Weekly Regulatory Briefing (5)
Each week, we bring together the biggest updates in short-term rental regulations from coast to coast. Whether it’s fresh local regulations, emerging trends, or major discussions, our briefing provides all you need to stay in the know.
Each week, we bring together the biggest updates in short-term rental regulations from coast to coast. Whether it’s fresh local regulations, emerging trends, or major discussions, our briefing provides all you need to stay in the know.
🏡 Top Stories This Week
- 🌴 Palm Springs, CA: The Palm Springs City Council unanimously approved temporary relief from vacation rental caps for properties hosting wildfire evacuees, effective from Jan. 7 through Feb. 28
- 🏡 Sedona, AZ: Sedona has declared a "housing shortage emergency," calling on state lawmakers to grant cities authority to regulate short-term rentals.
Genelaine Urbano
Read more on Daily Notes 01/27/2025
- 📒 Las Vegas, NV: A Las Vegas homeowner is suing a tenant and Airbnb after being hit with $180,000 in fines for illegal short-term rentals.
🌍 Regional Highlights
- 🌃 California: Airbnb has capped short-term rental price increases at 10% in Los Angeles and Ventura counties following wildfires, responding to California’s price gouging laws.
- 🦺 Montana: Montana lawmakers are considering Senate Bill 146, the "Private Property Protection Act," which aims to limit local governments’ ability to impose zoning and property use restrictions without meeting a high legal standard.
- 🏙️ New York: New York will soon finalize a law allowing counties to create short-term rental registries, providing local governments with better data on economic impact and housing availability.
📜 New Ordinances Approved
- 📎 Lexington, KY: The Lexington-Fayette Urban County Council unanimously approved new rules for short-term rentals in rural areas of Fayette County, effective immediately.
- 🖨️ Cass County, MN: Cass County Commissioners approved a new short-term rental ordinance following a public hearing on Jan. 21, with a 4-1 vote in favor. The ordinance introduces licensing requirements and aims to balance the interests of private STR operators and resort owners.
- 🚗 Ashland, WI: Ashland has introduced new short-term rental regulations requiring operators to apply for a license, ensure properties meet code and parking requirements, and adhere to occupancy limits.
💬 Catch Up on Discussions
- 💻 Stowe, VT: In 2024, Stowe began implementing a short-term rental registry ordinance designed to address the town's housing crisis.
- 🖇️ Sandwich, MA: Sandwich officials are proposing a short-term rental bylaw requiring annual registration, inspections, and certifications with local contact information.
- 🤵 Pittsburgh, PA: Pittsburgh residents continue to voice concerns about the unchecked spread of short-term rentals, citing rowdy behavior, parking problems, and a shift in neighborhood character.
- 🗳️ Rio Rancho, NM: The Rio Rancho City Council is revising its recently approved short-term rental (STR) ordinance with amendments discussed during a Jan. 23 meeting.
- 🏨 Traverse City, MI: Traverse City planning commissioners are exploring stricter limits on short-term rentals, focusing on expanding existing rules that cap them at 25% in new multi-unit buildings.
- 🎤 Rapid City, SD: Rapid City's Community Development Division hosted an open house on Jan. 28 at the Dahl Arts Center drawing over 130 attendees to discuss potential vacation rental regulations.
Genelaine Urbano
Read more on Daily Notes 01/30/2025
- 📻 Exeter, RI: A Superior Court judge has upheld Exeter's requirement for a special use permit to operate short-term rentals, rejecting Mark and Tonya Hughes' claim that state law (§42-63.1-14) preempts municipal regulations.
- 🏈 Green Bay, WI: Green Bay and Ashwaubenon are seeing a surge in short-term rental activity as the NFL draft approaches, with permit applications doubling in recent months.
- 🗺️ Ocean City, MD: The Ocean City Council will again consider short-term rental rules, debating a proposal to limit rentals in R1 and MH zones to one per week.
