Frequently Asked Questions
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A “short-term rental” (STR) is defined by Vermont Statute 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.”
Other points of distinction:
Short-term renting is a residential activity. While the act of renting in Vermont considers the property as a “public building”, it does not make the home a commercial property.
A short-term rental cannot offer food service without a license from the Vermont Department of Health.
No more than 2 short-term rentals may operate on one property without being licensed as a Lodging Establishment by the Vermont Department of Health.
A “short-term rental” is often called a ‘vacation rental’ and can be advertised through popular online platforms like Airbnb and VRBO, other online travel agencies (OTA), or directly advertised by the owner or property management company.
A “short-term rental” is not a hotel, motel, inn, or bed & breakfast.
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Yes. 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. Log in to your Member Portal for information on local ordinances found in the ‘Resource Library’ tab.
You can report STR regulatory activity in your Vermont town at: www.vtstra.org/regs
If you plan to operate a short-term rental in Vermont, you are required to 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.
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If you are planning to start a short-term rental in Vermont, we encourage you to join the Vermont Short-Term Rental Alliance to demonstrate your commitment to our standards for professional and responsible hosting.
As a VTSTRA Host Member, you will have access to a step-by-step guide to help you get your rental operating legally, safely, and successfully in Vermont.
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There does not appear to be an imminent threat of a statewide residency requirement for short-term rentals as of January 2023. Vermont might even pay you to relocate here!
But many Vermont towns have enacted, or are in the process of enacting, regulations on short-term rentals. See our STR Regulation Tracker for more information.
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.
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.
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“Party houses” that create neighbor disputes are a stain on our industry. A core VTSTRA value is caring for our communities and environment. We believe all STR managers are responsible for ensuring their guests do not disturb the neighbors.
STR owners can take proactive steps to prevent unauthorized parties by installing indoor & outdoor noise monitors and smart security cameras to be able to enforce designated “quiet hours” and occupancy limits. STR owners are also encouraged to exchange contact information with all neighbors so that they can report incidents without involving the police or town officials.
If a neighbor cannot contact the property owner directly in the event of a disturbance, neighbors can report the property to Airbnb and Vrbo (the two most popular listing platforms for short-term rentals in Vermont). Airbnb and Vrbo have established a policy that bans party houses and will take action to remove violators—both guests and hosts—from their platforms.
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If you offer a short-term rental for more than 14 total days in a single year, you are responsible for collecting and remitting a 9% Meals & Rooms Tax (MRT) and a 3% Short-Term Rental Surcharge Tax to the Vermont Department of Taxes on every reservation that is fewer than 30 consecutive nights. Some Vermont municipalities require an additional 1% Local Option Tax. Check with your town about additional local tax obligations.
Rentals for 30 consecutive nights or longer are not subject to taxes.
If you accept reservations exclusively through Airbnb 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. Read more about Airbnb’s agreement with the State of Vermont here.
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.
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Yes. As of July 1, 2018, STR operators are required to post their Vermont MRT account number(s) on any advertisement. In some cases, this may mean displaying the MRT number of Airbnb and/or Vrbo.
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No. Vermont’s Landlord-Tenant Laws apply only when a rental agreement is for more than 29 consecutive days. In Vermont, a written contract (or lease agreement) is not required. While many short-term rental hosts, also allow for monthly or seasonal reservations, it is important to note that these long-term rentals fall under Vermont Landlord-Tenant Laws.
For more resources for Landlords, visit the ACCD website and join the Vermont Landlord Association if you are interested in becoming a long-term housing provider in Vermont.
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Licensed Lodging Establishments are distinquished from short-term rentals by the number of rental units there are on a property, and by whether food service is provided.
