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Manchester Short Term Rental Regulation: A Guide For Airbnb Hosts

Manchester, New Hampshire

What are short term rental (Airbnb, VRBO) regulations in Manchester, New Hampshire?

Short term rental regulations in Manchester can be found across various city ordinances, codes, and state laws.

The city of Manchester requires hosts to register with the Planning and Community Development department and obtain permits to operate short term rentals, as stated on the city's website. Failure to register can result in fines up to $275 per day.

Additionally, all residential rentals in Manchester, including short term rentals, require a Certificate of Compliance from the Code Enforcement Division to ensure properties meet minimum housing standards.

The city's Housing Code Ordinance also outlines specific safety requirements related to smoke detectors, electrical systems, egresses and more that short term rental hosts must comply with.

On the tax side, Manchester requires hosts to pay a 9% rooms and rental tax on rental income. The state also imposes an additional 9% tax.

Starting a Short Term Rental Business in Manchester

For hosts interested in entering the short term rental marketplace in Manchester, there are a few key steps to take in order to set up legally and successfully.

Understand the Local Regulations

As outlined on the city's website, Manchester requires registration and permitting for all short term rentals. Review the latest ordinances to ensure compliance. Key details to note are safety standards, taxes to collect and remit, as well as penalties for violations.

Prepare Your Property

Conduct any necessary renovations or improvements to meet the city's housing code and short term rental regulations. This includes installing hard-wired smoke detectors, adequate egresses, GFCI outlets, and other safety essentials. Providing amenities like high-speed WiFi, premium linens, and televisions can also help your property stand out.

Complete the Registration Process

Submit the short term rental registration form, floor plans, site plans, and all other required documents to the Planning and Community Development department. The registration fee is currently $100, payable upon submission. Receiving an approved permit can take up to 3 weeks.

Market Your Rental

Create appealing listings on platforms like Airbnb, Vrbo, and Booking.com. Highlight special features and local attractions. Respond promptly to booking inquiries and guest questions.By following these key steps, short term rental hosts can successfully launch in Manchester in compliance with city regulations. Reaching out to the Planning Department with any questions is also advised.

Short Term Rental Licensing Requirement in Manchester

Operating a short term rental in Manchester requires hosts to register with the city and obtain the necessary permits. While this licensing process may seem daunting at first, taking the right steps will set your rental business up for smooth sailing.

As soon as you decide to list your Manchester property on Airbnb or other rental platforms, your first call should be to the Planning and Community Development Department. Explain that you intend to run a short term rental so they can advise you on registration and permitting requirements.

The city will ask you to complete the Short Term Rental Registration Form and submit it along with a floor plan, site plan, and Certificate of Compliance. These documents allow them to confirm your rental meets safety regulations and zoning requirements.There are fees associated with registration, so inquire about costs as well when you call.

The permit itself must be renewed annually for a calendar year. Come December, the city will notify you to re-register your rental if you plan to continue operating it as a short term rental.Staying on top of renewals and paperwork is crucial.

Manchester strictly enforces its short term rental rules and failure to comply can quickly lead to fines or other legal headaches. Don't let that intimidate you though! If you understand the licensing process upfront and keep your paperwork in order, maintaining good standing is very manageable.Reaching out early and asking questions will give you confidence at the start of your hosting venture.

Manchester's Planning Department wants short term rental hosts to succeed when following regulations. By handling the permitting process professionally and proactively, you’ll be setting yourself up for a thriving, licensed business.

Required Documents for Manchester Short Term Rentals

Hosts looking to legally operate short term rental properties in Manchester must submit several documents to the city's Planning and Community Development department in order to register and obtain the necessary permits.The required paperwork includes:

Short Term Rental Registration Form

This city form collects basic information on the rental property and owner contact details. Key details the registration asks for:

  • Property address
  • Type of dwelling (single-family, condo, apartment, etc.)
  • Number of bedrooms to be rented
  • Owner name, address, phone and email

Filling this registration form is the first step for hosts to get on record with the city.

