Navigating Legal and Pricing Compliance in Short-Term Rental Technology: What Recent Settlements Mean for Operators

The world of short-term rental (STR) technology is undergoing significant change. With government regulators ramping up scrutiny of pricing algorithms, data-sharing practices, and local STR rules, operators face a new wave of legal and compliance challenges. For those of us building, scaling, or managing vacation rental businesses, the implications of these legal shifts are impossible to ignore. We must adapt not just to stay compliant but to build sustainable, guest-friendly operations that can weather the ongoing regulatory storm.

The Legal Landscape: Why the Rules Are Changing Fast

Until recently, many STR operators relied on sophisticated pricing technology, some of it powered by shared market data and algorithms. These tools promised optimal rents, real-time revenue maximization, and a data-driven edge. But in 2025, a landmark settlement involving Greystar (America’s largest landlord) and US Department of Justice (DOJ) upended this status quo. The settlement barred Greystar from using certain price-setting software that pooled sensitive data from direct competitors. This is just the beginning: the DOJ and local governments have made clear they are looking at the intersection of pricing, data privacy, competition, and guest protections.

Key Lessons from the Greystar Settlement

• Algorithmic Price-Fixing Is Under the Microscope: Even in the absence of intentional collusion, shared algorithmic pricing tools that ingest competitor data can attract antitrust scrutiny.
• Regulators Want Transparency and Independence: The DOJ emphasized the need for transparent, independent pricing strategies—not ones dictated by software aggregating sensitive information from rivals.
• Expect More Local and Federal Actions: More cities and states are exploring restrictions on dynamic or AI-driven pricing engines, especially if they blur the lines on fair competition.

What’s at Stake for Short-Term Rental Operators?

For property managers and hosts, compliance risk now extends far beyond permitting or neighborhood nuisance rules. We must actively evaluate how our tech stack—everything from property management systems (PMS) to pricing engines and booking platforms—handles guest data, interfaces with local laws, and especially how it treats pricing logic.

• Painful Fines & Litigation: In cities like Los Angeles, offenders can face steep fines (up to $150,000 in civil penalties) for illegal rentals or improper use of pricing/data-sharing tech.
• Reputational Risk: A single compliance issue can jeopardize your brand’s trust with guests and owners.
• Uncertain Technology Roadmap: Tech partners who lag behind regulatory trends can leave you out-of-date, risking unintentional violations. Flexibility and independence are more valuable than ever.

Understanding Core Compliance Risks in 2025

1. Pricing Algorithms and Data Sharing

If your pricing software relies on competitor data, you could be at risk—even if the tool is widely adopted in the industry. The DOJ is sending a clear message: price coordination, even through AI, will be challenged. The ideal is to maintain full control of your rates, transparent audit trails for price changes, and zero shared sensitive data from competitors.

2. Local Law Compliance

Registration, permitting, and local tax rules for STRs are in flux in cities across the US and globally. New ordinances can appear with little warning, and they’re being enforced aggressively. It is vital to:

• Register each property if required by your local government.
• Monitor city council agendas for zoning changes, rental bans, or caps.
• Remit all required transient occupancy, sales, and hotel taxes in every jurisdiction where you operate.

3. Fair Housing, Anti-Discrimination, and Arbitration

Advertising or guest screening policies must always abide by the Fair Housing Act. Any hint of bias or opaque selection can lead to lawsuits or class action claims. In addition, if you rely on arbitration clauses in your rental agreements, ensure that guests meaningfully accept them and that they’re enforceable in your location.

4. Guest Safety and Listing Accuracy

Operators bear responsibility for property safety, accurate listings, and accessible accommodations. Lawsuits can arise from misleading photos, unlisted hazards, or lack of ADA compliance.

Proactive Steps: Protecting Your Business for the Long Haul

Here are the most important actions we recommend to ensure your operations are not only legal, but built to thrive as regulations evolve:

1. Audit Your Pricing Technology
   • Identify all tools that impact your nightly rates—from PMS integrations to pricing engines.
   • Ask vendors if their solutions use any competitor price sources or aggregate market data that is not anonymized or sufficiently broad.
   • Document how your rates are set and keep change logs for compliance reviews.
2. Separate Operations from Third-Party Influences
   • Build independence from platforms or software partners that lock you into non-transparent or risky pricing structures.
   • Where possible, prioritize direct booking solutions that sync with your PMS but don’t require sharing or ingesting competitor data. This keeps you firmly in control.
3. Stay On Top of Local Requirements
   • Dedicate a team member or set monthly reminders to review local STR policy updates.
   • Evaluate property eligibility, insurance requirements, and local guest restrictions regularly.
   • If you operate in high-regulation markets, join local associations to stay informed and advocate for fair rules.
4. Invest in Transparent Systems & Training
   • Choose tools with detailed reporting, custom audit trails, and flexible pricing display controls. These are your best insurance for a compliance audit.
   • Train your whole team—maintenance, guest communication, marketing—on core compliance standards. Keep up-to-date documentation.
5. Plan for Scalability Without Compliance Headaches
   • Consider if your technology can handle new jurisdictions and brands without complicated workarounds. The more markets you operate in, the more critical this flexibility becomes.

How We Approach Compliance Technology at Homerunner

We firmly believe effective compliance is not a burden—it’s a competitive strength. When you can prove to guests, owners, and local authorities that your operation is ethical, transparent, and well-structured, you set yourself apart in a crowded market.

• Seamless, Transparent PMS Integration: Our booking engine connects directly to your existing PMS, ensuring real-time sync of property data, availability, and pricing—without pooling competitor data.
• Advanced Control Over Pricing and Display: You can customize exactly how rates, collections, and fees are shown, empowering you to be fully transparent and aligned with both guest needs and regulatory obligations.
• Robust Reporting & Audit Support: From custom reporting to real-time performance dashboards, you always have the data you need to demonstrate compliance and optimize revenue.
• Built for Scale and Agility: Whether managing a handful or hundreds of listings, Homerunner gives you the independence to grow without changing your workflow each time a regulation shifts. For more on creating effective multi-property sites, see this deep dive.

The Bottom Line: Future-Proofing Your STR Business

Legal and pricing compliance in the STR industry isn’t a one-and-done checkbox. It’s an ongoing journey that requires vigilance, agility, and the right technology partners. As operators, we must:

• Constantly monitor the evolving landscape—locally and federally
• Empower our teams with training and documented processes
• Utilize booking technology that gives us independence, flexibility, and transparent control
• Document, audit, and report—making compliance a routine, not a scramble

By embracing these principles, we position ourselves for growth, stability, and trust—even as the STR legal environment undergoes its most significant changes in years.

Recommended Next Steps and Resources

• Explore how real-time analytics can help your compliance and revenue strategies
• Learn about dynamic pricing best practices that align with today’s regulatory standards
• See our complete guide to secure online payments for STR websites.

As always, if you want to see how streamlined, compliant booking tech can empower your STR business, we invite you to explore Homerunner—designed for operators who want full control and peace of mind in a changing industry.