Lodging establishments are regulated by the Vermont Department of Health and defined as:
“any establishment renting three or more guest rooms or units, that is regularly used, maintained, advertised or held out to the transient traveling or vacationing public as a place where sleeping accommodations are furnished including, all buildings and structures on the premises or any part thereof. The term includes, but not by way of limitation, hotels, motels, inns, and any bed and breakfasts (tourist homes) regardless of the number of rooms if prepared food is served.”
Learn more about starting a lodging establishment in Vermont.
If you do not serve food, and you operate fewer than three rental units on your property, you are a “short-term rental”.
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The Vermont Short Term Rental Alliance (VTSTRA) is a business association advocating for the rights of short-term rental hosts and vacation rental operators in Vermont.
VTSTRA is a member-based nonprofit, governed by a Board of Directors.
Any contribution to VTSTRA is an investment in the future of Vermont’s STR industry. Without our members, Vermont short-term rental operators wouldn’t have a voice.
Read about the VTSTRA origin story here.
(It’s pronounced “V-Stra” because in a Vermont accent, ‘T’s are silent).
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VTSTRA is the only group representing the vacation rental and homestay community of Vermont. Your membership is critical to the existence of this organization and its efforts to keep short-term rentals reasonably regulated in Vermont.
VTSTRA is entirely funded by its community of members and business partners.
VTSTRA Membership is open to current and prospective STR owners and vacation rental managers who agree to meet VTSTRA Standards for responsible hosting. Members may participate in our association’s committee meetings and are granted voting rights on organization matters at scheduled member meetings. Members may be elected to serve on the Board of Directors.
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Whether through membership, business partnership, or donation, all financial contributions to VTSTRA are an investment in the future of Vermont’s short-term rental industry. Your contribution directly supports:
Lobbying and political strategy provided by MMR, LLC
Representation for short-term rental hosts when VT legislators, news media outlets, and local governments call for testimony, comments, or information
Education for Vermont STR hosts on standards, best practices, and legal requirements to demonstrate the credibility and professionalism of the industry
Education for the general public on STR policy developments around the state
Education for lawmakers and the general public on the economic and community benefits of having a healthy supply of diverse STRs in Vermont
Development of VTSTRA’s Local Chapter network of Vermont STR hosts and vacation rental operators to build consensus on policy issues at the municipal level
Take a look at our Annual Reports for a detailed accounting of our yearly expenses.
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Yes! Property Manager Memberships are available to vacation rental managers of all company sizes. See our Memberships page for more information.
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As a business owner, you can support our work by becoming a Business Partner! You can sign up online and your financial contribution will go directly and entirely to supporting the VTSTRA mission.
We’ll also make sure your business is promoted to our members and newsletter audience.
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In January 2024, Rep. Kate Logan introduced a bill (H.756) that proposes an owner-occupancy requirement for any homeowner wishing to short-term rent. The bill suggests that an owner would have to reside at their property for at least 120 days or 33% of the year to be allowed to short-term rent the remaining days.
As of February 22, 2024, this bill has not been considered by the House Committee on General & Housing, which would be the necessary first step in becoming law.
VTSTRA is monitoring this bill and will be quick to respond if it becomes a viable threat. Our members will receive announcements and updates as they become available.
If you are interested in voicing your opinion about this bill, please contact the bill’s sponsors.
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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 2021-2022 legislative session, H.200 was not picked up.
The most controversial component of this bill was the residency-requirement section in which the bill read, “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.“
VTSTRA strongly opposed H.200 and will continue to monitor upcoming legislative sessions for any re-introduction of bills of this nature.
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S.79 was a Vermont senate bill entitled, “An act related to improving rental housing and safety.” On July 2, 2021, the Vermont Legislature passed S.79, but the bill was vetoed by Governor Phil Scott. The intention of S.79 was 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 was 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.
In 2022, S.79 was dropped. And S.210 was passed and signed by the Governor, to support additional resources for complaint-driven state safety inspections and the development of new affordable housing units. S.210 did not include a rental registry component.
VTSTRA did not oppose the rental registry originally proposed in S.79 and S.210.
