Daily Regulatory Notes 12/10/2024

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. 📰

Scottsdale, AZ

Short-term rental concerns in Scottsdale are escalating as neighbors report noise, illegal activity, and safety issues linked to some of the city's 4,000 vacation properties. Police have responded to extreme cases, such as drug seizures and violent incidents, though authorities note these are rare.

Noise complaints, which account for half of the 100-200 monthly reports, remain the most frequent issue. While Arizona law protects short-term rentals as residential properties, limiting cities' regulatory power, Scottsdale officials and advocacy groups are pushing for stronger legislation and registration requirements to curb bad actors and restore neighborhood peace.

READ: Scottsdale's Article VIII. - Nuisance Parties and Unlawful Gatherings

New York

The "Tenants Not Tourists" campaign launched this week to oppose New York City Council's proposed Intro. 1107, arguing the bill could worsen the city's housing crisis. The legislation would allow short-term rentals for up to four guests without requiring hosts to be present, exempting one- and two-family homes from enforcement.

Opponents, including housing advocates and renters, claim it undermines Local Law 18, which sought to curb illegal short-term rentals and protect affordable housing.

“Amid the ongoing housing crisis, it is nonsensical to convert residential homes into short-term rentals for tourists, instead of using this housing stock to help New Yorkers secure permanent housing,” said Robert Desir, staff attorney in the Civil Law Reform Unit at The Legal Aid Society. amNY

Rallying outside City Hall, critics warned the bill would deplete the housing supply, empower private equity firms, and drive up rents. Meanwhile, supporters, including homeowners and Airbnb, defended the measure as a way to offer economic opportunities for residents while addressing overly restrictive rental laws.

Lexington County, SC

Effective January 1, 2025, Lexington County’s new short-term rental regulations aim to curb problems associated with temporary stays, such as overcrowded parking and noise complaints. The ordinance requires hosts in unincorporated areas to secure a zoning permit, follow rules on renter age and parking, and ensure compliance to avoid losing their permit.

Short-term rentals are defined as stays of up to 29 days, including vacation homes and event rentals. Incorporated areas have separate rules, so homeowners within city limits should verify local requirements.

Fairport Harbor Village, OH

Fairport Harbor Village Council has decided to delay voting on two ordinances that would regulate short-term rental properties. The ordinances, 2024-80 and 2024-81, were set for a third reading on Nov. 19 but have been tabled to allow more time for review.

Ordinance 2024-80 outlines rules for short-term rentals, such as requiring permits for property owners and establishing safety standards, including off-street parking requirements. Ordinance 2024-81 would designate short-term rentals as a conditional use in the village’s zoning code.

The council plans to discuss revisions to Ordinance 2024-80 at the Dec. 17 meeting, with a public hearing for Ordinance 2024-81 scheduled for Jan. 7, 2025.

Sauk Rapids, MN

Sauk Rapids is considering a stricter rental density cap, proposing to limit short-term rentals to 15% of homes per block, down from the current 30% allowance. City staff argue this measure is necessary to address maintenance issues, nuisance complaints, and potential property value declines associated with high rental densities.

The proposed changes would not affect developments designed under planned unit developments (PUDs), which are exempt. Existing blocks exceeding the 15% cap would retain their current rental licenses but could not add new ones until density falls below the threshold. Licenses in capped areas would also become non-transferable upon property sales.

Shawnee, KS

The city of Shawnee will host its first public hearing on a short-term rental case since implementing new regulations in March. The hearing will address seven alleged violations at a rental property, including exceeding the 10-person occupancy limit, noise complaints, parking infractions, and breaches of public peace regulations.

The owner, who pleaded guilty to the violations in November, now faces potential suspension or revocation of their business license. Shawnee's rules for short-term rentals also require owners to hold a business license, with fines of $500 or jail time for non-compliance. A decision is expected Monday night.

Queen Anne County, MD

Queen Anne’s County Commissioners approved a new short-term rental ordinance on November 26. The ordinance permits short-term rentals in all zoning districts but imposes regulations, including annual zoning certificates, a local property manager requirement, and compliance with hotel tax registration.

Special events require separate approval, and amplified music is subject to a curfew. To ease implementation, the county will provide a flexible rollout period to notify property owners and schedule inspections.

Houston, TX

US Short Term Rental Regulation Updates 12/9/2024

Cities regulate STRs: Lexington, KY and Escondido, CA approve rules; Michigan finalizes laws; South Haven, MI extends a moratorium; Portland, OR delays a vote; Los Angeles, CA and Houston, TX address illegal rentals and enforcement. Read more.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

Houston’s proposed STR ordinance seeks a middle ground by mandating property registration, insurance, and adherence to local laws while introducing penalties for violations like excessive noise and criminal activity. Residents complain about disruptive properties, while property owners and platforms like Airbnb question the fairness of some requirements.

The ordinance reflects Houston’s measured approach, avoiding the harsher restrictions seen in cities like New York and Dallas. With public opinion divided but leaning toward regulation, City Council will likely vote on the measure early next year, with implementation planned for 180 days after approval.

Colorado

Colorado’s 2025 legislative session may revive contentious debates over short-term rental regulations, with proposals such as vacancy taxes on underused homes and higher lodging tax caps for unincorporated areas being considered.

Supporters see these measures as essential for tackling housing shortages in resort towns, but opponents warn they could stifle the short-term rental industry and deter tourism. With advocacy groups gearing up for another lobbying effort, the session is expected to mirror last year’s high-stakes battles, highlighting the tension between housing needs and the economic role of vacation rentals.