Daily Regulatory Notes 03/24/2026
Cities address STRs. Tennessee proposes legislation; Pennsylvania introduces bill; Charlottesville, VA revisits regulations; Malvern, PA reviews enforcement; Smithfield, RI introduces ordinance; Charleston County, SC; Louisville, CO. READ MORE.
Tennessee
Proposed legislation in Tennessee is raising concerns about the future of short-term rental regulation, as it would require local governments to compensate property owners if zoning changes reduce property value.
The bill could make it financially risky for cities and counties to impose new STR restrictions, such as limiting where rentals are allowed, as officials may face lawsuits or be forced to rescind regulations. The bill is currently under consideration.
Pennsylvania
Pennsylvania lawmakers have introduced H.B. 2303, a bill that would establish a statewide regulatory framework for short-term rentals, aiming to create consistent baseline standards while still allowing local flexibility.
The proposal includes countywide STR registries, a requirement for a 24/7 local contact, and tiered rules distinguishing between homestay, vacation rental, and corporate operators, along with expanded safety requirements for larger-scale properties. The legislation follows a state-commissioned study and is partly driven by public safety concerns tied to incidents at STRs. A public hearing is scheduled for March 25, where officials, operators, and industry groups are expected to weigh in on the measure.
Charlottesville officials are set to revisit short-term rental regulations amid new complications from a recently passed Virginia law that could allow renters to operate STRs with landlord approval if the city amends its ordinance.
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Proposed updates including stricter permitting requirements, safety inspections, and a 90-day cap were initially aimed at reducing non-compliant rentals, but community voices warn that changes could unintentionally expand STR activity under the new state framework.
Short-term rental hosts are being cautioned about potential insurance gaps, with the Insurance Information Institute noting that standard homeowners policies typically do not cover commercial uses like STRs.
This can leave property owners exposed to denied claims, higher premiums, or even policy cancellations, particularly as increased guest turnover raises liability risks. The warning also ties insurance coverage to regulatory compliance, emphasizing that failure to meet local STR rules could further impact protections. Homeowners are encouraged to notify insurers and consider specialized policies designed for short-term rental operations.
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Smithfield officials are preparing to introduce a new short-term rental ordinance as the town anticipates increased demand tied to the 2026 FIFA World Cup, despite expressing general opposition to STR activity.
The move comes as Airbnb promotes hosting incentives and rising travel demand, but local leaders cite past issues with rentals as a reason to establish clearer rules before the influx of visitors. The proposal is expected soon as the town prepares for increased visibility during the 2026 tournament.
A proposed update in Charleston County could increase transparency around short-term rentals by requiring notifications when limited home rental permits are approved or renewed.
These owner-occupied STRs currently operate without a formal notice process, but officials say residents have asked for more visibility into nearby rental activity. The change would not alter existing operating rules but would expand communication and potentially community input. The proposal is moving through the approval process, with final votes anticipated soon.
Louisville officials are moving toward temporarily allowing short-term rentals for the 2027 Sundance Film Festival, as the city considers an ordinance that would permit STRs for a limited window surrounding the event despite an existing ban.
The proposed framework would require licensing, insurance, and landlord approval for renters, while restricting bookings until permits are issued and charging a fee to cover administration. A first vote on the ordinance is expected April 7, with further discussion on whether to expand toward a year-round STR policy in the future.
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