The main thing that is being handled is how to correctly handle/account for it - a long term rental and a house are basically identical from the purposes of what the government provides, both may have families with children going to school, need stores, etc.

But short-term rentals are basically identical with hotels which are commercial properties and have substantially different requirements - the people staying there will not frequent supermarkets, etc as much as they will restaurants, etc. They will not be sending their children to the local school, and so on.

Mixed use property can be (and should be!) encouraged, but it does have externalities that have to be handled and accounted for.