This week's update covers new laws, permit requirements, regulations, and short-term rental technology for hosts.

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This week's newsletter covers pivotal industry updates, including Guesty's acquisition of Rentals United, aiming to streamline the vacation rental sector. Hostaway introduces a new financial service, Hostaway Capital, offering tailored loans to U.S. vacation rental managers. Airbnb launches 'Icons,' providing unique experiences hosted by celebrities, and enhances tools for group trip planning. Meanwhile, regulatory developments unfold as Michigan municipal leaders seek state support for Airbnb regulations, Ithaca enacts new restrictions to stabilize its housing market, and Hampton proposes zoning changes to manage short-term rentals effectively. These updates highlight ongoing innovations and regulatory shifts in the short-term rental industry.

STR Industry News

Guesty Acquires Rentals United, Aims to Consolidate Vacation Rental Industry

Tel Aviv-based Guesty, a provider of property-management system tools for the vacation-rental industry, has acquired Barcelona-based Rentals United, a channel management service. The terms of the acquisition were not disclosed, but Rentals United will continue to operate under its own brand and leadership. Guesty's CEO Amiad Soto emphasized the need for consolidation in the industry to improve products and customer experience. Rentals United's 80 employees will join Guesty’s 750. This acquisition comes as Guesty recently raised $130 million in Series F funding and plans to go public in the future.

Hostaway Launches Capital Initiative to Support Vacation Rental Managers with Tailored Financial Solutions

Hostaway, a software company focused on vacation rental property management, has launched Hostaway Capital in partnership with Parafin to offer flexible loans tailored for vacation rental property managers in the United States. This new financial service aims to support the growth and operational needs of its clients by leveraging Parafin's robust financing capabilities. Hostaway Capital reflects the company's commitment to enhancing its offerings beyond property management software, helping clients achieve sustainable growth with accessible financing options.

Airbnb Launches 'Icons' Experience Category and Enhances Group Planning in 2024 Summer Release

Airbnb has unveiled "Icons," a new category featuring experiences hosted by stars from various fields, as part of its 2024 Summer Release. These unique experiences will allow guests to immerse themselves in dream-like settings, such as staying in the Up house or at the Ferrari Museum. Additionally, Airbnb has introduced new group trip planning features, enhancing the overall user experience. The company also continues to expand its offerings with updated tools for hosts and AI integration across its platform.

STR Regulation News

Michigan Municipal Leaders Call for State Action on Short-Term Rental Regulations Amid Legislative Stalemate

As Michigan approaches another tourist-heavy summer, over 150 municipal leaders are urging state lawmakers to support regulations on Airbnb and other short-term rentals. Despite ongoing legislative efforts, including a proposed tax on these rentals and mandatory compliance with local ordinances, significant action remains unlikely this season. The proposed legislation also includes a tax that could generate significant revenue for local infrastructures burdened by tourists. However, negotiations are needed to gather sufficient legislative support, with ongoing debates about the balance between local authority and property owners' rights.

Ithaca Implements New Short-Term Rental Restrictions to Stabilize Housing Market

Ithaca has imposed new restrictions on short-term rentals like Airbnb, requiring hosts to live on the property they rent out for at least 184 days per year. The Ithaca Common Council passed the ordinance to address rising housing prices and stabilize the local housing market by limiting the number of properties available for short-term rentals. While supporters believe this will help maintain community integrity, opponents argue it could harm those relying on income from such rentals. The regulation takes effect immediately, sparking debates over its impact on housing affordability and local economies.

Hampton Proposes New Zoning Regulations to Limit Short-Term Rentals

Hampton, VA is considering new regulations for short-term rentals, proposing to divide the city into 51 zones where only 1% of houses can operate as STRs such as Airbnb or VRBO. The plan includes a 500-foot separation requirement between STRs, except for adjacent properties. This initiative aims to balance the concerns about neighborhood character and overcrowding with the economic benefits of increased tourism. A public hearing is scheduled for May 16, after which the proposal will move to the city council for further deliberation.