From the U.S. to Europe, short-term rental (STR) operators face increasing pressure from stringent regulations. In New York City, Local Law 18 caused a 92% drop in STR listings in just one year, forcing hosts to adapt or shut down. Yet, recent advocacy efforts have sparked proposals to ease these restrictions, offering hope for a more balanced regulatory future.
This shift in New York is part of a broader trend. From Portugal to Barcelona, advocacy groups are reshaping the narrative around STRs, challenging restrictive policies, and highlighting their economic and social benefits. For professional property managers, these developments emphasize the critical role you can play in shaping fair regulations—not just for your business but for the entire industry.
NYC’s Local Law 18: Advocacy Sparks Change
Local Law 18, enacted in 2022, aimed to regulate STRs and address housing shortages. However, its overly strict provisions—like requiring hosts to be present for stays under 30 days and capping rentals at two adult guests—led to significant economic fallout, including a steep drop in listings and billions in lost visitor spending.
Advocacy groups, led by platforms like Airbnb and organizations such as Restore Homeowners Autonomy & Rights (RHOAR), fought back with data and personal stories. They demonstrated that the law had unintended consequences: housing shortages persisted, rents rose, and neighborhoods lost out on tourism dollars.
Key advocacy efforts included:
- Data-Driven Campaigns by Airbnb
Airbnb partnered with HR&A Advisors to release compelling data showing the economic impact of Local Law 18. Their research revealed that STR listings in outer boroughs like Brooklyn and Queens plummeted from 17,000 to just 1,400, leading to $1.6 billion in lost visitor spending and 15,700 fewer jobs. These figures illustrated how the law hurt local economies without solving housing issues. - Grassroots Mobilization by RHOAR
RHOAR represented hundreds of homeowners who shared stories of financial hardship and how STRs allowed them to maintain their homes. They worked closely with policymakers to propose changes that balance regulation with economic viability. - Collaboration with Local Chambers of Commerce
The Brooklyn Chamber of Commerce backed advocacy efforts, emphasizing the importance of STRs in reviving outer-borough tourism and supporting local businesses.
Source: Airbnb Listings (2021–2024). Data compares average guest nights stayed pre-LL18 (Sep 2022–Aug 2023) and post-LL18 (Dec 2023–May 2024).
Comparison Between Pre-LL-18 and Post-LL-18 in Terms of Tourist Spending (Source: Airbnb)
These coordinated efforts led to the introduction of Bill 1107 in late 2024, proposing significant amendments to Local Law 18, including:
- Removing the on-site host requirement for stays under 30 days, enabling more flexible hosting.
- Raising the guest cap from two adults to four, plus children, accommodating families and small groups.
- Allowing bedroom locks, enhances privacy and security for both hosts and guests.
- Expanding registration requirements to include rentals over 30 days, creating a consistent framework.
The success of these advocacy efforts shows how collective action can shift the tide, even in highly regulated markets.
Portugal’s Advocacy Wins: A Model for Change
Portugal’s short-term rental market faced similar challenges under the Mais Habitação program, which aimed to freeze new STR licenses and restrict license transfers. Advocacy by ALEP (Associação do Alojamento Local em Portugal) played a pivotal role in rolling back several of these restrictions.
ALEP’s approach provides a playbook for successful advocacy:
- Economic Evidence
ALEP used hard data to show STRs’ contribution to Portugal’s economy, including €8 billion in annual revenue and 110,000 jobs. They emphasized how STR operators reinvest in urban renewal, with 62% renovating underutilized buildings in cities like Lisbon and Porto. - Stakeholder Engagement
ALEP built coalitions with local councils, homeowners, and tourism boards, ensuring a unified voice in negotiations with policymakers. - Targeted Policy Recommendations
Instead of opposing all regulation, ALEP proposed balanced solutions, such as granting councils the power to issue licenses based on regional needs and restoring the ability to transfer licenses upon property sales.
These efforts resulted in significant wins, including:
- Restoring license transferability upon property sales.
- Making licenses permanent, eliminating the previous five-year expiration rule.
- Preventing arbitrary revocation of licenses by condominiums.
These changes illustrate how data-backed advocacy can protect and enhance the STR sector, benefiting operators, local economies, and communities.
Global Advocacy Efforts: From Barcelona to France
Elsewhere in Europe, advocacy groups are pushing back against restrictive STR regulations:
- Barcelona: Advocacy groups like the European Holiday Home Association (EHHA) have challenged Catalonia’s strict policies, which halved STR listings and drove up rents and hotel prices. EHHA filed a formal complaint with the European Commission, arguing that these measures violate EU principles on the free movement of services.
- France: In response to new rules limiting STRs in cities like Paris, industry leaders rallied at Scale France to coordinate legal and policy challenges. They argued that the regulations conflict with EU property rights and impose undue burdens on operators.
Source: Airbnb
These examples reinforce a growing momentum for industry advocacy across Europe, proving that united efforts can lead to meaningful change.
Advocacy Starts with You: Building Fairer Terms Together
Regulations may feel inevitable, but as the stories of New York, Portugal, and beyond demonstrate, they don’t have to signal the end of opportunity. Advocacy has the power to reshape policies in ways that benefit everyone—professional property managers, local communities, and the broader economy.
Fair regulations are not about removing oversight but about striking a balance: enabling short-term rental operators to thrive while addressing the concerns of residents and policymakers. Advocacy is a collaborative effort, and every voice matters in the conversation.
Here’s how you can contribute to creating fairer, community-minded terms:
- Work with Advocacy Groups
Join organizations that advocate for policies benefiting both operators and communities. Share data, stories, and solutions that highlight how short-term rentals can support local economies responsibly. - Collaborate with Communities
Engage with local residents to understand their concerns and explore ways your business can contribute positively, from supporting local businesses to participating in community projects. - Use Data Thoughtfully
Highlight how short-term rentals provide economic benefits—jobs, tourism dollars, and urban renewal—while remaining open to discussions about sustainable growth. - Engage Policymakers Proactively
Build relationships with government officials to present a balanced case for regulations that encourage responsible hosting practices.
Conclusion
The future of short-term rentals lies in cooperation. By working together—operators, residents, and policymakers—we can create a framework that supports thriving businesses, vibrant communities, and equitable outcomes for all. Advocacy starts with you, but it doesn’t end there. Together, we can build a sustainable, balanced future for short-term rentals.
