Short-Term Rental Bans

WHY SHORT-TERM RENTAL BANS CAN BE BENEFICIAL

One way destinations are encouraging responsible travel behaviors is by instituting short-term rental bans. Short-term rental bans are typically approved and implemented by various stakeholders1 and can help maintain a balance between tourism growth and local quality of life2.

In some destinations, short-term rentals can contribute to overtourism by increasing visitor numbers in residential neighborhoods3. This can strain local infrastructure, raise housing costs for residents, and disrupt communities. Banning or restricting short-term rentals can help shift demand toward regulated accommodations4,5 that adhere to sustainability practices and contribute to local economies through taxes, employment, and partnerships with local businesses. If a destination has opted to ban short-term rentals, this could create an opportunity for DMOs to promote travel behavior that aligns with their long-term vision for a destination.

WHAT IT MEANS

A short-term rental ban is a regulation that limits or prevents the use of properties for short-term rentals6. Tourists who previously stayed in short-term rentals may now book hotels, motels, or traditional lodging accommodations, which could benefit established hospitality businesses. Banning short-term rentals can reduce housing scarcity7,8 and lower rent prices by converting former vacation rentals into long-term housing for locals5,8. Instead of a full ban, some destinations regulate short-term rentals with licensing, taxes, and zoning laws1,5,9 to balance tourism benefits with resident needs.

DESTINATIONS IMPLEMENTING BANS

Barcelona, Spain plans to ban short-term rentals for tourists starting in 202910. They have currently enacted strict regulations on short-term rentals to address housing shortages and preserve community integrity11. The city aims to increase housing options for local residents. By restricting short-term rentals, Barcelona encourages tourists to stay in locally owned hotels and guesthouses, ensuring that tourism revenue benefits the local economy.

Rome, Italy has taken action against short-term rentals by removing unauthorized key boxes used for Airbnb check-ins12. This initiative aims to regulate the proliferation of short-term rentals and address concerns about their impact on local communities13. Regulating short-term rentals helps preserve the quality of life for residents, promoting a more harmonious relationship between tourists and locals.

New York City, USA has implemented regulations that ban short-term rentals of entire apartments for less than 30 days14. Hosts are prohibited from advertising such rentals and can face substantial fines for violations. Qualified hosts must register with the Office of Special Enforcement and be present during the guests’ stay15. The short-term rental ban allows the city to maintain housing availability for residents and promote responsible accommodations among visitors.

DMOs mentioned

https://www.spain.info/en/destination/barcelona/
https://www.bloomberg.com/news/articles/2024-06-21/barcelona-plans-to-ban-all-short-term-rentals-for-tourists-from-2029
https://www.nyctourism.com/
https://www.travelandleisure.com/italy-bans-lockboxes-for-airbnb-rental-keys-what-to-know-8756052
https://www.italia.it/en/lazio/rome
https://skift.com/2024/06/17/nyc-has-approved-just-2242-short-term-rental-host-registrations/ 

Other helpful materials

https://www.bloomberg.com/news/articles/2024-07-09/airbnb-abnb-vrbo-expe-why-cities-are-cracking-down-on-short-term-rentals
https://www.cntraveler.com/galleries/2016-06-22/places-with-strict-airbnb-laws#
https://hbr.org/2024/02/what-does-banning-short-term-rentals-really-accomplish

Gottlieb, C. (2013). Residential Short-Term Rentals: Should Local Governments Regulate the “Industry”? Planning & Environmental Law, 65(2), 4–9. https://doi.org/10.1080/15480755.2013.766496

Furukawa, N., & Onuki, M. (2019). The design and effects of short-term rental regulation. Current Issues in Tourism, 25(20), 3245–3260. https://doi.org/10.1080/13683500.2019.1638892

References

1. Nieuwland, S., & van Melik, R. (2020). Regulating Airbnb: How cities deal with perceived negative externalities of short-term rentals. Current Issues in Tourism, 23(7), 811–825. https://doi.org/10.1080/13683500.2018.1504899
2. Jordan, E. J., & Moore, J. (2018). An in-depth exploration of residents’ perceived impacts of transient vacation rentals. Journal of Travel & Tourism Marketing, 35(1), 90–101. https://doi.org/10.1080/10548408.2017.1315844
3. Celata, F., & Romano, A. (2022). Overtourism and online short-term rental platforms in Italian cities. In Platform-Mediated Tourism. Routledge.
4. Furukawa, H., Matsumura, K., & Harada, S. (2019). Effect of Consumption Values on Consumer Satisfaction and Brand Commitment: Investigating Functional, Emotional, Social, and Epistemic Values in the Running Shoes Market. International Review of Management and Marketing, 9(6), 158–168.
5. Gottlieb, C. (2013). Residential Short-Term Rentals: Should Local Governments Regulate the “Industry”? Planning & Environmental Law, 65(2), 4–9. https://doi.org/10.1080/15480755.2013.766496
6. Watts, C. (2023). Long Term Fixes for Short Term Leases: The Unsettled World of Airbnb Regulations. Business, Entrepreneurship & Tax Law Review, 7, 161.
7. Lee, D. (2016). How Airbnb Short-Term Rentals Exacerbate Los Angeles’s Affordable Housing Crisis: Analysis and Policy Recommendations. Harvard Law & Policy Review, 10, 229.
8. DiNatale, S., Lewis, R., & Parker, R. (2018). Short-term rentals in small cities in Oregon: Impacts and regulations. Land Use Policy, 79, 407–423. https://doi.org/10.1016/j.landusepol.2018.08.023
9. Park, M. (2019). The sharing economy, regulations, and the role of local government. International Journal of Tourism Cities, 6(1), 158–174. https://doi.org/10.1108/IJTC-08-2019-0122
10. Carey, C. (2024, June 27). Barcelona set to ban short-term rentals. Cities Today. https://cities-today.com/barcelona-set-to-ban-short-term-rentals/
11. Latu, E. R., Dan. (n.d.). Barcelona is banning Airbnbs. Other European cities have cracked down already—With some success. Business Insider. Retrieved February 12, 2025, from https://www.businessinsider.com/barcelona-airbnb-ban-florence-amsterdam-lisbon-are-regulations-working-2024-8
12. Checking Into an Italy Airbnb or Short-term Rental Just Got a Bit More Complicated. (n.d.). Travel + Leisure. Retrieved February 12, 2025, from https://www.travelandleisure.com/italy-bans-lockboxes-for-airbnb-rental-keys-what-to-know-8756052
13. Stevens, P. (2024, December 3). Holiday rental self check-ins banned in Italy with immediate effect. Short Term Rentals. https://shorttermrentalz.com/news/italy-holiday-rental-self-check-ins-ban/
14. Information for Hosts—OSE. (n.d.). Retrieved February 12, 2025, from https://www.nyc.gov/site/specialenforcement/stay-in-the-know/information-for-hosts.page
15. Short-Term Rental Registration · NYC311. (n.d.). Retrieved February 12, 2025, from https://portal.311.nyc.gov/article/?kanumber=KA-03559