Daily Regulatory Notes 06/19/2025
Cities address STRs. Minnesota; Colorado Springs, CO; Nantucket, MA; Doña Ana County, NM; Bay County, FL; Honolulu; HI; Clayton, MO; Palm Springs, CA; Willowick; OH; Normal, IL. 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. 📰
Minnesota
Minnesota Realtor Connie Toupin has filed federal lawsuits against Apple Valley and Bloomington, arguing their bans on short-term rentals under 30 days violate the Fifth Amendment by taking private property without compensation.
Toupin claims the cities imposed these rules without evidence of harm or proper review, driven instead by hotel competition concerns. She hopes to set a legal precedent against blanket bans, especially as cities like Richfield move to limit STRs further.
A bizarre incident in Colorado Springs is drawing fresh attention to Airbnb’s handling of safety and liability after a guest accidentally fired a gun inside a rental property causing damage to a vintage dining set and the floor.
The host, Rachael Knapp, said she received a message from the guest who admitted to discharging the firearm while packing, calling it a mistake and offering to replace the furniture. Airbnb has since suspended the guest and compensated the host under its AirCover policy, which provides up to $3 million in damage protection.
The Town of Nantucket is holding off on enforcing a recent Land Court ruling that prohibits short-term rentals in non-owner-occupied homes, following a lawsuit filed by Cathy Ward against her neighbors and the zoning board.
Officials clarified that enforcement will apply only to the property in question while they appeal the decision, a move that will allow rentals to continue uninterrupted for now.
Doña Ana County is ramping up enforcement of its short-term rental and lodgers' tax ordinances notifying noncompliant property owners that they face permit suspension or cancellation if they don’t comply by July 16.
The county’s short-term rental rules in place since 2021 require owners to register for a Business Tax Number, apply for a $50 one-time STR permit and $35 annual business registration, and submit documentation like insurance and safety maps.
Lodgers' Tax Ordinance, Ordinance No. 363-2025
New rules passed in April also mandate a 5% lodgers’ tax on renters, to be remitted monthly or quarterly. Owners must also mail notices to neighbors within 200 feet once approved. RVs cannot be used as STRs unless located in designated parks.
STRisker Documents Dashboard
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Bay County is overhauling its short-term rental system after discovering internal errors that led to under-collection of fees and compliance issues.
The current system costs about $500,000 annually, yet only about $68,000 has been collected partly due to hosts skipping mandatory inspections. Responding to concerns from rental owners about high costs, the county voted to reduce the property manager change fee from $100 to $35.
Honolulu’s Department of Planning and Permitting has rolled out a new Short-Term Rental Awareness Campaign aimed at helping visitors and residents identify illegal vacation rentals on Oʻahu.
The campaign educates the public on spotting noncompliant listings by checking for required information like a registration number, Tax Map Key (TMK), and appropriate disclaimers. Rentals advertised for less than 30 days are only legal if they are registered or located in designated resort zones per Ordinance 22-7.
The city has STR resources like a property tool search and STR compliance map to check if an STR is legal
Clayton planning officials are weighing a proposal that would allow short-term rentals in a limited number of downtown buildings under tightly controlled conditions. The Plan Commission postponed a vote until July 7 to clarify language aimed at preventing nuisance issues such as large parties.
The draft ordinance would allow STRs only in 17 eligible pre-1955, two-story buildings spaced at least 500 feet apart, with strict permit, management, and no-party rules. If the Plan Commission votes to advance the plan, it will head to the Board of Aldermen for final consideration.
Palm Springs is set to tighten short-term rental oversight with new rules recommended by its Administrative Appeals Board. The proposed updates would require property management companies to register with the city, obtain valid rental certificates, and face fines up to $10,000 for advertising unlicensed listings.
The plan also introduces outreach efforts like required buyer education, MLS agent briefings, and public seminars to reduce confusion over STR rules. Property owners with no violations in 2025 could retain the 36-contract limit in 2026, while others would drop to 26.
Willowick enforces short-term rental activity through a licensing system tied to its single-family residential rental ordinance. Owners of non-primary residences must pay $300 for an occupancy license valid for two years, with mandatory inspections and City Council approval. Violators face fines up to $1,000 per day.
Surrounding cities are going further. Eastlake recently passed an ordinance criminalizing STRs with escalating misdemeanor charges and daily penalties for noncompliance. Mayfield Heights followed suit this month warning that unlicensed Airbnb or Vrbo hosts could face jail time and up to $1,000 in fines.
Genelaine Urbano
The Normal Town Council approved a significant update to its short-term rental ordinance, effectively banning new non-owner-occupied rentals in R1 and R2 zones and phasing out current ones over five years.
Passed 5–2, the move is intended to protect neighborhood character and affordable housing. Officials noted that 66 STRs are registered in town, mostly owned by Illinois residents.
In case you missed it:
Genelaine Urbano
READ: Daily Regulatory Notes 06/18/2025
Genelaine Urbano
READ: Global Regulatory Notes (11)
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