Overview: Are Short-Term Rentals Allowed in Manchester, VT?

Yes, short-term rentals are allowed in Manchester, Vermont with specific regulations that differ between the Village of Manchester and the Town of Manchester.

• Village of Manchester: Has a comprehensive Short-Term Rental Ordinance in place since December 2023 (effective February 2024)
• Town of Manchester: Has NOT adopted specific STR regulations as of 2025, but properties must comply with all applicable state requirements

Properties located within Village boundaries must register annually and follow specific operational requirements, while Town properties currently operate under state-level regulations only. However, investors should monitor Town discussions as regulations may be implemented in the future.

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How to Start a Short-Term Rental Business in Manchester, VT

Step 1: Determine Jurisdiction

First, verify whether your property falls within Village or Town boundaries, as requirements differ significantly.

Step 2: Property Due Diligence

• Verify zoning compliance with local officials
• Check for HOA or condo association restrictions
• Assess septic system capacity (critical for occupancy limits)
• Review any deed restrictions

Step 3: Setup and Compliance

For Village Properties:

• Contact Village offices at (802) 362-1515
• Complete STR registration application
• Schedule and pass property inspection
• Pay $300 annual registration fee
• Designate caretaker with contact information

For All Properties:

• Register with Vermont Department of Taxes for Meals and Rooms Tax account
• Complete Vermont Division of Fire Safety compliance requirements
• Install required safety equipment (detailed in regulations section)
• Post required documentation inside unit

Step 4: Operational Setup

• Create listings highlighting Manchester attractions
• Establish tax collection procedures
• Develop property management protocols
• Create guest communication systems
• Implement house rules aligned with local regulations

Step 5: Ongoing Compliance

• Renew Village registration annually (before April 1st for Village properties)
• File monthly tax returns (due by 25th of following month)
• Maintain safety equipment and documentation
• Monitor regulatory changes

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Required Documents, Permits, Licenses, and Guidelines

Village of Manchester-Specific Requirements

1. Village STR Registration Certificate - Annual registration proof
2. Property Inspection Approval - Passed inspection documentation
3. Caretaker Contact Information - Written designation on file
4. Annual Registration Fee - $300 (subject to change)

State-Level Required Documents

1. Vermont Meals and Rooms Tax Account Number - Must be displayed in all advertisements
2. Safety Compliance Form - "Short Term Rental Safety, Health and Financial Obligations" (posted inside unit)
3. Fire Safety Compliance Documentation - Records of inspections and equipment
4. Liability Insurance Policy - Adequate coverage for STR operations

Additional Recommended Documents

1. Wastewater System Documentation - Especially important for septic systems
2. Property Management Agreement - If using professional management
3. Guest Information Packet - Emergency contacts, house rules, local recommendations
4. Booking Records - For tax compliance and audit purposes
5. Maintenance Logs - Document all safety equipment checks and repairs

Health Department Requirements

• Lodging License - Required if operating 3+ units on same property
• Contact Vermont Department of Health at (802) 863-7221

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Specific Regulations for Short-Term Rentals

Village of Manchester Regulations

Registration Requirements:

• Annual registration required by property owner with STRO (Short-Term Rental Officer)
• Fee: $300 (may be increased by Trustees)
• Initial registration deadline: 90 days after ordinance effective date OR 60 days before first occupancy
• Annual renewal deadline: April 1st each calendar year

Fire Safety Requirements:

• STRs classified as "public buildings" under Vermont law
• Must provide proof of satisfactory compliance with Vermont Division of Fire Safety inspections
• Must post Vermont Division of Fire Safety Short Term Rental Safety, Health, and Financial Obligations Form at rental location

Occupancy Limits:

• Maximum occupancy: 2 persons per bedroom + 2 additional persons
• Owners prohibited from advertising or permitting occupancy exceeding limits
• Each occupant over limit subject to individual liability

Caretaker Requirements:

• Must provide 24/7 coverage during occupancy periods
• Caretaker must be located within 30-minute drive of property
• Contact information must be provided to all occupants and STRO
• Updated information required prior to any occupancy changes

Waste Management:

• Must provide bear-proof receptacles for trash, food waste, and recyclables
• Must provide metal containers for ash and coals (if fireplace, fire pit, wood stove, or grill present)
• Occupants must use provided receptacles in safe and secure manner

Information Display Requirements: Must prominently display posters with:

• Caretaker contact information and schedule
• Phone numbers and directions to two nearest hospitals
• Instructions for trash/waste disposal and parking
• Noise law notice referencing 13 V.S.A. § 1022

Inspection Requirements:

• Property must be made available for inspection within one week of STRO request

Violation Consequences:

• Registration may be revoked or denied if 3+ violations occur within 12-month period
• Violations include charges where person waives hearing or is found guilty
• Appeals process available through Board of Trustees

Town of Manchester Regulations

As of 2025, no specific STR ordinance adopted. Properties must comply with:

• All applicable state requirements
• General zoning and building codes
• Health and safety regulations

State of Vermont Regulations

Tax Requirements:

• Vermont Meals and Rooms Tax: 9% of gross rental receipts
• Short-Term Rental Surcharge: 3% of gross rental receipts (effective August 1, 2024)
• Local Option Tax: 1% additional in Manchester
• Total Tax Rate: 13% (9% + 3% + 1%)

Definition of Short-Term Rental:

• Furnished house, condominium, or other dwelling room or self-contained dwelling unit
• Rented to transient, traveling, or vacationing public
• Fewer than 30 consecutive days AND more than 14 days per calendar year

Safety Requirements:

• Smoke detectors on each level and in each bedroom
• Carbon monoxide detectors (if gas appliances, fireplace, woodstove, attached garage, or fuel-burning heating)
• Fire extinguishers (recommended on each level)
• Emergency exit windows from all sleeping rooms
• Clear emergency exit routes
• Visible exterior address numbers

Wastewater Capacity:

• Occupancy must align with septic system capacity
• Properties without wastewater permits limited to bedrooms as of January 1, 2007
• Critical compliance area for properties with private septic systems

Insurance Considerations:

• Standard homeowners policies typically exclude business activities
• Additional STR-specific insurance recommended
• Contact insurance agent to discuss coverage needs

Health Department Licensing:

• Required if operating 3+ units on same property
• Different from 1-2 unit property requirements

Enforcement and Penalties

Village of Manchester:

• Civil ordinance with penalties up to $800 per violation
• Each day violation continues constitutes separate violation
• Enforcement by STRO, Town of Manchester Police, Vermont State Police, Bennington County Sheriff's Department
• Multiple owners/occupants subject to individual liability

State Level:

• Vermont Department of Taxes enforces tax compliance
• Can result in up to 7 years of back taxes, interest, and penalties
• Division of Fire Safety conducts safety inspections
• Vermont Department of Health regulates health standards

Common Violations:

• Operating without proper registration
• Tax non-compliance
• Safety code violations
• Occupancy limit violations
• Noise, parking, and trash complaints
• Wastewater system overload

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Contact Information

Village of Manchester

• Phone: (802) 362-1515
• Address: 45 Union Street, Box 482, Manchester, VT 05254
• Zoning Administrator/STR Officer: Curan VanDerWielen
• Website: villageofmanchester.com
• Hours: Monday-Thursday 9:00 AM - 3:00 PM, Friday by appointment

Town of Manchester

• Contact: Town Manager's Office
• Website: Monitor for updates on potential STR regulations
• Planning Commission: Ongoing discussions about STRs

Vermont State Agencies

Vermont Department of Taxes

• Phone: (802) 828-2865
• Website: tax.vermont.gov
• myVTax Portal: Online registration and filing
• Email: tax@vermont.gov

Vermont Department of Health

• Phone: (802) 863-7221 or (800) 439-8550 (toll-free in VT)
• Address: Environmental Health Food & Lodging Program, 280 State Drive, Waterbury, VT 05671-8350
• Website: healthvermont.gov

Vermont Department of Public Safety - Division of Fire Safety

• Website: firesafety.vermont.gov
• Purpose: Fire safety inquiries and inspections

Industry Resources

Vermont Short Term Rental Alliance (VTSTRA)

• Website: vtstra.org
• Description: Non-profit representing Vermont STR community

Manchester & the Mountains Regional Chamber

• Purpose: Tourism information and business support

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Source Pages

1. Village of Manchester STR Ordinance
2. Manchester Journal - STR Market Analysis
3. The Offer Sheet - Manchester VT STR Guide
4. Hostaway - Vermont Airbnb Rules

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Important Note: Regulations continue to evolve. Always verify current requirements with local authorities before making investment decisions. This guide is for informational purposes only and does not constitute legal or tax advice. Consult with qualified professionals regarding your specific situation.