- 🔈 Sedona, AZ: Sedona will continue hiring a lobbyist to advocate for stronger short-term rental regulations at the Arizona State Legislature, a decision initially approved in 2021 despite opposition from some former council members.
- 📊 Pitkin County, CO: Pitkin County Commissioners reviewed the financial performance and operational trends of the county’s Short-Term Rental (STR) licensing program during a Jan. 21 work session, noting a decline in STR license applications since its 2022 implementation.
- 👞 Ontario, OR: The Ontario Planning Commission continued its discussion on a proposed short-term rental ordinance at its Jan. 13 meeting but postponed a decision until its next session.
- 🧔 South Haven, MI: At its January 21 meeting, the South Haven City Council’s discussion on short-term rentals turned contentious as members reviewed the 2025 STR Snapshot Report.
- 💼 Asheville, NC: An Asheville man has filed a lawsuit against Airbnb and a local homestay owner, alleging they violated rental regulations and Airbnb’s own policies, leading to an illegal party where he was shot and paralyzed.
- 🌱 Manatee County, FL: Manatee County Commissioners discussed a proposed short-term rental ordinance during their Jan. 28 meeting with Commissioner Tal Siddique seeking board support to direct staff in drafting local regulations.
- 🏚️ Lake Havasu, AZ: Lake Havasu City may formally call on the Arizona legislature to address short-term rental impacts as housing affordability concerns intensify.
- 🗃️ Mentor, OH: Mentor City Council is examining how to regulate short-term rentals after a few unlicensed properties were found operating in the city.
Let’s Explore: Emerging Trends 🌱
The evolving short-term rental (STR) market is driving communities to implement new policies. Increased oversight, legal battles, and efforts to manage neighborhood impacts illustrate the shifting landscape of STR regulations.
What this means:
🏘️ Local Governments Expanding STR Oversight: Cities and counties are increasingly implementing or revising short-term rental regulations to address housing shortages, community concerns, and compliance challenges. From Sedona, AZ, declaring a housing emergency to Lexington, KY, approving new rural STR rules, local governments are pushing for stronger oversight through permitting, licensing, and zoning restrictions.
📝 Legal and Financial Challenges for STR Operators: Lawsuits and financial penalties related to short-term rentals are becoming more common, with cases like a Las Vegas, NV, homeowner facing $180,000 in fines due to a tenant’s illegal STR use and Exeter, RI, successfully defending its special use permit requirement in court. These developments signal stricter enforcement and growing legal risks for property owners and platforms like Airbnb.
📍 State-Level Push for STR Regulation Authority: Some states are moving toward granting municipalities more power over short-term rentals, with New York finalizing a law allowing counties to create STR registries and Montana considering legislation to limit local governments’ ability to impose zoning restrictions. As housing concerns grow, more states are reconsidering their role in regulating STRs, balancing property rights with local community needs.
📅 Future Meetings and Public Hearings/Comments:
- Vail, CO: A Vail Town Council vote on a proposal to increase short-term rental fees to $1,200 per bedroom was delayed until February 4, 2025, as town staff requested more time to review public feedback.
- St. Joseph, MN: St. Joseph is nearing a final decision on whether to allow short-term rentals, with a city council vote anticipated in February. The proposal seeks to expand lodging options while maintaining local oversight.
- Basalt, CO: Basalt Town Council is advancing efforts to regulate short-term rentals, approving the first reading of an ordinance that would introduce a new STR fee to support affordable housing initiatives. A public hearing on the STR ordinance is scheduled for February 11.
- Indian Rocks Beach, FL: Indian Rocks Beach commissioners voted 3-2 on Jan. 14 to approve an ordinance increasing the maximum occupancy for certain short-term rentals from 10 to 12 guests, while also settling a $2.5 million Bert Harris Act lawsuit from a rental owner claiming financial losses due to the city’s regulations. A second reading is scheduled for February 11 at the Holiday Inn Harbourside.