Key Insights
This week in the STR landscape, key insights reveal a dynamic push-and-pull between regulation and opportunity. Austin is holding off on sweeping changes like shifting STRs to the business code, but it’s set to rake in hotel occupancy taxes starting April 1, signaling a focus on revenue over restriction. Lewisville, meanwhile, is lifting its year-long STR ban with a permit cap at 130, striking a balance between tourism growth and neighborhood harmony.
Across the Atlantic, Ibiza’s partnership with Airbnb to crack down on illegal rentals showcases a bold enforcement move that could inspire other hotspots. On the flip side, Traverse City’s court ruling to tax larger STRs sets a precedent that might ripple through Michigan’s tourism economy.
These shifts highlight a broader trend: cities are wrestling to harness the economic perks of STRs while keeping the market in check, paving the way for a fascinating evolution in the industry.
Major Impact Areas:
Austin, Texas
Date of Announcement: February 27, 2025
Impact Level: MAJOR
Regulation Category: Licensing, Zoning
Summary: Austin city council is delaying the implementation of major changes to STR regulations, such as moving them from the land development code to the business code, until October 1, so they can consider ongoing lawsuits and potential state legislation. However, the city will start collecting hotel occupancy tax from STR vendors on April 1. Proposed changes include restricting licenses to individuals, not corporations, and requiring rentals to be at least 1,000 feet apart if an individual holds multiple STRs. Existing licensed STRs are allowed to continue unless deemed nuisances or ownership changes.
Source: Austin leaders delay implementation of some short-term rental changes
Lewisville, Texas
Date of Announcement: March 4, 2025
Impact Level: MAJOR
Regulation Category: Licensing, Zoning
Summary: The Lewisville City Council has established a cap of 130 short-term rental permits, ending a one-year ban on new rentals that began in March 2024. Existing regulations, effective since July 8, 2024, require operators to obtain a $400 annual permit and comply with standards, with 77 units currently permitted and 13 in the registration process as of February. The decision follows a survey of nearly 700 residents and aims to balance tourism benefits with residential concerns, though some council members opposed the cap, citing enforcement challenges. Future discussions will address potential location restrictions and operational requirements to ensure quality visitor services without disrupting neighborhoods.
Source: Lewisville council sets max number of short-term rentals at 130
Moderate Impact Areas:
Traverse City, Michigan
Date of Announcement: February 25, 2025
Impact Level: MODERATE
Regulation Category: Tax
Summary: A ruling by the Michigan Court of Appeals has concluded a legal dispute favoring Traverse City Tourism (TCT) over Golden Swan Management about short-term rental assessments. This ruling supports an assessment on operations with 10 or more commonly managed rooms, as determined by the local court, regardless of room location. Under Michigan state law, Convention and Visitors Bureaus (CVBs) can levy up to a 5% assessment on rooms within their district for marketing funds. The court's decision affects CVBs across the state, providing a precedent for including short-term rentals under these assessments, which are vital for CVB budgets like TCT's. This decision might possibly be appealed to the Michigan Supreme Court by Golden Swan but remains a pivotal point for local CVBs managing short-term rentals.
Source: Local Short-Term Rental Dispute Could Have Statewide Ramifications
Chelan County, Washington
Date of Announcement: February 25, 2025
Impact Level: MODERATE
Regulation Category: Occupancy, Inspections, Parking, Signage
Summary: Chelan County Commissioners have finalized updates to the short-term rental (STR) code after public input and recommendations from the Planning Commission. Key changes include leaving children under 24 months in occupancy counts, adjusting STR area limits, specifying inspections by the County Fire Marshal, and updating parking and signage requirements. The renewal process now includes a specified application period and late fee schedule for STR permits.
Source: Chelan County Commissioners finalize short-term rental code changes
Ibiza, Spain
Date of Announcement: March 3, 2025
Impact Level: MODERATE
Regulation Category: Enforcement
Summary: Ibiza's Island Council and Airbnb have signed an agreement to address illegal tourist rentals, targeting unregulated accommodation on the island. The initiative, supported by local tourism and hotel associations, aims to remove listings that violate local laws and Airbnb’s terms without lengthy legal processes. Over 300 illegal listings have already been removed, but more than 100 cases are still under investigation. This collaboration is part of a broader effort to ensure sustainable tourism, with similar actions being taken in the Canary Islands and nationwide adjustments in Spain to regulate short-term rentals through a mandatory national register.
Source: Ibiza and Airbnb sign deal to combat illegal tourist rentals
LaGrange, Georgia
Date of Announcement: March 1, 2025
Impact Level: MINOR
Regulation Category: Safety
Summary: LaGrange has amended its Short-Term Rental (STR) ordinance, allowing city staff, rather than the fire marshal, to perform fire safety inspections. This change, approved unanimously by the city council, eliminates the need for fire marshal-led inspections and references to the International Fire Code, which had previously required infeasible safety installations in residential properties. The amendment aims to streamline processes and reduce the fire marshal's workload, while maintaining required safety measures like fire extinguishers and smoke detectors.
Source: LaGrange modifies fire inspection policy for short-term rentals
Minor Impact Areas:
Lexington, Kentucky
Date of Announcement: March 3, 2025
Impact Level: MINOR
Regulation Category: Licensing, Enforcement
Summary: The General Government and Planning Committee in Lexington will receive an update on short-term rental regulation enforcement from the Director of Revenue. Regulations, which include occupancy and density limits and licensing requirements, were enacted in July 2023 and amended in December 2024. Currently, there are 979 short-term rentals in Lexington, with 14 citations issued for lacking a license and 78 additional properties notified for non-compliance. The city has collected $4,750 in fines, with another $7,000 unpaid. Renewal fees collected so far total $115,000 despite delayed submissions due to recent winter storms. The committee meeting is scheduled for March 4th.
