Overview: Are Short-Term Rentals Allowed in Conway, NH?

Yes, short-term rentals are explicitly allowed in Conway, NH. This was confirmed by the New Hampshire Supreme Court in the case of Town of Conway v. Kudrick (2022-0098, May 2, 2023), which ruled that under Conway's zoning ordinance definitions, short-term rentals are permitted in residential districts. The court determined that it is the occupants' use of the property, not the duration of stay, that determines whether the property is being used for residential purposes.

How to Start a Short-Term Rental Business in Conway

Starting a short-term rental business in Conway requires a systematic approach to ensure full compliance with both state and local regulations. The following step-by-step process will guide you through the necessary requirements:

Phase 1: Initial Setup and Planning

1. Property Research and Zoning Verification

• Confirm that STRs are permitted in your property's specific zoning district
• Review Conway's zoning ordinance to ensure your property location allows for short-term rental operations
• Contact the Conway Planning Department to verify any recent changes to zoning regulations

2. State-Level Registration Requirements

• Register with the New Hampshire Department of Revenue Administration (DRA) to obtain a Meals and Rooms (M&R) Tax License Number
• Complete Form CD-3, "Application for Meals & Rentals Tax Operator's License"
• The 8.5% M&R Tax applies to all STRs in New Hampshire, regardless of property count or rental frequency

3. Local Permitting Requirements

• Apply for a Rental Property Permit under Conway's Chapter 72 regulations
• Submit completed application to the Designated Official (as appointed by the Selectboard)
• Note that Conway requires permits for both owner-occupied and non-owner-occupied STRs

Phase 2: Compliance and Safety Preparation

4. Safety Inspection Preparation

• Ensure property meets all safety requirements outlined in Conway's STR safety checklist
• Verify smoke and carbon monoxide detector placement and functionality
• Confirm adequate egress routes from all sleeping areas
• Address any outstanding housing or life safety code violations

5. Documentation Assembly

• Prepare copies of all required state permits and licenses
• Gather septic system inspection documentation (if system is over 10 years old)
• Compile proof of compliance with building, fire, and life safety codes
• Prepare landlord agent form if required by RSA 540:1-b

Phase 3: Operational Launch

6. Final Inspections and Permit Issuance

• Schedule and complete any required inspections with the local fire department
• Address any inspection findings within specified timeframes
• Pay all applicable application and inspection fees

7. Operational Setup

• Implement systems for collecting and remitting the 8.5% M&R Tax
• Establish guest communication protocols regarding local rules and regulations
• Prepare for ongoing compliance monitoring and renewal requirements

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

New Hampshire Meals and Rooms Tax License (M&R License)

• Authority: RSA 78-A
• Application: Form CD-3 through NH DRA website
• Renewal: Annual
• Tax Rate: 8.5% of gross rental receipts
• Collection: Required for stays under 185 consecutive days to the same person
• Filing: Monthly returns due by 15th of following month

Local Requirements

Conway Rental Property Permit

• Authority: Conway Town Code Chapter 72, RSA 41:11-C
• Application: Required for each rental property owned in Conway
• Validity: Three years for properties with inspection, one year for properties using self-affidavit system
• Inspection: Required unless property had Certificate of Occupancy within 180 days prior to application
• Fees: Application fee, late fee (if renewal delayed), reinspection fee

Required Documentation for Permit Application

• Completed permit application form with property description and intended scope of rentals
• State permits and licenses (including M&R License if applicable)
• Verification of septic system compliance (for systems over 10 years old)
• Proof of compliance with building, fire, and life safety codes
• Landlord agent form if required by RSA 540:1-b
• Certificate of Occupancy (if available)

Safety and Compliance Requirements

Mandatory Safety Equipment and Features

• Visible street address (minimum 4" tall numbers with good contrast)
• Interconnected smoke alarms with battery backup in every sleeping area and level
• Carbon monoxide detectors on each level
• Two means of egress from every bedroom (door and window, maximum 20 feet above ground)
• Properly maintained fire extinguisher
• Electrical system compliance with NFPA 70
• Gas heating systems serviced within past 12 months
• Wood stoves and chimneys meeting NFPA 211 standards

Additional Operational Requirements

• Meals and Rentals License (if required) displayed at property
• Septic system inspection (required if system is over 10 years old)
• Compliance with minimum housing maintenance standards (RSA 48-A)
• Property must not constitute a nuisance to neighbors

Specific Regulations for Short-Term Rentals in Conway

Zoning and Use Regulations

Current Zoning Status

• STRs are explicitly allowed in Conway's residential districts according to NH Supreme Court ruling
• No owner-occupancy requirement is currently mandated (though this has been proposed and withdrawn)
• Non-owner-occupied STRs are permitted in all residential and commercial districts

Regulatory Environment Status

• Conway planners recently voted to walk back proposed owner-occupancy requirements for STRs
• The Planning Board removed the owner-occupancy proposal to avoid potential litigation
• Current regulations maintain the status quo allowing both owner-occupied and non-owner-occupied STRs

Operational Regulations

Inspection Requirements

• Initial Inspection: Required for all new rental properties or properties changing ownership/use
• Renewal Inspection: Required every three years for properties passing initial inspection
• Self-Affidavit Option: Available for properties lawfully used as rentals prior to Chapter 72 effective date
• Inspector: Conducted by local fire department or qualified entity appointed by the Town
• Timeline: Inspections must be completed within two months of application

