What new short term rental regulations is Pittsburgh proposing?

Pittsburgh is advancing licensing requirements, zoning approvals for non–owner-occupied units, unit caps per building, party bans, and stricter compliance rules including guest logs and occupancy limits.

Is Cape Town introducing new short term rental regulations?

Not entirely new rules — but stronger enforcement of existing bylaws, particularly targeting commercial-scale and investor-driven STR operations.

What would Kentucky’s bill change about short term rental regulations?

SB 112 would prevent local governments from imposing licensing, residency, or density limits on STRs, overriding city-level frameworks like Covington’s.

Short-Term Rental Regulations: Pittsburgh, Cape Town & Kentucky Shift the Rules

Pittsburgh Advances New Short-Term Rental Regulations, Final Vote After NFL Draft

Pittsburgh City Council has advanced two bills to regulate short-term rentals (STRs), with final votes delayed at least three months, until after the city hosts NFL Draft.
The proposal would require licensing, and in residential zones, non–owner-occupied units would need zoning approval (now under Planning Commission review). Operators must also have a responsible contact within 25 miles.
If adopted, the rules add unit caps (max 2 STRs in buildings with ≤20 units, max 5 STRs in buildings with >20 units, and generally 1 STR per lot in most residential areas).
Also includes, a party ban, a 28-day stay cap, and new compliance requirements (register bedrooms/max occupants, keep a daily guest log for code enforcement, and restrict stays to 18+ unless with a parent/guardian).
Existing STRs wouldn’t need zoning approval, but would still need a license.
The Steel City Short Term Rental Alliance (SteelSTRA) said it supports licensing but warned that zoning restrictions and caps could significantly reduce supply.
Council members cited housing loss, neighbourhood disruption, and enforcement gaps as key drivers.

Entities

Pittsburgh City Council: The legislative body advancing the STR framework.
Steel City Short Term Rental Alliance (SteelSTRA): Industry group representing local STR operators.

Snigdha’s Views:

Pittsburgh is making it hard to run STRs casually. Licensing, zoning approval, unit caps, and party rules all add layers that limit flexibility and increase paperwork.
STRs are no longer treated as a side income activity, but as something that needs oversight and limits. That changes who can realistically operate.
Final votes are delayed until after the NFL Draft, a major demand event, signalling political caution around disrupting visitor capacity in the short term while still moving toward tighter long-term controls.
For small hosts, managing approvals, logs, caps, and enforcement risk could become exhausting.
But this is where professional property managers may gain ground. Operators already equipped with compliance systems, local oversight, and structured processes are better positioned to advise owners strategically.
But overall, every new rule narrows the pool of listings that can operate comfortably.
Over time, that usually means fewer viable STRs and higher operating costs, even without a formal ban.

Cape Town to Tighten Short-Term Rental Enforcement as Listings Surge

According to reporting by CapeTalk (702), the City of Cape Town is moving to strengthen enforcement on commercial-scale STRs as the number of Airbnb-style listings continues to grow rapidly.
Speaking on Early Breakfast with Africa Melane, Grant Smee, CEO of ONLY Realty Property Group, said the move is less about introducing new rules and more about enforcing existing bylaws.
He estimates there are around 26,000 Airbnb listings in Cape Town and roughly 30,000 across all platforms, calling it “an enormous market.”
Smee noted that developers have increasingly built smaller, investor-focused studio units tailored to short-term demand.
He urged the city to finalise regulations quickly to provide clarity for investors, warning that applying commercial rates to short-term rentals could push up operating costs, and ultimately nightly prices.
He added that while other metros may look to Cape Town’s approach, property dynamics differ by city, and similar policies may not produce the same results elsewhere.

Snigdha’s Views:

In 2025, the city moved to tax full-time STRs, arguing they function like hotels and should be treated, and priced, as such.
What’s happening now isn’t a policy U-turn; it’s a shift from pricing pressure to compliance pressure.
Back then, the risk was higher nightly rates pushing digital nomads elsewhere. Now, the risk is operational: stricter enforcement, higher compliance costs, and less tolerance for large-scale, investor-driven STR use, especially in buildings designed primarily for short stays.
For PMs, the signal is consistent. Cape Town still wants tourism and long-stay demand, but it’s drawing firmer lines around how commercial STRs operate.
Casual or speculative operators face more friction, while professional managers who can absorb taxes, manage compliance, and reposition inventory (longer stays, regulated use, hybrid models) are better placed to stay competitive.

Kentucky Bill Could Override Covington’s Short-Term Rental Rules

Covington, Kentucky adopted STR regulations in 2023 after a six-month moratorium aimed at slowing rapid post-pandemic STR growth.
The city’s framework caps STR density by neighborhood, distinguishes host-occupied from non-hosted units, and limits how many properties individuals and LLCs can operate. Covington currently has 136 licensed STRs and uses enforcement software to scan online platforms for illegal listings.
That system may now be dismantled. In January, State Senator Craig Richardson introduced SB 112, a bill that would prevent local governments from imposing licensing, residency, or density limits on STRs.
If passed, the legislation would override Covington’s regulatory framework. City leaders warn it would strip them of tools to manage STR concentration, while Richardson argues the bill protects property rights and cites Airbnb’s reported $600 million economic impact in Kentucky.

Snigdha’s Views:

If Kentucky’s SB 112 passes, local restrictions like Covington’s caps and residency rules would fall away. In the short term, that favors investor-led operators and larger portfolios, lowering barriers to scale.
But the trade-off is stability. Covington’s framework, while strict, was predictable. Stripping cities of regulatory tools risks triggering stronger backlash later, often in the form of statewide bans, court battles, or blunt one-size-fits-all rules.
For professional property managers, this creates a split reality: more room to grow in the near term, but higher policy risk over time.
It’s interesting that Richardson specifically cited Airbnb’s reported $600M economic impact in Kentucky. We’ve seen Airbnb roll out similar economic impact reports across U.S. states and European cities so it’s notable that the same narrative seems to be shaping the conversation in Kentucky too.

Snigdha Parghan

Snigdha Parghan is a Content Marketer at RSU by PriceLabs, where she creates articles, manages daily social media, and repurposes news and analysis into podcasts and video content for short-term rental professionals. With a focus on technology, operations, and marketing, Snigdha helps property managers stay informed and adapt to industry shifts.