Ellsworth Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Ellsworth

Ellsworth, Maine, has seen a significant uptick in short-term rentals like Airbnb and VRBO in recent years. In fact, AirDNA ranked Ellsworth as the 2nd best place to own an Airbnb in the U.S. However, this has sparked conversations about the impact on the community and potential regulations.

Currently, there are no specific regulations on short-term rentals in Ellsworth. City planner Matthew Williams said the city began a housing study last fall to determine the total number of short-term rentals, understand their effects on housing availability, and decide if any regulations are needed.

The city is considering restricting short-term rentals to certain zones, as having too many in residential neighborhoods "takes away from what is supposed to be a community of families." Concerns include disruption to quiet neighborhoods, noise, traffic, and parking issues from visitors.

With Maine facing a housing shortage, the city will analyze if short-term rentals are taking up housing that could be used by permanent residents. However, some property managers argue location doesn't always determine if a home should be a short-term rental.

Maine state law requires vacation rental owners to register their property annually with the Maine Center for Disease Control and Prevention for a fee of up to $50. Owners must also post certain information for guests.

The Ellsworth Code Enforcement Office ensures compliance with codes on construction, land use, and property maintenance. Permits may be required for building, electrical, plumbing, land use changes, and more. Permit fees are listed in the city's Permit Fee Schedule.

In summary, while Ellsworth does not currently have specific short-term rental regulations, the city is studying the issue and may implement zoning restrictions in the future. State law requires registration and guest notices. Prospective short-term rental operators should check with the Code Enforcement Office on permits and follow the city's ongoing discussions on potential regulations.

Short-Term Rental Licensing Requirement in Ellsworth

Currently, Ellsworth does not have any specific licensing requirements for short-term rentals like Airbnb and VRBO. Property owners can operate vacation rentals without obtaining a special permit from the city.

However, Ellsworth is conducting a housing study to assess the impact of short-term rentals on the community. City planner Matthew Williams said the study, which began in fall 2022, aims to determine the total number of short-term rentals, understand their effects on housing availability, and decide if any regulations are needed.

The city is considering potentially restricting short-term rentals to certain zones in the future. There are concerns that having too many vacation rentals in residential neighborhoods could disrupt the character of family-oriented communities. Issues like noise, traffic, and parking from visitors are prompting discussions about regulation.

While Ellsworth evaluates if municipal short-term rental regulations are necessary, vacation rental operators still need to follow state requirements. Maine law mandates that short-term rental owners register their property annually with the Maine Center for Disease Control and Prevention and pay a fee of up to $50. Owners are also required to post certain information for guests.

Additionally, the Ellsworth Code Enforcement Office is responsible for ensuring properties comply with relevant codes related to construction, land use, and property maintenance. Depending on the scope of work, permits may be needed for building, electrical, plumbing, land use changes, and other activities, with fees outlined in the city's Permit Fee Schedule.

So, while a specific short-term rental license is not currently required in Ellsworth, hosts still have obligations to meet state regulations and work with the local Code Enforcement Office. The city's ongoing housing study and policy discussions will determine if municipal licensing and additional rules are implemented for vacation rentals in the future. Short-term rental operators should monitor these developments to ensure they remain in compliance with any new ordinances.

Required Documents for Ellsworth Short-Term Rentals

While Ellsworth does not currently have a specific short-term rental permit or license, there are still important documents that hosts need to obtain and display to operate legally.

First, all short-term rental owners in Maine must register their property annually with the Maine Center for Disease Control and Prevention. This registration comes with a fee of up to $50 and helps ensure that rentals meet health and safety standards.

In addition to state registration, short-term rental operators in Ellsworth need to work with the local Code Enforcement Office to ensure their property is up to code. Depending on the scope of work, hosts may need to obtain permits for building, electrical, plumbing, land use changes, and other activities. Ellsworth's Permit Fee Schedule outlines the specific permits required and their associated fees.

Another crucial document for Ellsworth short-term rentals is adequate insurance coverage. Hosts should consult with their insurance provider to ensure they have the appropriate liability coverage and property protection for their rental business. Some insurers offer specific vacation rental policies.

While not a legal requirement, creating a detailed rental agreement is also advisable. This document should outline the terms and conditions of the rental, including check-in/check-out times, occupancy limits, house rules, and cancellation policies. Having guests sign the rental agreement can help protect hosts in case of disputes.

