Today I saw an article on latimes that they were discussing to regulate and possibly even ban it there.

Sometimes HOA's ban them.  

I do know there has been a lot issues with that recently and some cities have actually banned Airbnb rentals. 

When I had to cancel a lot of my reservations for my condo I sent them the letter that my HOA sent me banning short term rentals and they waived all of my cancellations for free.

@Catherine Brennan  Thank you I hope Airbnb is around for many years to come and not banned like NY!

You could implement new tenant rules that ban whatever behavior he is accused of doing, then serve him notice that he's broken the rules (following state law), if he doesn't correct, you move to evict.

I personally would have required her dog go into a kennel and would ban from my property if there had been a incident, let alone 2 incidents with reports, get the reports you still should be able to  from animal control and tell her NO MORE DOG !

It allows some regulation but no bans...

If they decide to ban rentals or force everyone to paint the houses lime green or jack up the HOA fees, you're out of luck. 

@Seth Ciminillo As already mentioned above, aside from the HOA restrictions, the City of Naples has also completely banned rentals for less than 30 days.