Stonington, Connecticut Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Stonington, Connecticut?

Stonington, a coastal town in southeastern Connecticut, recently considered implementing regulations for short-term rental properties listed on platforms like Airbnb and VRBO. The proposed ordinance aimed to balance the growth of the short-term rental market with the need to protect the character and quality of life in residential neighborhoods. However, in a referendum held on March 13, 2023, Stonington voters rejected the proposed short-term rental ordinance by a margin of 694 to 342.

Starting a Short-Term Rental Business in Stonington

Currently, short-term rentals are not expressly permitted in Stonington's zoning regulations. In 2017, the Planning and Zoning Commission decided that the town's zoning code would not regulate short-term rentals. As a result, property owners who wish to launch short-term rental businesses in Stonington are in a legal gray area.

Despite the lack of specific regulations, some property owners in Stonington have been offering their homes as short-term rentals through booking platforms like Airbnb and VRBO. However, these rentals are technically illegal under the town's current zoning laws.

The proposed ordinance, which was ultimately rejected by voters, would have required short-term rental property owners to register with the town annually and pay a permit fee. The ordinance also included provisions related to maximum occupancy, noise restrictions, parking requirements, and safety standards.

Had the ordinance passed, property owners interested in starting a short-term rental business in Stonington would have needed to:

• Register their property annually with the town
• Pay an annual permit fee
• Provide contact information for the owner or a designated agent
• Comply with occupancy limits, noise restrictions, and parking requirements
• Meet safety standards, such as providing emergency information to guests

However, with the rejection of the proposed ordinance, the legal status of short-term rentals in Stonington remains uncertain. Property owners who choose to operate short-term rentals may face potential enforcement action from the town.

The debate over short-term rental regulations in Stonington highlights the challenges many communities face in balancing the rights of property owners with the desire to maintain the character and quality of life in residential neighborhoods. As the short-term rental market continues to grow, it is likely that more Connecticut municipalities will grapple with how to effectively regulate these properties through zoning codes and ordinances.

Short-Term Rental Licensing Requirement in Stonington

The proposed ordinance, which was rejected by Stonington voters in a March 2023 referendum, would have required short-term rental property owners to register annually with the town in order to obtain a permit to operate. As of now, there are no specific licensing requirements for short-term rentals in Stonington.

According to the draft ordinance, the registration process would have required owners to provide the following information:

1. Name of the property owner(s) and address of the short-term rental
2. Contact information for the owner and, when applicable, an owner's agent who has the authority to respond to complaints 24/7 within 60 minutes
3. Maximum occupancy of the rental unit
4. Parking plan showing the number and location of parking spaces

Owners would have been required to submit their registration through a platform specified by the town. The ordinance did not outline any specific fees associated with the registration process.

Had the ordinance passed, operating a short-term rental without registering would have been prohibited. Owners who failed to register would have been subject to a $250 fine and given a written warning with 10 business days to register or appeal. Additional penalties could have been imposed for continued non-compliance.

However, with the rejection of the proposed ordinance, there are currently no licensing requirements or registration process for short-term rentals in Stonington. Property owners can continue to operate short-term rentals without obtaining a permit from the town, though they are still subject to any applicable state laws and regulations.

The town may revisit the issue of short-term rental regulations in the future, but officials have indicated there likely won't be enough time to propose a new ordinance before the fall 2023 election. Any future attempts to establish licensing requirements would need to strike a balance between protecting the rights of property owners and addressing neighborhood concerns related to short-term rentals.

Required Documents for Stonington Short-Term Rentals

It appears that Stonington voters recently rejected a proposed short-term rental ordinance that would have established licensing and documentation requirements. As of now, there are no specific required documents for short-term rentals in Stonington.

The proposed ordinance, which was rejected by Stonington voters in a March 2023 referendum, would have required short-term rental property owners to submit the following information as part of the annual registration process:

1. Name and Address: The name of the property owner(s) and the address of the short-term rental property. This information is necessary to identify the individuals responsible for the rental and the location of the property.
2. Contact Information: Contact details for the owner and, when applicable, an owner's agent who has the authority and responsibility to respond to complaints 24/7 within 60 minutes of being contacted. This ensures that there is always a designated point of contact available to address any issues or concerns related to the rental property.
3. Maximum Occupancy: Information on the maximum occupancy of the rental unit, excluding children under the age of 12. While the owner can establish the maximum occupancy, it may be confirmed by the applicable Fire Marshal for the property. This is to ensure that the rental does not exceed safe occupancy limits.
4. Parking Plan: A parking plan showing the number and location of available parking spaces for the rental property. This helps to mitigate potential parking issues in residential neighborhoods.

