Daily Regulatory Notes 06/02/2025
Cities address STRs. Arkansas sues Airbnb; South Lake Tahoe, CA revisits policy; Astoria, OR approves first reading; Houston, TX & Dewey Beach, DE review enforcement; Kansas City, KS prepares for 2026 World Cup; Portland, OR tights enforcement; Cleveland, OH proposed changes. 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. 📰
Arkansas
An Arkansas family is suing Airbnb after discovering a hidden camera disguised as a smoke detector above a bed in their Scottsdale rental, raising serious questions about guest privacy and platform oversight.
Scottsdale police cited the host for licensing violations but labeled the hidden camera discovery a civil issue, as the current guests weren’t filmed—though previous Airbnb renters were.
As South Lake Tahoe revisits short-term rental policy after Measure T’s reversal, the wider Tahoe Basin continues to wrestle with STR rules, impacts, and enforcement.
Learn more about Measure T here.
Most counties have caps around 10%, but Placer stands out with over 30% and Washoe has no cap at all. Douglas restricts STR ownership to individuals and enforces tight density rules. Programs like Placemate aim to bridge that gap, but the broader housing shortage is driven more by high vacancy and second homes than STR activity alone.
The Astoria City Council approved the first reading of a new vacation rental licensing ordinance that includes a hard cap of 50 STRs, stricter rules, and licensing fees, aiming to preserve long-term housing.
The ordinance also clarifies that penalties apply to operators, not properties, and builds on similar homestay rules passed in 2019. A final vote will determine whether the city officially enacts the licensing program.
In Houston's upscale Walden neighborhood, tensions have flared between a resident and his neighbor over a short-term rental property.
Bill Stewart, frustrated by the stream of unfamiliar renters next door, has posted anti-Airbnb signs and was issued a cease-and-desist letter for alleged harassment. But under Texas law, and following a 2022 Supreme Court ruling, HOAs cannot ban short-term rentals unless explicitly written into deed restrictions.
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Rental managers in the Kansas City area are urging homeowners to start preparing now for a potential STR boom tied to the 2026 World Cup.
While the financial upside could be huge, OwlStays CEO Alexander Repsholdt says legal barriers remain: HOA rules, city ordinances, and insurance requirements must be carefully reviewed. With demand expected to far outpace housing supply, compliant hosts stand to benefit—if they start early and stay within local regulations.
Portland is tightening its grip on short-term rentals with higher fees and tougher penalties for Accessory Short-Term Rentals (ASTRs) starting July 1. Both Type A and Type B permit holders will see a 5–6% hike in application, renewal, and delinquency fees, part of a broader push to boost enforcement and adjust for inflation.
The city is also raising the stakes for violations, allowing multiple fines per inspection and capping penalties at over $26,000 for FY24–25. Hosts are encouraged to review city guidance and stay connected through Portland’s ASTR webpage or contact channels.
Dewey Beach is grappling with the regulatory gray area surrounding a houseboat recently listed as a short-term rental in the Rehoboth Bay Marina.
"Our jurisdiction really ends at the bulkhead. And the area that the boat is currently located in is really the jurisdiction of DNREC," Dewey Beach town manager Bill Zolper said
Because the vessel sits beyond the town’s legal boundary at the bulkhead, enforcement authority likely falls to DNREC, leaving town officials unable to impose STR taxes or rules.
Cleveland City Council is proposing sweeping changes to how short-term rentals operate, including banning stays over 30 days, requiring detailed licensing, limiting guest numbers, and capping density by location.
The legislation aims to reduce nuisance rentals and preserve long-term housing, echoing the city’s earlier “Residents First” approach. Hosts would need to provide insurance, tax proof, and floor plans—or face fines.
In case you missed:
Genelaine Urbano
READ: Weekly Regulatory Briefing (22)
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