Short Term Rental Permit Denied by Planning and Zoning

Short Term Rental Permit Denied by Planning and Zoning

Member since 2021 · 6 posts · 1 vote

We purchased our first short term rental property on July 3rd in Fox Lake, IL. We did a lot of research in the are and strategically bought in this city since they allow short term rentals per their ordinance. Part of the short term rental approval process is having a public hearing where questions from the planning and zoning committee should be addressed by the property owners. We have been to 2 consecutive hearings now where the planning and zoning committee would not approve our permit because the neighbors "don't want it". 

The first time we attending the hearing they asked us to address the concerns of the community and "get to know our neighbors" before they would consider approving us. We did what they asked -- had signs put up in the area to make it more safe, asked for additional police presence in the neighborhood because the neighbors feel "unsafe", invited all 20 houses to an open house to get to know us and address concerns, installed ring cameras, addressed parking concerns, the list goes on with actions we have taken to address the issues.........as of last night the planning and zoning committee denied us again based on the protest of the neighbors at the hearing. 

Also, one of the members of the planning and zoning committee has an STR in Fox Lake and he was allowed to vote on our petition and of course voted 'No". This seems like a major conflict of interest.

Has anyone dealt with a situation like this before? We have complied with every single part of the ordinance and completed steps above and beyond what is listed in the ordinance. There are currently over 40 STRs approved in the area but we are still getting shut down by the city because the neighbors "don't want it".  I need advice!!

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Angie Thorn:

There are others in the neighborhood, but they won't allow yours? Maybe it's because they feel overrun with short-term rentals. Maybe they've had a bad experience? Have you talked to the nieghbors about why they feel this way? Are you considering their feelings?

There is a process for approval. You've tried it and failed. Your choice is to continue pushing and spending time/money in hopes of gaining approval, or you can admit defeat and move to a community that welcomes STR.

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  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    Try somewhere else with no regulations.

    What can you do if so many decision makers have made their decision they don't want to live next to a pseudo-motel.

    Good Luck!

  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y
    Go somewhere where they want you to be. very small towns with very large tourism.
  • Member since 2021 · 6 posts · 1 vote
    3y

    I appreciate your comments but I have a hard time giving up that easily and let them push us out. We should be allowed to rent per the ordinance as others are doing in the exact same area. The city is a small lake town with a ton of tourists. 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Angie Thorn:

    There are others in the neighborhood, but they won't allow yours? Maybe it's because they feel overrun with short-term rentals. Maybe they've had a bad experience? Have you talked to the nieghbors about why they feel this way? Are you considering their feelings?

    There is a process for approval. You've tried it and failed. Your choice is to continue pushing and spending time/money in hopes of gaining approval, or you can admit defeat and move to a community that welcomes STR.

    The DIY Landlord Book4.7248 Reviews
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    Sounds like you just bought a LTR since they won't give you a permit for a STR.

  • Member since 2021 · 6 posts · 1 vote
    3y
    Quote from @Nathan Gesner:
    Quote from @Angie Thorn:

    There are others in the neighborhood, but they won't allow yours? Maybe it's because they feel overrun with short-term rentals. Maybe they've had a bad experience? Have you talked to the nieghbors about why they feel this way? Are you considering their feelings?

    There is a process for approval. You've tried it and failed. Your choice is to continue pushing and spending time/money in hopes of gaining approval, or you can admit defeat and move to a community that welcomes STR.


    They said the reason they will not allow it is because there was too much opposition from the neighbors. We did talk to the neighbors and they simply stated that they do not want an STR in their neighborhood. They said it is nothing against us personally. We invited everyone over to our house to get to know them, sent out our rules and regulations to them, gave them our contact information, they met our kids and we had some drinks together...we have really considered their feelings along the way.

    The entire situation is frustrating. We have watched several other STRs get approved in the city where the owners illegally operated without I guess we need to decide how much more effort we want to put in. 

  • Member since 2023 · 88 posts · 62 votes
    3y

    Hi Angie,

    It’s a frustrating situation. I took a quick look at planning and zoning website for Fox Lake. It says “ 
    The Village wants to ensure that local realtors and potential buyers fully understand the process, in which approval is not guaranteed.”.

    It's a petition that is not automatic. I've seen other owners in different markets fight to get their STR permit with the help of an attorney only to be targeted by the neighbors with ongoing calls to law enforcement with complaints about noise, parking, trash etc. every time they see a new vacation rental guest. It's not a pleasant way to go into this battling the community, spending so much money, time and energy. It's much easier operating a STR in a city that is more welcoming.

    If you do decide to purchase elsewhere, I recommend talking to the person in charge of STR's at the city you're wanting a license from, pick their brain so you are clear on what it takes to get the permit before you purchase.




  • Member since 2021 · 6 posts · 1 vote
    3y
    Quote from @Angie Thorn:
    Quote from @Nathan Gesner:
    Quote from @Angie Thorn:

    To clarify your question - there are no other STRs in the neighborhood. This would be the first one. 

    There are others in the neighborhood, but they won't allow yours? Maybe it's because they feel overrun with short-term rentals. Maybe they've had a bad experience? Have you talked to the nieghbors about why they feel this way? Are you considering their feelings?

    There is a process for approval. You've tried it and failed. Your choice is to continue pushing and spending time/money in hopes of gaining approval, or you can admit defeat and move to a community that welcomes STR.


