The bill H.242 aims to regulate short-term rentals in Vermont by introducing specific operational restrictions, including host-occupancy and numerical limits. It defines a short-term rental as a dwelling rented for fewer than 30 consecutive days and more than 14 days per calendar year, while also introducing the term "long-term resident" to refer to individuals whose primary residence is on the same premises as the rental. The bill establishes that a long-term resident must reside on the property for a short-term rental to be offered, and limits the number of short-term rentals to one per parcel.

Additionally, the bill allows municipalities to exempt short-term rentals from these operational restrictions through a majority vote, and it mandates that short-term rental owners register their properties annually with the Department of Housing and Community Development, providing detailed information about the rental. The bill also clarifies that municipalities with existing regulations as of July 1, 2025, will be considered to have opted out of the new restrictions unless they choose to rescind that exemption. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 18-4301