Short-Term Rental Rules: Chicago, Croatia, Florence

Source: Rental Scale-Up

What It Says

Regulatory updates across three major markets show a tightening grip on the short-term rental (STR) industry through hyper-local bans, national registries, and expanded exclusion zones.

• Chicago: The City Council is renewing precinct-level "Restricted Residential Zones," which allow voters to block new STR licenses via petition. While citywide licenses have dropped 38%, the 20th Ward near the new Obama Presidential Center saw a 46% increase, leading to calls for stricter local controls.
• Croatia: A national registration system launching in June 2026 requires all listings on platforms like Airbnb and Booking.com to display a unique ID. Additionally, hosts in multi-unit buildings must now obtain written consent from two-thirds of co-owners to operate.
• Florence: Following a court victory validating its right to restrict rentals, the city expanded its STR ban from the UNESCO historic center to nine additional neighborhoods. This expansion affects over 100,000 homes in total.

Why It Matters

These developments signal a shift from general citywide caps to granular, neighborhood-specific enforcement. For property managers, this increases "precinct-level risk," where a business model can be invalidated by a single block’s vote or a building’s neighbor dispute. The Florence court ruling is particularly significant as it provides a legal blueprint for other European cities to prioritize "urban environment and social-housing goals" over private property rights.

Useful Signals

• The "Spillover" Data: Mayor Sara Funaro noted that permits in Florence’s peripheral areas like Pignoncino rose by 90% after the city center was frozen, prompting the wider ban.
• The Neighbor Veto: Croatia’s requirement for 2/3 owner consent creates a significant operational bottleneck for urban arbitrage models.
• Platform Enforcement: Croatia is mandate-tying visibility to registration; platforms are now legally obligated to delist non-compliant units.
• Geographic Risk: Chicago Ald. Anthony Napolitano has proposed making it easier for officials to enact precinct bans directly.

STR Tech Report Take

The trend toward "regulatory perimeters" is accelerating. When a city bans STRs in one zone, demand inevitably migrates to the border, triggering a secondary ban. Technology vendors should prioritize compliance tools that map regulations at the parcel or precinct level rather than just the municipal level. Furthermore, the Croatia model suggests that "neighbor sentiment" is becoming a formal regulatory metric, meaning property managers may soon need digital tools to manage and document co-owner approvals and community relations to maintain their licenses.

Original Source

Short-Term Rental Rules: Chicago, Croatia, Florence