Cities around the country are cracking down on short term rentals, from major urban centers like New York, to vacation destinations like Hawaii, where the state’s governor has signed into law major legislation that would put limits on short-term rentals like Airbnbs. But in Portland, one of the first cities to try to regulate STRs over a decade ago, we see legislating is only half the battle. Enforcement can prove to be a series of trial and error.
Portland has struggled to hold Airbnb to account when it comes to removing unlicensed rentals from the site, with an estimated 700 to 1,000 such properties currently operating illegally in the city (some adding “bogus permit numbers” to their listing). One of the reasons is local officials are without the manpower to utilize the data Airbnb is required to provide the city in order to track and shut down illegal STRs.
And it’s not just Portland that’s struggling to live up to the promises of its regulations. In Los Angeles, for example, nearly half of Airbnbs were found by the McGill University School of Urban Planning to be operating illegally in 2022.
Still, cities aren’t slowing down in their push to regulate STRs. For example:
- Hawaii: The governor signed into law a bill that would empower counties to regulate STRs, and even phase them out to make room for long-term housing for residents, as Maui’s mayor is already promising to do. (link)
- Ithaca, New York: New restrictions on STRs in Ithaca would require hosts to live at the property for over half of the year. (link)
- Michigan: A 10-bill House package under consideration would levy a 6% excise tax on STRs. (link)
At the same time, some states are passing laws that halt the limiting of some STRs by local jurisdictions, like in Colorado.
Below, please find Property Guard's weekly short term rental regulation round-up, highlighting state and local news regarding short term rental regulations to regulate (or prohibit) Airbnbs and other STRs. If you want a comprehensive data solution on STR regulations in all 20,000 state and local jurisdictions, contact us here.
New and Proposed Regulations:
- Colorado: Senate-passed legislation would block counties from regulating backcountry cabins and huts under STR regulations. (link)
- Arizona: Lawmakers aiming to solve a housing crisis are worried their legislation will lose support if it bans STRs. (link)
- Puerto Rico: A proposed Senate bill on the Island of Enchantment would regulate STRs by classifying them as a commercial activity. (link)
- Rhode Island: Fees collected from STRs would go to municipalities to fund projects to “offset these community impacts” under a newly introduced Senate bill. (link) And proposed House bills would require a valid state registration number on listing and apply the 5% hotel tax to STRs that are full houses and condominiums. (link)
- Tisbury, MA: A ban on corporate-owned STRs could be coming to a town on Martha’s Vineyard. (link)
- York, ME: York is the latest town on Maine’s coast to consider regulations on STRs. (link)
Other Noteworthy News:
- Killeen, TX tax time: STRs need to register in the city of Killeen starting last week and collect a hotel occupancy tax from guests. (link)
- New York bust: A real estate firm illegally converting permanent housing units to STRs on the Upper West Side was busted by city police. (link)
- South Florida condos: More than half of planned condo developments in South Florida are slated to be STRs. (link)
- Profit predictions: Industry experts say buying property in these seven cities will reap profits over the next decade. (link)
- Airbnb new feature launch: Airbnb is launching a new promotion called “Icons” for guests to stay in STRs that partner with brands and celebrities, like the balloon-suspended house from Pixar’s film “Up.” (link)
