Short-term rentals: Three questions a city/county should answer to benefit from this market

Short-term rentals (STRs) are a phenomenon of today's "shared economy" - a world in which technology advancements have upended traditional business models. Since 2011, the number of STR properties listed on the top four websites (e.g., Airbnb, VRBO) has exploded from about 900,000 to 8 million, an increase of almost 800%. With dramatic increase in properties participating in short-term rentals, why aren't governments seeing an increase in revenue?