St. Louis Halts Short-Term Rental Rules Amid Confusion and Homeowner Frustration

ST. LOUIS, Mo. (First Alert 4) - Just days before the enforcement of the newly established short-term rental rules in the city of St. Louis, Mayor Cara Spencer stated on Tuesday that implementation has been halted due to an ongoing lawsuit.

Before the court halted the new law, owners of short-term rentals called the licensing process extremely stressful. The ordinance calls for inspections, business licenses and even public hearings, with an owner telling us there were too many applications for the city to handle.

"We aimed to adhere to the regulations, but the city lacked the necessary resources for us to accomplish this," stated McCracken.

Amanda McCracken and her daughter together manage six Airbnbs located around Tower Grove Park in St. Louis. They began registering these properties this winter, but Amanda mentioned that the procedures weren’t straightforward.

“I found it difficult to follow,” stated McCracken. “It was extremely confusing.”

In 2023, the city implemented short-term rental rules, which became effective last autumn; however, there was a leniency phase lasting till early May.

The updated procedure requires short-term rental proprietors to obtain and pay for a property examination, along with submitting an application for a business permit. Although this seems straightforward, even after commencing in February…

“I received just one permit out of the six group homes that my daughter and I operate,” stated McCracken.

Mc Cracken mentioned that Airbnb started threatening to delist owners from their platform if they failed to comply with the May 6 deadline.

“We cannot allow ourselves to close since we have mortgages and ongoing expenses, and it would essentially force us out of operation,” stated McCracken.

On Tuesday, Mayor Cara Spencer formally announced that because of a lawsuit and subsequent court order, the previously set May 6 deadline has been suspended.

"We have decided to temporarily halt everything for now," Spencer stated.

A collective legal action initiated by a short-term rental operator in April argues that the city's regulation is unconstitutional. The suit references the Hancock Amendment, which states that "a municipality cannot impose 'any tax, license, or fee' without obtaining the necessary endorsement from a majority of the eligible voters within the municipality," as outlined in the lawsuit.

Last week, a judge decided to halt the ordinance until at least May 5.

"There ought to be regulations but not limitations so that our functionality isn't hindered," stated McCracken.

Mc Cracken expresses joy over the lawsuit being initiated, stating that the present arrangement might have led to her and her coworkers going out of business.

"To entirely shut us down and force us out of business seems unconstitutional and unjust," stated McCracken.

Mc Cracken mentions that because of the legal alteration, her holdings are now classified as commercial real estate, causing property taxes to double. She noted that her properties brought in more than $34,000 solely from occupancy charges that her visitors covered last year.