Executive Summary:
Connecticut's statewide short-term rental registry, approved by their Finance Committee, requires all operators to register by January 1, 2026, and pay a $100 annual fee while potentially facing additional municipal taxes. Michigan communities are taking targeted action against rentals, with Spring Lake Village banning new STRs on three specific streets while grandfathering existing properties, and South Haven implementing stricter zoning regulations that limit operational flexibility.
Meanwhile, South Carolina's legislation that would have prevented local STR bans has stalled, highlighting the ongoing tension between state and local control - -investors eyeing the Palmetto State should expect a regulatory tug-of-war to continue. Lastly, Irondequoit, NY, is weighing new stay-length minimums that could gut weekend rental profits; while no decision has been made yet, proposals like a 7-day minimum are red flags for anyone looking to invest there.
Major Impact Areas:
Connecticut (Statewide)
Date of Announcement: April 23, 2025
Impact Level: MAJOR
Regulation Category: Licensing, Tax
Summary: Connecticut's Finance Committee approved a bill mandating a statewide short-term rental registry with a $100 annual fee and allowing municipalities to impose additional sales taxes on bookings. Investors must register by January 1, 2026, or face fines, impacting operational costs and compliance requirements.
Source: Finance committee okays short-term rental registry
Moderate Impact Areas:
Spring Lake Village, Michigan
Date of Announcement: April 22, 2025
Impact Level: MODERATE
Regulation Category: Zoning
Summary: Spring Lake Village Council banned new short-term rentals on Rex, Monarch, and Dixie streets due to resident complaints about parking and beach trespassing, preserving the neighborhood's residential character. Existing rentals are grandfathered, but new investors are barred from operating on these streets, potentially limiting investment opportunities.
Source: Lakeshore village bans new short-term rentals on three streets after complaints
South Haven, Michigan
Date of Announcement: April 2025
Impact Level: MODERATE
Regulation Category: Zoning
Summary: South Haven amended its short-term rental zoning ordinance to impose stricter regulations, potentially limiting where and how rentals can operate. Investors should review the specific zoning changes, as they may restrict new rental opportunities or affect existing operations in certain areas.
Source: South Haven amends short-term rental zoning ordinance
DEVELOPING Impact
South Carolina (Statewide)
Date of Announcement: April 23, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning, Tax
Summary: South Carolina's House Bill 3861, which would block local bans on short-term rentals, is stalled as lawmakers address concerns over property rights, local autonomy, and tax implications. Investors should watch for updates in the next legislative session, as the bill's outcome could significantly affect local regulatory control.
Source: Debate on short-term rental bill paused as state lawmakers seek clarity
Irondequoit, New York
Date of Announcement: April 22, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning Summary: Irondequoit is considering amendments to ban short-term rentals under 29 days or require a 7-day minimum stay, which could restrict rental flexibility and revenue for investors. The decision is postponed, so investors should stay updated on the outcome, as exemptions for owner-occupied units are also under discussion.
Source: Irondequoit residents split on proposed changes to short-term rental policy