Short-term rental markets across North America and Europe are shifting fast. Houston’s new rules raise compliance costs with a $275 fee, human-trafficking training, and bans on event marketing. Maryland has postponed its tax overhaul to 2027, while Airbnb’s $1.2M lobbying helped kill Washington state’s proposed 4% STR tax, showing how pushback can stall legislation. Investors should target markets with stable rules or high barriers to entry that weed out weaker competition.
Abroad, Saint-Jean-de-Luz, France, is clamping down on STRs to curb overtourism, and Kelowna, BC, now limits rentals to primary residences or secondary suites—shutting out pure investment properties.
Major Impact Areas:
Houston, Texas
Date of Announcement: April 16, 2025
Impact Level: MAJOR
Regulation Category: Licensing, Safety
Summary: Houston's new short-term rental rules mandate operator certification, a $275 annual fee, annual human-trafficking training, and ban advertising rentals as event spaces, with certifications revocable after multiple violations. These regulations increase compliance costs and operational requirements, potentially affecting investor profitability and management practices.
Source: Houston has new rules for operating short term rentals. Here's what you need to know.
Saint-Jean-de-Luz, France
Date of Announcement: April 22, 2025
Impact Level: MAJOR
Regulation Category: Licensing, Occupancy
Summary: Saint-Jean-de-Luz is imposing strict limits on short-term rentals to combat overtourism, requiring operators to adhere to new licensing and occupancy regulations. These measures prioritize housing for residents, potentially reducing the availability of short-term rental properties for investors. Source: French Seaside Town Battles Overtourism with New Restrictions
Moderate Impact Areas:
Kelowna, British Columbia, Canada
Date of Announcement: April 15, 2025
Impact Level: MODERATE
Regulation Category: Zoning, Occupancy
Summary: Kelowna has updated short-term rental rules to allow rentals only in the operator's principal residence, secondary suites, or carriage houses for stays under 90 days, enhancing neighborhood compatibility. Investors must ensure compliance with these zoning restrictions, which may limit operational flexibility.
Source: Kelowna strengthens tenant protections, updates short-term rental rules
Maryland, USA
Date of Announcement: April 17, 2025 (Implementation delayed to Fiscal 2027)
Impact Level: MODERATE
Regulation Category: Tax
Summary: Maryland has delayed a tax overhaul for short-term rentals until Fiscal 2027, centralizing tax collection under the State Comptroller to ensure fair contributions to local revenues. Investors benefit from the extended timeline to prepare for increased transparency and compliance requirements.
Source: General Assembly Adopts MACo-Backed Delay of Tax Overhaul for Airbnb-Type Rentals
Developing Regulations:
Traverse City, Michigan
Date of Announcement: Public hearing scheduled for May 6, 2025 I
mpact Level: DEVELOPING
Regulation Category: Zoning, Licensing, Tax
Summary: Traverse City is exploring new short-term rental regulations, including potential zoning changes to reduce STR numbers and incentives to convert them to long-term rentals. Investors should monitor the May 6 public hearing, as proposed fees, penalties, and tax incentives could impact profitability.
Source: City Commission Explores Short-Term Rental Options
Washington State, USA
Date of Announcement: April 22, 2025 (Proposed bill failed to advance)
Impact Level: DEVELOPING
Regulation Category: Tax
Summary: A proposed Washington state bill to impose a 4% tax on short-term rentals to fund affordable housing failed to advance due to Airbnb's $1.2 million lobbying effort, though supporters plan to revisit it. Investors should remain vigilant, as future iterations of the bill could increase operating costs if passed.
Source: Proposed law to tax short-term rentals in Washington fails to advance after Airbnb pushback