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How to Use Zoning Laws to Kill Your Competition

Okay, back to business.

Strict regulation isn't always bad news. In the right market, it's a moat: A barrier that keeps new competition out, while protecting the operators already inside it.

Before you write your next offer, check 2 things:

1. Is a new ordinance pending in that market?
2. Does it protect existing licenses, or open the door to more of them?

That single check tells you whether you're buying into an advantage or walking in right before the doors close.

A Real Moat, In Practice

Arapahoe County, Colorado shows what a real moat looks like. New rules ban any STR within 500 feet of an existing licensed one and require new licenses to be the applicant's primary residence, closing the county to new non-resident investors while protecting everyone already licensed.

This information is public. Most hosts just don't know where to look. Start at library.municode.com, a free database of current municipal codes for hundreds of US cities, search your target city to see what's already on the books. For pending changes specifically, that part isn't centralized anywhere, so the actual actionable step is calling the city's planning department directly, or searching '[city name] planning commission agenda' as a web search to find their meeting schedule and sign up for notifications. Santa Barbara is a live example right now, its draft STR zoning amendments cleared the Planning Commission in March and head to City Council soon.  

Watch for the reverse too. Idaho and Indiana stripped out permit requirements and owner-occupancy mandates entirely this year, covered in our must-read Q2 STR regulation roundup. If your own market is moving that direction, your edge over new competitors is shrinking.

Read our guide on finding STR zoning rules before you buy →

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