    They said the reason they will not allow it is because there was too much opposition from the neighbors. We did talk to the neighbors and they simply stated that they do not want an STR in their neighborhood. They said it is nothing against us personally. We invited everyone over to our house to get to know them, sent out our rules and regulations to them, gave them our contact information, they met our kids and we had some drinks together...we have really considered their feelings along the way.

    The entire situation is frustrating. We have watched several other STRs get approved in the city where the owners illegally operated without I guess we need to decide how much more effort we want to put in. 


  • Member since 2021 · 6 posts · 1 vote
    3y
    Quote from @Monique P.:

    Hi Angie,

    It’s a frustrating situation. I took a quick look at planning and zoning website for Fox Lake. It says “ 
    The Village wants to ensure that local realtors and potential buyers fully understand the process, in which approval is not guaranteed.”.

    It's a petition that is not automatic. I've seen other owners in different markets fight to get their STR permit with the help of an attorney only to be targeted by the neighbors with ongoing calls to law enforcements with complaints about noise, parking, trash etc. every time they see a new vacation rental guest. It's not a pleasant way to go into this battling the community, spending so much money, time and energy. It's much easier operating a STR in a city that is more welcoming.

    If you do decide to purchase elsewhere, I recommend talking to the person in charge of STR's at the city you're wanting a license from, pick their brain so you are clear on what it takes to get the permit before you purchase.





     Thanks for your reply. This statement was recently posted on the website after we already started the process. I wish we would have known that going into it. 

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    This is beyond tough, and the exact picture of how unfair things can be. My suspicion is that the member on the committee who owns a STR is causing some issues with the board and using the neighbors as an excuse. I don't have any advice but hope you can choose the right plan for you and that it all ends well!

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Angie Thorn, I am sorry that this has been such a PITA.

    If you do get an attorney and basically force the city to give you permit, you can bet you will have nothing but misery as the owner. You will generate hostility in the neighborhood. People will go out of their way to make life difficult for you.

    In the end you will be forced to change to LTR or sell.

    If you can cashflow with this place as LTR I would do that.

    What about doing a MTR (short stay, long term)? Is that an option? Is there something close that brings temp workers like a big hospital or university? Check FurnishedFinders.com and see what is available in your area.

    With the rentals being over 30 days but less than 180 (most times) you should still be able to make more $$$ than a LTR but not run afoul of the STR regs.

  • Rental Property Investor · Bow, NH · Member since 2016 · 216 posts · 185 votes
    3y

    @Angie Thorn

    Not sure about the zoning laws in your area but where I am you can only go in front of the ZBA once. One and done. If you loose you have to get an attorney to appeal the decision based on the limited criteria for allowing a variance.

    Like others have said, it will take a long time, and lots of legal fees. Even if you are successful you are not wanted. The locals will make your life as a host miserable. Any little issue that should he handled by conversation will involve police and complaints to the town....

    I know it sucks to get this far to start over, but that may be your best option.

  • Atlanta · Member since 2022 · 710 posts · 640 votes
    3y
    Quote from @Sarah Kensinger:

    This is beyond tough, and the exact picture of how unfair things can be. My suspicion is that the member on the committee who owns a STR is causing some issues with the board and using the neighbors as an excuse. I don't have any advice but hope you can choose the right plan for you and that it all ends well!


    except she said she met the neighbors and they said they dont want a STR in the neighborhood

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y
    Quote from @Trent Reeve:
    Quote from @Sarah Kensinger:

    This is beyond tough, and the exact picture of how unfair things can be. My suspicion is that the member on the committee who owns a STR is causing some issues with the board and using the neighbors as an excuse. I don't have any advice but hope you can choose the right plan for you and that it all ends well!


    except she said she met the neighbors and they said they dont want a STR in the neighborhood

    I know that, but who has the final authority? It's not the neighbors and a board/committee can do what they really want regardless.
  • Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes
    3y

    @Angie Thorn You sound a little like me, not wanting to just give up without a fight. I would at the very lease talk to a lawyer. Maybe a written letter from one might help to change things.

    Just thought of something you never mention. There has to be an appeal process for this. See if that might yield better results.

    This is just me being me, if all else failed. I'd make the property my permanent resident. Then it would be considered owner occupied and I would start STR that way. Just double check the local ordinance for STR when it's owner occupied. Good Luck!

  • Member since 2021 · 6 posts · 1 vote
    3y
    Quote from @Tim Miller:

    @Angie Thorn You sound a little like me, not wanting to just give up without a fight. I would at the very lease talk to a lawyer. Maybe a written letter from one might help to change things.

    Just thought of something you never mention. There has to be an appeal process for this. See if that might yield better results.

    This is just me being me, if all else failed. I'd make the property my permanent resident. Then it would be considered owner occupied and I would start STR that way. Just double check the local ordinance for STR when it's owner occupied. Good Luck!


     Yes, there is an appeal process but we have to wait another month (mid-september) to go back to the planning and zoning committee to do that. And then if they changed their mind and approved, we would have to wait another 2 weeks for the village board to review and approve. So it significantly delays the process.  

    The ordinance wont allow for owner occupied STRs. Maybe we could do a Bed and Breakfast thing though? Its something I've thought about. 

  • Cole SchlackPro Member
    Realtor · Hawaii, HI · Member since 2015 · 145 posts · 95 votes
    3y

    Sell it and buy somewhere that is easier

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