The common definition of a vacation rental is the renting out of a furnished apartment/studio with a separate exterior entrance or an entire house on a temporary basis to tourists as an alternative to a hotel.
The common definition of a B&B lodge or hotel is s a small lodging establishment with an on-site host/manager that offers overnight bedroom accommodations that are entered from an interior entrances. Guests breakfast is provided and served in a communal dinning room. Typically, bed and breakfasts lodges are private homes with fewer than 10 bedrooms available for commercial use.
Neighbors who are living in a residential-zoned neighborhood expect the neighboring properties to be permanent residences, not lodging accommodation businesses. Residents either bought or rented their home under that legal premise and to take away that right without due-process is wrong.