Early legal challenges tied to California’s new law governing short-term rental pricing are cropping up.
The law went into effect on July 1, 2024, and prohibits so-called drip pricing. The law doesn’t limit the type of fees or charges, but requires that short-term rental owners, like Airbnb and Vrbo hosts, advertise the full price of a stay to potential renters, including cleaning fees.
Failure to comply with the law could mean hosts face civil penalties, lawsuits, and injunctive relief under the Consumer Legal Remedies Act.
A stream of class action lawsuits have been filed alleging businesses violated the law, which also applies to hotels and restaurants.
The lawsuits are still in the early stages, and the courts will decide whether they have merit. But the cases serve as a reminder to businesses, including vacation rental hosts, to proactively address their pricing disclosures.
Below, please find Property Guard's weekly short term rental regulation round-up, highlighting state and local news regarding short term rental regulations to regulate (or prohibit) Airbnbs and other STRs. If you want a comprehensive data solution on STR regulations in all 20,000 state and local jurisdictions, contact us here.
New and Proposed Regulations:
- Massachusetts: State housing officials are reaching out to cities about amending short-term rental regulations under a new accessory dwelling law. (link)
- Florida: Lawmakers could once again try to pass tighter short-term rental regulations, but the state senator who has sponsored past attempts said he won’t lead the charge next year. (link)
- Rhode Island: The deadline for short-term rental owners to register their apartments with the state, and to produce proof in older buildings that the units are lead free, is this week. (link)
- Chicago, Illinois: An appeals court ruled that Chicago did not violate a condominium owner’s rights when the city allowed the condo association to block him from renting out the unit on Airbnb. (link)
- Georgetown, Texas: City council leaders approved new short-term rental registration and tax requirements that go into effect in November. (link)
Other Noteworthy News:
- Hidden fees: More than 200 hoteliers and industry leaders visited lawmakers on Capitol Hill to advocate for passage of bipartisan legislation that would establish a mandatory lodging fees standard and even the playing field for hotels and short term rentals. (link)
- Church reborn: City officials in Winchester, Virginia endorsed a plan for a former Methodist church to be reborn as an apartment building with several units operating as short-term rentals. (link)
- Neighborhood pushback: New York City homeowners protested the city’s short-term rental regulations one year after the law went into effect. (link)
