Frequently Asked Questions
What is VTSTRA?
The Vermont Short Term Rental Alliance (VTSTRA) – founded in February 2021 as a non-profit organization – is a volunteer-run business league advocating for the legal protection of the short-term rental (STR) industry to advance the interests of STR industry stakeholders.
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.
Learn more about who we are by reading testimonials from our supporters.
Join our community by adding your name to our list of supporters.
When I donate to VTSTRA, how is my donation used?
VTSTRA is 100% volunteer-run. That means 100% of your donation goes to supporting the work we do, which includes:
Hiring MMR, LLC as VTSTRA’s political strategy advisor and statehouse lobbyist
Creating and sharing resources for hosts that support STR businesses and connect hosts with relevant services and products
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 accounts, communication services, and nonprofit corporation status
Writing and testifying to legislators on behalf of STR owners and operators
Developing and purchasing advertisements and marketing materials that expand our support network, educate the public, and advocate to protect STRs in Vermont
Keeping you informed through regular newsletter updates on issues related to STRs in Vermont
Hosting regular member meetings and annual events
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. Please contact your VTSTRA Chapter Leader, or local Town Hall/Zoning Administrator to find out if municipal regulations exist in your area.
Does my short-term rental need to be inspected before I can operate?
No, but 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 my short-term rental business with the Vermont Department of Taxes to pay Meals & Rooms Tax? If so, how?
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 May 17th, 2021, amended drafts of S.79 have been passed by the Vermont House Committee on General, Housing, and Military Affairs and the House Ways & Means Committee. S.79 has not yet been sent to the House floor for a vote.
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.
As of May 17th, 2021, H.200 has 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.