Lastly, Maine law mandates that short-term rental owners post certain information for guests. This includes emergency contact numbers, fire safety information, and any specific rules or instructions for the property. Displaying this information prominently helps ensure guest safety and compliance with local regulations.

In summary, while Ellsworth does not have a short-term rental-specific permit at this time, hosts still need to register with the state CDC, obtain relevant local permits, secure proper insurance, and post required guest information. Keeping these documents up-to-date and easily accessible is essential for running a compliant and successful vacation rental business in Ellsworth.

Ellsworth Short-Term Rental Taxes

In Ellsworth, Maine, short-term rental operators are subject to state sales tax on their rental income. The Maine state sales tax rate for short-term rentals is 9% of the listing price, including any cleaning fees and guest fees.

Maine law requires all short-term rental hosts to register with Maine Revenue Services and obtain a Retailer's Certificate. This registration is necessary to collect and remit the required sales tax. Hosts can register online through the Maine Revenue Services website.

It's important to note that the tax requirements apply to all short-term rentals in Ellsworth, regardless of the platform used to list the property. This includes rentals through Airbnb, VRBO, HomeAway, and other vacation rental websites and rentals arranged independently.

Airbnb collects and remits 9% of Maine state sales tax on behalf of hosts for bookings made through their platform. However, hosts are still responsible for registering with the state and are encouraged to review their Airbnb account settings to ensure the tax is being properly collected and remitted.

For short-term rentals not booked through Airbnb, hosts are solely responsible for collecting the 9% sales tax from guests and remitting it to Maine Revenue Services. Taxes should be filed and paid online, typically monthly or quarterly, depending on the host's filing frequency assigned by the state.

Failure to comply with Maine's short-term rental tax laws can result in penalties and interest charges. Hosts should maintain detailed records of their rental income and taxes collected in case of an audit by Maine Revenue Services.

In summary, Ellsworth short-term rental operators must register with the state, collect a 9% sales tax from guests, and remit the taxes to Maine Revenue Services. While Airbnb collects and remits taxes for bookings made through their site, hosts are ultimately responsible for ensuring compliance with state tax laws for all their short-term rental income.

Maine Wide Short-Term Rental Rules

At the state level, Maine requires all short-term rental owners and operators to register with the Maine Revenue Services and collect and remit a 9% Maine Lodging Tax on the rental price, including any cleaning fees or other charges. This tax applies to all short-term rentals, regardless of the platform used to list the property or whether the rental is owner-occupied.

Short-term rental hosts must obtain a Retailer's Certificate from Maine Revenue Services to comply with state tax laws. Hosts are responsible for registering, collecting the 9% lodging tax from guests, and remitting the taxes to the state, typically monthly or quarterly. Detailed records of rental income and taxes collected should be maintained in case of an audit.

While Airbnb collects and remits the 9% lodging tax on behalf of hosts for bookings made through their platform, hosts are still required to register with the state. For reservations made outside of Airbnb, the host is solely responsible for tax compliance.

Failure to register, collect, and remit taxes can result in penalties and interest charges from Maine Revenue Services. It's crucial for short-term rental operators to understand and comply with these state-level tax obligations.

Beyond taxes, Maine has no statewide laws or regulations specific to short-term rentals. There have been several attempts to pass statewide legislation, such as bills proposed in 2015 to require licensing and in 2021 to prohibit investor-owned short-term rentals, but none have been successful.

The lack of comprehensive state-level laws means that the regulation of short-term rentals largely falls to municipal governments. As a result, there is a patchwork of different rules across Maine, with each town or city taking its own approach based on local needs and concerns.

Some municipalities like Portland, Bar Harbor, and Rockland have implemented more stringent regulations, such as registration requirements, building and occupancy limits, minimum stays, and safety inspections. Other towns have taken a more hands-off approach or are still in the process of evaluating if local rules are needed.

This regulatory variation makes it essential for short-term rental hosts to carefully research and understand the specific ordinances in their town, in addition to complying with state tax obligations. Consulting with local officials and keeping up to date with any new proposals or changes to short-term rental policies is crucial for operating legally and successfully in Maine.

Does Ellsworth Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, Ellsworth appears to be relatively Airbnb-friendly compared to other cities in Maine. While Ellsworth has implemented some short-term rentals regulations, enforcement seems less strict than in nearby destinations like Bar Harbor.

