SHORT TERM RENTAL OPTIONS FOR SELECT BOARD CONSIDERATION July 23, 2020

1. Short term rentals (STRs) are defined as less than 30 nights.
2. Short term rentals can be either owner-occupied or non-owner occupied.
3. Short term rentals, whether owner-occupied or non-owner occupied constitute a business.
4. The majority of STRs, and the majority of the demand for them in Rockport, is east of
5. the Route 1 corridor. Should regulation apply only to property east of Rt. 1? If extended, how should the extension be identified and defined?

Owner-Occupied

1. The Select Board believes there is more widespread support in Rockport for owner- occupied STRs because: (a) the owner is present to supervise the behavior of guests; (b) because the owner still resides on the premises, there is less change in the character of the neighborhood (less loss of “community”); and (c) by definition, the rental is carried out by a full-time or part-time resident as opposed to a STR investor.
2. Registration – While it is not the intent of the Select Board to suggest any intrusive or expensive regulation of owner-occupied STRs, the Town has a legitimate interest in knowing what STRs exist so that they can ensure that basic requirements, such as those below, are being met. For this reason owners offering STRs should be required to register with the Town. (Note – registration simply informs the Town that the owner is engaged in the owner-occupied STR business. This should be differentiated from an application or permit in which the Town has to accept or deny the practice.)
3. Parking -- Concern has been expressed about parking for all STRs, including those that are owner-occupied. Consequently, STRs should be held as closely as possible to the same standards as businesses. Essentially this would mean that they need to have designated off-street parking.
4. Safety – Because the owner-occupied STR is occupied by the owner it is presumably safe for habitation. However, because the owner is, in fact, renting to a third person for income and is conducting a business in the Town of Rockport, the Town has the authority to inspect the property, or in lieu thereof, to require that the STR owner execute an affidavit that they have provided / met minimal basic safety requirements.
5. Non-compliance – No property owner should be permitted to evade properly passed ordinances. Should a STR ordinance be passed by the voters, there should be a monetary penalty for non-compliance with the ordinance and / or a suspension or prohibition from engaging in the owner-occupied STR business for a certain period of time.

Non-Owner Occupied Options

The following are possible options for Select Board consideration for non-owner occupied STRs. This list is not intended to be exhaustive and other options may be proposed and considered. The order of listing is not intended to reflect any suggested preference of one option over another. The options are not mutually exclusive – more than one option might be combined with another.

Prohibit of Non-Owner Occupied

1. Prohibit all non-owner occupied STRs.

Density

2. Ratio -- Permit existing STRs as long as they comply with the ordinance requirements, and require that before a new one is permitted an existing one must first go out of the STRs business. This option would be aimed at capping the existing number of STRs. Other municipalities that prefer to reduce their current STR stock apply a 2:1 ratio, whereby prior to permitting one non-owner occupied STR, two must first go out of the STR business. This would address the overall number of non-owner occupied STRs in Rockport but not the concentration of them in particular areas.
3. Density Cap(s) – Another option aimed at controlling the density of STRs is to include in an ordinance the ratio of non-owner occupied STRs that can exist in relation to the number of residential dwellings by a defined area or district. This would avoid a concentration of STRs in, for example, the downtown district or the Village, or a particular residential area.
4. Distance Restrictions – Another density option identified by Town staff is the ability to permit STRs only if they are not within a certain distance of another non-owner occupied STR. This would avoid a concentration of STRs in a given neighborhood.

Duration of Stay

5. Duration – The Select Board has already indicated its preference to disallow non-owner occupied STRs of less than 7 nights.

Frequency of STR Rentals

6. Cap # of Rental Nights –Cap the number of nights that an owner can rent a non-owner
7. occupied STR in a calendar year (e.g., 30 or 60 nights). While no STR beyond the cap would be permitted, traditional rental of 30 or more nights would not be affected.
8. Cap + Lodging Categorization – An alternative to be used with capping the number of nights is to not prohibit rental as a STR in excess of the capped nights but to require that any STRs in excess of the cap be permitted as a traditional lodging businesses, subject to all applicable requirements of one (e.g., business tax on personal property, inspections, proper zoning, Planning Board approval, etc.)

Additional Considerations:

• Nothing would prevent an owner from renting on a 30 night or more basis.
• Any of the above non-owner occupied options would necessitate a permitting process.
• Parking restrictions as applied to own-occupied STRs would presumably apply to non-
• owner occupied STRs.
• While the owner-occupied STRs are presumably fit for habitation because the owner is
• residing there, that is not the case with non-owner occupied STRs. These STRs could be subject to inspection for health and welfare by the Town like any other lodging business to reasonably assure the safety of the renters.
• Penalties for non-compliance would apply as with owner-occupied STRs.