Your city just announced a short-term rental ban. Six months to comply—or shut down. For many property managers, this isn’t just a hypothetical. In places like New York, Paris, and Barcelona, it’s already happening.
During our recent Rental Scale-Up x RevLabs webinar, expert property managers Alexander Limpert (Co-Founder & CEO, GuestReady, RentalReady), Aidan Groll (Founder, Blue Gems Group), and Kyle Driskell (Solutions Consultant, PriceLabs) shared the smartest strategies they’re using as professional property managers to navigate growing regulations in their respective markets like Europe, US, Middle East.
Key Strategies Discussed:
- Adapting to existing regulations & ensuring compliance – Staying operational by meeting new legal requirements.
- Expanding into new markets – Identifying and entering new locations before they become oversaturated.
- Shifting to mid-term rentals – Building a sustainable revenue stream without completely restructuring their business.
This article breaks down key takeaways from the webinar and exactly how these experts are implementing these strategies, and how you can apply these insights to your own property management business.
- Adapting to New Short-Term Rental Rules: Stay or Pivot?
Should you stay and fight, or is it time to explore new opportunities? This is the critical question facing many short-term rental operators as regulations evolve. Our speakers emphasized that regulation itself isn’t necessarily bad—it’s about how it’s structured and enforced.
- Some regulations create opportunity: Why? Regulations that limit STRs often reduce supply, creating a higher-demand environment for compliant operators. Aidan shared that In places like Orlando (Disney Market), where rules have been stable for 50+ years, stricter laws actually help existing STR operators charge higher rates.
- Joining local associations matter: Short-term rental (STR) advocacy groups like ALEP have successfully pushed back against bans in Portugal. Staying engaged in your market can change the outcome, so before leaving, see if there’s a way to get involved.
- Know when to leave: If regulations completely eliminate STRs or impose impossible restrictions (like 6-month minimum stays) or check if STRs are an important revenue source for the government? If local governments rely on tourism taxes, they may be less likely to impose outright bans.
Action for Property Managers:
- Check if advocacy groups are actively working to adjust the regulations in your market.
- If you want to stay and ensure full compliance, getting caught in violations will cost you more in the long run.
Sometimes, adaptation isn’t an option. When regulations become too restrictive to sustain a profitable business, exploring new markets becomes the smartest move.
- Expanding to a New Market? Avoid These Costly Mistakes
If relocation is an option, you need a data-backed approach. Moving blindly into a new market without proper due diligence can be an expensive mistake.
Critical Factors to Assess Before Expanding
- Regulation History & Stability:
- Have regulations remained consistent over time?
- Is the local government supportive of short-term rentals, or are they likely to introduce bans later?
- Market Size & Growth:
- Is there a strong demand for STRs?
- Are ADR (average daily rate) and occupancy rates growing or declining?
- Are large operators present? If yes, why?
- Tax Structure & Government Revenue Dependence:
- Markets, where the government relies heavily on tourism tax (e.g., Florida, Dubai), are less likely to introduce outright bans.
- Markets with strong hotel lobbies (e.g., Paris, New York) are more prone to aggressive STR regulations.
- Operational Feasibility:
- Can you find reliable cleaners and maintenance teams?
- Does your PMS support multi-market management?
Action for Property Managers:
- Use data tools like PriceLabs Market Dashboards, AirDNA, and Key Data to analyze occupancy, ADR trends, and supply-demand shifts before committing.
- Look for stable markets with a history of regulation rather than highly uncertain markets with unknown rules.
- Secure a local partner before entering a new market to avoid major operational challenges.
Sometimes, expanding into a new market isn’t the only solution. Instead of relocating, operators can shift to a different business model, such as mid-term rentals, which may offer more flexibility within existing regulations. However, if moving to a new market is necessary, it can also be an opportunity to adopt a new model from the start.
- Should You Switch to Mid-Term Rentals? Pros, Cons, and Hidden Risks
If short-term rentals are banned in your area, you might consider mid-term rentals (MTRs)—but is it really a good move?
- Benefits of Mid-Term Rentals:
- Longer stays = less turnover & cleaning costs
- Steady occupancy = less revenue volatility
- Corporate, medical, and relocation guests provide reliable demand
- Easier to comply with regulations (many markets classify MTRs differently from STRs)
- Challenges of Mid-Term Rentals:
- You might have long stays, but a 2-week gap between bookings can significantly lower revenue.
- If local laws prevent STR bookings from filling those gaps, you’re stuck with empty nights.
- Guests booking long stays expect discounts, so ADR is lower than STRs.
- You make up for it with lower expenses, but your total revenue may still decrease.
- Unlike STRs, MTRs don’t book themselves through platforms like Airbnb & Vrbo.
Action for Property Managers:
- Test MTR demand before fully committing, don’t assume it will work just because STRs did.
- Use the right distribution channels like Furnished Finder, Blueground, Morning Croissant, Housing Anywhere, Property Finder, and Spotahom.
- Adjust pricing strategy to factor in lower nightly rates but higher occupancy.
- Automate contracts, payments, and guest vetting, your PMS must support these functions.
Final Takeaway
If your market is tightening regulations, don’t panic—but do take action. The key is to evaluate your options and make informed decisions.
- If the new rules are manageable → Adjust, stay compliant, and keep your business running smoothly.
- If mid-term rentals are a viable option → Test the waters and see if the model works for you.
- If the market becomes unsustainable → Start exploring new locations before they become too competitive.
- Platforms like PriceLabs and Key Data can help you analyze demand and pricing trends.
- Get involved in industry groups, collaborate with other property managers, and advocate for fair policies in your market.
What should be your next move? Take a hard look at your market, run the numbers, and decide whether it’s time to adjust, diversify, or relocate.