Despite the rules, several hosts on these forums report successfully operating short-term rentals in Ellsworth. One host mentioned that they have been running an Airbnb in Ellsworth for several years without any issues from the city. They noted that as long as you are respectful of neighbors and don't generate complaints, the city tends to take a hands-off approach.

Another host compared their experience in Ellsworth to operating in Bar Harbor, which has much stricter regulations and enforcement. They found Ellsworth to be more welcoming to short-term rentals overall, with fewer hoops to jump through in terms of permitting and compliance.

However, it's important to note that Ellsworth is not a regulation-free zone for short-term rentals. The city did pass a temporary ordinance in April 2020 limiting most short-term rentals through the end of that month due to the COVID-19 pandemic. This shows that the city is willing to crack down on the industry when deemed necessary.

Additionally, Ellsworth's city planner has expressed concerns about short-term rentals taking up housing stock that could otherwise be used for year-round residents. The city recently implemented a rule preventing new accessory dwelling units from being used as short-term rentals for the first 10 years. This suggests a potential appetite for more regulation in the future.

But for now, the consensus among hosts seems to be that Ellsworth is a relatively easy place to operate a short-term rental compared to other Maine destinations. Enforcement appears to be complaint-based rather than proactive, and the city has not gone as far as some other towns in terms of strict permits, licenses, and operational rules.

Of course, all hosts should carefully review Ellsworth's specific short-term rental ordinances and make efforts to comply. Flying completely under the radar is not advisable. However, based on the experiences shared by hosts on real estate forums, Ellsworth seems to provide a friendlier environment for vacation rentals than many other cities in the region. The key is to be a responsible operator and avoid generating the types of complaints that would invite stricter enforcement from the city.

How to Start a Short-Term Rental Business in Ellsworth

If you're considering starting a short-term rental business in Ellsworth, Maine, here are the key steps to follow:

• Research local regulations: While Ellsworth is relatively friendly to short-term rentals compared to other Maine cities, it's crucial to understand and comply with specific ordinances. Review the city's zoning laws and building codes, and contact the planning department with any questions.
• Register with the state: All short-term rental operators in Maine must register with the state's Department of Health and Human Services. This involves a simple online process and a fee of around $100. You'll need to renew your registration annually.
• Obtain necessary permits: Depending on your property and any renovations needed, you may have to obtain permits from the city of Ellsworth. This could include building permits, electrical permits, or plumbing permits. Check with the code enforcement office for requirements.
• Prepare your property: Make any necessary repairs and upgrades to ensure your rental is safe, comfortable, and attractive to guests. Consider hiring a professional photographer to take high-quality listing photos.
• Choose a rental platform: Decide which vacation rental site/s you want to list your property on, such as Airbnb, VRBO, or HomeAway. Create an account and set up your listing with detailed descriptions, amenities, and photos.
• Set your pricing: Research comparable rentals in Ellsworth to determine competitive nightly rates. Consider factors like seasonality, events, and demand when setting prices.
• Establish policies: Create a clear rental agreement outlining your house rules, cancellation policy, check-in/check-out procedures, and guest expectations. Decide whether you'll allow pets, smoking, events, etc.
• Arrange cleaning and maintenance: Determine how you'll handle cleaning between guests by doing it yourself or hiring a professional service. Have a plan for regular maintenance and respond to any issues during stays.
• Comply with tax requirements: Short-term rentals in Maine are subject to state lodging taxes of 9%. You'll need to collect these taxes from guests and remit them to the state. If you use a platform like Airbnb, they may collect and remit taxes on your behalf, but you're still responsible for proper compliance.
• Promote your listing: In addition to the exposure you'll get from listing sites, consider promoting your rental through social media, local tourism groups, and your own website. Encourage satisfied guests to leave reviews to build your reputation.
• Provide great guest experiences: Respond promptly to inquiries and booking requests. Offer helpful local recommendations and ensure your property is clean and well-maintained for each guest. Consider small touches like a welcome basket or note to make guests feel at home.
• Monitor your business: Keep detailed records of your income and expenses for tax purposes. Regularly review your pricing and occupancy rates to optimize your earnings. Stay up to date on any changes to local regulations or tax requirements.

By following these steps and being a responsible operator, you can launch and grow a successful short-term rental business in Ellsworth. While the city may not be as tightly regulated as some other areas, it's still important to do your due diligence and comply with all applicable rules to ensure a smooth and profitable venture.

Who to Contact in Ellsworth about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations, zoning, or permitting in Ellsworth, you can contact several city departments and officials for guidance.

