Weekly Regulatory Briefing (30)

🏡Top Stories This Week

• Los Angeles, CA: The city of Los Angeles is suing Airbnb for allegedly enabling price gouging during the January wildfires that triggered a state of emergency.
• Ocean City, MD: Ocean City residents voted 834 to 800 against a proposed ordinance that would have introduced length-of-stay limits for short-term rentals in residential and mobile home districts, effectively blocking a phased regulation plan that aimed to address rising neighborhood complaints.

🌍 Regional Highlights

• Utah: A recent study by Utah State University reveals that residents across the Bear Lake region are sounding alarms over the rapid growth of short-term rentals, especially as communities on the Idaho side lag behind in regulation.

📜 New Ordinances Approved

• Leyden, MA: In a two-hour town meeting, Leyden voters signed off on new bylaws regulating short-term rentals and accessory dwelling units. 
• Ocean City, NJ: Ocean City has voted to impose a 3% local tax on short-term rentals booked through Airbnb and similar platforms aiming to capture more revenue from the increasingly popular booking method.
• Sarasota, FL: Sarasota City Commissioners voted unanimously to approve 14 updates to their vacation rental ordinance, fine-tuning regulations on proof of ownership, tax documentation, advertising clarity, and safety postings.

💬 Catch Up on Discussions

• Chicago, IL: Chicago is tightening the rules for short-term rentals, aligning them more closely with traditional hotels by extending the state’s Hotel Operators’ Occupation Tax (HOOT) to Airbnb and VRBO listings.
• Jacksonville Beach, FL: Jacksonville Beach is feeling the pressure of a booming short-term rental market, with residents like Ashley Kelm warning that the city’s character and housing accessibility are eroding fast.
• Orange County, CA: As Orange County braces for a potential surge in short-term rentals tied to the 2026 World Cup and 2028 Olympics, a new Grand Jury report is sounding the alarm on outdated and inconsistent STR regulations across the county’s 34 cities.
• Kansas City, MO: As Kansas City braces for an influx of 650,000 visitors during the 2026 FIFA World Cup, regional leaders are confronting a growing tension between housing tourists and protecting neighborhoods.
• Rindge, NH: Rindge, New Hampshire officials are now actively enforcing a new short-term rental ordinance passed in March that requires property owners offering stays of less than 30 days to seek site plan approval and obtain a conditional use permit from the Planning Board.
• Londonderry, VT: In a decisive town vote on Saturday, Londonderry residents chose to uphold stricter short-term rental rules aimed at slowing rental growth and preserving local housing for year-round residents.
• Stowe, VT: Stowe officials are moving closer to placing a cap on short-term rentals as new data from the town’s rental registry reveals that a majority of properties are owned by out-of-town investors.
• Sumner County, TN: Sumner County officials are once again trying to advance a short-term rental ordinance for the county’s unincorporated areas, where no regulations currently exist.
• Largo, FL: In Largo’s Del Prado neighborhood, frustrations over short-term rentals have reached a boiling point as Pinellas County quietly pauses its newly required rental certificate process.
• Kennesaw, GA: Kennesaw will start issuing short-term rental licenses on October 1, implementing a new ordinance that limits such rentals to primary residences in single-family zones and imposes a 250-foot buffer between units, a 150-license cap, and a two-license-per-owner rule.
• Pleasant Ridge, MI: Pleasant Ridge officials are taking a deeper look at how short-term rentals are affecting their close-knit community.
• Lakewood City, OH: Lakewood City Council is moving toward tighter oversight of short-term rentals after residents raised complaints about late-night noise and disruptive guests.
• Cheektowaga, NY: The Town of Cheektowaga is pushing forward with new short-term rental rules that specifically target properties owned by LLCs, which have increasingly been linked to foreign investors and potential neighborhood disruption.
• Georgia, VT: Georgia’s selectboard is preparing to regulate short-term rentals for the first time, following state recommendations and growing local concern about housing availability.

🌱 Let’s Explore: Emerging Trends

Cities and counties across the U.S. are stepping up efforts to rein in short-term rentals as tourism booms and housing pressures mount. From new legal battles to tax expansions, here are the key trends shaping local STR policy this week.

🏫 Local Governments Are Ramping Up Regulation and Taxation Efforts: Dozens of municipalities are rapidly enacting ordinances that fine-tune how short-term rentals operate in their communities. Sarasota, FL just passed 14 detailed updates to its STR ordinance, Ocean City, NJ added a 3% local tax on STR bookings, and Kennesaw, GA is rolling out a new licensing system with strict caps and buffers. This regulatory momentum shows that localities are increasingly focused on revenue capture, safety, and curbing STR saturation—often in advance of large-scale tourism events like the World Cup or summer vacation peaks.

🏠 Housing Affordability and Community Character Are Driving Local Action: In rural towns like Londonderry, VT and growing cities like Lakewood, OH, officials and residents are rallying behind stricter regulations to preserve long-term housing and maintain neighborhood identity. Many communities are tightening limits on investor-owned STRs, enforcing buffer zones between rental units, and prioritizing permits for primary residences. As the lines blur between residential and commercial use, preserving affordability and community stability has become a top concern—especially in areas facing pressure from out-of-town investors.

🔥 Disaster Events Are Prompting Scrutiny of STR Price Practices
Extreme weather and natural disasters are exposing vulnerabilities in the short-term rental market, particularly around price gouging and consumer protections. In Los Angeles, the city has filed a lawsuit against Airbnb for allegedly enabling inflated rental rates during the January wildfires, when a state of emergency had been declared. This case spotlights a broader concern that in the absence of firm guardrails, STR platforms may unintentionally profit during crises while residents and displaced families face mounting housing costs. As climate events grow more frequent, expect greater oversight and pressure on platforms to implement surge pricing limits and emergency protocols.

📅 Future Meetings and Public Hearings/Comments:

• Sumner County, TN: Residents have raised ongoing concerns about noise, crime, and disruptive behavior, but Commissioners Don Schmit and Ben Harris say those worries are being ignored. It’s still unclear whether the measure will be added to the agenda for the planning commission’s August 12 meeting.

• Cheektowaga, NY: During the July 22 Town Board meeting, members agreed to finalize a draft law and hold a public hearing on August 12, with a vote anticipated by August 26. 

🖱️ Click of the Week: See What Everyone’s Reading

Pacifica approves short-term rental rules

Pacifica’s city council has passed a new short-term rental ordinance after three years of deliberation imposing strict limits such as a 60-day annual cap on unhosted rentals, safety inspections, and a ban on rentals in accessory dwelling units to address community concerns about noise, housing, and neighborhood impacts.

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