Madison Village Council has approved legislation to regulate short-term rentals for residential properties in a specific section of the community.
These are residences that are typically leased by visitors through services such as Airbnb and Vrbo.
Council unanimously passed the short-term rental ordinance during its Aug. 28 meeting.
This measure amended the community’s zoning code to allow short-term rentals as a conditionally permitted use within the R-2 single family residence district, “provided the property is located on an arterial street, and together with other substantive limitations to ensure the location is appropriate for this use,” according to language in the legislation.
The ordinance goes on to define an arterial street as a publicly dedicated roadway which accommodates traffic to and from expressways or through commercial districts. For the section of the village zoning code which regulates short-term rentals, the only arterial streets are East and West Main streets and River Street.
By approving the measure, council also authorized a comprehensive set of rules for short-term rentals that were drafted by the village Planning Commission. Some of those requirements include:
• For a person to offer, list, advertise and/or operate a short-term rental in Madison Village, he or she must first obtain a conditional-use permit and maintain that permit in good standing.
A fee of $200 will be charged to apply for a conditional-use permit to operate a short-term rental property. Those permits must be renewed every year, with the application fee set at $50.
In addition, all applications must include emergency contact phone numbers to reach the property owner or manager on a 24-hour basis.
• Only the principal residential structure on the property may be used for a short-term rental.
• The property owner must provide a current certificate of commercial general liability insurance that meets coverage standards set by the village.
• The duration for which a guest can lease a guestroom is less than 30 days.
• Guestrooms shall be equipped with working smoke detectors and carbon monoxide detectors. Also, properly rated fire extinguishers shall be located and readily accessible in all locations where cooking or other flammable activities might occur.
At the start of council’s Aug. 28 meeting, a public hearing was held, during which official comments could be issued on the proposed short-term rental legislation.
Village Administrator Dwayne Bailey read 10 emails that he had received from people who expressed their opposition to or support of the ordinance.
Not everyone who sent an email listed their hometown, Bailey said. He also noted that some Madison Township residents provided comments, even though short-term rentals in that community are not affected by this legislation.
A majority of the people who sent emails urged council to continue prohibiting short-term rental properties in the village.
One of the opponents was Jennifer Solly, who lives on East Main Street in the village.
Solly said her neighborhood was “an ideal situation until certain homeowners and investors decided to purchase homes on (East Main Street) for their greed and profit.”
“These short-term rentals are becoming problems to any community, in any town,” she said. “Imagine having new neighbors every two days or so. Imagine they’re having parties, parking in front of your house, leaving trash. You lack the feeling of being safe and secure.”
But Holly Rupnow, another resident of East Main Street, said in her email that she believes Madison Village should allow short-term rentals. She didn’t explain the reasons for her support.
Before council voted on the measure during its regular meeting, Councilman Robert Lee admitted that he wasn’t “wildly enthusiastic” about the ordinance.
Lee wondered if the village’s legislation addressed how to handle a short-term rental property that ends up causing problems on a recurring basis.
Village Solicitor Joseph Szeman said if there’s “actionable information” that illegal activities are being conducted at a short-term rental property, the owner’s conditional-use permit could be immediately revoked.
“But (owners of short-term rental properties) do have due process rights, and they could appeal that determination,” he said.
Bailey said the village also is prepared to deal with short-term rental properties that become the source of constant complaints about noise or other nuisances.
“If there is something that’s on the radar time after time, we have the ability to revoke their conditional-use permit and have them cease and desist,” he said.
Szeman also noted that conditional-use permits for short-term rental properties in the village are valid for only one year. Then, the property owner must secure renewal of the permit from the village Planning Commission.
“So we’ll have a solid record as to how that specific property has been operating in the course of that year,” he said. “And if there are issues, nonrenewal would certainly be an option at that time.”
Short-term rentals are a growing trend in which online, worldwide marketplaces allow property owners to rent out homes or portions of residences to guests who are seeking short-term lodging and want an alternative to a hotel.
Airbnb and Vrbo are two of the well-known companies that operate websites on which people can find and reserve short-term rentals.
Village Council also approved companion legislation to the short-term rental ordinance. The panel voted unanimously to pass a measure that allows the village to impose and collect an excise tax on lodging transactions for short-term rental properties.
This excise tax, often referred to as a “bed tax,” already was being assessed on hotels and bed and breakfast establishments in Madison Village.