Had the ordinance passed, property owners would have been required to submit this information through a platform specified by the town as part of the annual registration process. However, with the rejection of the proposed ordinance, there are currently no specific documentation requirements for short-term rentals in Stonington.

It's important to note that while there are no town-specific requirements at this time, short-term rental owners in Stonington are still subject to any applicable state and federal regulations, such as those related to health and safety, taxes, and anti-discrimination laws. Property owners should familiarize themselves with these requirements to ensure compliance.

Stonington Short-Term Rental Taxes

While Stonington does not currently have any specific local taxes on short-term rentals, hosts are still subject to state-level taxes in Connecticut. Understanding these tax obligations is crucial for operating a compliant and successful short-term rental business.

Connecticut Room Occupancy Tax

The primary tax that applies to short-term rentals in Stonington is the Connecticut Room Occupancy Tax. This tax is levied on the total payment received for occupancy of a room or rooms in a hotel, lodging house, or bed and breakfast for up to 30 consecutive calendar days.

The current tax rate is 15% of the total payment received for occupancy of the room or rooms for up to 30 consecutive calendar days. For bed and breakfast establishments, the rate is slightly lower at 11%.

It's important to note that rental contracts for a period of less than 90 days, including month-to-month contracts, are considered short-term rentals subject to room occupancy tax for the first 30 days of occupancy.

Collecting and Remitting Taxes

As a short-term rental host in Stonington, you are responsible for collecting the Connecticut Room Occupancy Tax from your guests and remitting it to the state. Some booking platforms, like Airbnb, may automatically collect and remit these taxes on your behalf.

However, if you offer short-term rentals directly to guests or through a platform that does not collect all applicable taxes, you are required to register with the Connecticut Department of Revenue Services and fulfill all lodging tax obligations.

Possible Deductions and Write-Offs

While short-term rental income is subject to taxes, hosts may be able to deduct certain expenses to reduce their tax liability. Some common deductions for short-term rental businesses include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Cleaning and maintenance costs
6. Supplies and amenities provided to guests
7. Advertising and platform fees

It's recommended to consult with a tax professional to ensure you are claiming all eligible deductions and maintaining proper documentation.

By understanding and complying with Connecticut's short-term rental tax requirements, hosts in Stonington can operate their businesses responsibly and avoid potential legal or financial issues. Staying informed about any changes to state or local tax laws is also essential for long-term success in the evolving short-term rental market.

Connecticut Wide Short-Term Rental Rules

While Stonington does not currently have any town-specific regulations for short-term rentals, hosts must still comply with state-level requirements in Connecticut. These statewide rules primarily focus on taxation and leave most other regulatory decisions up to individual municipalities.

Connecticut Room Occupancy Tax

The most significant statewide requirement for short-term rentals in Connecticut is the Room Occupancy Tax. Connecticut imposes a 15% tax on the total payment received for occupancy of a room or rooms in a hotel, lodging house, or bed and breakfast for up to 30 consecutive calendar days.

Short-term rental hosts in Stonington, and throughout Connecticut, are responsible for collecting this tax from their guests and remitting it to the state's Department of Revenue Services. Some booking platforms, like Airbnb, may automatically collect and remit these taxes on behalf of hosts.

Proposed Statewide Legislation

Connecticut lawmakers are currently considering a new bill, Bill 335, which could grant municipalities more authority to regulate short-term rentals within their jurisdictions. If passed, this legislation would allow cities and towns to impose zoning restrictions, guest occupancy limits, and parking requirements on short-term rentals.

The bill aims to address concerns related to overcrowding, disruptive guests, and parking issues that have arisen in some Connecticut communities. While the proposed legislation would not mandate specific regulations, it would give municipalities the power to establish ordinances governing short-term rental properties.

Municipal Regulations

Currently, there is no comprehensive statewide legislation regulating short-term rentals in Connecticut beyond the room occupancy tax. Municipalities individually decide whether to implement, modify, or maintain regulations pertaining to short-term rentals.

