A New STR Law Cut Our Max Occupancy by 40% (Freewyld Update)

Kaye Putnam: Welcome back to another episode of Get Paid For Your Pad. I’m Kaye Putnam, Head of Marketing at Freewyld and Freewyld Foundry. I’m joined today by Eric Moeller, CEO of both companies.

Eric Moeller: Hey, Kaye. This one’s a big one. Riverside County just passed new STR regulations, and our guest capacity at Freewyld dropped from 17 people to 10 overnight. It hit hard, but we’re turning it into a catalyst for growth.

**Kaye:**That’s such a massive change. When you first got the notice, what was your initial reaction?

**Eric:**Honestly, frustration. We’d built everything, design, pricing, operations, around that 17-guest capacity. Suddenly, it was gone. But after the initial shock, I realized this wasn’t a problem to fight, it was a challenge to evolve around.

**Kaye:**I love that perspective. You’ve always said regulation can be a sign that an area’s becoming desirable. How did you start reframing it?

**Eric:**Exactly. When regulation arrives, it means demand is strong enough that local governments need to control it. That’s validation. Our focus shifted from “how do we fight this” to “how do we build smarter inside the new rules.”

**Kaye:**What were the first steps you took?

**Eric:**We started by meeting with our architect and county officials to understand the ordinance in detail. Then we explored converting Freewyld Idyllwild from a short-term rental property into a fully zoned hospitality asset. Essentially, moving from STR status toward a boutique hotel license.

**Kaye:**So instead of seeing the limit as a wall, you’re treating it like a doorway.

**Eric:**Exactly. It’s about adaptability. Instead of shrinking, we’re repositioning. Regulation forces innovation. It made us think bigger, about how we can scale Freewyld as a brand, not just a collection of cabins.

**Kaye:**There’s something powerful about turning a government limitation into a brand expansion strategy.

**Eric:**Totally. We also realized that most operators panic in these moments. They start cutting rates or hiding listings. But professional operators pivot. We’ve seen this pattern in other markets, Sedona, Tahoe, even parts of Texas. Those who adapt early end up stronger.

**Kaye:**What does this shift mean for the Freewyld guest experience?

**Eric:**It pushes us to go deeper into hospitality. Fewer guests mean more personalization. We’re elevating everything, from amenities to design flow. We want each stay to feel curated and intimate. That’s where Freewyld 2.0 begins.

**Kaye:**I know you’ve been talking about rezoning and even expanding into hotel licensing. How does that play into the long-term vision?

**Eric:**This is the next frontier for us. We want to own the land, operate the brand, and control the entire guest experience. Hotels give us that flexibility. STRs are great, but with a hospitality license, you unlock an entirely new business model, retreats, brand partnerships, corporate events. It’s scalable and sustainable.

**Kaye:**That’s such a shift in mindset, from frustration to freedom.

**Eric:**Exactly. It’s not about fighting regulation; it’s about building within it. This experience forced us to mature as a company. We’re no longer just short-term rental hosts, we’re hospitality builders.

**Kaye:**For listeners facing new rules in their own markets, what would you tell them?

**Eric:**Don’t react emotionally. Sit down with your architect, planner, or legal advisor and understand your options. Sometimes the path forward isn’t fighting City Hall, it’s evolving your model. Use regulation as a mirror to refine your business.

**Kaye:**That’s such a grounded takeaway.

**Eric:**Yeah, and to be honest, I’m grateful. Without this regulation, we might’ve stayed comfortable. Now, we’re innovating again, new systems, new designs, and a clearer vision for what Freewyld can become.

**Kaye:**If someone listening wants to stay ahead of regulation or needs help recalibrating their pricing and operations, what’s the next step?

**Eric:**Go to freewyldfoundry.com. We offer free audits for operators managing 15 or more listings. Whether it’s revenue management, pricing, or strategy, we can help you stay profitable through any regulation.

**Kaye:**Perfect. Eric, thanks for sharing this story. I think it’s a great example of leadership under pressure.

**Eric:**Thanks, Kaye. I appreciate it. And to anyone listening, if your market just dropped new rules, don’t panic. Build better. That’s where the opportunity lives.

**Kaye:**We’ll see you next week.