The Village of Winnetka has advanced plans to ban short-term rentals of less than 60 days, joining a growing list of Chicago suburbs that have moved to restrict or prohibit platforms like Airbnb and VRBO in residential neighborhoods. The proposed ordinance, introduced at the July 7 Village Board meeting, would define short-term rentals as any rental, lease, sublease, or occupation of a dwelling unit for less than 60 consecutive days.
The ban would also limit residential turnover to no more than two unique tenants during a 12-month period. Month-to-month extensions of rentals would still be allowed as long as they satisfy the minimum 60-day rental period requirement. Trustees will consider adopting the ordinance at their next scheduled Board meeting on July 21, according to the Chicago Tribune.
Community Development Director Scott Mangum told Pioneer Press that short-term rentals have always been prohibited in the village by virtue of their lack of inclusion in Winnetka’s zoning code. “The code’s sort of silent on it, so it’s not allowed because it’s silent, but with that we don’t have any definitions for how long the short-term rental [can be],” Mangum said. Without specific language defining these types of stays, short-term rentals have been nearly impossible to enforce, he added.
The push for new restrictions began after village staff discovered a local listing on Airbnb dating back to 2021. According to village documents, officials were able to track down the property address and owner, who informed the village that some rental stays were for multiple months while others were shorter. Staff communicated to the host that short-term rentals were prohibited, prompting the property owner to question what duration would be allowed given the lack of clear code language.
The proposed ordinance would allow an exception for family members or invited guests of the property owner to occupy a dwelling unit on a noncommercial basis for a short period. This would also include an existing Winnetka resident who is displaced from their residence due to construction, renovation, or other circumstances. However, Trustee Tina Dalman voiced concerns about this exemption during the board meeting. “I’m just concerned that could be a very big loophole that people could get creative in ways that we can’t anticipate,” Dalman said.
Dalman suggested tightening the definition of “rental” to specifically refer to the exchange of something of value, which would exclude family members or friends using a house on a temporary basis. “I’ve seen in other jurisdictions that if you just tighten up the definition of rental, it would take care of the concerns,” she said.
Winnetka’s move reflects a broader trend across Chicago suburbs. A 2023 survey by the Northwest Municipal Conference found that 11 out of 20 neighboring municipalities had already prohibited short-term rentals of less than 30 days. Among those that have enacted bans are Elk Grove Village, Glencoe, Niles, Northfield, Wheeling, and Wilmette. Other suburbs, including Evanston, Hanover Park, Lincolnwood, and Northbrook, have passed specific ordinance language to regulate short-term rentals while still allowing them under certain conditions.
In February 2026, the Village of Skokie approved an 18-month pilot program to regulate rentals on popular platforms, establishing new licensing requirements, fees, and operating limits for interested property owners. That approach represents a middle ground between outright prohibition and unfettered access, allowing the village to monitor the impact of short-term rentals while generating revenue from licensing fees.
The debate over short-term rentals has intensified across the Chicago metropolitan area as platforms like Airbnb and VRBO have grown in popularity. Proponents of short-term rentals argue that they provide additional income for homeowners and can help offset property tax costs, which are among the highest in the nation in communities like Winnetka. Critics contend that short-term rentals disrupt neighborhood character, create noise and safety concerns, and can reduce the availability of long-term rental housing.
For Winnetka, a village known for its lakefront estates and high property values, the short-term rental issue is relatively contained. Village officials said there was no specific incident or complaint that triggered the new restrictions, but rather a desire to have clear enforceable rules in place before the issue grows. The proposed ordinance would give the village explicit authority to issue citations and enforce penalties for violations.
Trustee Bridget Orsic urged her colleagues to move forward despite the concerns about language. “I would want to not let the perfect be the enemy of the good, and if we need to tweak any definitions, I just don’t want to keep pushing this off,” Orsic said. “I know this was kind of a current issue.”
Village President Bob Dearborn suggested tabling the ordinance for final adoption until the next Board meeting to provide time to tighten up some of the language and to allow three absent trustees to participate in the vote. The Board then unanimously moved to introduce the ordinance, with final adoption expected on July 21.
The Winnetka ban, if adopted, would add to the patchwork of short-term rental regulations across the Chicago metro area, creating a complex landscape for property owners and platform operators navigating varying rules from one suburb to the next. For the real estate market, the restrictions could have implications for property values, particularly for owners who have relied on short-term rental income to offset carrying costs.
