What do you do when STR/Airbnb rules change ?

Question

A lot of markets are tightening short-term rental rules right now.  I’ve seen investors get hit right after closing, suddenly unable to use the property how they planned.

Has anyone here pivoted by adding units, switching to mid-term, or going long-term with?
Curious what’s worked (or not) when the game changes on you ?

Dan H. · Answer

we had 2 STRs in a local vacation market since 1999 when the area decided to institute a quota a couple of years ago. they had a weighted lottery to give permits. Despite both of our STRs having maximum weight for the lottery, only one of my 2 STRs got an STR permit at the lottery.

we pivoted to MTR, but it really was less than ideal because a primary reason that I have STRs is to use them and to allow family and friends use them. In addition, because so many STRs did not get a permit and a large percentage of them converted to MTRs saturated the MTR market. The first year, MTRs were renting at about the same rent as LTRs in spite of MTRs including utilities furnishings, and higher PM costs. It resulted in reduced revenue.

Fortunately at just over a year without a STR permit, our unit got its STR permit almost a year ago.

My STR harmony was restored.

Lessons:

- Even long time vacation markets are not exempt from STR regulations

- even units that have been STRs since last century are not exempt from STR regulations

- it is important to have a plan b in case STR regulations impact your STR.

good luck

Fortunately at just over a year without a STR permit, our unit got its STR permit almost a year ago.

My STR harmony was restored.

Lessons:

- Even long time vacation markets are not exempt from STR regulations

- even units that have been STRs since last century are not exempt from STR regulations

- it is important to have a plan b in case STR regulations impact your STR.

good luck

Collin Hays · Answer

Every situation is going to be unique. You either sell or convert to a different type of rental.  This is a distinct risk, particularly when you are buying in a residential area that has historically not been zoned for inns. It should be an expectation that the laws will eventually turn against you, or that code is actually enforced at some point.

In the world of Short Term Rentals, everyone is all about free enterprise, until one opens up next door.

Andrew Street · Answer

Hey Mikhail - We’ve definitely had to pivot. One property got hit with new STR rules not long after we bought, so we shifted to mid-term rentals and targeted traveling nurses. It actually worked out better than expected—steady income, less wear and tear. We’re also looking into adding an ADU on another property to boost flexibility. Having backup plans is everything right now.

Sameul Ahsan · Answer

Been there. I co-host STRs across MA, NH, and Cape Cod—so I’ve felt the zoning whiplash too.

When the game changes, here’s how I pivot:

• Add value: I’ve converted single-families into 2–3 units with a studio or in-law for flexibility.
• Mid-term backup: I keep furnished units ready for traveling nurses or insurance stays. Sites like Furnished Finder or direct insurance contracts work well.
• Long-term fallback: I only buy in areas where long-term still cash flows if STR goes away tomorrow. That’s my safety net.

Add value: I’ve converted single-families into 2–3 units with a studio or in-law for flexibility.

Mid-term backup: I keep furnished units ready for traveling nurses or insurance stays. Sites like Furnished Finder or direct insurance contracts work well.

Long-term fallback: I only buy in areas where long-term still cash flows if STR goes away tomorrow. That’s my safety net.

Biggest win? Staying diversified across different towns and seasons. If one market tightens, others keep producing.

If you want to bounce ideas, happy to share what’s worked and what to avoid.

Anja Schaer · Answer

Yes, having a Plan B is key in this industry. Thankfully our market (North ATL area) is allowing STR’s (ordinances are in place, you need a STR permit, business license and owner/Co-Host/Property Manager info on file with the city/county which is reasonable). However, we still started our transition into the MTR space to be ahead of the curve if regulations should change. And I actually prefer MTR’s over the STR’s due to lower workload and higher returns. So we are currently doing a Hybrid strategy - offering both short-term and mid-term stays depending on the season, local demand, and the specific property.

At some point, we might switch over to mid-term entirely to fully leverage its benefits: fewer turnovers, longer stays, and steady income—especially near hospitals and business centers. All the best, Mikhail!

Andrew Steffens · Answer

This is an unfortunate trend that I do see across the country.  You really do not have a lot of options and I do not think any level of creativity can help.  You will have to sell at a potential loss, rent long term, or maybe mid term, also possibly at a loss.

State level protections like those in FL are really important to safeguard against just that.  I think maybe AZ also has one.

What do you do when STR/Airbnb rules change ?

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