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

• La Quinta, California

• State College, Pennsylvania

• Summit County, Utah

• Hampton, Virginia 

• St. Louis, Missouri 

• Nantucket, Massachusetts

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La Quinta

A year after La Quinta residents narrowly voted against banning short-term rentals, the city council decided to allow new home share permits, where owners must be on site during a guest's stay. This comes as the city has seen drops in rental complaints after implementing stiffer fines in 2021. The council also adjusted rules, including allowing large property exemptions to the rental ban pending approval, and requiring a 4/5ths vote to change the current ban. While some residents opposed home shares over enforcement concerns, the council largely agreed allowing them made sense since they rarely cause disturbances. The ordinance still needs final approval.

State College

State College is considering requiring safety inspections for all short-term rentals starting in 2024. Currently, only rentals that are rented for 7+ consecutive days need inspections, but an amendment would lower that number to one day, meaning all short-term rental properties would require an inspection every three years. The  $69 inspection checks heating, electric, and smoke detectors. The goal is to ensure visitor safety. Some council members questioned the need for this new regulation since there haven’t been any issues since the city enacted its short-term rental regulations in 2022. The issue will be voted on later this month.

Summit County

Utah policymakers hoped accessory dwelling units (ADUs) would ease the statewide housing shortage. However, some ADUs became lucrative short-term rentals in tourist areas like Summit County. This exacerbated the housing crisis, contrary to the intent of ADU laws. The Utah Legislature passed a law requiring ADUs to have minimum 30-day rental periods to promote long-term housing. The Summit County Council recently voted 4-1 to comply with this law, effectively banning short-term ADU rentals. This could hurt property owners who built ADUs intending to rent them short-term. While the law has passed, enforcement will rely on neighbor complaints since the county can't investigate without cause. A county subcommittee is also working on regulating short-term rentals more broadly, as studies show up to 50% of units in some Summit County areas are listed on short-term rental sites.

Hampton

Hampton City Council is postponing approval of any new short-term rental applications until at least early 2024. Before moving forward, the council wants to see how the Virginia General Assembly addresses short-term rental regulations. Mayor Donnie Tuck and Councilman Billy Hobbs worry that any state legislation passed next year could impact Hampton's ability to regulate short-term rentals locally. This ruling comes after Hampton began requiring short-term rental permits for all hosts in 2022 and then paused approving new permits in the summer of 2023 to allow more time to study neighborhood impacts. This situation has prevented hosts from registering their short-term rental and operating legally.

St. Louis

St. Louis Mayor Tishaura Jones signed two bills last week to regulate short-term rentals in the city. Board Bill 33 requires permits to operate short-term rentals and establishes a permit system. Board Bill 34 allows short-term rentals as a permitted use in all city zones. The bills prohibit parties and single-night stays, require a 24/7 contact for renters and neighbors, limit rentals in multifamily buildings, and cap the number of rentals an individual can operate. Operators must follow city laws on noise or face fines and permit revocation. The goal is addressing concerns that some short-term rentals have caused problems with parties and illegal activity, especially downtown. Mayor Jones said the lack of regulation created safety issues and praised the measures for having widespread support among the Board of Aldermen.

Nantucket

For the fourth time, Nantucket residents voted down a proposal to limit short-term rentals on the island. The proposals were created by a short-term rental working group to address the housing crisis and the high percentage of lodging from short-term rentals. Article 1 would have ended future corporate-owned rentals, discouraged commercial-only rentals, limited ownership to one property per owner, and capped rental agreements during high season. Article 2 linked zoning changes to Article 1. Supporters said the regulations balanced rights while addressing investor-only rentals. Opponents worried about limiting future rentals if not currently renting, that existing corporate rentals were grandfathered in, that the rules were too complex, and that commercial rentals wouldn't be deterred. Residents have voted down short-term rental restrictions multiple times since 2021 amid divided views on the issue.