How to Handle Illegal Short-Term Rentals in Vermont

🏘️ Introduction: Vermont's Evolving Landscape and the Rise of Short-Term Rental Disputes

Vermont, known for its picturesque landscapes and close-knit communities, is experiencing a surge in short-term rentals (STRs) like Airbnb and Vrbo. While these rentals can boost local economies and provide income for homeowners, they often lead to friction between neighbors, particularly when operating illegally. This article delves into the legal landscape surrounding STRs in Vermont, offering practical advice on navigating neighbor disputes arising from illegal operations.

📜 Understanding Vermont's Legal Framework for Short-Term Rentals

Vermont's regulation of STRs is a complex mix of state laws, municipal ordinances, and homeowner association (HOA) rules. Key aspects include:

• 🏡 State Statutes: Vermont doesn't have a single, comprehensive state law governing all STRs. However, several state laws impact their operation, including tax regulations, health and safety codes, and potentially zoning enabling statutes.
• 🏙️ Municipal Ordinances: The real power lies with Vermont's towns and cities. Many municipalities have adopted ordinances regulating STRs, addressing issues like:
  • Registration and permitting requirements.
  • Occupancy limits.
  • Parking restrictions.
  • Noise control.
  • Health and safety standards.
  • Zoning regulations – often the most critical.
• 🏘️ Homeowner Association (HOA) Rules: If you live in a community governed by an HOA, the association's covenants, conditions, and restrictions (CC&Rs) may prohibit or restrict STRs.

Checking Local Regulations: Your first step is to determine if the short-term rental next door is operating legally. Contact your town or city clerk's office. Ask about local ordinances related to short-term rentals, zoning restrictions, and any permitting requirements. Many towns have these documents readily available online. Don't assume a neighbor's STR is legal just because it's been operating for a while. Regulations may be new or enforcement may be lacking.

🚩 Identifying Illegal Short-Term Rental Activities

An STR might be considered illegal if it violates any of the applicable regulations mentioned above. Common violations include:

• 🚫 Operating Without a Permit: Many towns require STR operators to obtain a permit or license.
• 🗺️ Zoning Violations: Zoning regulations may prohibit STRs in certain residential zones or restrict their use to specific types of properties (e.g., owner-occupied residences).
• 🛏️ Exceeding Occupancy Limits: Local ordinances often limit the number of guests allowed in an STR.
• 🅿️ Parking Violations: STRs can exacerbate parking problems in residential areas, and ordinances may restrict the number of vehicles allowed per rental.
• 🔊 Noise Violations: Excessive noise from STR guests can disrupt the peace and quiet of the neighborhood.
• 🔥 Safety Hazards: Failure to comply with health and safety codes can create dangerous conditions for guests and neighbors.
• 🧾 Tax Evasion: STR operators are required to collect and remit Vermont's Rooms and Meals Tax, as well as local option taxes, if applicable.
• 📜 HOA Violations: Operating an STR in violation of HOA rules.

😠 Common Neighbor Disputes Arising from Illegal STRs

Illegal STRs can create a host of problems for neighbors, including:

• 🔊 Noise Disturbances: Parties, loud music, and general rowdiness can disrupt the peace and quiet of the neighborhood.
• 🅿️ Parking Congestion: STR guests often take up parking spaces, making it difficult for residents to find parking near their homes.
• 🗑️ Trash and Litter: Increased trash and litter can detract from the appearance of the neighborhood.
• 🚨 Security Concerns: The constant turnover of guests can create security concerns for neighbors.
• 📉 Diminished Property Values: The presence of STRs can negatively impact property values in residential areas.

⚖️ Strategies for Addressing Illegal Short-Term Rentals

Here's a step-by-step approach to address illegal STRs next door:

• 🗣️ Step 1: Communication (Attempt): As a first step, consider calmly and respectfully talking to your neighbor about the issues you're experiencing. They may not be fully aware of the impact their STR is having on you and other neighbors. Document the date, time, and details of your conversation. However, recognize that direct communication can sometimes escalate the situation, so assess the temperament of your neighbor before proceeding.
• 📝 Step 2: Documentation: Keep a detailed record of the disturbances caused by the STR. Include dates, times, descriptions of the noise, parking issues, or other problems, and any photos or videos you can safely obtain. This documentation will be crucial if you need to file a complaint.
• 📞 Step 3: Report to Local Authorities: File a complaint with the appropriate local authorities. This typically involves contacting your town or city clerk's office, zoning enforcement officer, or code enforcement department. Provide them with your documented evidence and clearly explain how the STR is violating local ordinances.
• ✉️ Step 4: Contact the Vermont Department of Taxes: If you suspect the STR operator is not paying the required Rooms and Meals Tax, you can file a complaint with the Vermont Department of Taxes.
• 🤝 Step 5: HOA Involvement (If Applicable): If you live in a community governed by an HOA, report the STR violation to the HOA board. The HOA has the authority to enforce its CC&Rs and can take action against homeowners who violate the rules.
• 🧑‍⚖️ Step 6: Legal Action (As a Last Resort): If all other efforts fail, you may need to consider legal action. You can consult with an attorney to discuss your options, which may include filing a lawsuit to enjoin the operation of the illegal STR or seeking damages for the harm it has caused.

