Marion regulates short-term rentals before eclipse

Effective July 20, 2017, residents wishing to host visitors in their homes between one and thirty days must apply and pay $50 for a license. The city must inspect the property and deem it up to standards.

A little over a month before the much-anticipated solar eclipse, the city council of Marion, Ill., approved an ordinance to regulate short-term rental agreements, such as those offered through Airbnb, HomeAway, and VRBO.

Effective July 20, 2017, residents wishing to host visitors in their homes between one and thirty days must apply and pay $50 for a license. The city must inspect the property and deem it up to standards.

Current hosts must obtain the license to continue housing visitors, but WSIL TV reported that many new hosts are expected to arise in coming weeks as people around the country make plans to watch the solar eclipse that will cross southern Illinois midday Aug. 21. Marion, known as “The Hub of the Universe,”, is located at the point of greatest duration for viewing the eclipse.

Marion’s home-sharing regulations passed on a 3-2 decision. Mayor Bob Butler expressed concerns with the logistics of the ordinance to the Marion Republican.

With the expected influx of visitors in a little over a month, Marion officials will likely amass many requests for short-term rental licenses. If the city is unable to respond to all requests, some residents will face the choice between following the law and offering hospitality to visitors for supplementary income. Additionally, the $50 licensing fee will cut into the renters’ revenues, which could deter some Marion residents from offering lodging at all.

Residents should be wary of city intervention into the short-term rental market, as a number of municipalities have used such power to constrict private hospitality. A number of local Illinois governments are restricting supply of short-term rentals. Chicago allows the practice but heavily regulates and severely taxes the industry, and some Chicago buildings are disallowed from offering short-term rentals.