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Each week, we’ll be sharing the latest news on STR regulation from around the country to inform your search for the next best property. Here are this week’s highlights:
A Few Things to Keep an Eye on…
As with last week’s edition, we want to start off with some areas that are passing new short-term rental regulations, mostly so that municipalities can get a cut of the exponential rise in short-term rental demand through occupancy taxes and permitting fees. This week, check out some areas in WA, KY, and RI that you may want to consider as you look into investment opportunities.
- Gig Harbor, WA passes regulations on short-term rentals. The ordinance allows for short-term rentals in all residential and commercial zones where “dwelling units” are allowed, but also restricts rental permits to one person.
- Lexington, KY moves forward on regulating short-term rentals. Lexington-Fayette county officials passed a resolution to start changes in city ordinances and update zoning regulations for short-term rentals. The proposed regulations would require rental operators to pay a $200 license fee and report annually on the number of stays.
- Rhode Island introduced legislation to let cities and towns regulate short-term rentals. Currently, the state prohibits cities and towns from restricting short-term rentals, but the proposed bill (2023-S 0310) would reverse this and allow municipalities to pass local ordinances to regulate or restrict short-term rental units.
…And Some Growing Pushback Against Regulation.
On the flip side, there is increasing public opposition to short-term rental regulation that may open up new opportunities for investment. Citizens are arguing that hotel lobby influence, as well as high income fees for municipalities, are stronger motivators for regulations that may not help protect citizens or increase affordable housing. Check out below for more details in TN, OH with new debates on the intent of vacation rental ordinances.
- Halifax, NC citizens push back against ‘stringent’ rules that ‘won't help low income families find a place to live.’ Property owners are arguing that new regulations are difficult to follow and will impact their ability to invest for their children. In addition, housing advocates note that these regulations will not have the intended effect of increasing affordable housing.
- Chattanooga, TN property owners form group to oppose proposed vacation rental rules. The five-member board coalition has approximately 100 people on its email list and has raised $25,000 for legal fees thus far. The group is fighting for their “constitutional private property rights” that “they’re trampling all over.”
- Dayton, OH cities considering regulation on short-term rentals - some in favor, some not. Dayton-area city lawmakers are looking into regulating, or have regulated, short-term rentals. Some Airbnb owners, however, oppose potential changes, saying the city has an interest in promoting hotels being built downtown.
Want More?
We know how hard it is to keep track of state, county, and city regulations, especially given how often these guidelines change. Keyturn can help you navigate the entire investment process from sourcing to purchasing and managing. Subscribe to our newsletter here to learn more and receive weekly updates on new STR regulations and market trends.
Or, if you want us to review a property for you, contact our team for a $49/property in-depth review of local and state-level fees, taxes, requirements, and overall short-term rental viability.