The Hanover Planning Board is reviewing a proposed bylaw to regulate short-term rentals (STRs), aiming to address concerns around housing affordability, availability, and neighborhood character. The bylaw, introduced at a public hearing on April 16, outlines new requirements for property owners listing homes on platforms like Airbnb and Vrbo. If approved, the measure would be brought before voters at the annual Town Meeting in May 2024.
The bylaw would require owners operating short-term rentals for more than 120 days per year to obtain a special use permit from the Zoning Board of Adjustment. Rentals for fewer than 120 days would be allowed by right, provided owners register with the town annually. The bylaw defines three types of STRs: owner-occupied, partially owner-occupied, and non-owner-occupied, each with distinct regulations.
Planning Board Chair Judith Esmay said the goal is to balance property owners’ ability to rent their homes with broader housing needs. “We want to ensure these rentals are not removing housing that could otherwise be used by local families,” she said at the hearing, noting the town’s recent challenges in maintaining affordable housing for year-round residents.
The STR bylaw has divided residents. Some voiced support for maintaining neighborhood stability and limiting investor-owned properties used solely for short-term stays. Others, including homeowners who rely on rental income, criticized the plan as overly restrictive. Several residents requested clarification on how the town would enforce the 120-day limit or track individual rental listings.
David Webb, a Hanover resident and former Selectboard member, expressed concerns about regulation overreach. “This feels like a solution in search of a problem,” he said, urging the board to consider alternative approaches that would not burden property owners.
Similar short-term rental regulations have been introduced in other New England communities in response to pressure on housing markets. Both Woodstock, Vermont and Portland, Maine have enacted ordinances requiring annual registration, limiting the number of non-owner-occupied rentals, and establishing penalties for non-compliance.
Hanover’s proposal also includes mechanisms for enforcing compliance, such as registration requirements, local contact information for emergencies, and a cap on the number of guests per unit. Violations could result in fines or suspension of rental privileges, although town officials acknowledged that enforcement details are still being developed.
Hanover Planning Director Rob Houseman emphasized that the bylaw aims to preserve residential neighborhoods while recognizing the role short-term rentals play in the local economy. He said the conversation is ongoing and that public input ahead of Town Meeting will inform any revisions to the draft language.
The proposed bylaw is part of a broader conversation about housing challenges in the Upper Valley. With rising rents, limited inventory, and growing demand, local officials are examining policies to protect long-term housing stock. The town has already taken steps to address housing issues, recently passing land use reform to support housing and climate goals. Whether the STR regulations will gain enough support to pass at Town Meeting remains uncertain.
The Planning Board will hold additional sessions in the coming weeks to refine the bylaw and respond to public feedback. Residents are encouraged to review the draft language and attend meetings to engage in the process.
As Hanover weighs its approach, the outcome of this proposal may reflect how Upper Valley towns balance tourism, housing access, and community preservation in the years ahead.
