Outlier STRs Are Prompting More Regulation

Local and state regulations are often crafted to curtail so-called party houses at short-term rentals. But residents in Memphis, Tennessee, argue even stricter rules are needed to keep neighborhoods safe. Memphis officials say there’s limits on the use of STRs and a party house is considered a zoning violation.

“Zoning enforcement goes out and cites them, and if they do it again, they go to court,” Public Works Director Robert Knecht said. “They also work with police because typically, there are other violations, like noise coming to play.”

The issue of criminal activity at STRs is not limited to out of hand partying. In some cases, rentals can harbor organized crime. In Jacksonville, Florida, a woman recently pled guilty to participation in a marijuana ring run out of Airbnbs. 

The defendant's plea agreement describes how she and others involved in the conspiracy would move suitcases of marijuana from northern California growers to STRs in Florida. The agreement also stated that the conspirators possessed firearms at the residences “for the purpose of protecting themselves, the marijuana they intended to distribute and their proceeds during drug sales.” 

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:

• New York: Bipartisan legislation that would create statewide STR regulations is awaiting Gov. Kathy Hochul’s signature after passing both chambers in Albany. (link)
• New York City, New York: The mayor’s office is suing to permanently shut down an illegal STR operation encompassing 58 buildings in Manhattan. (link) 
• Hawaii, Hawaii: A trio of controversial bills that aim to revamp where and how STRs are allowed to operate on the Big Island are headed back to the County Council. (link)
• Saugatuck, Michigan: City councilors voted to cap the number of STRs permitted in residential areas at 20 percent. (link) 

Other Noteworthy News:

• Hidden cameras: Airbnb has kept thousands of complaints about hidden indoor security cameras under wraps. (link)
• Guinea pig: California hotels are a test run for junk fee legislation after the state’s new law went into effect on July 1. (link)
• Times They Are A-Changin: Barcelona is banning STRs. New York is tightening the reins too. But STR owners say there’s still plenty of opportunity in the industry. (link) 
• Noodle makeover: The site of the former Old Spaghetti Factory in Nashville’s historic Second Avenue could soon be home to dozens of STRs. (link)