Daily Regulatory Notes 01/02/2025

Every day, we bring you a detailed overview of recent news and updates about primary decisions, community feedback, or legislative changes relevant to the short-term rental industry. 📰

Ithaca, NY

Ithaca's Common Council reviewed the city's short-term rental (STR) regulations, adopted in May 2024 to address the housing shortage. Starting in 2025, STR operators will need permits.

The city has already identified over 98% of STRs. Staff will focus on education before enforcement begins, with fines of up to $500 per day for violations. The city is also pushing for increased state aid to municipalities, especially those with a large number of tax-exempt properties like Cornell University.

Petersburg, VA

Petersburg is considering new regulations for short-term rentals, as the Planning Commission will review a resolution on January 2 to amend the city's zoning ordinance.

The amendments would allow short-term rentals to be formally recognized and tracked through a city registry, with operators required to meet safety standards like installing smoke detectors and fire extinguishers. Other proposed rules include restrictions on occupancy, commercial activity, and visible trailers or RVs. A grace period will be provided for existing properties to register by July 1, 2025, and non-compliant operators will face penalties.

Mount Desert, ME

Short-term rental bookings in 2024 reached record highs on Mount Desert Island, particularly around Acadia National Park, with Bar Harbor's listings surpassing its ordinance cap. While Bar Harbor has strict STR regulations, other nearby towns, including Tremont, continue to experience rapid STR growth.

Local leaders like Ellen Dohmen warn of the long-term impacts of unregulated STRs, citing concerns about water, parking, and the neighborhood environment. Tremont, the most desirable market for STR investors, rejected a proposed registration ordinance in 2023, which, coupled with low regulation, has boosted its appeal.

Woodland Park, CO

The new short-term rental ordinance in Woodland Park, which was scheduled to take effect on January 1, 2025, has been delayed due to ongoing legal challenges.

The ordinance, passed by voters in 2023, would remove STRs from residential zones unless the owner lives at the property, directing them to commercial zones instead. The Teller County Short-Term Rental Alliance is suing the city, leaving property owners like Nicole Waggoner uncertain about their future. The city has decided to delay enforcement until the court decides on a preliminary injunction.

Indianapolis, IN

Indianapolis has passed a new ordinance that will create a registry for rental owners and introduce a three-strike policy for disruptive actions.

The move follows several violent incidents at short-term rental properties in 2024, including shootings in Fountain Square and the 4000 block of Carrolton. The new ordinance will launch in 2025, aiming to ensure that property owners are easily identifiable and can be held responsible. Additionally, Airbnb has rolled out a technology to prevent parties during major holidays, blocking 30,000 bookings on New Year’s Eve 2023 alone.

Burlington, VT

Burlington is finalizing a short-term rental bylaw on Jan. 13 to secure federal funding for enforcement and hire two dedicated bylaw officers. The bylaw mandates that rentals be the primary residence of the owner, rented for a maximum of 183 days annually, with a $300 license fee proposed.

The city estimates up to 1,000 active listings but believes the real count is closer to 500. Approval before the Jan. 24 deadline will enable Burlington to apply for up to $4.8 million from the federal Short Term Rental Enforcement Fund.

In other news, the plaintiffs challenging Burlington's short-term rental regulations have appealed their case to the Vermont Supreme Court after their lawsuit was dismissed by the superior court in November.

The appeal questions procedural jurisdiction, specifically whether the case belongs in the civil or environmental court, rather than challenging the city's authority to regulate. Burlington's ordinance mandates rentals be owner-occupied and limits stays to under 30 days, aiming to preserve housing availability.

Austin, TX

Austin is set to review and potentially overhaul its short-term rental regulations in 2025, with updates expected by February. Key concerns include enforcement of existing rules, as only 15% of the city’s estimated 15,000 rentals hold the required license.

Council discussions will focus on defining workable limits on licenses, ensuring better compliance through tools like software platforms, and transitioning rules from zoning-based to business-focused regulations.

Mission, KS

Starting January 1, Mission, Kansas, will implement its short-term rental ordinance, mandating a $500 annual license fee and requiring all operators to submit an application.

The ordinance restricts occupancy to two adults per bedroom, limits the number of licenses to two per owner within city limits, and sets zoning-based unit caps. Rentals must adhere to a two-night minimum stay, ban non-guest events, and require a local management agent within 40 miles. Grandfathered provisions apply to existing owners with multiple properties, though these licenses are non-transferable.

National City, CA

National City is moving toward regulating its short-term rental (STR) market. Residents and officials have reported issues, including violent crimes and large parties, prompting the City Council to seek a better understanding of STR activity and policies like those in neighboring Chula Vista.

While STRs could generate revenue through transient occupancy taxes, Councilmember Luz Molina expressed concern about their impact on the city’s limited long-term rental stock. A report from city staff, reviewing data and potential frameworks, is anticipated early next year.