Daily Regulatory Notes 07/28/2025
Cities address STRs. Michigan discusses impact of STRs; Dallas, TX & Annapolis, MD review enforcement; Woodland Park, CO refines zoning rules; Nantucket, MA handles lawsuit; Kansas City, MO prepares for World Cup 2026; Nasewaupee, WI; Melrose Township, MI; South Padre Island, TX. READ MORE.
Michigan
Michigan communities continue to grapple with the rising impact of short-term rentals as local regulations attempt to keep pace with demand. With more than 31,000 active listings reported in 2024 and strong economic gains—$1.4 billion statewide according to Airbnb—the tension between tourism and housing is growing, particularly in the northwest where listings outpace population by a wide margin.
While Michigan imposes a statewide 6% use tax, it lacks a unified regulatory framework. A bill introduced in April 2024 that would have created a statewide STR registry and uniform safety rules stalled in the legislature. In its absence, localities like Manistee, Frankfort, and Arcadia Township have taken the lead with licensing caps, inspection mandates, and enforcement mechanisms that vary widely.
Dallas has once again been blocked from enforcing its ordinance banning most short-term rentals in single-family neighborhoods, after an appeals court denied the city’s request for a broader review.
The court sided with the Dallas Short-Term Rental Alliance, ruling that enforcing the ban would likely cause irreparable harm to property rights. The city argued STR operators hadn't paid hotel taxes, but the court found no legal basis to support that claim. It also ordered Dallas to pay the Alliance’s legal fees.
Woodland Park’s Planning Commission is refining its zoning rules to address growing short-term rental demand and housing challenges.
In a July 10 meeting, members raised concerns about STRs expanding into commercial zones, risking the intended balance of land use. Limited multifamily development—hindered by state construction defect laws—has added to housing strain. The commission is now working toward a more flexible zoning framework. This follows an April court decision dismissing a lawsuit against Ordinance 1469, allowing the city to enforce STR limits to primary residences in residential zones.
In a legal turn that could ripple across Nantucket, West Dover Street homeowners Peter and Linda Grape have agreed to stop short-term renting their property while the town appeals a Massachusetts Land Court ruling.
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Judge Michael Vhay sided with neighbor Cathy Ward, who argued that the rentals violated residential zoning rules. The Grapes’ agreement comes amid pressure from the judge, who signaled he was ready to enforce a stop unless they voluntarily complied. While the town seeks to challenge the decision, Vhay has made it clear Nantucket’s current zoning does not permit short-term rentals of non-owner-occupied homes in certain districts.
As Kansas City gears up to host World Cup matches in summer 2026, city leaders across the metro are weighing whether to ease short-term rental restrictions to accommodate a projected 650,000 visitors.
With just 65,000 hotel rooms within a 100-mile radius, some municipalities like Parkville are temporarily relaxing rules to expand STR availability, allowing off-site owners and multiple units per home from May through July 2026.
Independence, Belton, and Buckner are also in the midst of loosening local rules, while Kansas City, Missouri, is considering a moratorium on some restrictions, though nothing’s passed yet. Meanwhile, cities like Roeland Park and Harrisonville are exploring temporary tourism solutions, including tent camping. Still, several communities—including Prairie Village, Weston, and Northmoor—are sticking with existing STR bans or limits despite the incoming tourism wave.
STRisker Calendar Tracker
Staying ahead of STR regulations isn’t just about deadlines—it’s about knowing what’s coming. Our Calendar Tracker keeps you informed on upcoming meetings, key votes, and policy changes, so you never miss a critical update.
Annapolis is the latest tourist city to reconsider the spread of short-term rentals as concerns about neighborhood change intensify.
Alderman Harry Huntley has introduced legislation that would cap STR licenses at 10% of homes per block, a response to mounting frustrations in the city’s historic core where full-time neighbors are disappearing. The proposal, which would grandfather existing rentals and exempt owner-occupied listings, comes amid a 27.5% increase in STRs since 2021—most concentrated downtown.
The Town of Nasewaupee is taking a closer look at occupancy compliance among its short-term rentals, with town officials now focusing on whether STRs are exceeding limits tied to their onsite wastewater treatment systems.
At a July 17 meeting, Town Treasurer Christy Herschleb reported that several properties appear to be advertising for more guests than their permitted capacity, sparking concerns about enforcement. While the town’s ordinance doesn’t currently outline a clear path for addressing such violations, the board agreed to consult legal counsel and develop formal notification letters to address noncompliant hosts.
Melrose Township, MI
Melrose Township’s debate over short-term rental rules reached a new milestone this week as residents gathered for a public hearing on a draft ordinance aimed at regulating the growing STR market.
Locals raised concerns about how new licensing requirements and enforcement measures could impact both property owners and neighbors. As the board works to revise enforcement language, officials anticipate bringing the ordinance back for final approval at their August 12 meeting.
During its July 17 meeting, South Padre Island’s Planning and Zoning Commission delved into the legal tightrope of zoning changes targeting short-term rentals, especially in one section of the E District.
Legal staff warned that such a move could be deemed unconstitutional spot zoning and potentially lead to lawsuits, particularly because existing STR operators would likely be protected by grandfather clauses. The city would also risk accusations of taking property rights without due process, complicating any enforcement. These concerns come as Texas courts begin to define the boundaries of municipal STR regulation—Fort Worth and Arlington have prevailed in defending residential bans, while Dallas has seen courts strike down its enforcement attempts.
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Genelaine Urbano
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