This week's update covers new laws, permit requirements, and regulation news for hosts in:

• Flagstaff, Arizona

• Covington, Kentucky

• Asheville, North Carolina

• Memphis, Tennessee

• Phoenix, Arizona

• West Hollywood, California

You can watch the video versions of this week's regulation here on YouTube.

Or listen to the audio on Apple Podcast or wherever you listen to your podcasts.

Flagstaff 

The Flagstaff Council has unanimously passed regulations on short-term rentals. The new rules, set to begin on November 1, require all housing rented out for less than 30 days to be licensed with the city. The license costs $175. Hosts operating without a license would pay a $1,000 monthly fine. The ordinance also gives the city the ability to deny a permit application. This regulation comes on the heels of Arizona rescinding its initial measures that previously prevented cities from regulating such businesses last year.

Covington

Covington has approved new regulations for short-term rentals. The new regulations include requirements for permits, inspections, zoning, out-of-state host requirements, and limiting the number of units per structure. Applicants can apply for an occupational (business) license and a rental license. Licenses will be given on a first-come, first-serve basis. To learn more about the new regulations, click here.

Asheville

New STR rules in the Asheville area have sparked a conflict between state lawmakers and the county. Asheville and surrounding areas, as of May 2023, have implemented restrictions for short-term rentals, citing a decline in available housing and a desire to better regulate the influx of STRs over the last few years. However, state lawmakers argue that these rules infringe on property rights and hinder economic growth. They’re looking to pass a bill limiting the amount of regulations that local or county governments can pass. Conversely, the county insists that the regulations are necessary to maintain community character and ensure housing availability. Both sides are lobbying to make their claim.

Memphis

A new ordinance in Memphis targets residential properties being used as short-term rentals. Effective July 1, 2023, the regulation requires owners of short-term rental properties to obtain a permit to rent out their properties. This move aims to manage the misuse of short-term rentals in residential areas, which have been sighted as usage for large parties, causing frustration for neighboring property owners. The permit costs $300 initially and must be renewed annually for $150. However, properties already in use as short-term rentals before the ordinance are exempt unless sold or unused for 30 months. If you’re looking to become a host in Memphis, you can register for your permit here.

Phoenix

Once known for its lax regulations, Phoenix plans to tighten regulations on short-term rental properties, following similar actions in Scottsdale, Tempe, Chandler, and other municipalities. The city administration is seeking preliminary approval for a permitting system that includes fines for owners whose rentals cause neighborhood disruptions. This comes after the state Legislature loosened its control over short-term rental regulations last year. The proposed changes include a $250 annual permit fee, maintaining a $500,000 liability insurance policy, providing the city with an emergency contact, notifying neighbors of their intent to operate a short-term rental, and conducting background checks on all renters. These changes are only proposed ones and have yet to be approved or gone into effect.

West Hollywood

The West Hollywood City Council has unanimously passed amendments to the 2018 Short Term Rental (STR) Ordinance to increase the safety of short-term rentals. The amendments closed loopholes that allowed illegal property rentals in the city. They also empowered local residents with a private right of action, enabling them to bring lawsuits against hosts and hold platforms accountable if they violate the ordinance. The changes specifically address a growing safety concern about geographical bait-and-switch tactics, where hosts use addresses in Los Angeles (which has strict regulations) but said they were located in West Hollywood.