Overview

Short-term rentals are explicitly allowed in Kittery, Maine, but they are subject to comprehensive regulation under the town's licensing ordinance. Kittery has implemented a tiered regulatory framework that distinguishes between owner-occupied properties, seasonal dwellings, and non-owner occupied investment properties. The town council has made recent amendments to their STR regulations, eliminating caps on owner-occupied and seasonal units while maintaining limits on non-owner occupied properties.

How to Start a Short-Term Rental Business in Kittery

Starting an STR business in Kittery requires following a structured licensing process:

1. Determine your property category: Kittery distinguishes between three types of STR properties:

   • Owner-occupied units
   • Seasonal dwelling units (not occupied more than 180 days annually, meeting Maine Uniform Building and Energy Code requirements)
   • Non-owner occupied units

2. Apply for the appropriate license: Submit an application to the Town of Kittery with required documentation

3. Pay annual licensing fees: Fees vary by property type (see fee structure below)

4. Maintain compliance: Operate according to all town regulations and address any violations promptly

Required Documents, Permits, Licenses, and Guidelines

Licenses

• Short-Term Rental License (required for all STR operations)
• Annual renewal required

Documentation Requirements

The town requires STR operators to provide proper documentation, though specific application requirements are not detailed in the available sources. Operators should contact the town for the complete application package.

Compliance Guidelines

• Properties must comply with the Maine Uniform Building and Energy Code for seasonal units
• Operations must respect residential neighborhoods
• Units must not create unreasonable or unsafe intrusions or nuisances

Specific Regulations for Short-Term Rentals

Licensing Fees (Effective as of 2023 amendments)

• Owner-occupied units: $100 annual license fee
• Seasonal dwelling units: $100 annual license fee
• Non-owner occupied units: $750 annual license fee

Cap Restrictions

No Cap Properties:

• Owner-occupied short-term rental units
• Seasonal dwelling units (as defined above)

Capped Properties:

• Non-owner occupied and non-seasonal rental units
• Baseline number: Equal to total valid non-owner occupied licenses issued as of January 24, 2023, including valid applications on the waiting list as of that date
• Growth limitation: Number of licenses issued each subsequent year cannot exceed the total valid non-owner occupied licenses as of December 31 of the preceding year, plus 10% (rounded down)

License Suspension and Revocation

The town's code enforcement officer can suspend or revoke a short-term rental license if the property accumulates three or more criminal or ordinance violations within one year.

Regulatory Intent

The regulations are designed to:

• Manage the challenge of long-term rental units being diverted to short-term rental enterprises
• Ensure home-based short-term rental businesses operate respectfully within neighborhoods
• Protect quality of life in residential areas from inappropriate intrusions and nuisances

Compliance Monitoring

• Town Manager is required to brief the Town Council on ordinance status and operator compliance
• Annual reviews assess whether license allocation should be adjusted

Historical Context

• Ordinance implemented in mid-2020
• Initial license allocation based on 2020 count (89 units)
• License allocation grew to 104 as of August 31, 2023
• As of that date, 102 licenses were issued with 45 applicants on the waiting list

Contact Information

Primary Contacts

• Town Manager: Kendra Amaral
• Code Enforcement Officer: Responsible for license enforcement and potential suspension/revocation
• Town Council: Final authority on ordinance amendments and policy decisions

Town Government

• Mailing Address: Town of Kittery (specific address not provided in sources)
• Phone: Not provided in sources
• Email: Not provided in sources
• Website: Not provided in sources

Note: Specific contact details should be obtained directly from the Town of Kittery government website or by contacting the town office.

Important Considerations for STR Investors

1. Investment Strategy: Consider focusing on owner-occupied or seasonal properties if seeking to avoid caps, as these categories have unlimited licensing available

2. Financial Planning: Budget for significantly higher licensing fees for non-owner occupied properties ($750 vs. $100 annually)

3. Compliance Monitoring: Implement robust property management to avoid accumulating violations that could result in license suspension or revocation

4. Market Competition: Be aware that non-owner occupied properties face licensing caps that limit market entry

5. Regulatory Evolution: Stay informed about potential future ordinance changes, as the town conducts annual reviews of the licensing framework

Source Pages

1. Primary News Source: Short-term rentals in Kittery: What to know as town changes rules and fees

2. Town Code Reference: Kittery Town Code - Short-Term Rental Regulations (referenced but not directly accessed)

3. Original Ordinance Implementation (2020): Kittery to track, regulate short-term rentals (referenced in source article)

Disclaimer: This guide is based on publicly available information as of the sources' publication dates. STR regulations can change frequently. Investors should verify current requirements and contact the Town of Kittery directly for the most up-to-date information before making investment decisions.