Updated 5/25/2021: 

We’re aware of several cities in Vermont that have implemented Airbnb laws, however, with Bill H.200, the state of Vermont as a whole would regulate short-term rentals, taking effect on July 1, 2021. The primary goal is to maintain Vermont’s residential rental market and create equal standards for short-term rentals as with other lodgings such as hotels, motels, and bed & breakfast establishments. 

Registration Requirements & Other Airbnb Laws 

The draft ordinance outlines new Airbnb laws for Vermont including the following registration requirements 

  • A person shall not operate or maintain a short-term rental unless he or she registers with the Department and obtains and holds a valid certificate of compliance. 
  • All occupancy taxes on the short-term rental unit required pursuant to 32 V.S.A chapter 225 are paid in a timely manner. 
  • The Commissioner may inspect through his or her duly authorized officers, inspectors, agents, or assistants at all reasonable times, a short-term rental and the operator’s records related to the short-term rental. 
  • A person may not offer all or part of a dwelling unit as a short-term rental unless the person has occupied the dwelling unit as his or her primary residence for (a) 270 days or the preceding year; or (b) if the person has owned or leased the dwelling unit for less than a year, more than 70 percent of the days that the person has owned or leased the dwelling unit. 

While the new ordinance doesn’t include a short-term rental insurance requirement, the Department of Health and the Department of Public Safety’s Division of Fire Safety are planning to prepare a packet for hosts regarding their responsibility for health and safety and their financial obligationsThis would also include a brief description of the importance of reviewing their property and liability insurance for proper coverage. 

This varies across the state with City-specific Airbnb laws. Both Stowe and Killington address short-term rental insurance directly.  

Update: The Vermont 2021 Legislative Session ended on May 21, 2021 with no further developments on Bill S.79 or Bill H.200. Both will likely be revisited at the next legislative session beginning in January 2022. For more information in the meantime contact your local municipality. Additional information can also be found on The Vermont Short Term Rental Alliance (VTSTRA) website as they are tracking this issue closely.

City-Specific Airbnb Laws in Vermont 

Stowe, VT has short-term rental restrictions in place, only allowing rentals in single-family homes, condos, and apartments if they are rented for one week or longer. If hosts rent on a nightly basis or less than a week, they are limited to certain zones within the City.  

Short-term rentals and Airbnb properties are also subject to safety inspections by the State Fire Marshall ($125 per inspection) who will check on code compliance for windows, stairways and active smoke alarms and carbon monoxide alarms.  

Stowe also advises hosts to check with their current insurance carrier to see if they have appropriate coverage for short-term rental activity. It is quickly becoming common knowledge that homeowners insurance does not provide adequate coverage and typically includes a business activity exclusion, meaning claims could be denied for property damage or liability arising from the short-term rental business. 

Visit our current blog for details on active Airbnb laws in Killington, VTAs of May 5th, 2020, Killington requires hosts to provide proof that the liability insurance policy covering the dwelling unit extends to bodily injury and property damage that occurs during or as a result of the use of the dwelling as a short-term rental (section 407.F of the Zoning Bylaw Amendments).  

While Vermont as a state won’t require hosts to secure appropriate insurance, individual cities are slowing recognizing the reasons for custom-penned insurance for short-term rental properties. 

Quote Your Airbnb Today 

Interested in a policy to protect you and your business from liability and damage claims? Proper Insurance leads the Nation in short-term rental insurance, with over 50,000 policies written in all 50 states. Backed by Lloyd’s of London and exclusive endorsements from short-term rental leaders such as HomeAway and Vrbo, Proper Insurance is built on world-class insurance coverage that meets and exceeds both city and lender requirements. 

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