Key Insights
San Diego and Washington State are both advancing short-term rental taxes aimed at funding affordable housing. In Puerto Rico, a proposed Senate bill would centralize STR licensing and registration, raising concerns about added bureaucracy and cost burdens. Nevada City is considering a permit cap and stricter compliance standards, potentially limiting new investor entries after July 1. Meanwhile, a zoning technicality in Preble, New York, may overturn a local STR ban, offering a rare win for property owners.
Developing Regulations
San Diego, California
Date of Announcement: April 10, 2025
Impact Level: DEVELOPING
Regulation Category: Tax
Summary: San Diego is exploring new nightly fees on short-term rentals to fund affordable housing, with a committee voting to update a study on their housing impact, potentially increasing costs for guests. Investors should be aware that proposed fees, similar to a previously shelved 2018 plan ($2.73 for home shares, $3.96 for whole homes), could reduce demand if implemented.
Source: Staying in a short-term rental in San Diego might get more expensive. Here's why
State of Washington, USA
Date of Announcement: April 9, 2025
Impact Level: DEVELOPING
Regulation Category: Tax
Summary: A proposed 4% tax on short-term rentals in Washington, aimed at funding affordable housing, has passed the Senate and a House committee, but a study warns it could reduce demand and tourism spending, impacting the $4.7 billion industry. Short-term rental investors should note potential cost increases for guests and possible declines in booking rates if the tax is enacted.
Source: Study: New tax on short-term rentals could have broad negative ripple effects
Puerto Rico
Date of Announcement: April 14, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing
Summary: Puerto Rico's Senate Bill 238 proposes a municipal registry and unified licensing system for short-term rentals to ensure safety and economic balance, with stakeholder concerns about bureaucracy and costs. Investors should watch for updates on the bill, as it could introduce new compliance requirements and financial burdens for hosts.
Source: Puerto Rico revisits short-term rental regulation with new Senate bill
Preble, New York
Date of Announcement: January 2025
Impact Level: DEVELOPING
Regulation Category: Zoning
Summary: The STR ban in Preble might be overturned because the town approved it with only a 3-2 vote, which falls short of the four votes legally required to override the county planning board's rejection. The property owners who sued the town have a potentially winning argument based on this procedural technicality, which legal experts note could overturn the ban.
Source: A fight over Airbnb bans in a Central NY lakeside town takes an odd turn: 'What they did is wrong'
Nevada City, California
Date of Announcement: April 14, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing, Occupancy
Summary: Nevada City is reviewing a draft ordinance that would introduce a cap on short-term rental permits starting July 1, 2025, alongside a registration system and updated safety and environmental standards. Short-term rental investors should monitor the April 14, 2025, meeting for details on permit limits and compliance requirements that could affect future operations.
Source: Short-Term Rental Draft Ordinance presentation set for April 14