NORWICH — Homeowners offering short-term rentals in Norwich must now register with the town government and pay a $250 fee, based on interim bylaws adopted by the town selectboard.
“I think there are some people, there are some houses in town that that’s their business model, and you’re going to have to go and tell them that their business model is not viable anymore,” Selectboard Chair Kimo Griggs said at Wednesday’s meeting.
The selectboard voted unanimously to approve the short-term rental bylaws for two years, effective immediately.
Planning commission chair Jaan Laaspere said there are three ways to come into compliance: stop renting; register with the town and rent out the space for only a portion of the year so it passes as owner-occupied; or rent for a longer period, by month or year.
“It doesn’t take away their ability to make money on the property even if they don’t live there at all,” Laaspere said. “They would just have to switch to a monthly rent.”
The town planning commission said the regulations will protect the community against “adverse secondary impacts” from nonconforming rentals violating health and safety standards.
Vermont’s Department of Taxes defines a short-term rental as a dwelling room or unit rented out for fewer than 30 consecutive days and for more than 14 days per calendar year.
What’s not regulated is renting month to month or renting out a home for two weeks out of the year. “But if it’s on the 15th day, then you’re within the definition of a short-term rental,” said Steven True, the Norwich planning director and zoning administrator.
Norwich isn’t the first Vermont town in the Upper Valley to regulate short-term rentals. Others include Hartford, Woodstock and West Windsor. On the New Hampshire side, Hanover, Lebanon, Sunapee and Enfield also have short-term rental regulations.
With no previous mention of short-term rentals as an authorized use under the planning code, it was technically prohibited in Norwich. The new bylaws attempt to clarify what can be done to provide the service while complying with the town rules, Laaspere said.
Airbnb, which provides travel listings online, currently showcases several properties in Norwich available for visitors vacationing in the Upper Valley.
The selectboard held a public hearing on this matter a few months back, but feedback on the first proposal resulted in significant changes, which warranted a second hearing. Since then, the planning department has added fire safety language, defined owner-occupancy, and determined whether preexisting short-term rentals are grandfathered in.
The new ordinance is set to expire in July 2028. By that time, the town will revisit it and implement a replacement ordinance.
“The choice to make an interim, which means two years, was to be proactive, but not assume we knew everything for a long-term solution,” Laaspere said.
The department decided it is not immune to the ordinance, considering that short-term rentals were technically never allowed. Norwich zoning regulations are set up to list allowed uses in each district. While bed-and-breakfasts and inns were on the list, short-term rentals were not, due to being a more modern trend, True said.
The application process gives the zoning administrator 30 days to consider approving a permit, which expires on Dec. 31 of the year it’s granted.
The lot must be owner-occupied — that is, the sole primary residence for the owner, declared for tax purposes annually on April 1.
The zoning administrator may inspect the property before issuing a permit or anytime after. The owner must provide contact information, a property map and a signed affidavit certifying building details, number of parking spaces, and health and fire safety compliance.
One standard for short-term rentals is to allow no more than two people per sleeping room, with at least 70 square feet of space in a single-person bedroom. There must be enough off-street parking to accommodate the maximum number of guests, and a visible house number and weekly garbage removal are required. Advertisements must also conform with regulations.
A permit request may be denied if it’s incomplete or if the town had revoked a previous permit, True said.
The enforcement process would begin when True hears reports of a possible violation from neighbors, he said. Then, he would investigate, and have an informal conversation with the owners. “It’s all done in steps. And the informal portion is important,” True said of its effectiveness.
If the owner does not comply, a formal notice of violation would be issued. Across the state, there is commonly a $100 charge per day until the violation is cured, True said. It’s up to the selectboard to enforce fines.
Application fees go into the town’s general fund, Treasurer Cheryl Lindberg said at the meeting.