Occupancy and Capacity

• Properties cannot advertise, rent, or intend to rent to more occupants than approved by the Certificate of Occupancy
• Increased occupancy may require new Certificate of Occupancy due to increased intensity of use
• Property owners may be required to submit building permits to verify code compliance for any construction

Permit Duration and Renewal

• Three-Year Permits: Issued following successful inspection
• Seven-Year Renewal: Available for properties with fully compliant inspection history (no violations)
• Self-Affidavit Permits: Expire on December 31 of the year issued
• Renewal Window: Applications can be submitted 2-4 months before expiration
• Late Fee: Applied for renewals received within 60 days of expiration

Enforcement and Penalties

Enforcement Process

1. Investigation: Upon receipt of violation information, the Designated Official conducts prompt investigation
2. Warning Options: Verbal warning, written warning, or Notice of Violation (at official's discretion)
3. Notice of Violation: Includes violation description, cease order, and fine identification
4. Appeal Process: Property owners may appeal to Selectboard within 14 days

Penalty Structure

• Maximum Fine: $1,000 per offense (Selectboard sets actual amounts)
• Continuing Violations: Each day after notice constitutes separate finable offense
• Compliance Deadline: 90 days to correct violations (unless otherwise specified)
• Reinspection Required: Must be scheduled within three months of corrective action

State-Level Penalties

• M&R Tax Non-Compliance: Up to 10% penalty plus interest on unpaid taxes
• Willful Non-Compliance: Potential criminal charges
• Municipal Violations: Additional fines, cease and desist orders, permit revocation

Contact Information for Local Authority in Charge of STRs

Primary Contacts

Conway Town Hall

• Address: 23 Washington Street, Conway, NH 03818
• Phone: (603) 447-3811
• Website: conwaynh.gov
• Email: Contact through town website

Conway Planning Department

• Phone: (603) 447-3811
• Email: Available through town website
• Documents: Rental Certificate Program information available at conwaynh.gov/documents

Conway Code Enforcement/Designated Official

• Phone: (603) 447-3811
• Email: Available through town website
• Responsibility: Administers and enforces Chapter 72 Housing & Life Safety Standards

New Hampshire Department of Revenue Administration (DRA)

• Phone: (603) 230-5003
• Website: www.revenue.nh.gov
• Email: Use contact form on DRA website
• Responsibility: M&R Tax registration and compliance

Emergency and Utility Contacts

Conway Fire Department

• Emergency: 911
• Non-Emergency: (603) 447-2633
• Responsibility: Conducts rental property safety inspections

Conway Police Department

• Emergency: 911
• Non-Emergency: (603) 447-5959
• Responsibility: Public safety and nuisance enforcement

Source Pages and Links

Primary Legal Documents

• Conway Chapter 72 - Housing & Life Safety Standards: conwaynh.gov/uploads/ch.-72-draft-final-draft.pdf
• NH Supreme Court Decision - Town of Conway v. Kudrick: www.nhmunicipal.org/sites/default/files/uploads/2023021townofconway.pdf

Regulatory Updates and News

• NH Business Review - Conway STR Regulatory Update: www.nhbr.com/conway-planners-seek-to-walk-back-proposed-str-regs/
• NH Municipal Association Court Update: www.nhmunicipal.org/court-update/under-definitions-provided-conway-zoning-ordinance-short-term-rentals-are-allowed

Practical Resources

• Conway STR Safety Checklist (May 12, 2025): Available through conwaynh.gov/documents (scroll to Rental Certificate Program)
• North Conway Realty STR Guide: northconwayrealty.com/blog/posts/2025/05/15/conway-releases-new-str-safety-checklist-here-s-what-you-need-to-know/
• NH DRA - M&R Tax Information: www.revenue.nh.gov/taxes-glance/meals-rooms-rentals-tax

State Regulations

• NH RSA 78-A (Meals and Rooms Tax): gc.nh.gov/rsa/html/NHTOC/NHTOC-V-78-A.htm
• NH RSA 41:11-C (Rental Property Permits): gc.nh.gov/rsa/html/NHTOC/NHTOC-II-41.html
• NH RSA 48-A (Minimum Housing Standards): gc.nh.gov/rsa/html/NHTOC/NHTOC-II-48-A.html

Important Considerations for STR Investors

Regulatory Landscape The regulatory environment for STRs in Conway remains dynamic. Recent efforts to implement owner-occupancy requirements have been withdrawn, but this issue may resurface. Investors should monitor ongoing planning board discussions and legal developments.

Legal Precedent The NH Supreme Court ruling provides strong legal protection for current STR operations, but municipalities can still impose reasonable safety and operational regulations. Compliance with Chapter 72 requirements is essential for ongoing operations.

Market Dynamics Conway's STR market operates within a framework that balances tourism benefits with community concerns. The town's approach focuses primarily on safety and habitability standards rather than restrictive zoning limitations.

Investment Implications The current regulatory environment allows for both owner-occupied and non-owner-occupied STRs in most residential and commercial districts, providing flexibility for various investment strategies. However, the ongoing regulatory evolution requires careful monitoring and proactive compliance management.

Future Outlook Conway continues to refine its approach to STR regulation, with recent developments suggesting the town may prioritize safety and operational standards over restrictive zoning limitations. Investors should remain engaged with local governance processes to stay informed of potential changes.

This guide reflects the current regulatory landscape as of the provided information. Given the evolving nature of STR regulations in Conway, investors should regularly consult with local authorities and legal counsel to ensure ongoing compliance with all applicable requirements.