Keene Advances Plan to Set Rules for Short-Term Rentals

Under the draft ordinance, short-term rentals would be allowed in 15 zoning districts, including residential, downtown and commercial areas.

Keene is moving closer to putting short-term rentals under a formal zoning framework after a City Council public hearing Thursday night, with officials also reviewing a separate request to turn a School Street outbuilding into housing.

The rental proposal would create a city definition for short-term stays of fewer than 30 consecutive days and set basic standards for where those properties may operate. It would also require non-hosted rentals to provide a local point of contact so complaints or emergencies can be handled more quickly.

Community Development Senior Planner Mari Brunner told the council the update is meant to fill a gap left after changes to the state’s definition of family altered how some rentals could be treated under Keene’s existing residential rules. City staff said the new approach treats short-term rentals as a separate land use.

Officials have identified about 80 active short-term rentals in Keene over the past year, a figure they said amounts to less than 1% of the city’s housing stock. Staff have recommended allowing the use to continue while adding modest regulations and watching the market for any future need to tighten oversight.

Under the draft ordinance, short-term rentals would be allowed in 15 zoning districts, including residential, downtown and commercial areas. The proposal also separates hosted properties, where the owner or lessee lives on site as a primary residence, from non-hosted properties, where that is not the case.

In residential neighborhoods, owners would have to preserve the home and lot’s residential character. Non-hosted rentals would need to list contact information for an owner or manager who can respond to issues, and that person would have to be able to reach the property within an hour in an emergency.

The city said it has seen relatively few complaints tied to short-term rentals compared with long-term rental housing. Existing complaint and enforcement tools would still apply to concerns such as parking and noise. The proposal does not create a citywide license or registration system.

Public response gathered earlier this year through a FlashVote survey showed divided views. Some residents said short-term rentals could put pressure on long-term housing and change neighborhood conditions, while others pointed to tourism, visitor spending and added lodging choices as benefits. More than 100 respondents supported allowing the rentals if nuisance problems were addressed and current rules were enforced, and there was also strong support for requiring local contact information at non-hosted properties.

The city will keep tracking short-term rental activity as the market changes. Written comments on the ordinance are being accepted until 1 p.m. Tuesday, Nov. 10, and the matter is set to return to the City Council’s Planning, Licenses and Development Committee on Nov. 12. The draft is available at the City Clerk’s Office at 3 Washington St. during regular business hours.

Thursday’s meeting also included a hearing on a Residential Property Revitalization Zone application for 128-130 School St. The request would allow an underused barn or garage on the property to be converted into a one-bedroom apartment of about 686 square feet, bringing the site to three residential units without building a new main structure.

City staff said the project satisfies several program requirements, including the age of the property, its connection to municipal water and sewer, and an investment above the $50,000 minimum. Staff also described the added housing as a public benefit, saying the reuse of an existing structure fits the city’s comprehensive master plan.

That application is scheduled to go before the Finance, Organization and Personnel Committee on Nov. 12, where members will consider eligibility, public benefit and the length of any tax relief. Written comments are also due by Nov. 10.