Overview: STR Status in New London

Short-term rentals are explicitly allowed in New London, CT. According to the Southeastern Connecticut Council of Governments survey, New London has taken a permissive approach to short-term rentals, allowing them to operate without specific municipal regulations. However, operators must still comply with all applicable state laws, including Connecticut's 15% room occupancy tax requirements.

Starting a Short-Term Rental Business in New London

Business Planning Considerations

1. Property Selection: Choose a property that complies with residential zoning requirements
2. Insurance Assessment: Ensure adequate liability and property coverage for commercial rental activity
3. Market Analysis: Research local demand, seasonal patterns, and pricing strategies
4. Financial Planning: Account for the 15% room occupancy tax and potential future municipal fees

Setup Process

1. Platform Registration: Register with Airbnb, VRBO, or other short-term rental platforms
2. Tax Registration: Obtain necessary state tax accounts for room occupancy tax collection and remittance
3. Property Preparation: Ensure the property meets basic safety and habitability standards
4. Marketing Development: Create listings with accurate property descriptions and local attractions

Required Documents, Permits, and Licenses

State-Level Requirements

Room Occupancy Tax Registration:

• Short-term rental facilitators (Airbnb, VRBO) are required to collect and remit the 15% room occupancy tax
• Registration with the Connecticut Department of Revenue Services
• This tax was established under PA 19-117 in 2019

No Statewide STR Licensure: Connecticut currently has no statewide licensing requirement for short-term rental properties.

Municipal Requirements

Current Status: New London does not currently require any specific permits, licenses, or registrations for short-term rental properties at the municipal level. The city allows STRs but has not enacted specific regulatory requirements.

Insurance Considerations: While not mandated by current regulations, investors should maintain comprehensive liability insurance appropriate for commercial rental activity.

Specific Regulations: City, County, and State

New London Municipal Regulations

Current Position: New London allows short-term rentals without specific municipal oversight or restrictions. However, this may change as the city monitors the impact of STRs on housing availability and neighborhood character.

Potential Future Regulations: Based on regional trends, municipalities may consider regulations in areas such as:

• Occupancy limits
• Parking requirements
• Noise restrictions
• Registration requirements
• Safety inspections

New London County Context

Southeastern Connecticut Council of Governments (SCCOG) Framework: New London operates within a regional context where municipalities are taking varying approaches to STR regulation:

• Some communities (like Bozrah) have enacted town ordinances
• Others (like East Lyme) are studying potential regulations
• Still others (like Ledyard) have had zoning regulations that were later rescinded

Regional Enforcement Challenges: Municipal enforcement typically relies on zoning enforcement officers who work Monday-Friday daytime hours, potentially limiting response to weekend noise and parking complaints.

Connecticut State Regulations

Room Occupancy Tax:

• 15% tax rate applied to short-term rentals
• Facilitators (platforms) collect and remit taxes
• Applies to rentals of 30 days or less

Legislative Landscape: The state has not passed comprehensive STR legislation, though bills have been introduced to:

• Allow municipalities to impose additional occupancy taxes
• Enable municipal licensing and regulation programs
• Provide state-level definitions and oversight

Legal Precedent: The Connecticut Appellate Court case Wihbey v. Zoning Board of Appeals established that STRs may be protected as nonconforming uses when they existed before zoning changes explicitly prohibiting them.

Contact Information

New London Municipal Authorities

Planning and Development Department:

• Phone: (860) 447-5210
• Email: planning@newlondonct.org
• Address: 181 state street, new london, ct 06320

Building Department:

• Phone: (860) 447-5227
• Address: 181 State Street, New London, CT 06320

State of Connecticut

Department of Revenue Services:

• Phone: (860) 297-5969
• Website: portal.ct.gov/drs
• For room occupancy tax questions and registration

Regional Authority

Southeastern Connecticut Council of Governments (SCCOG):

• Phone: (860) 889-2324
• Email: info@secogct.org
• Website: secogct.gov

Source Pages and References

1. Southeastern Connecticut Council of Governments STR Report (October 2023): secogct.gov/wp-content/uploads/2023/10/ShortTermRentalRegulationinConnecticutOctober-2023.pdf

2. Southeastern Connecticut Council of Governments STR Report (September 2019): secogct.gov/wp-content/uploads/2019/09/STR_wp_sccog_0919.pdf

3. CT Insider STR Survey Article (April 2025): www.ctinsider.com/news/article/ct-short-term-rentals-regulations-airbnb-vrbo-20229937.php

Important Considerations for Investors

Market Opportunity

New London's permissive stance presents an opportunity for STR investors, but operators should remain attentive to potential regulatory developments. The city's coastal location and tourism potential make it attractive for vacation rental activity.

Risk Management

Given the regulatory uncertainty, investors should:

• Monitor municipal meeting minutes and planning commission agendas
• Maintain flexible business models that can adapt to new requirements
• Consider the potential for future registration or licensing fees
• Stay informed about housing affordability concerns that might drive regulatory changes

Professional Recommendation

Consult with local legal counsel familiar with Connecticut land use law before investing, particularly given the evolving legal landscape around short-term rentals in the state. Consider attending local planning and zoning meetings to stay informed about potential regulatory developments.

This guide reflects current conditions as of the date of the source materials. Given the rapidly evolving nature of short-term rental regulation in Connecticut, investors should verify current requirements with local authorities before making investment decisions.