The Changing Landscape of STR Regulation – What Every Property Manager Needs to Know

The short-term rental (STR) industry has revolutionized the way people travel and how short-term rental property owners generate income. What started as a way for homeowners to rent out extra space has grown into a multi-billion-dollar global industry. However, with rapid growth comes increased scrutiny. Cities, states, and countries around the world are implementing new regulations to control the impact of STRs on local housing markets, neighborhoods, and traditional hospitality businesses.

For property managers and hosts, navigating these evolving regulations can be complex and costly. In cities like New York, for example, recent laws have dramatically reduced the number of legal STR listings, leaving many operators scrambling for compliance or being forced out of the market altogether. Meanwhile, in cities such as Amsterdam and Barcelona, authorities have placed strict rental limits, effectively pushing many short-term rental owners and operators toward alternative business models.

Understanding STR regulations is no longer optional—it’s essential for staying in business. In this guide, we’ll break down the biggest regulatory trends, the financial impact of new laws, and practical strategies for adapting your business. Maveriks is here to help STR operators navigate compliance, explore new revenue opportunities, and continue growing their businesses despite changing legal landscapes. 

Let’s dive in.

The Growing Impact of STR Regulations

The short-term rental (STR) industry has experienced significant growth over the past decade, offering travelers unique lodging options and property owners lucrative income opportunities. However, this rapid expansion has prompted governments worldwide to implement stricter regulations to address concerns related to housing affordability, neighborhood integrity, and fair competition with traditional lodging establishments.​

For instance, cities like New York have introduced comprehensive regulations that have led to a notable decrease in STR listings, impacting the availability of short-term accommodations and influencing local housing markets. Similarly, in Europe, cities such as Amsterdam and Berlin have enforced stringent rules limiting the number of days properties can be rented short-term, aiming to preserve residential housing stock and maintain community cohesion. 

These regulatory measures reflect a global trend where authorities strive to balance the economic benefits of STRs with the need to protect long-term housing availability and community welfare.​

Key Trends in STR Regulations

Several prevalent trends have emerged in the realm of short-term rental regulations:

Stricter Licensing and Permits: 

Many municipalities now require property owners to obtain specific licenses or permits to operate STRs. For example, Plainview has implemented an ordinance mandating annual permits for STR properties, accompanied by local hotel occupancy taxes, to ensure safety compliance and equitable competition with traditional lodging businesses. Additionally, in cities like Vancouver and Toronto, short-term rental units must be in a host's primary residence, and hosts are required to obtain licenses. 

Higher Taxes and Fees: 

To mitigate potential negative impacts on housing markets and generate revenue, some regions have introduced new taxes targeting STRs. For instance, Victoria, Australia, implemented a 7.5% levy on short-stay accommodations, including platforms like Airbnb, with the aim of encouraging property owners to return units to the long-term rental market and alleviate housing shortages. ​

Zoning Laws and Bans: Certain jurisdictions have enacted zoning laws or outright bans to control the proliferation of STRs in specific areas. For example, in 2024, Greece announced measures to regulate short-term holiday rentals and cruise ship traffic to balance tourism growth with the preservation of cultural and natural heritage. Similarly, cities like Amsterdam have implemented strict short-term rental limitations to address housing affordability and neighborhood integrity. 

These trends indicate a concerted effort by governments to regulate the STR market, aiming to balance the interests of various stakeholders, including residents, traditional lodging providers, and STR operators.​

The Financial Impact of STR Regulations

The evolving regulatory landscape presents significant financial implications for property managers and STR operators:​

Compliance Costs: 

Adhering to new regulations often entails additional expenses, such as permit fees, increased insurance premiums, and costs associated with modifying properties to meet safety standards. For instance, in Plainview, property owners must apply for a $100 annual permit and collect and remit both local and state hotel occupancy taxes, adding to the operational costs of STRs. ​Plainview

Revenue Reduction: 

Regulations that limit the number of rental days or impose caps on the total number of STRs can directly reduce potential earnings. In San Francisco, the enforcement of registration policies resulted in a significant decrease in available STR listings, leading to reduced bookings and host revenues. ​kteltser.github.io

Market Contraction: 

Stringent regulations may deter new entrants and prompt existing operators to exit the market, leading to decreased competition. This contraction can affect the overall availability of short-term rentals, potentially driving up prices and altering market dynamics. For example, in New York City, new regulations have resulted in a significant decline in short-term rental listings and a rise in average hotel prices. 

Navigating these financial challenges requires property managers to stay informed about local regulations and adapt their business strategies accordingly to maintain profitability and compliance.​

How Regulations Are Reshaping the STR Market

As stricter regulations take effect, many cities are seeing a significant drop in short-term rental (STR) listings. In heavily regulated markets like New York and Amsterdam, new laws have forced thousands of hosts to either exit the market or shift to alternative rental models. This reduction in supply not only impacts travelers looking for accommodations but also changes the competitive landscape for STR operators.

With compliance becoming more complex and expensive, larger property management companies are gaining an advantage. They have the resources to handle licensing, legal requirements, and tax obligations, making it harder for individual hosts to compete. As a result, many small operators are either partnering with established STR firms or exiting the industry altogether.

