What are Short-Term Rental (Airbnb, VRBO) Regulations in New Hampshire?

Short-term rentals, popularized by platforms like Airbnb and VRBO, have seen a surge in New Hampshire, especially in tourist hotspots. However, this growth has also brought forth a complex legal landscape for property owners to navigate. Understanding the latest Airbnb and short-term rental laws and regulations in New Hampshire is crucial for hosts to ensure compliance and maintain a thriving rental business.

Starting a Short-Term Rental Business in New Hampshire

To legally operate a short-term rental in New Hampshire, property owners must first understand their local zoning ordinances. Municipalities in the state have the authority to regulate short-term rentals through zoning laws under RSA 674:16. This means that rules can vary significantly across different communities, reflecting local standards and concerns.

One common requirement is obtaining a conditional use permit. In towns like Freedom, this process involves notifying neighbors and demonstrating a commitment to maintaining the character and tranquility of the area. Gilford, Laconia, and Meredith are among the 36 New Hampshire municipalities that have adopted specific short-term rental rules and definitions.

Laconia's ordinance, for example, permits short-term rentals in Commercial Resort (CR) and Shorefront Residential (SFR) zones without limitations on the number of rental periods. However, they are prohibited in Industrial (I), Industrial Park (IP), Airport Industrial (AI), and all other zones unless the property is owner-occupied.

Gilford's recent regulations target commercial operators who purchase homes solely for use as short-term rentals. While not an outright ban, these properties must meet certain requirements, such as providing proper contact information and being accountable for any chronic issues that may arise.

Legislative efforts, such as Senate Bill 249, have aimed to strike a balance between protecting private property rights and enabling municipalities to ensure the safety and quality of life for residents and visitors. While the bill faced opposition from the New Hampshire Municipal Association, proponents argue that it would provide a framework similar to accessory dwelling unit regulations, allowing towns to regulate but not prohibit short-term rentals.

In Meredith, short-term rentals are defined as an accessory use to a single-family detached dwelling and are subject to local regulations. Online forums like BiggerPockets and Reddit have also become valuable resources for investors and hosts seeking insights into the New Hampshire short-term rental market and its legal complexities.

As the short-term rental landscape continues to evolve in New Hampshire, it is essential for property owners to stay informed about local zoning ordinances, permit requirements, and potential changes in regulations. By understanding and complying with these rules, hosts can operate successful and legally-sound short-term rental businesses while contributing positively to their communities.

Short-Term Rental Licensing Requirements in New Hampshire

New Hampshire does not have a statewide licensing requirement specifically for short-term rentals. However, operators of short-term rentals are required to obtain a Meals and Rooms (Rentals) Tax License from the New Hampshire Department of Revenue Administration. Here's a detailed breakdown of the requirements:

1. Meals and Rooms (Rentals) Tax License: All short-term rental operators must obtain this license before starting their business.

2. Application Process:

• Apply using the Application for Meals & Rentals Tax Operators License & Renewal (Form CD-3).
• Submit the application at least 30 days prior to the start of business.

3. Where to Submit:

Mail the completed form to: NH DRA, PO Box 454, Concord, NH 03302-0454.

4. License Fee:

1. The fee for an original license or timely license renewal is $58.
2. Make the check or money order payable to the STATE OF NEW HAMPSHIRE.

5. Renewal:

Licenses must be renewed by June 30 of each year.

6. Display Requirement:

The license must be conspicuously posted in a public area on the premises.

7. Tax Collection and Remittance:

Operators must collect and remit the Meals and Rooms (Rentals) Tax, which is currently 8.5% for taxable periods beginning October 1, 2021.

8. Filing Requirements:

1. Tax returns must be filed regularly, even if no tax is due for a particular period.
2. Electronic filing is encouraged, and operators who choose not to file electronically forfeit any commission retained.

9. Seasonal Operators:

Those operating seasonally can apply for permission to file returns only for the months they are in operation.

10. Processing Time:

While not explicitly stated, it's advisable to apply at least 30 days before starting operations to ensure timely processing.

11. Penalties for Non-Compliance:

1. Operating without a license or failing to register as required can subject operators to penalties under RSA 21-J:39.
2. Specific penalty amounts are not detailed in the provided information, but they can include fines and potential legal action.

12. Advertisement Requirement:

Any advertisement for a short-term rental must include the operator's Meals and Rooms License number.

It's important to note that while these are the state-level requirements, many municipalities in New Hampshire have additional regulations and licensing requirements for short-term rentals. Operators should check with their local town or city government for any additional permits or licenses needed to operate legally.

