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

• Ithaca, New York

• Virginia

• Visalia, California

• El Paso, Texas

• Chattanooga, Tennessee

• Port Sheldon, Michigan

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Ithaca

The Ithaca Planning and Economic Development Committee received an update on proposed short-term rentals (STRs) regulations. The goal is to limit STRs to protect housing and neighborhoods. Draft regulations require registration, fees, inspections, and permits for non-primary residences used as STRs. Public input will be gathered before finalizing the ordinance, expected by January 2024. The regulations aim to restrain the booming local Airbnb industry that draws complaints from neighbors and is blamed for housing costs.

Learn more details about the proposed rule changes.

Virginia

Many Virginia localities have passed or are considering regulations on short-term rentals, citing concerns about parking, noise, trash, septic issues, and housing inventory. Louisa County passed an ordinance requiring septic inspections, owner contact info, and guest parking. Richmond has limited rentals per lot, requiring rentals to be the owner's primary residence and capped occupancy. Hampton paused assigning new STR permits for now. Danville saw an 800% increase in listings as its new casino opened, which may prompt regulation changes in 2024.

Discover what is happening to short-term rentals in Virginia cities.

Visalia

The Visalia City Council is considering an ordinance to regulate short-term rentals in single-family zones, hoping to reduce disruptions. The ordinance would require two off-street parking spaces, limit occupancy based on bedrooms, and require owners to be available 24/7. Some residents complained of noise and inappropriate behavior from renters, while STR owners felt the rules were too restrictive. Before approving, the council wants to clarify aspects like extending the rules beyond single-family zones. They will revise the ordinance and revisit it before the year is out.

Read more about the proposed rules in Visalia.

El Paso

El Paso officials decided against regulating short-term rentals for now. They will instead collect complaints through the city's 311 system for a year. City Rep. Chris Canales still wants to limit the density of rentals in neighborhoods and have them pay hotel taxes. STR operators who formed an alliance are relieved by no regulations but will work with the city to help remove bad actors. After a year of the pilot, city staff will recommend how to move forward to the council.

Chattanooga

Chattanooga faces a lawsuit challenging its regulations on short-term rentals. The city distinguishes between homestay and absentee rentals, charging higher fees for absentee owners. A property rights group alleges this violates equal protection and takes private property. The city argues the regulations are reasonable and denies wrongdoing. Getting proper zoning for absentee rentals is difficult, discouraging some owners. Hearings on the alleged violations start in November.

Learn more about the STR lawsuit in Chattanooga.

Port Sheldon

Port Sheldon Township is drafting an ordinance to regulate short-term rentals (STRs). The policy would require owners to register annually, restrict STRs to single-family homes, and designate a local agent to respond to issues within 30 minutes. STRs would be limited to 12 guests max and need sufficient parking. Owners must consent to inspections, comply with noise rules, and maintain a residential aesthetic. Two violations in a year could lead to revoked registration. The draft follows two years of public feedback to balance owner and neighbor concerns.

Read more about the proposed STR regulations in Port Sheldon.