Keene Council Set for Oct. 15 Hearing on Short-Term Rental Proposal

Residents may review the full proposal at the City Clerk’s Office, 3 Washington St., during normal business hours.

The Keene City Council is scheduled to take public comment Thursday, Oct. 15, on a proposed update to the city’s Land Development Code that would formally define short-term rentals and set limits on where they are allowed.

The measure, advanced by the Community Development Department, is designed to give the city a clearer framework for rentals offered for less than 30 consecutive days. It would also lay out standards for property appearance in residential areas and require a local point of contact for certain listings.

City planners have said the proposal is meant to clarify how short-term rentals fit within existing zoning rules rather than create a new ban. Officials noted during earlier reviews that many such units have been operating under the city’s prior approach, but changes in state law and the lack of a specific local definition made an update necessary.

If adopted, the ordinance would permit short-term rentals in 15 zoning districts, covering places such as residential neighborhoods, downtown, commercial areas and agricultural land. The districts named in the draft include Rural, Residential Preservation, Low Density, Low Density 1, Medium Density, High Density, High Density 1, Downtown Core, Downtown Growth, Downtown Transition, Commerce, Neighborhood Business, Business Growth and Reuse, Office and Agriculture.

The plan distinguishes between hosted rentals, where the owner or tenant lives in the home as a primary residence, and non-hosted rentals, where that is not the case. In residential zones, the draft says properties used as short-term rentals would need to keep the look of a home and lot consistent with the surrounding neighborhood. Non-hosted units would also have to display contact information for an owner or manager able to handle complaints or other concerns.

Discussion over the issue has stretched across several months. The City Council sent the proposal to a joint workshop with the Planning Board and the Planning, Licenses and Development Committee in May, and the item returned for additional review in July and again on Sept. 14.

At an earlier workshop, Senior Planner Mari Brunner said Keene had not previously adopted a dedicated short-term rental definition. Under the city’s former family standard, four or fewer unrelated people could live together in a dwelling for any length of time, which meant many short-term rentals were treated as a permitted residential use. State law changes later altered that framework, prompting the city to address stays under 30 days separately.

City staff have also pointed to a 2023 study showing short-term rentals made up only a small portion of Keene’s housing supply. An informal check of listings on platforms such as Airbnb and VRBO suggested the number had stayed fairly steady since then, though the city does not use a paid tracking service. Staff also reported relatively few complaints tied to short-term rentals compared with traditional long-term rentals.

Public reaction has been mixed. A FlashVote survey conducted earlier this year drew 301 responses. Results previously reported by MyKeeneNow in May showed concern about housing affordability and the possibility that long-term rental units could be lost, while other respondents highlighted tourism, visitor spending and more flexible lodging options.

More than 100 participants said they supported short-term rentals so long as nuisance problems were addressed and existing rules were enforced. Others asked for stricter controls, including licensing, limits on investment properties or stronger local contact requirements. Support for posting contact details was especially strong, with 151 respondents backing that idea and eight opposing it.

The ordinance does not currently outline a citywide registration or licensing system. Instead, it would rely on the city’s regular complaint handling and enforcement process to address issues such as noise, parking or other neighborhood disputes. Staff have said further restrictions could be considered later if the number of rentals rises or becomes concentrated in certain areas.

Residents may review the full proposal at the City Clerk’s Office, 3 Washington St., during normal business hours. The public hearing notice is also available for inspection.