By Genelaine Urbano in Legislation — 16 Sep 2025

Daily Regulatory Notes 09/16/2025

Cities address STRs. Colorado launches COSTRA; Montana upholds court decision; Austin, TX approves rules; Pittsfield, MA approves ordinance; Oneida County creates registry and extends HOT; Avalon, CA; Annapolis, MD discusses limits; St. Francisville, LA; Wayzata, MN. 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. 📰

Colorado

Colorado’s short-term rental community now has a stronger voice with the official launch of the Colorado Short-Term Rental Alliance (COSTRA), a nonprofit formed through the merger of groups like Mile High Hosts and the Colorado Lodging Resort Alliance.

COSTRA plans to advocate at the Capitol on legislation impacting STRs while also providing education and resources for property managers. The alliance enters the scene at a critical time, with state lawmakers eyeing measures such as a revived excise tax proposal that could allow counties to levy open-ended taxes on industries like STRs.

Montana

The Montana Supreme Court has ruled that restrictive covenants banning commercial activity in a Whitefish subdivision apply to short-term rentals, upholding a lower court decision against R&R Mountain Escapes.

Neighbors argued the vacation rental violated covenants intended to preserve “country residential living” and prevent business activity, citing traffic and safety concerns, including an incident with unsupervised children. The court found that renting a property for profit qualifies as commercial use, even when owners also occupy it part of the year.

Austin, TX

Austin has approved new short-term rental rules that limit how many units an owner can operate and give the city sharper enforcement tools. The ordinance, passed Sept. 12, requires STRs to be at least 1,000 feet apart unless part of a complex with four or more units, where an owner may run up to 25% of them.

All operators will also need a city-issued license, and platforms like Airbnb must display it on listings starting next year. Consultant Blake Anthony Carter warned that with more than half of STRs currently unlicensed, the changes could cut available rentals in half as some owners shift outside city limits. Most provisions take effect Oct. 1, with licensing rolling out early 2026.

🏙️

Read the full ordinance here.

Pittsfield, MA

Pittsfield has approved its first-ever ordinance regulating short-term rentals, establishing a framework of registration, inspections, and licensing while capping rentals at 150 days per year.

The measure, passed 10–1 by the City Council, defines STRs as rentals of 30 days or less and limits ownership to two properties per person, with at least one required to be owner-occupied and the other more than a half-mile away. Enforcement will fall to the building commissioner and Licensing Board, though officials admitted tracking rental days will likely rely on good-faith reporting by operators until stronger systems are in place.

Oneida County, NY

The Oneida County Board of Legislators voted Sept. 10 to create a registry for short-term rentals and extend the county’s 5% hotel occupancy tax to these properties, with the law taking effect Jan. 1, 2026.

County Executive Anthony Picente says the step will generate $800,000 in new revenue to support tourism and economic development as platforms like Airbnb reshape visitor lodging. Hosts must register with the county every two years, and booking services will handle tax collection and quarterly filings. Enforcement will include warnings for initial violations before fines escalate to $500 per day.

STRisker Government Office Dashboard

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.

Create Your Watchlist - 14 Day Free Trial

Avalon, CA

Avalon finalizes sweeping new rules for short-term rentals, adopting them unanimously on Sept. 2 as part of its Consent Calendar. The changes come after a two-year moratorium on new transient rental licenses, during which the city built a single STR database and revoked 77 non-compliant properties.

The ordinance tightens complaint procedures by requiring verification through Host Compliance, which is expanding its monitoring to a 24/7 call center this fall. The rules set a 410-unit cap on transient rentals, increase fines for violations, and mandate revocation of permits after three adjudicated violations within a year.

Annapolis, MD

Annapolis is weighing new limits on short-term rentals, as the Rules and City Government Committee meets to consider capping them at 10% of units per block face.

Short Term Rental Portal | Citizen Self-Service (CSS) | Annapolis, MD

Welcome to the Short-term Rental Portal Use this portal to: · Register for a short-term rental license · Pay Occupancy Tax on an existing short-term rental license · Renew an existing short-term rental license

HomePage

The proposal is designed to curb clustering in neighborhoods like Ward 1, where many blocks already exceed that threshold. A key point of debate is whether to grandfather existing rentals, which could leave oversaturated areas untouched while restricting new ones. With legal precedent from bed and breakfast caps in place, the committee says more work is needed before sending the measure to the full council.

St. Francisville, LA

The St. Francisville Board of Aldermen drops the idea of a new short-term rental study committee, with no motion offered at its Sept. 9 meeting.

Mayor Andy D’Aquilla says he will still review possible compliance issues at existing rentals. The town’s 2023 ordinance already restricts STRs to designated commercial zones, an effort to prevent property buyouts and ensure operators contribute fairly compared to traditional lodging businesses.

Wayzata, MN

The Wayzata City Council has voted 4-1 to move forward with a ban on short-term rentals, ending a licensing program first adopted in 2024 and requiring that all rentals have a minimum lease of 30 days by March 2026.

The ordinance comes after workshops and engagement sessions revealed strong resident opposition, with many arguing STRs bring noise, turnover, and commercial activity to residential areas. Council members rejected amendments to allow homesteaded properties or accessory units, saying the priority was neighborhood stability. Existing STR operators may continue until their licenses expire in March 2026, but no renewals will be granted.