Frequently Asked Questions
What is VTSTRA?
The Vermont Short Term Rental Alliance (VTSTRA) – founded in February 2021 as a non-profit organization – is a business league advocating for the legal protection of the short-term rental (STR) industry to advance the interests of STR industry stakeholders. VTSTRA is registered with the State of Vermont and is in the process of applying for IRS Tax Exempt Status as a 501(c)6 organization.
Who does VTSTRA represent?
VTSTRA represents current and prospective homeowners and STR operators residing in Vermont or out-of-state, property and vacation rental management agencies, and other individuals and businesses with an interest in the STR sector.
Sound like you? Join the alliance by choosing the membership option that’s right for you!
Learn more about who we are by reading testimonials from our supporters. Not ready to join? Show your support by adding your name to our list of supporters.
I want to start a Short-Term Rental in Vermont. What do I need to know?
If you are planning to start a short-term rental in Vermont, the first thing you should do is join the Vermont Short-Term Rental Alliance. As a VTSTRA Host Member, you will have access to everything you need to know to get your rental operating legally, safely, and successfully.
When I join VTSTRA, how is my contribution used?
Whether through membership, corporate sponsorship, or donation, your financial contribution to VTSTRA is an investment in the future of Vermont’s short-term rental industry. Our achievements and long-term objectives include:
Maintaining the services of MMR, LLC as VTSTRA’s political strategy advisor and statehouse lobbyist
Creating and sharing resources for hosts that help STR businesses thrive by connecting hosts with relevant services, products, and trainings
Creating resources for STR advocates to make it easier for your voices to be heard by lawmakers and elected officials
Developing and maintaining VTSTRA’s website, social media outreach, communication services, and nonprofit corporation status
Writing and testifying to legislators on behalf of STR owners and operators
Keeping you informed through regular newsletter updates on issues related to STRs in Vermont
Hosting regular member meetings and annual events to build community and consensus on pressing STR-related topics
Developing and purchasing advertisements and marketing materials that expand our support network, educate the public, and advocate to protect STRs in Vermont
What is a “short-term rental” or “STR”?
A “short-term rental” (STR) is defined under Act 10 (2018) as “a furnished house, condominium, or other dwelling room or self-contained dwelling unit rented to the transient, traveling, or vacationing public for a period of fewer than 30 consecutive days and for more than 14 days per calendar year.”
A “short-term rental” is often called a ‘vacation rental’ and can be advertised through popular online platforms like Airbnb and VRBO, other online or local travel agencies, or directly by the owner.
A “short-term rental” is not a hotel, motel, inn, or bed & breakfast.
A “short-term rental” may not always meet the definition of a residential rental dwelling unit.
A “short-term rental” does not offer food service.
A “short-term rental” may or may not offer cooking facilities.
A “short-term rental” may or may not be a weatherized space.
How are STRs regulated in Vermont?
Short-term rentals are regulated by the Department of Health, the Department of Public Safety’s Division of Fire Safety, and the Department of Taxes.
Some municipalities may have their own set of STR registration and regulation requirements. Once you join VTSTRA, your VTSTRA Chapter Leader will be in touch with you to help you navigate the municipal regulations that exist in your area.
If you plan to operate a short-term rental in Vermont, you must complete the ‘Short Term Rental Safety, Health and Financial Obligations’ form prior to renting. This form must be displayed inside your rental, but does not need to be filed with the Department of Health.
Do I need to register with the Vermont Department of Taxes to pay Meals & Rooms Tax?
If you offer a short-term rental for more than 14 total days in a single year, you are responsible for remitting a 9% Meals & Rooms Tax (MRT) to the Vermont Department of Taxes on every reservation that is fewer than 30 consecutive nights. Any rental agreement that is for 30 consecutive nights or more is not subject to MRT. Some Vermont municipalities require an additional 1% Local Option Tax.
If you accept reservations exclusively through AirBnB and/or VRBO then you DO NOT need to create a Business Tax Account with the Vermont Department of Taxes because these companies collect and remit MRT on your behalf. You can request the MRT account number from the listing platform provider to display in your rental.
If you accept any bookings directly, or through another online listing platform that does not collect and remit taxes on your behalf, then you must register a Business Tax ID with the Department of Taxes and submit a monthly MRT report, even if you have no bookings. Go to MyVTax.gov to sign-up for a Business Tax Account.
Do I need to display my Tax ID?
Yes. As of July 1, 2018, STR operators are required to post their Vermont MRT account number(s) on any advertisement.
What is bill S.79 about?
S.79 is a Vermont senate bill entitled, “An act related to improving rental housing and safety.” As of July 2, 2021, the Vermont Legislature passed S.79, but the bill was vetoed by Governor Phil Scott. The Vermont Legislature still has the opportunity to override the veto, or to revise the bill to address the Governor’s concerns.
The intention of S.79 is to create a registry of all rental housing units in the state of Vermont, including both long- and short-term rentals. The primary purpose of the registry is to establish a line of communication between the Department of Housing and Community Development and property owners in the event of an emergency or a health and safety-related complaint.
Vermont currently has no statewide database for rental housing and is seeking to identify housing options, understand their condition, and provide incentives to increase rental housing options across the state.
What would S.79 mean for my short-term rental?
If S.79 is passed and enacted into law, all short-term rental operators, regardless of residency status, would be required to register each rental unit with the Department of Housing and Community Development on an annual basis.
If your unit operates as both a short- and long-term rental in the same year, it would only need to be registered once. The annual registration fee would be $35 per rental unit per year.
If your Vermont municipality already has a rental registry, you would NOT be required to register with the state as well.
If passed, would S.79 require a safety inspection of my rental property?
No. A state inspection of your rental(s) would ONLY occur if a formal complaint was filed against your rental unit, or if you request an inspection to be scheduled.
If my rental is a licensed lodging establishment, does S.79 apply to me?
No.
What is bill H.200 about?
H.200, “an act relating to regulating short-term rentals,” was introduced in February 2021 by Rep. Emilie Kornheiser, Rep. Selene Colburn, and Rep. Kelly Pajala.
At the end of the 2021 legislative session, H.200 was not been picked up by the House Committee of General, Housing, and Military Affairs, but remains on the table for the 2022 legislative session.
The most controversial component of this bill is the residency-requirement section in which the bill reads, “a person may not offer all or part of a dwelling unit as a short-term rental unless the person has occupied the dwelling unit as his or her primary residence for:
(1) 270 days of the preceding year; or
(2) if the person has owned or leased the dwelling unit for less than a year, more than 70 percent of the days that the person has owned or leased the dwelling unit.“
H.200 also proposes an annual short-term rental registry, costing the applicant $130 per rental per year.
I’m about to buy a house in Vermont, but I was hoping to rent it short-term until I can make it my primary residence. What should I do?
There does not appear to be an imminent threat of a statewide residency requirement for short-term rentals as of May 2021. Vermont wants you to relocate here.
Your voice still matters, even if you aren’t here yet. Find your future legislator and send them an email or give them a call to tell them about your situation and concerns with the H.200 bill.
Consult your Vermont realtor on how to navigate the Vermont housing market and check out these resources on buying a home in Vermont from the Vermont Association of Realtors.