Some Connecticut cities and towns have already established local ordinances and zoning regulations related to short-term rentals. These can include requirements for permits, adherence to specific rules regarding the frequency and length of rentals, occupancy restrictions, and safety standards.

However, as of now, Stonington does not have any specific municipal regulations in place for short-term rentals. Hosts should stay informed of any potential changes to local laws that may arise, especially if the proposed statewide legislation is passed.

By understanding and complying with Connecticut's statewide room occupancy tax requirements and monitoring for any changes to state or local laws, short-term rental hosts in Stonington can operate their businesses responsibly and avoid potential legal or financial issues. As the regulatory landscape continues to evolve, staying informed and adaptable will be key to success in Connecticut's short-term rental market.

Does Stonington Strictly Enforce STR Rules?

While Stonington voters recently rejected a proposed short-term rental ordinance that would have established licensing and registration requirements, the town does have an existing rule on the books that prohibits rentals of less than 30 days. According to a comment on a BiggerPockets forum, "Be mindful that Stonington has an ordinance about short-term rentals (less than 30 days). They don't enforce it usually, but it's on the books."

This suggests that although Stonington has a technical ban on short-term rentals, the town is not actively enforcing this rule at present. Without a formal licensing and enforcement system in place, many hosts are likely operating under the radar without facing penalties.

Compared to some other Connecticut towns and cities that have implemented strict regulations and enforcement mechanisms, Stonington appears to be relatively Airbnb-friendly by default. The lack of a specific ordinance regulating short-term rentals means hosts face fewer hurdles and compliance requirements than in some neighboring jurisdictions.

However, this does not mean that Stonington will remain hands-off indefinitely. As short-term rentals continue to proliferate in the region, the town may revisit the issue and consider new regulations, as evidenced by the recent debate over the proposed ordinance. Hosts operating in Stonington should stay informed about any potential changes to local laws that could impact their businesses.

Additionally, while Stonington itself may not be strictly enforcing short-term rental rules, hosts must still comply with state-level requirements, such as collecting and remitting the Connecticut Room Occupancy Tax. Failure to adhere to these tax obligations could result in penalties from the state.

In summary, based on the available information from BiggerPockets and Reddit, Stonington seems to be a relatively Airbnb-friendly market due to the lack of strict local enforcement despite having a technical ban on short-term rentals. Many hosts are likely operating without issue but should remain aware of the potential for future regulatory changes and ensure compliance with state-level requirements.

How to Start a Short-Term Rental Business in Stonington

Starting a short-term rental business in Stonington can be a rewarding venture, but it's important to follow the proper steps to ensure compliance with local regulations and set yourself up for success. Here's a step-by-step guide to getting started:

1. Familiarize yourself with local regulations: Review Stonington's proposed short-term rental ordinance to understand the registration process, occupancy limits, safety requirements, and other regulations that may apply to your property. While the ordinance was recently rejected by voters, it's important to stay informed about any future changes to local laws.
2. Determine your investment strategy: Decide whether you want to use your primary residence for short-term rentals or purchase a separate property specifically for this purpose. Consider factors like location, property type, and target audience when making your decision.
3. Prepare your property: Ensure your rental meets all safety requirements outlined in the proposed ordinance, such as providing emergency information and complying with occupancy limits. Make any necessary repairs or upgrades to create an inviting space for guests. Consider hiring a professional photographer to showcase your property's best features in your listing photos.
4. Register your short-term rental: Although the proposed ordinance requiring registration was rejected, it's still a good idea to keep records of your rental activity and be prepared for any future registration requirements that may be implemented.
5. Obtain necessary licenses and permits: While there are currently no specific licenses or permits required for short-term rentals in Stonington, you may need to obtain a general business license and register for state and local taxes.
6. Create your listing: Choose a catchy title and write a compelling description that highlights your property's unique features and amenities. Use high-quality photos and consider adding a virtual tour. List your property on popular platforms like Airbnb and VRBO, as well as your own website if desired.
7. Establish house rules and policies: Clearly communicate your expectations to guests, including check-in/check-out times, occupancy limits, noise restrictions, and pet policies. Develop a thorough cleaning and maintenance schedule to keep your property in top shape between guests.
8. Manage your bookings and guest communication: Use a vacation rental management software or hire a professional property manager to streamline tasks like booking management, guest communication, and cleaning coordination. Respond promptly to guest inquiries and be available to address any issues that may arise during their stay.
9. Promote your rental: In addition to listing on major platforms, promote your rental on social media and through targeted advertising. Encourage satisfied guests to leave reviews and offer incentives for repeat bookings or referrals.
10. Stay compliant and adapt: Keep accurate records of your rental income and expenses for tax purposes. Stay informed about any changes to local regulations and adjust your business practices accordingly. Continuously gather feedback from guests and make improvements to enhance their experience.

