Daily Regulatory Notes 03/24/2025

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. 📰

Montana

The Montana Supreme Court is reviewing a dispute over whether a short-term rental in Whitefish violates neighborhood covenants restricting commercial use.

The lower court ruled against the homeowners imposing a 30-day minimum rental duration which they are now appealing. Meanwhile, the neighbors contend that transient rentals disrupt residential character and should be classified as commercial activity.

Houston, TX

Houston’s City Council is set to vote on an ordinance requiring short-term rental operators to register annually at $275 per unit, disclose platform listings, and provide a 24-hour contact.

The proposal allows for registration revocation after two ordinance violations within a year but removes a prior $1 million liability insurance requirement. A lawsuit from operators remains a possibility, following similar legal battles in other Texas cities.

Cocoa Beach, FL

Cocoa Beach city commissioners approved a 30-day grace period for short-term rental registration fees allowing new registrants to pay a reduced $500 fee instead of the recently increased rates.

The controversial fee hike which raised registration costs from $525 to $2,500 and annual renewals from $325 to $1,500 remains in place, though commissioners signaled openness to future adjustments. Additionally, they voted to extend vacation rental regulations city-wide and are considering stricter penalties for non-compliant operators.

Deadwood, SD

Black Hills communities are reevaluating short-term rental regulations in response to increased demand since the pandemic with Rapid City seeing a 75% rise in listings.

Deadwood has implemented a 200-foot buffer between rentals and requires conditional use permits, but conflicts exist between state safety requirements and historic preservation rules. Rapid City is considering licensing requirements, with an advisory committee set to make recommendations this spring.

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Traverse City, MI

Traverse City planning commissioners are refining proposed short-term rental (STR) restrictions aiming to reduce the number of units allowed in multiple zoning districts.

While STRs in hospitality-focused areas will remain largely unchanged, reductions are planned for mixed-use and residential-adjacent zones to prevent an imbalance between long-term residents and transient visitors. The proposed ordinance will be reviewed in a public hearing on April 15 before moving to the city commission for final approval.

New Milford, CT

New Milford has adopted new guidelines for regulating short-term rentals, defining them as properties rented for 30 days or less.

Approved unanimously by the Town Council, these guidelines prioritize renter safety and neighborhood quality of life. Hosts must provide renters with emergency contact information and appliance instructions and can opt to be listed on the town’s website as a compliant rental.

Moore County, NC

The Moore County Board of Commissioners has approved a 3% increase in the hotel occupancy tax, doubling it to 6% as requested by the Pinehurst, Southern Pines, Aberdeen Area CVB.

The tax applies to hotels and short-term rentals, with funds allocated per General Assembly House Bill 504 regulations. CVB spending includes marketing (under 60%), leisure activities (35%), and core activities (7.4%).

Pittsfield, MA

Pittsfield’s Community Development Board has advanced a zoning amendment to regulate short-term rentals addressing a legal gap that previously made enforcement difficult.

The proposed ordinance includes a 12-person occupancy cap, increased square footage requirements per renter, and a requirement for a local contact in Berkshire County. The ordinance will move to the City Council alongside a separate licensing and enforcement measure, which must pass through the Ordinances and Rules subcommittee.

In case you missed it:

Weekly Regulatory Briefing (12)

Each week, we bring together the biggest updates in short-term rental regulations from coast to coast. Whether it’s fresh local regulations, emerging trends, or major discussions, our briefing provides all you need to stay in the know.

STRisker - Short-term regulatory changes and newsGenelaine Urbano