April 15th, 2024
The rise in short term rentals (STRs) in the U.S. has been met with an equal rise in ordinances and rules passed by states and local governments to regulate the short term rentals.
Many regulations look to cap or limit the number of short term rentals, via different strategies. Some require buffers between each STR permit; some, like San Diego, have a cap on the number of households that can be used as an STR (in San Diego, it’s 1%, except in Mission Beach, which is 30%).
One regulatory strategy we’ve seen to be used increasingly is to allow for STRs in some zones or areas of a city or county, but forbid them in others. This can better match the rental type to neighborhoods and their denizen’s preferences.
While this zone strategy has been used in big cities, smaller and regional cities are starting to catch on as well. Such is the case with East Lansing, Michigan, which recently passed a ban in a small, 200-home neighborhood after lobbying by that area’s residents (link).
Such laws can be increasingly complicated for STR investors and lenders to interpret and use, which is why Property Guard’s lending solution can be used to simplify the process.
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:
- Colorado: “Bill hiking taxes for short-term rentals to be gutted after resistance from AirBnB, VRBO” (link)
- Gila County, AZ: A county-level STR rule is being challenged as illegal relative to the state-wide laws in Arizona (link)
- East Lansing, MI: City grants a “rental restriction overlay district” to area of the city that lobbied for no short term rentals (link)
- Annapolis, MD: City passes new short term rental law, ending previous moratorium in place (link)
- Richland County, SC: New STR law “aims to define key terms related to short-term rentals + outlines penalties for noncompliance” (link)
- Watertown, MA: A rule allowing STRs was shot down in the Massachusetts city (link)
- Wellsboro, PA: New law does not pass in Pennsylvanian town that would have required owner-occupancy to operate an STR (link)
- Wilmington, VT: Mountain town approves new STR laws after a “contentious process”; includes permits and forbidding STRs in certain zones (link)
- Oswego, IL: Committee looking at various new short term rental ordinances (link)
- Carthage, NC: Planning board reviewing potential new STR rules (link)
- Merriam, KS: Council passes stricker set of STR laws, similar to other Johnson County rules issued recently (link)
- Clarksville, GA: New ordinance passed governing STRs (link)
- West Tisbury, MA: Town becomes first in Martha’s Vineyard to pass short term rental laws; requires owner occupancy for at least 30 days, and a minimum stay of 3 days (link)
- Groton, CT: New STR ordinance passed (link)
Other Noteworthy News:
- Pure Insurance Expands: Pure Insurance expands their Specialty Exchange product to 6 new states; this product can be used for short term rental homes (link)
- Guesty Fundraise: The STR-specific property management software nabbed $130M to continue its growth (link)
- STR Reporting as a Hobby: A Florida women in her spare time has reported over 100 illegally operating short term rentals to code enforcement (link)