By following these steps and prioritizing guest satisfaction, you can build a successful short-term rental business in Stonington. Remember to be a responsible host and neighbor, and always operate within the bounds of any current or future local regulations.

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

If you have questions about Stonington's short-term rental regulations or need assistance with the registration process, there are several resources available:

Stonington Planning Department: For inquiries related to zoning requirements and permitted locations for short-term rentals, contact the Planning Department at (860) 535-5095 or email Keith Brynes, Town Planner, at kbrynes@stonington-ct.gov.

Stonington Economic & Community Development: For questions about the proposed short-term rental ordinance and registration process, contact Susan Cullen, Economic & Community Development Director, at (860) 535-5093 or email scullen@stonington-ct.gov.

Office of the First Selectman: For general inquiries or concerns about short-term rentals in Stonington, contact Danielle Chesebrough, First Selectman, at (860) 535-5050 or email firstselectman@stonington-ct.gov.

Stonington Short-Term Rental Community Conversations: The town has been hosting a series of community meetings to discuss the proposed short-term rental ordinance and gather feedback from residents. Information about upcoming meetings can be found on the town's website at https://www.stonington-ct.gov/. These meetings provide an opportunity to learn more about the proposed regulations and voice any concerns or suggestions.

Connecticut Chapter of the American Planning Association: While not specific to Stonington, the Connecticut Chapter of the American Planning Association (CCAPA) has been actively involved in discussions about short-term rental regulations across the state. Their website, https://ct.planning.org/, provides resources and information about best practices for regulating short-term rentals in Connecticut municipalities.

By reaching out to these local officials and engaging with the community, short-term rental hosts in Stonington can stay informed about current and proposed regulations, provide input on the ordinance drafting process, and ensure they are operating in compliance with all applicable rules. Establishing open lines of communication with the town will be essential as the short-term rental landscape continues to evolve in Stonington and throughout Connecticut.

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

To gauge the sentiment of short-term rental hosts in Stonington regarding local regulations, I searched through relevant threads on Reddit and Bigger Pockets. Here are a few insights from local hosts and investors:

On the Bigger Pockets forum, user Karen T. shared her experience with Stonington's existing short-term rental ordinance in a thread about investing in the Mystic and Stonington area:

"Be mindful that Stonington has an ordinance about short-term rentals (less than 30 days). They don't enforce it usually but it's on the books. My place falls under the first category [ADU on the property where owner or family member lives in the main dwelling]."

This suggests that while Stonington has an ordinance restricting rentals under 30 days, enforcement has been lax, allowing some hosts to operate without issue if they meet certain criteria.

In the r/airbnb_hosts subreddit, a post titled "Short-term rental ordinances" garnered responses from hosts in various locations, including one from Greenville, SC, who had properties impacted by zoning changes:

"I'm in Greenville, SC, and I can attest that 2 of my properties fell victim to zoning law changes where they now have 30-day minimums. It truly sucks, and it's hurt the business... My husband and I keep contemplating switching to LTRs with a year lease—it will likely happen eventually."

While not specific to Stonington, this highlights the challenges hosts face when local regulations change and the potential need to pivot strategies.

Another Redditor in the same thread advised focusing on areas with clear, established STR ordinances to avoid uncertainty:

"Focus your efforts on locations already heavily invested in a tourism economy; they have the most incentive to not completely ban, and that already have STR ordinances in place, so you have a clear view of the regulatory landscape."

Overall, the limited discussion from Stonington hosts suggests a mix of operating within the existing framework, being mindful of potential changes, and adjusting strategies as needed. The recent rejection of Stonington's proposed STR ordinance may provide some reassurance to local hosts, but the regulatory landscape remains an important consideration for both current and prospective short-term rental operators in the area.

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.