One reason would be that the housing market is bad enough without converting a bunch of housing stock into virtual hotels.
But more directly answering your question, what you're talking about is coming up with a good set of regulations for virtual hotels. That's hard. We often solve similar problems through zoning. E.g., we don't come up with a zillion little regulations on exactly what should be allowed in an industrial area versus a residential area. We just put compatible sorts of use together, and then mainly trust that people will work it out.
But more directly answering your question, what you're talking about is coming up with a good set of regulations for virtual hotels. That's hard. We often solve similar problems through zoning. E.g., we don't come up with a zillion little regulations on exactly what should be allowed in an industrial area versus a residential area. We just put compatible sorts of use together, and then mainly trust that people will work it out.