Source: Updates on Lexington’s short-term rental regulation enforcement
Developing Regulations:
West Fargo, North Dakota
Date of Announcement: February 25, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing
Summary: West Fargo is considering implementing licensing requirements for short-term rental properties like Airbnb. The proposed ordinance mandates that these rentals be the primary residence of the owner for at least six months and one day annually. A $150 yearly license would be necessary, and rentals would be restricted to groups with less than five unrelated individuals. The licensing system aims to facilitate lodging tax collection, while businesses and LLCs would be prohibited from operating such rentals.
Source: West Fargo considering licenses for short term rental properties like AirBnB
Pinellas County, Florida
Date of Announcement: February 25, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing, Occupancy
Summary: Pinellas County leaders are considering new regulations for short-term rentals in unincorporated areas to increase accountability among property owners and operators. The proposed ordinance includes issuing a 'Certificate of Use' following inspections, with fees funding the program. The ordinance limits occupancy to ten people and maintains quiet hours from 10 p.m. to 9 a.m. Residents have raised concerns about disturbances from vacationers, prompting calls for stricter regulations. A significant increase in complaints about short-term rentals highlights the need for action, with a final decision on the ordinance expected by March 25, 2025.
Source: Pinellas County leaders consider new short-term rental rules
Summit Park, Utah
Date of Announcement: February 25, 2025
Impact Level: DEVELOPING
Regulation Category: Operational
Summary: Summit Park residents are urging for stricter regulations on short-term rentals due to issues with traffic, noise, trash, and safety on narrow roads. Frustrated by nuisance rentals, resident Joni Wirts and others have appealed to the Summit County Council for change. They cite problems such as obstructive parking and rowdy behavior requiring emergency services, as they deal with multiple rentals on their block. An association exists but lacks enforcement power over all properties, prompting calls for county-level intervention.
Source: Summit Park residents call for short-term rental regulations
Connecticut, USA (municipal level across various towns)
Date of Announcement: March 1, 2025
Impact Level: DEVELOPING
Regulation Category: Operational
Summary: Connecticut towns are looking to regulate short-term rentals, such as those offered by Airbnb, due to a new state law. This comes after years of resident complaints about disturbances like loud parties in rental properties. Local governments now have the authority to create and enforce regulations to address these issues.
Source: Connecticut Towns Look to Regulate Short-Term Rentals Thanks to New State Law
New South Wales, Australia
Date of Announcement: March 3, 2025
Impact Level: DEVELOPING
Regulation Category: Tax
Summary: Homelessness NSW is urging the NSW Government to implement a 7.5% levy on revenue from short-term rental providers, similar to Victoria, highlighting the urgent need to address the housing and homelessness crisis. The call follows a year-long delay in the government’s review process despite receiving substantial public input. The proposed levy aims to increase long-term rental availability and provide crucial funds for under-resourced homelessness services. The urgency is underscored by rising homelessness, a severe shortage of affordable rentals, and a growing social housing waitlist.
Source: NSW must levy short-term rental accommodation
California, USA (statewide)
Date of Announcement: March 3, 2025
Impact Level: DEVELOPING
Regulation Category: Tax
Summary: California state tax collectors are seeking detailed property information from Airbnb and VRBO to enforce hotel tax regulations on short-term rentals. A proposed bill, introduced by State Sen. María Elena Durazo, would require these platforms to provide data to cities and counties, allowing verification and auditing similar to traditional hotels. This move is part of broader efforts to regulate short-term rentals, which are said to affect housing availability and costs. While platforms like Airbnb argue this burdens hosts' privacy, cities and hotel industry representatives support the legislation to ensure compliance and fairness in tax collection.
Source: What the taxman wants from Airbnb
Rhode Island, USA (statewide)
Date of Announcement: March 3, 2025
Impact Level: DEVELOPING
Regulation Category: Operational, Tax, Zoning
Summary: As vacation season in Rhode Island approaches, state and local officials are struggling to regulate the growing short-term rental industry. Issues such as noise, parking, taxes, and neighborhood impacts complicate regulation efforts. State Rep. Lauren Carson, leading a legislative commission, points to ongoing court cases, like one in Narragansett, delaying legislative progress. The state and municipalities have registration systems with discrepancies, and debates persist over classification and taxation of properties. The outcome of pending court cases is crucial for future policy development.
Source: As vacation season nears; short-term rental issues unsettled
New York, USA (statewide)
Date of Announcement: March 3, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing, Tax
Summary: New York State Assemblyman Andrew Molitor supports a new bill (A05686) on short-term rentals, introduced by Assemblywoman Gabriella Romero. The bill proposes amending real property and tax laws to allow counties to opt out of a mandatory registration system for short-term rentals but enables counties to regulate and register these units themselves. It also mandates the collection of sales tax on short-term rentals statewide. Molitor believes this bill improves upon the previous legislation and appreciates the county opt-out option. The bill aims to address affordable housing shortages exacerbated by the increase in short-term rentals, which have flourished, particularly during the COVID-19 pandemic, impacting local housing markets and economies.
Source: Molitor Says Yes To Short-Term Rental