Short-Term Rental (STR)

A short-term rental (STR) is a residential property rented out for brief stays - typically under 30 consecutive days - through platforms like Airbnb and Vrbo. Unlike long-term rentals, STRs are treated by many zoning codes as a distinct land use, closer to lodging than to housing, which is why they attract dedicated ordinances.

How STR Regulation Works

1. Permit or license requirements, often with annual renewal and inspection
2. Zoning district restrictions: some codes allow STRs only in commercial or mixed-use zones, or ban non-owner-occupied STRs in residential districts
3. Caps: citywide or per-block limits on the number of permits, sometimes allocated by lottery or waitlist
4. Owner-occupancy ("hosted") rules: the operator must live on site
5. Separation requirements: minimum distance between licensed STRs
6. Grandfathering: existing permits often survive new bans, making license transferability a priced asset

Why STRs Matter for Real Estate

STR policy is where councils move fastest and with the largest financial impact. A cap, a ban on non-owner-occupied units, or a new district carve-out can change a property's income potential overnight - in either direction. Because rules are adopted at public hearings after months of debate, the meeting record signals the change long before it takes effect.

Signals to Track

- First readings of STR ordinance amendments: caps, moratoria, and district changes are usually telegraphed one to three months before adoption - Enforcement discussions: budget lines for STR enforcement staff signal a tightening regime - Grandfathering and transferability language, which determines whether existing permits gain scarcity value - Appeals and variance cases from denied STR permits, which show how strictly the code is applied