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Short Term Rental Zoning May Be Strictly Regulated or Not

pastel short-term rental cottages

When it comes to short term rental zoning, communities have to decide on a policy that fits their history and ideals. This issue arises where tourists or a transient population are interested in temporary rentals of single-family residences, without the owner being on the premises.

With the rise of the sharing economy, online businesses such as Airbnb have made renting out a room or two an easy option for homeowners in areas not considered especially touristy. So this problem is increasing in frequency and potential for controversy.

Often the question is handled through the zoning ordinance, but sometimes a stand-alone ordinance may be enacted governing the conditions under which such a land use is permitted.

Often the short term rental zoning provisions define short term as less than 30 days. The same concept may be called transient rentals, or short term transient rentals. A few examples of a seasonal zoning regulation have been found as well, in which different regulations apply if the rental is for more than 30 days but less than 180 or so.

If the zoning ordinance is where short term rentals are regulated, the ordinance of course will spell out which zoning districts allow such a use. Sometimes ordinances require a special use permit, which usually leads to a level of public hearings and action by the governing body equivalent to the process required for a rezoning.

With the advent of the sharing economy, rentals of entire homes, apartments, or just rooms through online services, such as Airbnb, the question has become newly relevant for many towns and cities that have never been seen a demand for short term rentals before now.  This applies to areas that are near tourist attractions in large cities, but which have never thought of themselves as tourist destinations until now.  What we have to say on this page applies to these sharing services as well.

Standards for Short Term Rental Zoning

In any event, the zoning ordinance is likely to set forth standards for short term rental zoning. Topics regulated might include:

  • Posting or availability at the town hall of one or even two local contact persons who will be responsible for handling any problems that arise with the property. We think this is the most important regulation, and one that should be strictly enforced.
  • Requirements for providing off-street parking.  Unless the unit in question is very well served by public transportation, this is a must. Typically the requirement could be met by extra driveway space, but if even homeowners park on the street, be quite careful to include a sufficient regulation.
  • Noise and nuisance provisions, or reference to other ordinances addressing such situations.
  • Requirements that garbage collection be maintained, and limiting the hours before and after collection when the garbage receptacles can be in front of the home.
  • Minimal required spacing between short term rentals. A particular interval of feet may be used to assure that an entire block does not turn into a short term rental district.
  • Reinforcement of the normal occupancy limits (number of persons who may live in the home) for a particular zoning district as applying also to short term rental tenants.
  • Proof of code compliance, fire safety measures, adequate water and sewer service, or other utilities or infrastructure that may be of particular concern.
  • Requirements for notifying neighbors, or even for their agreement.
  • Limitations on the turnover. Renting to six different tenants within a month probably won't be allowed in many places. There may be a minimum stay, perhaps of a week.
  • Limitations on particular areas of the town or city where short term rental either is not allowed at all or is not restricted. Such statements within a zoning ordinance would amount to establishing an overlay district pertaining just to the subject of transient rentals.
  • Imposition of a special use permit or conditional use permit requirement, allowing for scrutiny of the particular facts of a site before allowing such a use.

If the rental of homes for a short time is not covered in the zoning ordinance, or the town or city does not have a zoning ordinance, a separate law sometimes is enacted. Probably it would deal with the same types of limitations and requirements described above, as considered appropriate and necessary by the local government.

If your town is targeting regulations toward Airbnb and its competitors, you may want to discuss a requirement that the building is owner-occupied. This prevents the situation of an off-premises owner who may be conscientious but not aware of tiny problems that might arise each night. Yet it also allows homeowners with plenty of space and parking capability to be able to earn some extra income in a manner relatively harmless to the neighborhood.

Trends in Brief Rentals

In the case of both short term rental zoning and free-standing transient rental regulations, many communities that are aware of the connections between tourism and economic development have a tendency to begin with minimal regulation and to add requirements on the basis of particular problems that arise. If the town becomes divided over the issue, however, of course the regulations are likely to be more strict and more creative.

Still other towns choose to ignore the issue that some residents or property owners rent out homes for a very short term, considering this practice to be the prerogative of the property owner.

We see the opposite tendency in towns that do not consider themselves to be tourism oriented.  Often they are very suspicious of allowing people to rent out rooms in their residence for a few days, thinking that it undermines the sanctity of single-family residential neighborhoods.  They have a good point actually. 

We advise you to think this through before it becomes a big issue though--there may be some zoning districts and even some particular lot configurations where any potential disruption would be minimal, but where the economic benefits to property owners could be real.

Particularly in an unattractive real estate market, allowing short term rental zoning is probably not a bad idea, as long as the percentage of the housing stock devoted to this use is small. Our advice would be to require a stay of at least three days but preferably five to seven.

Otherwise, you have an absentee bed and breakfast situation. While some bed and breakfast apartments run themselves, it's best to require a meaningful stay if there is no on-premise owner or manager. This allows the neighbors to monitor the situation better. If new people can come in every night, neighbors will tend to shrug their shoulders about anything strange they see.

Hmm, I wonder if there's still time to rent a cottage by a lake for a week?

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