Keene weighs new rules for short-term rentals as councilors raise housing concerns

The discussion grew out of an unrelated land-use code update tied to state law.

Keene officials are considering whether to create a local framework for short-term rentals, a move that could set rules for properties such as Airbnbs and VRBOs while allowing them in many residential areas without a special permit.

The discussion grew out of an unrelated land-use code update tied to state law, which changed how the city defines family from a relationship-based standard to a group living in the same dwelling unit for more than 30 days. That revision prompted staff to draft a separate definition for short-term rentals, and city leaders have since been debating how far the regulations should go.

Under the proposal, property owners could rent a dwelling for fewer than 30 consecutive days as of right in all residential zones and in districts where bed-and-breakfasts are permitted. The draft also says the structure must keep a residential look, and owners who do not live at the property full time would have to display contact information.

After city staff brought the ordinance forward in May, the City Council referred it to the Planning, Licenses and Development Committee and the planning board. Following Monday’s joint meeting, both groups agreed to keep the matter under review for another discussion later.

Much of the unease centered on non-hosted rentals, meaning units run by owners who do not occupy them as their primary home. Kenneth Kost, a planning board member, argued that those uses should be treated separately from hosted rentals because they do not fit with the housing goals in the Comprehensive Master Plan. He said widespread investor ownership could pull homes out of the local market.

Senior Planner Mari Brunner said a stricter system would likely require more staff or an outside contractor to monitor properties and enforce the rules, something the city is not currently equipped to fund. She added that any formal licensing program would also need extra staffing.

Councilor Ed Haas, who sits on the PLD committee, said short-term rentals can work against strong neighborhoods, though he also suggested that establishing definitions now would give the city a foundation for tighter controls later if needed.

Planning board member Andrew Madison said local rules should favor owners with a real stake in Keene rather than those treating homes purely as income generators.

A Keene Airbnb owner who attended the meeting said a ban or heavy limits on non-hosted rentals would effectively wipe short-term rentals out of the market, since many travelers choose entire homes rather than spare rooms.

City staff say there are about 50 short-term rental units operating in Keene, and complaints have been limited since 2023. The staff report supporting the proposal also says the ordinance could help residents build equity and remain in their homes as taxes and housing costs rise, especially for people on fixed incomes.

The issue is drawing attention well beyond Keene. Across the country, cities have faced mounting pushback over short-term rentals because they can reduce the supply of long-term housing. New Hampshire has no statewide short-term rental law beyond the Meals and Rooms Tax, so municipalities have been setting their own rules. Hampton and Portsmouth, for example, require city permits and other restrictions, according to Comparent, which tracks short-term rental regulations nationwide.

If Keene adopts the ordinance as written, owners would likely still need to submit an application and sign an affidavit agreeing to follow the use standards. City officials said that document could be used later if a complaint is filed.