Overview: Are Short-Term Rentals Allowed in Portland, Maine?

Yes, short-term rentals are allowed in Portland, Maine, but they are strictly regulated. Portland has implemented one of the most comprehensive regulatory frameworks for short-term rentals in Maine, with annual registration requirements, unit caps, occupancy limits, and building-specific restrictions. The city has progressively tightened regulations, most recently in August 2024 when the City Council reduced the cap on non-owner-occupied units from 400 to approximately 285 units (about 1.5% of Portland's long-term housing stock).

How to Start a Short-Term Rental Business in Portland, Maine

Step 1: Understand Eligibility and Limitations

Before proceeding, determine if your property qualifies under Portland's strict regulations:

• Owner-occupied properties (primary residences) have fewer restrictions but must comply with all registration and safety requirements
• Non-owner-occupied properties face a significant cap (285 units citywide) and are not accepting new applications until the number falls below this limit
• Existing operators (those already licensed before the August 2024 changes) can continue operations and renew licenses
• Property types are restricted to residential dwellings; commercial structures are prohibited

Step 2: Registration Process

Portland requires annual registration for all short-term rentals:

1. Download and complete the annual registration form from the City of Portland website
2. Submit the form to the Licensing and Registration Office in Room 307, 3rd floor, City Hall at 389 Congress St, Portland, ME 04101
3. Pay applicable fees based on your property type and ownership status
4. Schedule and pass required building and fire safety inspections
5. Renew annually by December 31st each year (new registrations must be submitted by January 1st)

Step 3: Compliance with Safety and Building Codes

• City inspection required for each short-term rental unit to ensure building code and fire safety compliance
• Unlimited inspection rights reserved by the city, including rental history and booking data requests
• 48-hour response requirement for any city requests, with penalties for non-compliance
• Fire inspection fee applies for new applications ($100 one-time fee)

Step 4: Operational Compliance

• Advertisement requirements: All listings must include the city-issued registration permit number
• Occupancy limits: Maximum 2 guests per bedroom plus 2 additional guests maximum per unit
• Rent control: Annual rate increases cannot exceed the inflation rate
• Property management: Owner responsibility for compliance even when using management services

Required Documents, Permits, Licenses, and Guidelines

Essential Documents

• Short-Term Rental Registration Form (annual renewal required)
• Property ownership documentation or lease agreement (for tenant-operated units)
• Building compliance certificates from city inspections
• Fire safety inspection report ($100 fee for new applications)

Required Permits and Licenses

• Portland Short-Term Rental Registration Certificate (display required in unit)
• Building and Fire Safety Inspection Approvals
• Business License (if applicable under other business operations)

Registration Categories and Fees

Based on the 2022 fee structure (subject to change):

• Owner-occupied units: Starting at $100 per year for first unit
• Tenant-occupied units: Similar fee structure to owner-occupied
• Non-owner-occupied mainland units: Significantly higher fees, ranging from $750 for first unit to $4,000 for fifth unit
• Island short-term rentals: Separate category with different fee structure

Additional Guidelines

• Maximum 5 short-term rentals per property owner
• Building-specific limits: 1-2 total units = 1 STR allowed; 10+ total units = 5 STRs allowed
• Maximum 5 living spaces that can be rented within any single owner-occupied property
• Primary residence requirement for owner-occupied registrations

Specific Regulations for Portland, Maine

Unit Caps and Restrictions

• Non-owner-occupied units: Capped at approximately 285 units citywide (1.5% of long-term housing stock)
• No new permits will be issued for non-owner-occupied units until the count falls below the cap
• Existing operators can continue operations and renew licenses
• Owner-occupied units: No specific cap, but must meet all safety and registration requirements

Occupancy and Operational Limits

• Guest limits: Maximum 2 guests per bedroom, plus 2 additional guests maximum per unit
• Rent control: Annual rate increases limited to inflation rate
• Inspection requirements: City reserves right to inspect at any time
• Data reporting: 48-hour response requirement for city information requests

Advertising and Listing Requirements

• Permit number display: All advertisements must include the city-issued registration number
• Accuracy requirements: $1,000 fine for providing false information on registration forms
• Platform compliance: Must comply with listing platform requirements (Airbnb, VRBO, etc.)

Historical Regulatory Changes

• 2018: Initial registration requirements implemented
• 2021: Rent control ordinance applied to short-term rentals
• 2024: Non-owner-occupied cap reduced from 400 to approximately 285 units

State-Level Regulations for Maine

Vacation (Casual) Rental Tax

• 9% tax rate on all short-term rental reservations
• Platform collection: Airbnb and similar platforms collect and remit this tax
• Exemptions:
  • Fewer than 15 nights rented per year (for single-unit owners)
  • Rentals of 28 days or more (if used as primary address or for education/employment)

State Definition

• Short-term rental: "A residential property that is rented for vacation, leisure or recreation purposes for a week or a month, and typically under 30 days but not for more than an entire summer or winter season, to a person who has a place of permanent residence to which the person intends to return."

Contact Information for Local Authority

Portland Short-Term Rental Licensing

Licensing and Registration Office

• Address: Room 307, 3rd floor, City Hall, 389 Congress St, Portland, ME 04101
• Phone: 207-756-8131
• Email: housingsafety@portlandmaine.gov
• Website: Portland Short-Term Rental Registration

Registration Resources

• Registration Form: Download here
• Direct application process: In-person submission required

Important Note

• No online renewal: Registration must be completed in person at City Hall
• Annual deadline: December 31st for renewals, January 1st for new registrations

Source Links

1. Portland Approves New Short-Term Rental Regulations (Maine Public, August 2024)
2. Portland STR Regulations (Airbnb Help Center)
3. Maine Short-Term Rental Regulations (Maine Legislature, September 2022)
4. Portland STR Registration Form
5. Maine STR Regulations Overview (Hostfully)
6. Portland Short-Term Rental Registration Page

Investment Advisory: Portland's short-term rental market is highly regulated with limited availability, particularly for non-owner-occupied properties. The 2024 cap reduction to 285 non-owner-occupied units means new investors in this category will likely face a significant waiting period. Existing licensed operators maintain their rights, but the regulatory environment continues to evolve toward greater restrictions.