Short-term lodging allowed in downtown West Dundee

Residential units in downtown West Dundee can be rented out to travelers, the village board decided Monday, as long as property owners follow licensing and inspection requirements.

Typically facilitated through online platforms such as Airbnb or VRBO, short-term lodging offers a unique alternative to a traditional hotel stay, Community Development Director Tim Scott said in a memo. The concept, which would be limited to the downtown business district, stemmed from a business group's desire to rent out four efficiency apartments at 124 W. Main St.

The residential units, called 124 Lofts, are on the second level of the recently renovated building, which houses Craft Donuts & Coffee on the first floor. Property owner Andy Burns, who also owns the adjacent Emmett's Brewing Company, said earlier his goal is to generate additional foot traffic that would benefit local businesses.

"I think it's an appropriate accommodation to allow for that type of use in our downtown area," Village President Chris Nelson said. "There is a demand for it, and I think the unconventional lodging that we offer is attractive to a lot of different travelers."

The village board on Monday unanimously approved allowing upper-level residences within the downtown to be leased for up to 30 days at a time. Visitors must rent an entire unit, rather than a single bedroom within an owner-occupied apartment.

The measure requires property owners to first obtain a business license and rental registration, both of which cost $35 annually. All short-term lodging units must undergo a yearly inspection, according to village documents.

West Dundee also will impose 6 percent tax on short-term rentals - a rate consistent with the hotel tax collected from the Courtyard by Marriott on the village's far south side.

The village previously did not regulate short-term lodging. Property owners who have been offering such services in areas outside the downtown, such as in single-family residences, will be notified of the code change and asked to cease operations, officials said.

"We want to ensure that it takes place in settings that we would believe are appropriate," Nelson said, noting he doesn't believe commercial lodging is ideal for a neighborhood setting.

Discussions on whether to expand the concept to other zoning districts could take place in the future, Scott said.