Short-term rentals licensing process might reopen as appeals court rules injunction too broad

The 9th U.S. Circuit Court of Appeals said a court-imposed pause on some Clark County short-term rental rules has effectively eliminated all regulations for nearly a year. While entering an injunction was proper, the appeals court found its terms unnecessarily broad, authorizing anyone in the county to operate unlicensed short-term rentals, including nonparties and those who never applied for a license.

The federal court ordered a Nevada judge to narrow the injunction to help Clark County 'stand up a functioning license regime,' which has been closed for much longer than the injunction has been in place. The appeals court noted that plaintiffs, including the Greater Las Vegas Short-Term Rental Association and Airbnb, are likely to succeed on the merits of their procedural due process claim, having shown the county interfered with a protected property interest without providing constitutionally sufficient procedures.

Clark County and the association view the ruling favorably, with the association calling it a victory. The county said narrowing the injunction will allow it to enforce laws against short-term rentals that disrupt communities and harm quality of life. The county commission was slated to consider an amendment to its short-term rental ordinance, with an agenda item to be discussed as early as Oct. 20.

The appeals court suggested reinstituting a licensing process in exchange for a narrower injunction, stating that an appropriate injunction must provide plaintiffs with a meaningful opportunity to apply for a license and have applications processed in a reasonable time, such as by reopening the application portal and specifying a processing time.

Sources: Las Vegas Review-Journal