Daily Regulatory Notes 02/26/2025

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. 📰

Arkansas

Arkansas lawmakers are considering a bill that would prevent cities from banning or capping short-term rentals while allowing local zoning rules and basic health and safety regulations.

While supporters argue it protects property rights, several Central Arkansas mayors including North Little Rock’s Terry Hartwick and Conway’s Bart Castleberry, oppose the measure saying cities need authority to regulate STRs to preserve neighborhood integrity. A possible compromise would allow licensing, tax collection, and revocation for repeated violations, but local leaders remain concerned about losing control over STR density and location.

Arizona

Northern Arizona mayors are pushing for new short-term rental regulations after meeting in Prescott to address housing shortages and community concerns.

Under current state law, cities cannot ban STRs, but local leaders including those from Sedona, Jerome, and Williams, want to cap future rentals to prevent further strain on housing and public resources. The mayors hope to gain legislative support for changes that allow municipalities to set their own limits.

Aspen, CO

Aspen City Council reviewed the city’s short-term rental program discussing financial impacts, permit availability, and regulatory refinements. Officials debated the effectiveness of permit caps, noting a backlog in certain zones and an 8.9% decline in STR units since 2023.

Compliance efforts showed 85% adherence, but enforcement challenges persist. Staff will continue exploring policy adjustments while awaiting further data.

Nantucket, MA

A Massachusetts Land Court judge is set to decide whether a Nantucket homeowner’s short-term rental violates local zoning laws after closing arguments concluded in a case that could set a precedent for the island.

Cathy Ward has appealed the town’s Zoning Board of Appeals ruling arguing that her neighbors’ rental property is used more as a business than a residence, making it a zoning violation. Judge Michael Vhay is expected to rule in at least a month, though a town-wide STR bylaw passed at May’s Town Meeting could ultimately supersede his decision.

Traverse City, MI

The Michigan Court of Appeals ruled in favor of Traverse City Tourism (TCT) in its lawsuit against Golden Swan Management affirming that property management companies overseeing 10 or more short-term rental units must pay assessments to local convention and visitors bureaus (CVBs).

The decision clarifies that these units do not need to be in the same building to qualify, setting a precedent that could impact similar disputes statewide. TCT and other CVBs rely on these assessments for marketing and tourism funding, with the ruling reinforcing their authority to collect from commonly managed short-term rentals.

Sandwich, MA

The Town of Sandwich has introduced new short-term rental procedures in alignment with the Massachusetts State Building Code. The changes require property owners to complete mandatory online registration and undergo inspections.

The town defines STRs broadly to include both owner-occupied and non-owner-occupied properties rented for up to 30 days. STR operators are advised to check the Sandwich Building Department webpage for further updates.

West Fargo, ND

West Fargo is considering a new ordinance requiring short-term rental owners to obtain an annual license and pass a safety inspection.

The proposal introduced by Planning Director Aaron Nelson, would limit STRs to primary residences, prohibit business-owned properties from obtaining licenses, and restrict occupancy to five unrelated individuals. The City Commission will refine the ordinance before an upcoming first reading.

In case you missed it:

Daily Regulatory Notes 02/25/2025

Cities address STRs. Washington proposes bill; Pinellas County, FL considers code changes; Summit Park drafts regulations; Gallatin County, MT handles lawsuit; Missoula, MT & New Orleans, LA review enforcement; Boston, MA discusses law; Billings, MT enforces regulation. READ MORE.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

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