limits hosts to 18 bookings during the test period. Operators must also pay licensing and registration fees totaling as much as $3,600 and could face fines up to $1,500 for violations, as previously reported in The Real Deal.

Evanston is also weighing tighter rules that would cap the number of short-term rentals allowed citywide.

Meanwhile, Des Plaines officials this week informally directed staff to begin crafting regulations after residents complained about party-driven disruptions tied to vacation rentals, according to the Daily Herald. The city currently requires landlords to obtain rental licenses, but does not distinguish between traditional leases and short-term stays.

Not everyone in Arlington Heights supports its forthcoming ban. Devin Gray, a local Airbnb host, urged officials to pursue “smart, safe” regulations rather than a blanket prohibition, arguing that short-term rentals can serve families, temporary residents and homeowners undergoing renovations.

— Eric Weilbacher