Portsmouth Development News

Portsmouth Council Debates Proposed Short-Term Rental Regulations Amidst Community Feedback

The city council discussed and considered proposed regulations for short-term rentals (STRs), which currently lack specific city ordinances. The draft ordinance aims to balance STR opportunities with neighborhood protection, safety, accountability, and fairness. Key proposals include owner-occupancy requirements, a maximum of one STR per 500 ft or 10% per block, building and fire code compliance, noise and trash regulations, a guest log requirement, a local 24/7 contact person within 50 miles responding within an hour, annual registration, proof of primary residence, liability insurance, floor plans, tax compliance, and a unique registration number for all listings. Occupancy limits are proposed at two people per bedroom with a maximum of eight people per unit. Enforcement includes an enhanced escalation model with permit revocation after three violations in a year. Community feedback from stakeholder meetings highlighted concerns about parking, safety, quality of life, tax compliance, and enforcement capacity. The timeline includes presentation to the planning commission, a public hearing in August, potential adoption in September, and an effective date in January 2027, allowing for an educational campaign. The discussion also touched on the definition of 'family,' allowing for eight unrelated individuals, and the complexities of owner-occupied vs. non-owner-occupied STRs, with the draft ordinance requiring owner occupancy. The city plans to move towards an online permitting system, but the current process is first-come, first-served. Several council members raised questions about the feasibility of enforcement, the definition of a 'unit' versus 'property,' the allowance for accessory dwelling units (ADUs) like mother-in-law suites, potential exceptions, density rules varying by neighborhood, the impact on housing availability, the primary residence requirement versus attracting tourism, and the necessity of surety bonds. There was also debate about whether current multi-unit operators are acting illegally under existing state code, with some arguing against the term 'illegal' due to the city's prior lack of regulation. The council also discussed the definition of a 'family' for occupancy limits, with some expressing concern about limiting larger homes to eight people, and the need for a professional determination of occupancy by the fire marshal. The process for tracking violations across different departments and the role of the proposed unique registration number were also discussed. The city attorney will provide further clarification on state code limitations regarding STR operations, and the draft ordinance is subject to change based on council feedback.