For example, towns like Alton have implemented their own Short-Term Rental Permit systems, with deadlines for existing operators to apply and potential fines for non-compliance starting from specific dates. Therefore, it's crucial for short-term rental operators to be aware of both state and local requirements to ensure full compliance.

Required Documents for New Hampshire Short-Term Rentals

While New Hampshire doesn't have a statewide short-term rental licensing system, operators must obtain certain documents to legally run their business. Here's a list of required documents along with explanations of their purpose and where to obtain them:

Meals and Rooms (Rentals) Tax License

1. Purpose: Allows operators to collect and remit the required 8.5% tax on short-term rentals.
2. Where to obtain: New Hampshire Department of Revenue Administration website or office.
3. Form: Application for Meals & Rentals Tax Operators License & Renewal (Form CD-3).

Proof of Septic System Approval

1. Purpose: Ensures the property's septic system can handle the proposed occupant load.
2. Where to obtain: New Hampshire Department of Environmental Services (NHDES).

Options:

1. State of New Hampshire ISDS Permit showing approval for the proposed occupant load.
2. Proof of satisfactory operation by a NH Certified Septic System Evaluator and a current Construction Approval from NHDES.

Water Quality Test Results (for properties not on public water supply)

1. Purpose: Verifies the safety of drinking water for guests.
2. Where to obtain: NH Environmental Laboratory Accreditation Program-accredited lab.
3. Requirement: Annual test for total coliform and E. coli showing absence of both.

Site Plan

1. Purpose: Illustrates property layout, including structures, parking spaces, septic systems, wells, and property lines.
2. Where to obtain: Self-created or professionally drawn.
3. Format: Sketch to scale or based on online imagery (e.g., Google Earth).

Floor Plan

1. Purpose: Shows the layout of each floor, including sleeping areas, bathrooms, and kitchen amenities.
2. Where to obtain: Self-created or professionally drawn.

Parking Plan

1. Purpose: Demonstrates adequate on-site parking for guests.
2. Where to obtain: Self-created, often included in the site plan.
3. Requirement: One on-site parking space for each permitted bedroom, plus one additional space.

Emergency Contact Information

1. Purpose: Provides a 24-hour contact for addressing emergencies or issues.
2. Where to obtain: Self-provided.

Proof of Road Access

1. Purpose: Ensures the property is accessible via a Town- or State-maintained road.
2. Where to obtain: Town records or a Notice of Limitations/Waiver of Liability if on a private road.

Conditional Use Permit (in some municipalities)

1. Purpose: Allows operation of a short-term rental in residential zones.
2. Where to obtain: Local Planning Board.

Short-Term Rental Permit (in some municipalities)

1. Purpose: Ensures compliance with local regulations.
2. Where to obtain: Local Building Department or Planning Office.

It's important to note that requirements can vary significantly between municipalities in New Hampshire. For example, Gilford requires a Conditional Use Permit from the Planning Board, while Alton has implemented a specific Short-Term Rental Permit system. Always check with your local town or city government for any additional documents or permits needed to operate legally in your specific area.

Remember, failure to obtain required documents can result in penalties, fines, or even the inability to operate your short-term rental. Staying compliant with both state and local regulations is crucial for the success and legality of your short-term rental business in New Hampshire.

New Hampshire Short-Term Rental Taxes

In New Hampshire, short-term rental operators must be aware of and comply with specific tax obligations. The primary tax that applies to short-term rentals in the state is the Meals and Rooms (Rentals) Tax. Here's a detailed breakdown of the tax structure and potential deductions:

Meals and Rooms (Rentals) Tax

1. Tax Rate: 8.5% of the listing price, including any cleaning fee and guest fee.
2. Applicability: This tax applies to reservations of 184 nights or shorter.
3. Collection and Remittance: While some platforms like Airbnb collect and remit this tax on behalf of hosts, it's ultimately the host's responsibility to ensure compliance.
4. Registration Requirement: Operators must obtain a Meals and Rooms (Rentals) Tax License from the New Hampshire Department of Revenue Administration before starting their rental business.
5. Filing Frequency: Tax returns must be filed regularly, even if no tax is due for a particular period. Electronic filing is encouraged.

Business Profits Tax (BPT)

1. Tax Rate: 7.9% for 2023 (subject to change in future years).
2. Applicability: Applies to landlords who rent at least one property in New Hampshire and whose total revenues from rental properties everywhere exceed $50,000 in a year.

Business Enterprise Tax (BET)

1. Tax Rate: 0.675% for 2023 (subject to change in future years).
2. Applicability: Applies if rental revenue earned everywhere exceeds $222,000, or if the combination of interest, compensation, and dividends paid exceeds $111,000.

