Short-Term-Rental Regulations Roundup – Sept. 1

tybee island georgia beach vacation rentals
Tybee Island, Ga., Beach Homes

A judgment that bans an STR ban, a program that hands cash to STR owners who rent to seasonal workers, a withdrawn “three strikes” proposal aimed at owners: These updates top our STR Regulations Roundup for the beginning of September.

Judge Rules STR Ban Unconstitutional In Nashville-Area City

A Tennessee Supreme Court judge ruled on July 30 that Hendersonville, Tenn.’s ordinance banning short-term or vacation rentals in residential neighborhoods is unconstitutional. The ban was added as an amendment to the city’s zoning ordinance in 2016 “to keep Hendersonville quiet and avoid 3 a.m. pool parties,” according to News4 Nashville. But judge Robert E. Lee Davies of Williamson County sided with STR owners, saying “the city’s ordinance interferes with the defendants’ fundamental right to the ownership and use of real property without a compelling state interest.” The city’s mayor says he plans to appeal the ruling.

Georgia Island Destination Halts New STR Permitting As Leaders Address Complaints

Tybee Island’s city council just passed a short-term-rental moratorium that will last at least three months. With STRs now making up 40% of all rentals in the popular beach destination, the city says it passed the temporary new-permit ban while it figures out how to handle growing complaints about trash and noise. During the moratorium, the council plans to hold numerous meetings and give residents a chance to offer up solutions to problems.

Colorado Winter Sports Haven Tries To Cut Down On STRs Through Attrition

The popular ski town of Breckenridge, Colo. will vote on a cap on short-term rentals during legislative readings this month. The ordinance would not impact existing licenses, but would block a license from transferring to the new owner if an STR property is sold. Of the town’s 3,900 total licenses, about 1,500, which are run more like hotels, are exempt. If passed, the ordinance will go into effect Nov. 2.

Popular Ski Area Proposes Cash Payments To Owners For Turning STRs Into Workforce Housing

With ski season approaching and labor incentives desperately needed, Winter Park, Colo. has proposed a program that would pay cash to convert short-term rentals into workforce housing. Owners would get from $5,000 for six-month studio and one-bedroom leases all the way up to $20,000 for one-year leases on larger properties. Payments would be upfront, in addition to rental income. Details are still being finalized, but the program looks on track for approval.

Rhode Island City Known For Yachts And Mansions Cracks Down On VRs—Again

Formerly known as “Zooport” for its wild-west STR scene and lack of control on rowdy guests, Newport, RI eventually cracked down on illegal rentals. But the yacht-friendly vacation spot is once again considering restrictive measures as non-permitted rentals and neighbor complaints have spiked recently. In 2020 the city had 398 registered STRs, but evidence points to more than 700 OTA-listed properties in Newport. On top of that, an outcry from residents about noise, trash and parties has been reaching fever pitch. The situation prompted Councilwoman Angela McCalla to propose a “three strikes” resolution that would revoke the permits of owners who repeatedly violated short-term-rental regulations. Last month she withdrew her resolution only after promises from her colleagues that they would address both unpermitted STRs and permitted STRs that violate ordinance rules. The city also contracted with Host Compliance LLC to identify all short-term rentals in the city and monitor compliance with state and local regulations including taxes.

Natasha Garber covers short-term-rental industry trends, news, regulations and compliance for NoiseAware. Her posts on STR property management technology, privacy-safe noise monitoring, and licensing laws can be found weekly on the NoiseAware blog.