When Geraldine Paquette and her husband bought their home on Chestnut Pond in Epsom, they envisioned it to be a quiet spot for retirement. The dirt road along the pond is home to a dozen other properties. Paquette has a dock on the water and a tomato plant in her backyard her husband will tend to, while she reads in her hammock.

It was peace and quiet – idealistic retiree life in a small town of almost 5,000 residents. That was, until her neighbor began to list his property for short-term rentals on sites like AirBnB and VRBO. Her other next-door neighbors have indicated that they are planning to do the same, she said.

Now the debate over town tourism versus resident rights will go to voters at Town Meeting, where a proposed amendment to the zoning ordinance would introduce restrictions to these short-term stays. Epsom is also not the first town to consider such measures, as short-term rentals are an increasing trend state-wide.

Rotating residents

In the first month or so of the next-door property functioning as a short-term rental, Paquette said she counted 59 guests come and go from the house.

With this slew of renters, came a laundry list of problems.

A group of tenants drained the well dry, leaving them with no water pressure. The problem sent them knocking on Paquette’s door to ask to use water from her house, she said.

The septic system also needed to be pumped out twice in nine days, due to overuse. Tenants fed the birds in the pond, which impacts the water quality – an annual out-of-pocket expense for residents, who pay to have it tested.

“Renters do not know how to maintain these critical systems, which can directly impact the environment,” she said.

Renters fished off the Paquettes’ dock and ignored the streetwide quiet hours, which begin at 10 p.m.

Now Paquette hopes the town will address these concerns with an amendment to the zoning ordinance that would create formal guidelines and regulations for short-term rentals.

“I am not asking for short-term rentals to be banned from coming to Epsom,” she said.

“I am asking my fellow residents to vote ‘yes’ on Amendment #6, which will put important safety regulations in place for these types of existing and future short-term rental properties.”

Amendment #6

The proposed zoning amendment Paquette is referring to would require property owners to apply for a “special exception” to utilize their home for short-term rentals.

Prior to applying, the owner would be required to arrange a safety inspection of the home with the fire department and file the inspection report as part of the application materials.

The inspection would ensure that there are adequate smoke detectors throughout the house, that all windows and doors follow the life safety code requirements and other safety measures are in place, such as fire extinguishers and proper sleeping areas.

In addition to the safety inspection, property owners would also have to ensure that there are adequate parking spaces and show documentation that septic tanks are pumped annually and trash removal is arranged for weekly.

If the property is designated as a seasonal dwelling, owners may only rent it for seven months a year.

Passing these restrictions through amendments is a common tactic seen across the state in recent years, as many municipalities do not have regulations in place for these rentals, according to Cordell Johnson, an attorney who represents multiple towns.

“Zoning ordinances historically haven’t really addressed that, because it hasn’t been a problem. Now it’s becoming a problem,” said Johnson. “Towns are trying to draw those lines and figure out where to draw the lines.”

What complicates matters, however, is finding a way to balance the longer-standing tradition of some residents who have rented out homes without issue, versus new property owners who are motivated by online platforms or see investment opportunities.

A state-wide issue

With the rise of online rental platforms like AirBnB and VRBO, the revolving door of guests through properties has left towns questioning how to accommodate the growing trend.

However, a necessary distinction to make, said Johnson, is between these online users and longstanding rental agreements that were previously in place in town.

The idea of renting a lakeside home to a family friend or relative for the weekend is nothing new, he said.

But when you introduce online rentals and new property owners who are solely motivated by the investment opportunity, the problem becomes more complex.

“The house down the street that’s owned by a general monolithic technology corporation and nobody knows the people involved and they’re renting it to vacationers every week or every weekend. And people are having parties and setting off fireworks and leaving trash all over the place,” he said. “That’s a problem.”

The challenge then is for towns to create zoning variations that accommodate all uses – municipalities do not want to upset longtime renters but want to enact regulations for new properties, Johnson said.

Introducing a special exception requirement, like Epsom, is fairly common, said Johnson.

But other towns have also introduced changes like requiring property owners to get a business license, limiting the number of days the home can be used for a short-term rental or restricting rentals to a specific zoning district.

In Henniker, where proximity to Pat’s Peak provides an attraction, rentals are permitted but differ among the town’s zoning districts. In the village proper, near New England College, home rental of up to two apartments is allowed, but including more units requires special permission.

Along Lake Winnipesaukee, the town of Meredith also regulates short-term rentals in a similar matter to what is proposed in Epsom, with applications for special exception requirements.

In the larger context of the current statewide housing crisis, these limitations also introduce guard rails against investors buying properties for the sole purpose of rentals, which depletes the already narrow housing stock.

“As everyone knows, we have a severe housing shortage. So if they’re being used as short-term rentals, and not available as potential property, that adds to that problem,” Johnson said.

“This is the bigger issue and continues to be the bigger issue.”

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