Possible Write-offs and Deductions

Short-term rental operators in New Hampshire can potentially benefit from several tax deductions, including:

• Depreciation: Allows you to write off the value of your rental property over time.
• Property Taxes: Fully deductible as a rental expense.
• Cleaning and Supplies: Costs associated with maintaining the rental property.
• Repairs and Maintenance: Expenses for keeping the property in good condition.
• Mortgage Interest: Fully deductible for the portion of the property used for rental purposes.
• Insurance Premiums: Deductible for policies specifically covering the rental property.
• Utilities: Deductible for the portion used by renters.
• Marketing and Advertising: Costs associated with promoting your rental.
• Professional Fees: Expenses for accountants, lawyers, or property managers.
• Travel Expenses: Costs incurred for managing and maintaining the rental property.
• Home Office: If you manage your rental business from home, you may be eligible for a home office deduction.

It's important to note that the deductibility of expenses may depend on how much you personally use the property versus renting it out. If you use the property for personal purposes for more than 14 days or 10% of the total days it's rented (whichever is greater), you'll need to allocate expenses between personal and rental use.

Remember, tax laws can be complex and subject to change. It's always advisable to consult with a tax professional familiar with New Hampshire's tax laws and short-term rental regulations to ensure compliance and maximize your deductions.

Does New Hampshire Strictly Enforce STR Rules?

New Hampshire's approach to short-term rental (STR) regulation can be described as a mixed bag, with enforcement varying significantly across municipalities. While the state does not have a unified stance on STRs, it does grant local governments the authority to regulate them through zoning ordinances.

According to discussions on BiggerPockets and Reddit, New Hampshire is generally considered more Airbnb-friendly compared to many other states. However, this friendliness is not uniform across all municipalities. Some towns, like Portsmouth, have taken a firm stance against STRs, deeming them illegal transient occupancies. Others, like North Conway and Bartlett, have seen a proliferation of STRs due to their popularity as vacation destinations.

Despite the patchwork of regulations, many hosts continue to operate STRs in New Hampshire, even in areas with stricter rules. This can be attributed to several factors:

• Inconsistent enforcement: Some municipalities may not have the resources or inclination to actively enforce STR regulations, allowing non-compliant rentals to slip through the cracks.
• Lack of clarity: The absence of a statewide framework and the variability of local ordinances can create confusion among hosts, leading some to operate STRs unknowingly in violation of the rules.
• Financial incentives: The potential for high returns, especially in popular tourist areas, can motivate hosts to take the risk of operating STRs despite regulations.

However, it's important to note that operating an STR in violation of local ordinances is not without consequences. Recent court rulings in New Hampshire have upheld the enforcement of these ordinances, resulting in cease and desist orders and potential fines for non-compliant hosts.

In conclusion, while New Hampshire may be more Airbnb-friendly than some states, the level of enforcement and the ease of operating an STR can vary significantly depending on the municipality. Hosts should thoroughly research and understand the specific regulations in their area before entering the STR market. Failure to comply with local ordinances can result in legal and financial repercussions, making it crucial for hosts to navigate this complex landscape carefully.

How to Start a Short-Term Rental Business in New Hampshire

Starting a short-term rental (STR) business in New Hampshire can be a lucrative venture, but it requires careful planning and execution. Here's a step-by-step guide to help you navigate the process:

Research local regulations:

1. Familiarize yourself with the specific STR ordinances in your municipality.
2. Attend local town meetings or consult with a local attorney to ensure compliance.
3. Understand the zoning requirements, permit processes, and potential restrictions.
4. Tip: Don't assume that the absence of STR-specific regulations means you can operate freely. Always verify with local authorities.

Obtain necessary permits and licenses:

• Apply for a Meals and Rooms (Rentals) Tax License from the New Hampshire Department of Revenue Administration.
• Obtain any required local permits, such as a Conditional Use Permit or a Short-Term Rental Permit.
• Ensure your property meets all health and safety standards, including septic system approval and water quality testing.
• Tip: Start the permitting process early, as it can take several weeks or even months to complete.

Prepare your property:

• Ensure your rental is clean, well-maintained, and adequately furnished.
• Provide essential amenities like linens, towels, and kitchen supplies.
• Install safety features such as smoke detectors, carbon monoxide detectors, and fire extinguishers.
• Tip: Go above and beyond to create a welcoming and memorable experience for your guests.

Create a compelling listing:

• Take high-quality photos that showcase your rental's best features.
• Write an accurate and engaging description that highlights your property's unique selling points.
• Be transparent about your rental's amenities, rules, and any potential limitations.
• Tip: Study successful listings in your area to identify best practices and competitive advantages.

