Daily Regulatory Notes 01/27/2025
Cities address STRs. California caps STR increase; Palm Spring, CA approves temporary relief from rental caps; Sedona, AZ declares housing shortage emergency; Stowe, VT implements ordinance; Lexington, KY approves rules; Vail, CO delays vote; Sandwich, MA proposes bylaw. READ MORE.
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. 📰
California
Airbnb has capped short-term rental price increases at 10% in Los Angeles and Ventura counties following wildfires, responding to California’s price gouging laws.
Airbnb.org has already provided free temporary housing for 25,000 displaced individuals and first responders, along with 6,000 pets, and plans to fund 50,000 additional nights. Through its partnership with 211LA, Airbnb waives all fees for these extended stays.
Palm Springs, CA
The Palm Springs City Council unanimously approved temporary relief from vacation rental caps for properties hosting wildfire evacuees. Effective retroactively from Jan. 7 through Feb. 28, the measure exempts short-term stays by evacuees from counting toward annual rental limits, which currently restrict rentals to 26 or 36 contracts per year depending on the permit date.
You can also read the report here.
This applies only to stays of 28 days or less and treats them similarly to friends and family stays. Vacation rental owners must submit affidavits for evacuee stays, but no proof of discounted rates is required.
Sedona, AZ
Sedona has declared a "housing shortage emergency," calling on state lawmakers to grant cities authority to regulate short-term rentals. The resolution highlights a surge in short-term rentals, which tripled from 400 units in 2020 to over 1,200 by October 2024, contributing to Sedona's affordable housing crisis.
The city proposes a gradual reduction of short-term rentals to a 5% cap, ensuring fairness for current owners. Proposed state legislation and Gov. Katie Hobbs' recent remarks signal growing momentum to address the issue statewide.
In other news, a lawsuit filed by the Goldwater Institute against the City of Sedona was dismissed after the city denied a short-term rental permit to a mobile home park owner arguing the 2016 law allowing short-term rentals applies only to single-family homes.
The lawsuit underscores the broader controversy surrounding Arizona’s short-term rental legislation, which has been blamed for reducing affordable housing statewide.
Stowe, VT
In 2024, Stowe began implementing a short-term rental registry ordinance designed to address the town's housing crisis. Approved in May 2023 after heated debates and a decisive town-wide vote, the ordinance requires all short-term rental owners to register their properties, pay a $100 fee, and adhere to fire-safety standards.
Read the full ordinance here.
The hospitality industry reported a banner year overall, but a decline in short-term rental bookings during the fall raised questions about shifting tourist preferences. The registry's initial results expected this spring, will shed light on these trends and guide future housing policies. The ordinance will take effect on May 1, 2025.
Lexington, KY
The Lexington-Fayette Urban County Council unanimously approved new rules for short-term rentals in rural areas of Fayette County, effective immediately. The ordinance bans unhosted rentals unless the property is 10 acres or smaller and imposes a one-mile spacing requirement between hosted rentals.
Hosted rentals and bed-and-breakfasts in agricultural zones must also secure conditional use permits, with additional requirements for properties on septic systems to obtain health department approval.
Vail, CO
A Vail Town Council vote on a proposal to increase short-term rental fees to $1,200 per bedroom was delayed until February 4, 2025, as town staff requested more time to review public feedback. If enacted, the ordinance would replace the current $50–$250 annual fees and generate an estimated $7.2 million annually for workforce housing.
Read the full ordinance here.
Sandwich, MA
Sandwich officials are proposing a short-term rental bylaw requiring annual registration, inspections, and certifications with local contact information. About 1,000 rentals exist, but only 700 are registered.
The bylaw avoids zoning grandfathering and will be funded by a revolving fund approved at a recent Town Meeting. Violations could lead to fines or registration suspensions. The select board will review the proposal in February before a public hearing and Town Meeting.