Weekly Regulatory Briefing (44)

🏡Top Stories This Week

• Del Mar, CA: The Del Mar City Council has approved a three-year, $60,000 contract with Deckard Technologies to monitor short-term rentals citywide.

🌍 Regional Highlights

• Hawaii: Hawaiʻi officials are stepping up efforts to ensure vacation rental owners comply with state tax laws. 
• Utah: Short-term rentals are once again at the center of Utah’s housing policy debate, as a new report commissioned by the Utah Taxpayers Association downplays their impact on affordability.
• California: Short-term rentals in California promise strong income potential but demand near full-time management. Recent data shows top-performing listings can out-earn long-term leases two to three times over, though occupancy now hovers around 55–60% amid rising competition.
• Michigan: Michigan lawmakers are considering new legislation that would let local governments impose a voter-approved tax on short-term rentals, aiming to offset community costs tied to tourism.

📜 New Ordinances Approved

• Hilton Head, SC: Hilton Head’s long-awaited short-term rental ordinance is now law after receiving final approval Tuesday, setting new fire safety and parking standards but excluding the controversial occupancy caps.
• Riverside, AL: The City of Riverside has enacted a six-month moratorium on new short-term rental licenses while officials assess local impacts and enforcement needs.
• Oxford, MD: Oxford commissioners voted Oct. 28 to strengthen local short-term rental rules, updating compliance standards and penalties to improve enforcement.

💬 Catch Up on Discussions

• Palm Springs, CA: The Palm Springs City Council has voted to keep its 36-contract cap for older short-term rentals, scrapping a scheduled cut to 26 contracts that was set for 2025.
• Saratoga Springs, NY: At its latest budget workshop, Saratoga Springs officials identified short-term rental revenue as a key element of their 2026 financial strategy amid rising pension and insurance costs.
• Athens, OH: Athens officials say the city’s short-term rental activity remains limited and largely stable, with only 33 permitted listings—most of them owner-occupied homes.
• Santa Barbara, CA: Santa Barbara officials are revisiting local tax policy with short-term rentals in the mix.
• New York City, NY: New York City Council Member Mercedes Narcisse is proposing amendments to Local Law 18 that would ease restrictions on short-term rentals for one- and two-family homeowners.
• New Franklin, OH: New Franklin City Council is moving forward with proposed rules for short-term rentals after holding a first reading on Oct. 15 that drew pushback from residents.
• New Orleans, LA: The New Orleans City Council voted unanimously to direct the City Planning Commission to hold a public hearing on creating a transient lodging interim zoning district (IZD) that would require conditional-use approval for hotels, motels, short-term rentals, and similar uses.
• Salida, CO: Salida’s debate over short-term rental residency rules returned to the spotlight Oct. 21, as city council members clashed over whether to repeal the local ownership requirement.
• Saratoga, WY: Saratoga is weighing whether to formally allow short-term rentals for the first time, with city councilmembers expressing mixed feelings about the potential impacts.
• Clear Creek County, CO: Clear Creek County officials are rolling out new procedures to verify whether short-term rental owners actually live where they claim.
• Holly, MI: Short-term rental owners in the Village of Holly will now need to register as businesses and renew their licenses annually under a newly amended ordinance approved unanimously by the Village Council.
• Sausalito, CA: Sausalito is cracking down on illegal short-term rentals by banning advertisements for stays under 30 days and introducing steep new fines.
• Green Bay, WI: Green Bay’s Equal Rights Commission is recommending tougher short-term rental regulations, including a 180-day cap on rentals, a seven-night minimum stay, and higher permit fees, to curb housing pressures and neighborhood disruptions.
• Bakersfield, CA: Bakersfield officials are drafting the city’s first short-term rental ordinance to regulate listings on platforms like Airbnb and Vrbo, which currently operate without oversight.
• Wayzata, MN: A group of Wayzata property owners has filed a lawsuit challenging the city’s new ban on short-term rentals, arguing officials failed to follow proper procedures before passing the ordinance.
• Maui County, HI: Maui County’s Housing and Land Use Committee recessed Wednesday after debating how to proceed with Bill 9, a sweeping proposal to phase out short-term rentals in apartment-zoned areas.
• Riley County, KS: Riley County officials are moving forward with new short-term rental regulations aimed at tightening oversight in unincorporated areas outside city limits.
• El Paso, TX: El Paso City Council voted on Tuesday to define and regulate short-term rentals for the first time
• Kane County, IL: Kane County officials are moving toward creating a licensing system for short-term rentals after residents complained about noise, overcrowding, and safety issues on their street.
• Sussex County, DE: Tourism leaders in Sussex County are raising alarms over a $1.3 million gap in Delaware’s short-term rental tax collections, citing discrepancies between state reports and AirDNA estimates.
• Maricopa County, AZ: Maricopa County’s Planning and Zoning Commission voted 9-0 on Oct. 23 to advance a new ordinance updating local rules for accessory dwelling units (ADUs) and short-term rentals to align with recent Arizona legislation.
• Carrboro, NC: Carrboro officials are weighing how to balance affordable housing goals with growing concerns over short-term rentals.

🌱 Let’s Explore: Emerging Trends

Across the U.S., short-term rental policy debates are shifting from one-off local actions to broader, coordinated strategies. Cities are embracing new enforcement tools, refining tax structures, and linking STR rules more closely to housing goals.

💻 Enforcement and Compliance Tech Are Taking Center Stage: Cities are increasingly turning to digital tools to manage and monitor short-term rentals, signaling a broader shift toward data-driven enforcement. Del Mar’s $60,000 contract with Deckard Technologies reflects this trend, as local governments seek ways to track unlicensed listings and ensure fair tax collection without expanding staff resources.

📊 Taxation and Revenue Measures Are Gaining Momentum: From Michigan’s proposed voter-approved STR tax to new enforcement efforts in Hawaii, local leaders are looking to shore up revenue and address tourism impacts through targeted taxation. Hilton Head’s newly adopted ordinance and Oxford’s strengthened enforcement rules also show that tax compliance and fair contribution to community services are becoming core priorities in local policymaking.

🏘️ Housing Protection Takes Priority in Local Rulemaking: Across the U.S. and abroad, housing affordability is driving the next wave of short-term rental regulation. Maui’s phaseout of STRs in apartment-zoned areas and Nelson’s shrinking downtown rental market highlight how cities are prioritizing homes for residents over tourism growth. Policymakers are increasingly aligning STR restrictions with broader housing goals, reflecting a growing consensus that stable long-term housing must come first.

📅 Future Meetings and Public Hearings/Comments:

• New Franklin, OH: The measure advances to a second reading on Nov. 5, as Mayor Paul Adamson said the city will consult legal counsel on potential challenges tied to banning STRs outright.

• Green Bay, WI: City Council will review the recommendations at its Nov. 11 meeting, which could lead to the drafting of new ordinances.

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

Upstate SC town cracks down on short-term rentals as region’s tourism booms

Simpsonville has approved a new short-term rental ordinance requiring property owners to obtain permits, pay fees, and follow stricter limits on stay durations in an effort to level the playing field with hotels and ensure tax compliance.

Social Listening 🎧: Podcast

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