Overview

• Short-term rentals are allowed in Sunapee, but the path is nuanced. A recent New Hampshire Supreme Court decision (Appeal of Hoekstra, 2024 N.H. 23) directly addressed Sunapee’s zoning ordinance and concluded that, under the ordinance’s “Additional Requirements,” a travel trailer may be used as a short‑term rental for not more than ninety days in any twelve‑month period so long as it complies with state or town sewage disposal requirements and all other provisions of the ordinance (including setbacks). The decision interpreted the ordinance’s language to create permitted uses beyond the main list of permitted principal uses in the Village Residential District.
• This ruling is landlord‑friendly in that it recognizes a form of short‑term rental as permitted (for travel trailers), but it also signals risk: in permissive zoning ordinances, provisions intended as restrictions can be read to create new permitted uses. Municipalities (and investors) should not assume other forms of short‑term rentals—such as renting entire homes, multiple units, or accessory rooms—are automatically permitted without clear language prohibiting or restricting them.
• Because Sunapee’s zoning ordinance is “permissive” (uses not expressly permitted are generally prohibited), the absence of a clear prohibition or permission for specific STR configurations can lead to legal challenges. Investors should verify current ordinance language and consult legal counsel before proceeding.

How to Start a Short-Term Rental Business in Sunapee

1. Verify Your Property’s Zoning and the Current Zoning Text
   • Sunapee employs a permissive zoning ordinance. If your intended STR use is not expressly permitted, it is typically prohibited unless it qualifies as an accessory use or is allowed under another ordinance provision (as with travel trailers under the Hoekstra decision).
2. Assess the Use Under Current Ordinance and Case Law
   • For travel trailers in the Village Residential District: The Hoekstra decision treated the use as permitted for up to ninety days in a twelve‑month period, provided sewage and setback rules are met. This is a strong, case‑specific, landlord‑favorable interpretation.
   • For other STR configurations (e.g., entire home, multiple units, room rentals without owner residence): Confirm whether the ordinance expressly permits or prohibits them. If no permission exists and no prohibition is explicit, a prohibition may apply under a permissive scheme.
3. Consider Accessory‑Use Risk and Opportunity
   • A short‑term rental might qualify as an accessory use if it is subordinate and customarily incidental to the primary residential use. The New Hampshire Supreme Court has not fully resolved this issue in the STR context. If the owner does not actually live at the property and rents units as the primary use, it likely is not an accessory use. Where owners legitimately occupy the residence and rent one or two rooms, the “customarily” criterion (longstanding, common practice) will likely be dispositive and may not be met. Case‑by‑case analysis is essential.
4. Comply with State Tax Rules
   • Short‑term rentals in New Hampshire are subject to the Rooms and Meals Tax. Operators must obtain a Meals and Rooms license and display their license number in advertisements. The state defines short‑term rentals as renting one or more rooms in a residential unit for tourist or transient use for fewer than 185 consecutive days (RSA 78:4‑a; RSA 78‑A:3, XXII).
5. Observe State Housing Standards and Local Zoning Controls
   • State housing standards (RSA 48‑A) do not apply to vacation or short‑term rental uses. Municipalities can still regulate STRs under RSA 674 (planning and zoning), but any ordinance language must be clear and unambiguous.
6. Confirm Operational Details
   • Ensure compliance with sewage disposal (state or town), setbacks, and any building code provisions that could be relevant to a travel trailer or accessory structures.
7. Seek Advisory Guidance
   • Before acquiring or converting property, consult the town’s zoning administrator and municipal attorney for a written determination. This can reduce enforcement risk and help you structure the business legally.

