Daily Regulatory Notes 05/13/2025
Cities address STRs. Fort Myers Beach, FL tightens enforcement; Houston, TX handles lawsuit; South Haven, MI adopts ordinance; Westport, MA, and Shelburne, MA approve bylaw; La Grange, IL discusses regulation; Lee, MA approves amendments. 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. 📰
Fort Myers Beach is tightening oversight of its short-term rental market by adopting new software, Rental Scape, to better monitor compliance and reduce manual enforcement burdens on town staff.
The system will help identify both existing and new STRs operating on the island, automatically flagging violations and ensuring that properties adhere to local rules.Town officials emphasized that nearly every home on the island is eligible for weekly or monthly rentals, but failure to register or follow local codes will result in violations.
A neighborhood dispute in the Walden area of Lake Houston is highlighting the growing tension over short-term rentals, as longtime resident Bill Stewart clashes with the property next door that's being used for Airbnb stays.
Stewart, frustrated by the steady stream of unfamiliar guests, has resorted to placing signs and filming visitors, actions that have led the short-term rental owners to issue a cease-and-desist through legal counsel.
Houston has introduced a registration ordinance requiring hosts to follow specific rules but hasn't banned the practice outright, leaving residents like Stewart with few legal avenues.
South Haven’s City Council has officially adopted a revised short-term rental zoning ordinance after final discussions and minor amendments were made during this week’s meeting, solidifying a policy that has been in the works for over a year.
Read the full ordinance here.
The newly approved ordinance defines key terms such as “short-term rental,” “lawful conforming,” and “non-conforming,” while also updating language around what constitutes abandonment of a property and clarifying the process for rental license revocation.
Westport took decisive action this week to formalize its approach to short-term rentals, approving a new bylaw to regulate STR operations and voting to increase the local occupancy tax from 4% to 6%.
Key provisions include barring commercial activity at STR properties, holding owners accountable for each day of non-compliance, and assigning registration duties to the Select Board, with penalties including potential permit revocation.
La Grange is considering a potential shift in its short-term rental policy as the Village Board prepares to vote on whether to allow limited STRs in second-floor commercial spaces downtown, specifically in response to a proposal from local business owner Dan Spain.
Read the proposal here.
Spain, who owns The Elm restaurant, wants to convert space at 108 W. Calendar Ave. into five short-term rental units, but the village currently prohibits such use. His request would change that by permitting STRs with specific regulations in place, including a minimum two-night stay, bans on parties, insurance coverage, adherence to life safety codes, and application of a 5% local hotel tax.
Despite support from three Plan Commission members, the proposal didn’t meet the four-vote threshold for approval and was technically recommended for denial.
Shelburne has officially adopted a new short-term rental bylaw aimed at managing the town’s growing STR market. Passed during the second night of the town’s Annual Meeting, the bylaw prohibits non-owner-occupied STRs moving forward, though it allows existing ones to continue operating until their properties are sold.
Those grandfathered in must still meet updated requirements within six months of the bylaw taking effect. These include registration with the Massachusetts Department of Revenue, a special permit application submitted to the town clerk, emergency contact information, proof of liability insurance, and safety inspections by the health agent, building inspector, and fire chief.
Lee voters approved a series of amendments to the town’s short-term rental bylaws during this year’s town meeting.
The revised regulations now require STRs to have a designated property manager located within 30 miles—likely to improve accountability and responsiveness—as well as submit proof of liability insurance each year when registering. Another key change gives the Select Board authority to set the annual registration fee, replacing the previous flat rate of $100.
In case you missed it:
Genelaine Urbano
READ: 05/12/2025 Daily Regulatory Notes
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