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Short-Term Rental Regulations: March 24

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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 TX, AZ, and VT that you may want to consider as you look into investment opportunities.

  • Dallas, TX proposal would eliminate 95% of Airbnb, Vrbo-type rentals in the city. City Council approval of proposed changes in zoning regulations making it illegal for the rental properties to operate in nearly all residential neighborhoods would lead to the city issuing code violation notices to 95% of the 1,735 short-term rental owners and could cost the city more than $1 million.
  • Flagstaff, AZ working on new rules for short-term rentals. Flagstaff will be holding a meeting next Monday night on a draft of its proposed short-term rental ordinance. The city is developing a license that all STR property owners will need to operate their business within city limits. It’s also developing a city ordinance that will create a license approval and denial process, a potential licensing fee and will require property owners to supply emergency contact information.
  • Chester, VT's pace for regulation between "snail and speedy," however, puts the onus on local jurisdictions. There are two bills before the legislature that would create registries. H.449 would create a registry specifically for short-term rentals, and H.276 would create a registry for all rentals in the state. The latter has the potential to run into more opposition.

…And Some Positive News On STR Regulation.

On the flip side, there is increasing public opposition to short-term rental regulation that may open up new opportunities for investment. Check out below for more details in AR and SC with new developments that may increase access to short-term rental opportunities in the near future.

  • Hot Springs, AR legislation would undo STR regulations. Senator Joshua Bryant, R-District 32, of Rogers, said the regulation infringes on the rights of property owners. He told the committee his Senate Bill 197 would codify rights enshrined in the state Constitution. The House committee said it plans to vote on SB197 at its March 27 meeting.
  • Columbia, SC nixes cap on STRs but keeps permitting process. Short-term rentals would need permits but will no longer face any limit on how many can operate, under a new Columbia ordinance which City Council unanimously gave initial approval this past week. This is a positive step for the city toward allowing more short-term rentals to operate in the city.

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.