Daily Regulatory Notes 02/05/2025

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. 📰

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Lackawanna, NY

The Lackawanna City Council voted 3-2 to enact a total ban on short-term rentals forcing about 25 property owners to cease operations.

Officials argued that STRs function as unlicensed businesses in residential zones that create issues for neighbors, burden city services without sufficient tax contributions, and reduce available long-term housing which could impact the city's eligibility for state housing grants.

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Newport, RI

Newport, RI has launched an online short-term rental portal to improve registration and compliance for the city's estimated 360 STRs. The new system shifts registration responsibilities from the city clerk’s office to the Newport Short-Term Rental Office which will now handle both registration and enforcement.

Property owners with existing Transient Guest Facility Certificates will receive mailed instructions over the coming weeks with a second mailing planned for March. The portal offers paperless registration and extended support hours aiming to streamline compliance and enforcement efforts.

For more information on short-term rental regulations, visit www.CityofNewport.com/STR.

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Fountain Hills, AZ

Fountain Hills has introduced an online permit portal for short-term rental operators requiring all existing STRs to register within 60 days to avoid violations.

The town’s ordinance mandates an annual permit with owner contact information, insurance proof, and tax documentation. Non-compliance could result in penalties of up to $1,000 per month if an operator fails to apply within 30 days of a violation notice. The town also launched a complaint portal for residents, ensuring code enforcement can address nuisances more effectively.

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Minnehaha County, SD

Minnehaha County is considering allowing short-term rentals in rural areas outside Dell Rapids through a proposed ordinance amendment that will face a public hearing on Feb. 25.

The amendment would require homeowners in certain zoning districts to obtain a conditional use permit and comply with regulations such as occupancy limits and registration with state authorities. The proposal has already passed both the county and city planning commissions.

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Austin, TX

Austin is considering stricter short-term rental regulations with proposals requiring license numbers on listings, better tax collection, and increased enforcement against unlicensed operators.

The city argues the current rules are ineffective with 94% of complaints involving unlicensed rentals. Proposed changes include a 1,000-foot separation rule for multi-property operators, host training, liability insurance, and a local contact requirement. The next public hearings are scheduled for Feb. 11 and Feb. 27.

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Lancaster, PA

A Lancaster property owner involved in a years-long short-term rental dispute pleaded guilty to building code violations with the city citing 42 infractions across multiple STR properties.

As part of a settlement, the city waived fines in exchange for attorney fee payments while also enforcing prior agreements restricting STR operations at some properties, and allowing others under specific conditions. The owner has since pivoted to converting properties into recovery homes, which do not require city approval, though some STRs remain in use.