Last updated:
February 19, 2025
2
minute read

Airbnb Investor Insights: This Weeks Regulation Updates

Feb 13-19, 2025: Short Term Rental Regulations Update

Key Insights

This week New Orleans was at the center of a legal showdown as Airbnb pushes back against city regulations forcing platforms to verify rental compliance—raising major questions about enforcement responsibility and data privacy.

Meanwhile, Dallas STR owners got a huge win as the judge ruled against the city’s short-term rental ban. On the other side, Milton, Delaware, and Lewisville, Texas, are fine-tuning their regulatory frameworks, looking for ways to balance community concerns with the growing demand for STRs.

And in Cyprus, policymakers are reassessing their approach to STRs, signaling that international markets are also feeling the pressure to regulate while keeping tourism thriving.

Major Impact Areas:

New Orleans, Louisiana, USA

Date of Announcement: February 17, 2025
Impact Level: MAJOR
Regulation Category: Licensing
Summary: Airbnb and local homeowners have sued New Orleans over a 2024 ordinance that forces STR platforms to verify legal compliance. The lawsuit argues the law infringes on free speech and data privacy. The city planned to delay enforcement until June 1, but the lawsuit may affect this timeline.
Source: Airbnb is suing New Orleans over law forcing STR platforms to verify listings are legal

Moderate Impact Areas:

Dallas, Texas, USA

Date of Announcement: February 10, 2025
Impact Level: MODERATE
Regulation Category: Zoning
Summary: The Fifth Circuit Court has upheld an injunction preventing Dallas from enforcing its short-term rental ban. The city may need to revise its regulatory approach following challenges from property owners.
Source: After Appellate Court Ruling, Dallas Still Can't Enforce Its Short-Term Rental Ordinances

Hot Springs, Arkansas, USA

Date of Announcement: February 17, 2025
Impact Level: MODERATE
Regulation Category: Licensing
Summary: Arkansas state legislators are reviewing a bill that would restrict local government control over STR licensing. This measure could impact municipalities' ability to conduct safety inspections and regulate rental operations.
Source: STR bill preempting local control resurfaces in House

Lewisville, Texas, USA

Date of Announcement: February 17, 2025
Impact Level: MODERATE
Regulation Category: Licensing
Summary: Lewisville officials are set to review short-term rental policies, considering new permit caps, location restrictions, and hotel occupancy tax rules. This comes as the city’s short-term rental ban is set to expire next month.
Source: Lewisville to review short-term rental requirements

Nicosia, Cyprus

Date of Announcement: February 17, 2025
Impact Level: MODERATE
Regulation Category: Licensing
Summary: The Cyprus House committee is reviewing existing STR regulations to address competition concerns, compliance issues, and housing affordability. Discussions will involve stakeholders from the tourism and housing sectors.
Source: House to discuss legislation regulating short term rental sector

Milton, Delaware, USA

Date of Announcement: February 17, 2025
Impact Level: MODERATE
Regulation Category: Zoning
Summary: The Milton Planning and Zoning Commission is preparing to present an advisory report with proposed short-term rental regulations aimed at addressing concerns over party houses while maintaining the town’s character.
Source: Milton's Planning and Zoning Commission to present advisory report for short term rental regulations

Minor Impact Areas:

Lexington, Kentucky, USA

Date of Announcement: February 18, 2025
Impact Level: MINOR
Regulation Category: Licensing
Summary: Kentucky lawmakers are debating differing approaches to STR regulation in Lexington. Proposed legislation reflects contrasting political ideologies on balancing property rights with municipal control.
Source: Capitol Chat: Short term rental bills offer contrast in political principles

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