Most global cities now have restrictions, and in some cases an effective ban, on short-term rentals. Here are some examples, along with their annual nightly rental cap as I understand them (and by this, I mean what ChatGPT is telling me):

• Berlin: Secondary residence rentals are limited to 90 days per year

• London: Annual cap of 90 nights

• Mexico City: Annual cap of 180 nights

• New York City: Only host-present stays allowed

• Paris: Annual cap of 120 nights

• Rio de Janeiro: Annual cap of 90 nights

• San Francisco: Annual cap of 90 nights

• Singapore: Minimum stay of 3 months for private properties and 6 months for HDB properties (Singapore's public housing authority)

• Sydney: Annual cap of 180 nights

• Toronto: Annual cap of 180 nights

These rules and caps will have nuances to them. Like if you want to rent your place on the third Tuesday of a month and your property faces west and has a view of an outdoor terrace with no more than 6 brass bistro tables, you probably require a special license. Okay, this isn't true. But broadly speaking, most cities now have strict caps in the range of 90-180 nights and differentiate between whole-home rentals and host-present stays.

What this, of course, means is that most big cities don't want people operating short-term rentals as a business. They'd like hosts to be people who maybe rent out their place while they're away on vacation and/or offer up an extra room when some conference or event is taking place in town. In other words, cities do not want short-term rentals to negatively impact their supply of long-term rentals.

It's no wonder that Airbnb is investing heavily in both its "experiences" and "services." It has to do this because its core "homes" business is facing significant regulatory headwinds. But what this also means is that the hospitality industry is now shifting toward other solutions — things like aparthotels/serviced apartments. These are purpose-built solutions that typically require commercial zoning.

Globally, the aparthotel segment is expected to be the fastest-growing subset in commercial lodging for the remainder of this decade. And that makes sense. With STR regulations only becoming more stringent and with the continued rise of digital nomadism, the demand for this kind of apartment-like product is going to need to be satisfied in other ways.

There's clearly a market for kitchens, washing machines, and a bit more space.

Cover photo by Aquilion Property on Unsplash

Most global cities now have restrictions, and in some cases an effective ban, on short-term rentals. Here are some examples, along with their annual nightly rental cap as I understand them (and by this, I mean what ChatGPT is telling me):

• Berlin: Secondary residence rentals are limited to 90 days per year

• London: Annual cap of 90 nights

• Mexico City: Annual cap of 180 nights

• New York City: Only host-present stays allowed

• Paris: Annual cap of 120 nights

• Rio de Janeiro: Annual cap of 90 nights

• San Francisco: Annual cap of 90 nights

• Singapore: Minimum stay of 3 months for private properties and 6 months for HDB properties (Singapore's public housing authority)

• Sydney: Annual cap of 180 nights

• Toronto: Annual cap of 180 nights

These rules and caps will have nuances to them. Like if you want to rent your place on the third Tuesday of a month and your property faces west and has a view of an outdoor terrace with no more than 6 brass bistro tables, you probably require a special license. Okay, this isn't true. But broadly speaking, most cities now have strict caps in the range of 90-180 nights and differentiate between whole-home rentals and host-present stays.

What this, of course, means is that most big cities don't want people operating short-term rentals as a business. They'd like hosts to be people who maybe rent out their place while they're away on vacation and/or offer up an extra room when some conference or event is taking place in town. In other words, cities do not want short-term rentals to negatively impact their supply of long-term rentals.

It's no wonder that Airbnb is investing heavily in both its "experiences" and "services." It has to do this because its core "homes" business is facing significant regulatory headwinds. But what this also means is that the hospitality industry is now shifting toward other solutions — things like aparthotels/serviced apartments. These are purpose-built solutions that typically require commercial zoning.

Globally, the aparthotel segment is expected to be the fastest-growing subset in commercial lodging for the remainder of this decade. And that makes sense. With STR regulations only becoming more stringent and with the continued rise of digital nomadism, the demand for this kind of apartment-like product is going to need to be satisfied in other ways.

There's clearly a market for kitchens, washing machines, and a bit more space.

Cover photo by Aquilion Property on Unsplash