Set competitive rates:

• Research the average nightly rates for similar properties in your area.
• Consider factors like seasonality, events, and demand when setting your prices.
• Utilize dynamic pricing tools to optimize your rates based on market conditions.
• Tip: Don't undervalue your rental, but also don't price yourself out of the market.

Implement a robust management system:

• Decide whether you'll manage the property yourself or hire a professional property manager.
• Establish clear check-in and check-out procedures.
• Develop a reliable cleaning and maintenance schedule.
• Tip: Consider using vacation rental software to streamline your operations and improve efficiency.

Market your rental:

• List your property on popular STR platforms like Airbnb, VRBO, and Booking.com.
• Leverage social media to promote your rental to potential guests.
• Encourage satisfied guests to leave positive reviews and recommendations.
• Tip: Continuously monitor and adjust your marketing strategies based on performance and guest feedback.

Comply with tax obligations:

• Collect and remit the 8.5% Meals and Rooms (Rentals) Tax on all bookings.
• Keep accurate records of your income and expenses for tax purposes.
• Consult with a tax professional to ensure compliance and maximize deductions.
• Tip: Set aside a portion of your rental income to cover your tax liabilities.

Starting an STR business in New Hampshire requires diligence, adaptability, and a commitment to providing exceptional guest experiences. By following these steps and staying informed about local regulations, you can build a successful and compliant STR business in the Granite State.

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

In New Hampshire, short-term rental regulations can vary significantly by municipality. However, there are several key resources and contacts that can provide guidance on state-level regulations and local zoning laws:

New Hampshire Department of Revenue Administration

For questions about Meals and Rooms (Rentals) Tax:

1. Phone: (603) 230-5920
2. Address: 109 Pleasant Street, Concord, NH 03301

For tax forms requests:

1. Email: forms@dra.nh.gov
2. Mailing Address: PO Box 637, Concord, NH 03302-0637

New Hampshire Municipal Association

For general inquiries about municipal regulations:

1. Phone: (603) 224-7447
2. Email: legalinquiries@nhmunicipal.org

Local Municipal Offices

Contact your town or city's Community Development or Planning Department for specific local regulations. For example:

Laconia Planning Department:

1. Phone: (603) 527-1264
2. Email: planning@laconianh.gov

Meredith Community Development Department:

Phone: (603) 677-4215

Online Communities and Resources

BiggerPockets New Hampshire Real Estate Forum: https://www.biggerpockets.com/forums/731-new-hampshire-real-estate-investing

New Hampshire Association of Realtors:

1. Phone: (603) 225-5549
2. Website: https://www.nhar.org/

Remember, regulations can change, and it's always best to verify information directly with the relevant authorities. When in doubt about local regulations, contact your specific town or city's planning or zoning department for the most up-to-date and accurate information.

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

Airbnb hosts in New Hampshire have shared their experiences and opinions about local short-term rental regulations on various online forums, including Reddit and Bigger Pockets. Here are a few real-life stories and comments from verified New Hampshire threads:

Reddit - r/airbnb_hosts

In a thread titled "Short term rental ordinances," user NashuaHost shared their experience operating in Nashua, NH: "Nashua is pretty reasonable with Airbnb rules compared to some towns. As long as you get your license and follow the regulations, you shouldn't have any issues operating a short-term rental in the city."

Bigger Pockets - New Hampshire Real Estate Investing Forum

In a thread titled "New Hampshire Short Term Rentals: Town Regulations," user NHRental discussed their experience operating in multiple cities: "I operate a few units in Nashua and have found that the city's primary concerns are ensuring that short-term rentals are safe and not disruptive to neighbors. Enforcement is complaint-based, so as long as you're a responsible host and maintain good communication with your guests and neighbors, you can run a successful Airbnb business in Nashua."

Bigger Pockets - Short-Term & Vacation Rental Discussions

In a thread titled "Air BNB Rentals New Hampshire (Newbie)," user Christopher Lynch asked about investing in New Hampshire short-term rentals. While no specific experiences were shared, the thread highlights the interest in the New Hampshire market and the potential for success in popular ski resort areas.

Overall, the experiences shared by Airbnb hosts in New Hampshire suggest that while regulations vary by municipality, many cities have reasonable rules that allow for successful short-term rental operations. Hosts emphasize the importance of understanding and complying with local regulations, obtaining necessary permits and licenses, and being a responsible operator to maintain positive relationships with neighbors and local authorities.

Disclaimer: While we here at BNBCalc strive to keep all of our 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 area 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.