CDC Guidance, Hawaii STR Enforcement, and Industry Growth

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This week’s roundup covers new CDC guidance for vacation rental operators, a Hawaii bill aimed at strengthening STR enforcement, Airbnb’s push to expand its travel ecosystem, a new investment in Breezeway, and a court ruling upholding Folly Beach’s short-term rental cap. Let’s dive in.

The Centers for Disease Control and Prevention (CDC) issued new guidance this week warning that poorly maintained water systems in vacation rentals can increase the risk of Legionella bacteria, which causes Legionnaires’ disease, a severe form of pneumonia. The bacteria can grow in warm, stagnant water found in hot tubs, showerheads, faucets, and water heaters, especially in properties that sit vacant between stays. The CDC advises short-term rental operators to maintain hot water systems at 120°F (49°C) or higher, flush water heaters regularly, and properly maintain hot tubs through regular cleaning, disinfectants, and balanced pH levels. According to CDC data, roughly half of the patients who stayed in a vacation rental also reported using a hot tub during their stay.

The Hawaii House Committee on Tourism advanced legislation this week that would give counties stronger tools to enforce short-term rental regulations. House Bill 1590, if signed into law, would allow counties to use time-stamped screenshots of online listings as evidence when investigating unlawful short-term rental activity and clarifies that counties can use revenue from the County Transient Accommodations Tax to support enforcement. The bill would also require booking platforms that collect service fees for short-term rentals to register with the State Department of Taxation and remit lodging-related taxes on behalf of operators. The proposal is yet another piece of legislation aimed at supporting the enforcement of Bill 9, which was passed at the end of 2025 and will phase out thousands of vacation rentals in apartment-zoned districts in Maui over the next five years.

Skift published an interesting article this week looking at Airbnb’s growing push to become a “one-stop shop” for travel. According to Skift, Airbnb co-founder and Chief Strategy Officer Nathan Blecharczyk said at a recent travel conference that the company is “once again thinking about being the one-stop shop for travel,” including homes, experiences, services, and “airport pickup.” Skift also reports that Airbnb has been testing airport pickup and scheduled private car transfers in several regions outside North America as of February. While no official announcement has been made, comments from the company suggest that ground transportation could be the next addition to Airbnb’s rapidly expanding platform.

Short Term Rentalz reported this week that Breezeway, a property care and messaging platform for vacation rental operators and an integration partner with OwnerRez, has secured a strategic growth investment led by Resurgens Technology Partners. Founder and CEO Jeremy Gall said the funding will help the company continue expanding its platform while investing further in AI-driven tools. The investment is also expected to support Breezeway’s broader plans for international growth.

After a drawn-out legal battle, a South Carolina appeals court has upheld Folly Beach’s limit on short-term rental licenses adopted by the city in 2023. The ordinance caps the number of short-term rental permits on the island at 800. In its ruling, the court determined that the policy regulates business licenses rather than zoning, a distinction that was central to the legal challenge. City officials say the cap is intended to preserve the island’s residential character while continuing to support tourism.

As new health guidances, evolving regulations, and emerging technology shape the market, the vacation rental landscape continues to evolve. Check back next week for the latest news.