In response, some STR hosts are pivoting to mid-term rentals, which often fall outside the scope of strict STR regulations. Catering to business travelers, digital nomads, and relocation professionals provides a more stable, compliant, and profitable alternative.

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Staying Informed: Navigating Local STR Laws

Keeping up with short-term rental (STR) regulations isn’t just about compliance—it’s about protecting your business from costly fines, sudden shutdowns, or even legal action. As cities continually adjust policies, what’s legal today might not be tomorrow. Staying ahead of these changes ensures you can adapt your business model before enforcement catches up.

To track legal updates, monitor city council websites, attend public meetings, and subscribe to local government newsletters. STR advocacy groups, like the Short-Term Rental Alliance or local host associations, are also excellent resources for staying informed and pushing for fair policies. Additionally, legal and real estate websites often publish updates on new zoning laws, permitting requirements, and tax changes.

Networking with other STR operators is just as crucial. Engaging in online forums, industry events, or local meetups can provide real-time insights into how other hosts are handling regulations—and which strategies are working best to stay compliant while remaining profitable.

Exploring Alternatives While Staying Focused on STR

For many operators, stricter short-term rental (STR) regulations have made it necessary to consider alternative approaches. Some hosts have shifted toward mid-term stays (30+ days) as a way to navigate restrictions, since these longer stays often fall outside the scope of STR laws. While this strategy can work in some markets, it’s not the ideal solution for every operator—especially those who thrive in the short-term rental space.

If regulations force adjustments, property managers can optimize their listings for flexibility without entirely abandoning the STR model. For example, adjusting pricing to encourage extended stays while keeping a short-term option available can help maintain cash flow. Additionally, providing key amenities—such as fast Wi-Fi, workspaces, and fully equipped kitchens—can attract business travelers and digital nomads. STR operators should remain informed about changing regulations while balancing business adaptability with their core focus: offering high-quality short-term stays that meet traveler demand.

Working with Local Authorities to Stay Compliant

Navigating short-term rental (STR) regulations successfully means understanding and following city-specific permitting and registration programs. Many cities now require STR operators to apply for permits, pay local taxes, and adhere to zoning laws. To avoid legal risks, operators should apply for permits early, keep track of renewal deadlines, and maintain detailed records of compliance. Staying proactive prevents sudden enforcement actions that could disrupt business operations.

Beyond just following the rules, building a relationship with local regulators can be a game-changer. Open communication with city officials can provide insights into upcoming policy changes and even opportunities to participate in shaping fair regulations. Some cities offer official STR programs that allow operators to register and continue operating legally. By demonstrating professionalism and a willingness to comply, STR hosts position themselves as responsible business owners who contribute positively to the local economy—helping both their businesses and the industry as a whole thrive.

Community Engagement & Building Goodwill

Short-term rentals succeed best when they’re integrated smoothly into their communities. Maintaining good relationships with neighbors isn’t just courteous—it’s essential for avoiding complaints that could lead to restrictive regulations. Clear house rules, noise monitoring, and guest communication protocols can go a long way in preventing issues before they escalate. Operators should also provide guests with guidelines on respecting local communities, including quiet hours and parking policies.

When complaints do arise, addressing them quickly and professionally can prevent larger conflicts. Proactively engaging with neighbors, responding to concerns, and ensuring that STRs don’t disrupt local life can make all the difference. Additionally, STR operators who participate in local discussions, attend city council meetings, and advocate for fair policies help ensure that regulations are balanced rather than punitive. STR businesses that contribute positively to their communities—whether through tax revenue, tourism, or local partnerships—are far more likely to gain long-term support.

The Future of STR Regulations & How to Stay Ahead

The regulatory landscape for short-term rentals is constantly evolving, and staying ahead of changes is key to long-term success. Cities worldwide are refining their policies, with some introducing stricter rules while others explore more STR-friendly frameworks through advocacy efforts. Large platforms like Airbnb and Vrbo are actively working with governments to establish standardized regulations, pushing for clear permitting processes rather than outright bans. The outcome? A patchwork of laws that STR operators must navigate carefully.

At Maveriks, we know that flexibility is the key to survival. Operators who adapt—whether by optimizing their STRs for compliance, diversifying revenue streams, or leveraging technology to track legal changes—will stay competitive. Using compliance tools, automating tax reporting, and staying involved in local policy discussions can make all the difference. Maveriks is here to help STR managers not just react to new regulations but strategically position themselves for growth in an ever-changing market.

How Maveriks Helps STR Managers Thrive

The short-term rental industry is facing increasing regulatory pressures, but with the right strategies, operators can continue to grow and thrive. From understanding new laws to adapting business models and fostering strong community relationships, staying informed and proactive is the best path forward. Regulations will continue to evolve, but hosts who take the time to prepare will always have an advantage.

Maveriks is committed to supporting STR operators through expert guidance, compliance strategies, and resources to help navigate shifting regulations. Whether it's staying up to date on legal changes, optimizing your rental strategy, or advocating for fair policies, Maveriks is here to ensure you stay ahead of the curve. We hope this blog shed light on this important topic, if you have additional questions, please reach out.

Don’t wait for regulations to catch up to you—take action today. 

Schedule a demo or get a free consultation with Maveriks to strengthen your business and find new opportunities. 🚀

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