Daily Regulatory Notes 08/28/2025
Cities address STRs. Watertown, MA reminds enforcement; Dallas. TX denies enforcement; New York, NY rallies in support of bill; Long Beach, CA & Atascadero, CA tighten rules; Orangetown, NY files lawsuit; National City, CA; Townsend, TN. READ MORE.
Watertown officials are reminding residents that short-term rentals remain prohibited under city zoning, following the council’s April 2024 rejection of a proposal that would have legalized STRs on a limited basis.
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Current rules ban rentals of fewer than 31 days, with violators subject to fines. As part of a proactive enforcement push, city staff are sending letters to suspected operators requiring confirmation that their listings comply with the minimum stay rule or documentation showing rentals have ceased. Officials say the campaign is aimed at education as much as enforcement, noting that hosts must verify compliance before offering properties online.
The City of Dallas has once again been denied in its bid to enforce its broad short-term rental restrictions, as the Fifth District Court of Appeals this week refused to reconsider a panel’s earlier ruling that kept the city’s two-year-old ban on hold.
The ordinances, aimed at curbing neighborhood disruption from party houses, largely prohibited STRs in residential areas. But operators sued and won an injunction that remains in place. STR advocates say the ruling underscores the need for collaboration rather than litigation, calling on city leaders to sit down and develop a “fair and sensible” framework. With the World Cup approaching in 2026, they argue Dallas should be focused on welcoming visitors rather than fighting costly legal battles.
Homeowners and community groups rallied in Jackson Heights this week in support of Intro 1107, a bill that would loosen New York City’s strict short-term rental rules.
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The proposal from Council Member Farah Louis would allow owners of one- and two-family homes to rent to up to four adults without being present, rolling back parts of Local Law 18. Supporters argue the change would help families cover rising costs and bring tourism dollars to outer-borough neighborhoods, while tenant advocates and Comptroller Brad Lander warn it would worsen the housing crisis and invite speculative investors.
Long Beach is tightening its grip on short-term rentals, rolling out new rules that cap the number of rental days, require annual inspections and registration, and enforce stricter penalties for repeat violations.
City leaders say the changes are meant to preserve housing availability after residents raised concerns about noise, parking, and dwindling long-term rental options. Property managers like Harbor Property Management note that while the ordinance could shift units back into the long-term market, it also forces owners to rethink leasing strategies to protect revenue.
Orangetown has filed suit in Rockland County Supreme Court to permanently bar the owners of a Blauvelt home from hosting ticketed pool parties advertised on Swimply and EventBrite, saying the gatherings violate the town’s ban on short-term rentals and outdoor space rentals.
A judge has already issued a temporary restraining order, and the case returns Sept. 19. The town is also seeking fines and noise violations, pointing to late-night parties with paid entry fees and promotional ads. The dispute comes as Rockland County renews efforts to force Swimply to turn over host records tied to illegal pool rentals.
Atascadero is moving to tighten its short-term rental rules, with the Planning Commission unanimously recommending an ordinance that would cap the number of units, require primary residency for hosts, and add new permits with compliance checks.
The proposal responds to council concerns about noise, parking, and lack of oversight, aiming to prevent the city’s 132 licensed rentals from rapidly multiplying. The ordinance would require owners to live on-site, provide 24/7 contacts, limit rentals to one party with two cars, enforce quiet hours, and allow permit revocation with fines up to $1,000.
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Trying to keep up with the main players in the STR game? Know your councilmembers, commissioners, committee chairs, and key staff that are part of the process.
National City councilmembers unanimously backed the first reading of an ordinance to regulate short-term rentals, setting the stage for caps, new fees, and stricter oversight.
The draft rules would limit the city to 180 rentals, with no more than 60 per council district, and require operators to either live on-site or within a quarter mile. Hosts with serious criminal records would be barred, while others would need to pay a $250 annual permit fee and comply with day limits if not living on the property. The measure also opens the door to applying the city’s 10% hotel tax to STRs, which could generate millions in new revenue, though officials say the main intent is to address crime and protect community wellbeing. A second reading and final vote are still required.
Townsend is considering a 3% lodging tax on hotels, motels, and cabin rentals to fund local tourism projects, with estimates showing it could bring in around $500,000 each year.
City officials say the revenue would go directly toward improving attractions like Special People’s Park and the city’s river access, which are seen as central to sustaining visitor demand. If approved, the ordinance would align Townsend with other Tennessee cities that already collect such a tax. The second reading and public hearing are scheduled for September 16.
In case you missed it:
Genelaine Urbano
READ: Daily Regulatory Notes 08/27/2025
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