🔍 Gathering Evidence: Strengthening Your Case

Strong evidence is crucial for successful enforcement. Consider gathering the following:

• 📅 Dates and Times: Record specific instances of noise, parking violations, or other disturbances, including dates, times, and durations.
• 📸 Photos and Videos: Capture visual evidence of the problems, such as excessive trash, parking congestion, or large gatherings. Ensure you are not trespassing and respect your neighbor’s privacy when taking photos or videos.
• ✍️ Witness Statements: Ask other neighbors who have been affected by the STR to provide written statements documenting their experiences.
• 💻 Online Listings: Take screenshots of the STR listing on websites like Airbnb or Vrbo. These listings can provide evidence of the property's availability, occupancy limits, and other relevant information.
• 📜 Local Ordinances: Obtain copies of the relevant local ordinances and regulations to demonstrate how the STR is in violation.

💰 Possible Compensation and Remedies

It's important to understand that obtaining direct financial compensation from a neighbor operating an illegal STR can be challenging. However, several remedies may be available:

• 🛑 Injunction: A court order prohibiting the operation of the illegal STR. This is often the primary goal in neighbor disputes.
• 📉 Damages for Nuisance: In some cases, you may be able to recover damages for the harm caused by the illegal STR, such as:
• Diminished property value (requires expert appraisal).
• Emotional distress (requires compelling evidence).
• Out-of-pocket expenses (e.g., soundproofing).
• ⚖️ Legal Fees: If you are successful in your lawsuit, you may be able to recover your attorney's fees and court costs, depending on the specific circumstances and the applicable law. However, Vermont generally follows the "American Rule," which states that each party is responsible for their own legal fees unless a statute or contract provides otherwise.

Focus on Abatement: In most cases, the primary focus should be on abating the nuisance – stopping the illegal STR operation – rather than seeking substantial monetary compensation. The cost and difficulty of proving damages often outweigh the potential financial recovery.

📢 The Role of Community Advocacy

Individual action is important, but collective action can be more effective. Consider the following:

• 🤝 Organize Neighbors: Talk to your neighbors and form a group to address the issue collectively. A united front can carry more weight with local authorities.
• 🗣️ Attend Town Meetings: Attend town meetings to voice your concerns and advocate for stronger STR regulations and enforcement.
• ✍️ Contact Elected Officials: Contact your local and state elected officials to express your concerns and urge them to take action.
• 📰 Raise Awareness: Write letters to the editor of your local newspaper or participate in community forums to raise awareness about the issue of illegal STRs.

🛡️ Protecting Your Property Value

Illegal STRs can negatively impact property values. Here are some steps you can take to protect your investment:

• 🏡 Maintain Your Property: Keep your property well-maintained to enhance its appeal.
• 🌱 Enhance Curb Appeal: Improve your landscaping and exterior appearance to make your property stand out.
• 🧾 Document Property Value: Obtain a professional appraisal of your property to establish its value before and after the STR began operating. This documentation can be helpful if you need to pursue legal action or sell your property.
• 📢 Disclose to Potential Buyers: If you decide to sell your property, be transparent with potential buyers about the presence of STRs in the neighborhood and any issues you have experienced.

📅 Future of STR Regulations in Vermont

The regulation of STRs in Vermont is an evolving landscape. As STRs become more prevalent, it is likely that state and local governments will continue to refine their regulations to address the challenges they pose. Stay informed about the latest developments in STR law and participate in the local discussions shaping these regulations. Support initiatives promoting responsible STR practices and advocate for regulations that protect the quality of life in your community.

🔑 Key Takeaways

• ✔️ Understand the local ordinances in your town regarding STRs.
• ✔️ Document all disturbances caused by the illegal STR.
• ✔️ Report violations to the appropriate local authorities and the Vermont Department of Taxes.
• ✔️ Consider legal action as a last resort.
• ✔️ Protect your property value by maintaining your home and documenting its value.
• ✔️ Engage with your community and advocate for responsible STR regulations.

Disclaimer: This article is for informational purposes only. You should consult with an attorney to discuss your specific situation.