I always make sure that my STRs would work as decent cash flow LTRs to cover the worst case regulatory scenario.  

I negotiated the financing, secured the permitting, worked through the regulatory process to get the conditional use permit, GC'd some repairs, and operate the company that is the tenant that pays the debt service, taxes, and maintenance.

A primary driver is uniformity of community, the next in most cases is connected with our development funding and approval at a regulatory level. next is market factors, for example a certain area that HOA's are the norm or the expected for a certain price point.

Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return.

I think the OP meant 'regulatory taking' where the Govt does not take the property as in eminent domain, but restricts it's use, violating property rights.

When you buy a property in Seattle, you also buy the regulatory environment.

IRAC (the regulatory board) sets the allowable annual increases, which typically range from 1-3%.

It all ended when I turned the old PM into Colorado’s Dept of regulatory agency’s.

There is not a shortage of pet friendly rentals in New Hampshire--a solution to a non-problem--simply to over-regulate.https://www.zillow.com/nh/pet-friendly/You'd think they would be altering laws to make New Hampshire MORE business friendly (like Texas does) to increase jobs and increase peoples income vs. making it more regulatory with ridiculous solutions to non-problems.The proponents of this (You get what you vote for--elections matter!)

So there are always regulatory concerns for running an Airbnb in Philly.