First, the Ellsworth Code Enforcement Office administers and enforces the city's land use regulations, including zoning ordinances and building codes. They can help you determine if your property is eligible for use as a short-term rental and what permits may be required. You can reach the Code Enforcement Office at:

Ellsworth Code Enforcement Office
1 City Hall Plaza
Ellsworth, ME 04605
Phone: (207) 669-6608
Email: lroberts@ellsworthmaine.gov

For questions about zoning specifically, you can contact the Ellsworth Planning Department. They can provide information on the city's zoning districts, land use regulations, and any upcoming changes or proposals that may affect short-term rentals. The Planning Department can be reached at:

Ellsworth Planning Department
1 City Hall Plaza
Ellsworth, ME 04605
Phone: (207) 669-6615
Email: ebarnes@ellsworthmaine.gov

If you have concerns about the impact of short-term rentals on housing availability or neighborhood character, you may want to contact the Ellsworth City Council. They are responsible for setting policies and considering any new ordinances related to short-term rentals. You can find contact information for individual council members on the city's website or reach out to the City Clerk's office:

Ellsworth City Clerk's Office
1 City Hall Plaza
Ellsworth, ME 04605
Phone: (207) 669-6604
Email: hgrindle@ellsworthmaine.gov

Finally, for questions about registering your short-term rental with the state and complying with Maine's lodging tax requirements, you should contact the Maine Department of Health and Human Services and the Maine Revenue Services office:

Maine Department of Health and Human Services
Health Inspection Program
286 Water Street
Augusta, ME 04333
Phone: (207) 287-5671

Maine Revenue Services
Sales, Fuel & Special Tax Division
P.O. Box 1060
Augusta, ME 04332-1060
Phone: (207) 624-9693

By reaching out to these departments and officials, you can get the most up-to-date and accurate information on short-term rental regulations in Ellsworth. It's always best to go directly to the source and build relationships with local authorities to ensure you are operating your rental business in compliance with all applicable rules and laws.

What Do Airbnb Hosts in Ellsworth on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Ellsworth have shared their experiences and opinions on the city's short-term rental regulations on real estate investing forums like Bigger Pockets and Reddit. Here are a few notable examples:

Reddit user "EllsworthHost" started a thread in the r/AirbnbHosts subreddit titled "Ellsworth, ME regulations not too bad." They shared that they have been operating an Airbnb in Ellsworth for two years without any major issues from the city. They noted that while there are some rules to follow, like registering with the state and collecting lodging taxes, the overall regulatory environment is not as strict as in other nearby towns.

In a Bigger Pockets forum discussion on Maine short-term rental regulations, user "MaineSTRInvestor" commented that Ellsworth has been a relatively easy place to operate compared to their properties in Portland and Bar Harbor. They mentioned that Ellsworth does not currently require a specific short-term rental permit, which makes the process of setting up and running a rental much smoother.

Another Bigger Pockets user, "VacationRental207," shared their experience working with the Ellsworth Planning Department on a short-term rental project. They found the city officials to be helpful and communicative, providing clear guidance on zoning requirements and necessary permits. While the process involved some paperwork and fees, they felt the city was generally supportive of short-term rentals as long as hosts followed the rules.

In a Reddit post on the r/EllsworthMaine subreddit, user "DowneastHost" expressed some concerns about the city's recent discussions around limiting short-term rentals in residential zones. They felt that responsible hosts were being unfairly targeted and that the city should focus on enforcing existing rules rather than adding new restrictions. Several other users chimed in with similar sentiments, arguing that short-term rentals can bring economic benefits to the area if properly regulated.

A Bigger Pockets user, "AcadiaInvestor," started a thread asking for advice on setting up a short-term rental in Ellsworth. Several experienced hosts replied with their recommendations, including registering with the state, obtaining proper insurance, and being proactive in communicating with neighbors. They noted that while Ellsworth's regulations are not as comprehensive as some other cities, it's still important to do your due diligence and operate professionally.

Overall, the sentiment among Airbnb hosts on these forums seems to be that Ellsworth's short-term rental regulations are relatively manageable compared to other destinations in Maine. While there are some rules and requirements to navigate, most hosts have found the city to be accommodating as long as they follow the proper steps and maintain open communication with officials. However, there is also an acknowledgment that regulations can change over time, so hosts need to stay informed and adapt as needed.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.