October 2025 Short-Term Rental & Real Estate Recap

Okay hosts, grab your coffee (or tea, or maybe some wine), pull up the laptop, and let’s chat about what’s happened, without the encyclopedia-length read.

TL;DR: This month the STR world didn’t hit pause: we saw major tax shifts in Italy, a full-scale crackdown in Monterey County, and major transparency laws in California. All in all: more regs, more data demands, and more reason to stay ahead of the curve.


Top Headlines

  • Italy plans to raise the tax rate for short-term rentals from 21% to 26%. (Reuters)
  • Monterey County (California) moves to cap commercial vacation rentals and permit only a small number of short-term stays. (californiacountynews.org)
  • Sydney City Council is considering cutting its STR annual cap from 180 days to 60 days in some areas. (dailytelegraph.com.au)
  • Noida (India) issues notices to 100+ homeowners in high-rise towers for unregistered B&Bs/STRs, enforcing new registration policy. (The Times of India)
  • French tourist cities like Nice and La Rochelle are introducing quotas and compensation systems to limit STRs in high-tourist zones. (Le Monde.fr)

Stories

1) Italy’s Tax Shift: The Italian government’s draft 2026-28 budget proposes ending the reduced 21% tax on STR income and applying a uniform 26% rate. Critics argue this will hurt middle-class hosts and encourage unregistered rentals. (Reuters)
Commentary: If you host in Italy (or own property there), this means recalculating your after-tax returns, and possibly making your listing more efficient or raising your rate.
 
2) Monterey County’s Permits & Caps: Monterey is capping commercial vacation rentals at 4% of housing stock and restricting un-hosted rentals to three times per year with a 30-day max stay each time. (californiacountynews.org)
Commentary: Coastal/holiday markets may face serious supply shrinking. Less supply could mean higher rates, and also higher compliance and legal risk.
 
3) Sydney’s Potential 60-Day Cap: With a 1.5% vacancy rate, Sydney’s council is moving hard: from 180 days down to possibly 60 in certain suburbs, plus technological enforcement discussions. (dailytelegraph.com.au)
Commentary: If you’re in a major city, expect caps or zoned restrictions rather than no rules at all. Being “compliant early” could protect your listing.
 
4) Noida’s Unregistered B&B Crackdown: In India’s NCR (National Capital Region), Noida has begun issuing notices to unregistered owners in high-rise towers operating STRs/B&Bs without NOCs, under the Sarai Act. (The Times of India)
Commentary: This shows how even developing markets are catching up. If you own globally or plan to expand internationally, registration and permit risk is real.
 
5) France’s Tourist District Quotas: In French cities like Nice and La Rochelle, STR proliferation has triggered population decline, housing loss, and shift in neighborhood character. Local governments are introducing quotas, compensation mechanisms, and condo-level bans (in non-primary residences). (Le Monde.fr)
Commentary: If your property is in a tourist-heavy zone, watch for condo votes, certificate purchases, or neighborhood bans that could change value or allowed use.


    What It All Means: Synthesis

    The global STR landscape is shifting from “wild west sharing economy” to regulated asset class. The headlines tell a consistent story: governments want data, want control, and want to protect housing/community integrity. For hosts, that means straightening out compliance, staying nimble with pricing, and potentially shifting your business model (longer stays, corporate travellers, non-tourist market) if you’re in a high-regulation zone. Supply may shrink in hot zones…good news for pricing…but risk and complexity are rising. Being “above board” is now a strategic advantage, not just a moral one.


    Predictions: What to Expect in the Coming Months (3–6 months)

    • More states and provinces will pass laws forcing platforms to share host data; expect wider rollout similar to California’s SB 346.
    • Tourist hubs and coastal/urban zones will favor caps and quotas (rather than full bans) but will pair them with strict enforcement tools (tech, big fines).
    • Hosts will increasingly pivot toward mid-term stays (30+ nights), corporate bookings, and direct booking channels as incremental risk hedges.
    • Platforms will ramp up compliance tools and maybe start new services for “compliant only” listings. These may become a premium tier.
    • Markets with less tourism pressure may become growth zones for STR investment as hosts re-evaluate high-regulation hotspots.

    Quick Takeaways for Hosts (Action List)

    • Audit your listing: check registration status, nights cap, host-occupied rules and submit if needed.
    • Recalculate your rate and profitability factoring in higher tax, permit, or compliance costs.
    • Diversify your offering: add mid-term stays, business traveller amenities, or longer-stay pricing.
    • Document everything: receipts, registration numbers, platform correspondence; this makes you audit-ready.
    • Stay informed: sign up for your local council’s STR-update list, track platform rule changes, and build a “what’s changing list” each month.
    • Communicate with guests: clear listing disclosures can reduce disputes and negative reviews if rules tighten or amenities change.

    And that’s a wrap on October’s wild ride through the world of short-term rentals and real estate. From tax hikes to caps and crackdowns, it’s clear that the industry is maturing – and fast. Whether you’re hosting out of a cozy cabin or managing a small portfolio of listings, staying informed is half the battle (and maybe half the fun, too).

    Keep your eye out for next month’s recap, where we’ll see how these new regulations start to shake out, and which markets are quietly emerging as 2026’s unexpected hot spots. Until then, keep your permits current, your guests happy, and your coffee strong!

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