Short-Term Rental Laws Are Changing Fast — Here's What Happened in 2025

If you operate an Airbnb, VRBO, or any other short-term rental, 2025 was a year of tightening rules. Cities across the country moved to limit, license, and penalize short-term rentals more aggressively than ever. Here is a roundup of the biggest changes.

San Diego hit capacity on whole-home licenses

San Diego's tiered licensing system ran into its first real test in 2025. The city caps the number of Tier 2 licenses (whole-home rentals where the owner does not live on-site) by community planning area. By mid-year, Mission Beach, Pacific Beach, and La Jolla all reached 100% capacity with waitlists. New operators in those neighborhoods are now stuck in a queue with no timeline for when a license might open up. Existing operators who let their licenses lapse lose their spot.

Denver cranked up fines for unlicensed operators

Denver increased penalties for operating without a short-term rental license from $500 to $999 per day per violation, effective early 2026. The city also launched a dedicated online portal where neighbors can report suspected unlicensed listings. The reporting tool cross-references Airbnb and VRBO listings against the city's license database — making it harder for unlicensed operators to fly under the radar.

Nashville tightened entertainment district buffers

Nashville expanded its noise enforcement team and extended monitoring to include Thursday through Sunday nights in entertainment buffer zones. While this is technically a noise ordinance change, it directly targets short-term rental properties near Lower Broadway, where tourist renters are a primary source of late-night disturbances in residential areas. Hosts in those zones now face more frequent inspections and faster complaint response times.

What operators should do now

If you run a short-term rental, check your city's current licensing requirements — not what they were when you started. Regulations have shifted significantly in the past 12 months. Make sure your license is current, your listing is registered with the city, and you are up to date on any new occupancy limits, noise rules, or reporting requirements. The enforcement landscape has changed from "nobody checks" to "neighbors have reporting tools and cities have databases."