Required Documents, Permits, Licenses, and Guidelines

• State Level (All STR Operators)
  • Meals and Rooms License (RSA 78:4‑a): Obtain a state Meals and Rooms license and include the license number in all advertisements.
  • State Tax Registration: Register for Rooms and Meals Tax; remit the applicable tax.
• Local Level (Zoning Compliance)
  • Zoning Determination: A written zoning determination from the zoning administrator confirming your use is permitted or not prohibited, referencing current ordinance sections and the Hoekstra decision (for travel trailers).
  • Accessory Use Analysis: If claiming accessory‑use status, obtain a written analysis of “subordinate,” “customarily incidental,” and “reasonable relationship” criteria, including any evidence of longstanding local practice.
  • Building/Sewage Compliance: Confirm state or town sewage disposal compliance and any building or setback requirements applicable to the STR unit (e.g., travel trailer).
• Advertising
  • Display state Meals and Rooms license number on all platforms, as required by RSA 78:4‑a.

Specific Regulations: Sunapee (Town), Sullivan County (County), and New Hampshire (State)

• Town of Sunapee (Permissive Zoning Ordinance)
  • Based on the Hoekstra decision, a travel trailer may be used as a short‑term rental in the Village Residential District for not more than ninety days in a twelve‑month period, provided it complies with state or town sewage disposal requirements and all other ordinance provisions, including setbacks.
  • The decision emphasizes that the ordinance’s “Additional Requirements” provision created a permitted use category for travel trailers, despite its title suggesting it imposed requirements rather than creating uses.
  • Other STR configurations are not clearly addressed by the article; absent an express permission or prohibition, permissive zoning can lead to variability in interpretation.
• Sullivan County
  • The provided content does not establish county‑specific STR regulations; zoning matters in Sunapee appear to be municipal rather than county‑driven under this context.
• State of New Hampshire
  • Rooms and Meals Tax: STRs must comply with RSA 78:4‑a; operators must obtain a license and include the license number in advertisements.
  • Definition of Short‑Term Rental: RSA 78‑A:3, XXII defines short‑term rental as renting one or more rooms in a residential unit for tourist or transient occupancy for fewer than 185 consecutive days.
  • Housing Standards: State housing standards (RSA 48‑A) do not apply to vacation or short‑term rentals. Municipalities may regulate STRs under RSA 674, but any regulation must be clear and unambiguous.
  • Zoning Best Practices (Recommended by NHMA): To maintain a permissive scheme and minimize unintended permissions:
    • Include a statement that no building, structure, or land shall be used for any purpose other than that permitted in the district.
    • Define “dwelling unit” to exclude transient occupancies such as hotels, motels, rooming/boarding houses, and short‑term rentals.
  • Accessory Use Considerations: Whether an STR qualifies as an accessory use remains unresolved; owners should not assume accessory‑use status without thorough analysis and evidence of long‑standing local practice.

Contact Information

• NHMA Legal Services Counsel (for municipal ordinance interpretation context, not Sunapee‑specific permitting)
  • Phone: 603.224.7447
  • Email: legalinquiries@nhmunicipal.org
• Town of Sunapee
  • Not provided in the source content. Investors should contact the Sunapee Town Office, Building Department, or Zoning Board of Adjustment for authoritative guidance on permitting and zoning interpretations (particularly following Hoekstra).

Links to Source Pages

• NH Supreme Court decision context and analysis (NHMA Town & City Magazine, July–August 2024): www.nhmunicipal.org/town-city-magazine/new-hampshire-town-and-city-july-august-2024/nh-supreme-court-throws-curveball

Practical Compliance Checklist for Investors

• Confirm current Sunapee zoning text and district map for your property.
• Obtain a written zoning determination for your intended STR activity (especially for travel trailers).
• If not relying on the Hoekstra interpretation, assess whether your STR use is an accessory use or whether any other ordinance provision expressly permits it.
• Register for New Hampshire Meals and Rooms tax, secure your license, and display the license number in all advertisements.
• Verify sewage disposal compliance (state/town) and any building/setback requirements.
• Maintain records evidencing compliance (dates of rental, occupancy, sewage inspections, setbacks).
• Seek legal review before converting property or launching a new STR model to mitigate interpretive risk under permissive zoning.