Floor Plan

Hosts need to supply a floor plan that details:

  • Layout of the unit with room labels
  • Location of smoke detectors
  • Windows and doorways that serve as emergency egresses

This allows the city officials to verify safety measures and requirements are met.

Site Plan with Parking

The site plan illustrates:

  • Exterior layout of the property
  • Designated parking spaces available for guests

Including parking on the site plan ensures enough spaces to accommodate guests without causing neighborhood disruption.

Certificate of Compliance

The Certificate of Compliance comes from the city's Code Enforcement division after an inspection. It certifies the property meets Manchester's Housing Code standards for:

  • Smoke detectors
  • Electrical safety
  • Proper egresses
  • Sanitation systems

Annual renewal inspections are required to maintain a valid Certificate of Compliance.Submitting these documents starts the permitting process for legal short term rental operation in Manchester.

Manchester Short Term Rental Taxes

As a short term rental host operating in Manchester, you are responsible for collecting and remitting several taxes that apply to rental income. Diligently paying taxes is crucial for running a compliant business.

The taxes you must charge guests and pay as a Manchester STR host include:

New Hampshire Meals and Rentals Tax

This statewide tax applies to short term room rentals in New Hampshire. The tax rate is 9% of rental income. As a host, you should build this 9% tax into your nightly rental rates paid by guests.

You must then file returns and send tax payments to the New Hampshire Department of Revenue Administration on a monthly or quarterly basis. Filing frequency depends on your total tax liability.

Manchester Room Occupancy Fee

On top of state taxes, the city of Manchester imposes a local room occupancy fee. This essentially functions as an additional lodging tax at the city level.

The Manchester occupancy fee also equates to 9% of gross rental income. As a host, make sure to factor in this 9% local tax when setting nightly rates.

You must submit occupancy fee payments to the city's Tax Collector office on a monthly basis along with a tax return filing.

In summary, short term rental hosts in Manchester need to collect 18% in taxes from guests - 9% for state meals and rentals tax and 9% for the city occupancy fee. Strict compliance with tax rules is important to remain a licensed operator. Consider working with an accountant when managing STR tax reporting and payments.

New Hampshire wide Short Term Rental Rules

While Manchester has specific short term rental regulations, New Hampshire as a state does not have overarching laws focused exclusively on regulating short term rental properties across all municipalities.Instead, the governance of short term rental properties is handled at the local, municipal level in New Hampshire.

Each town or city implements their own independent rules, registration requirements, taxes, and restrictions on short term rental operations.This localized approach to short term rental oversight allows communities to craft regulations tailored to their specific needs and concerns.

Popular tourist destinations see the majority of short term rental activity, and subsequently tend to have more extensive regulatory frameworks compared to small rural towns.

The decentralized short term rental policy landscape across New Hampshire municipalities causes confusion for hosts looking to operate regionally across multiple cities or towns. Navigating the patchwork of ordinances poses an administrative burden.

Hosts must research the local rules in each town, register properly, collect required taxes, and obtain permits in order to legally offer short term rentals.While creating consistency in short term rental policy across the state through statewide legislation could reduce confusion, many municipalities wish to retain local control.

Towns like Portsmouth have banned short term rentals entirely, while others impose strict caps on licenses. Preemption of these local rules through state-level policy could face pushback from communities looking to limit short term rental activity.In summary, New Hampshire takes a hyper-local approach to short term rental governance, with each municipality crafting independent regulations.

This decentralized framework allows customization but causes administrative complexity for regional hosts. State-level policy does not currently exist, and likely faces opposition from towns wanting to retain regulatory authority.

Does Manchester strictly enforce STR rules?

Manchester enforces its short term rental regulations consistently. The city website clearly states that failure to comply with licensing and registration requirements can result in fines and legal action.

Based on the sources, it appears Manchester aims to allow short term rental hosts to operate legally if they follow the proper protocols. The city has created a registration system and permits hosts once they meet safety codes and zoning regulations.

However, Manchester does strictly crack down on unregistered short term rentals.Compared to cities in New Hampshire and across the US that completely ban short term rentals, Manchester's enforcement seems fair and balanced.

The city recognizes short term rentals can benefit the local economy and provide more lodging options. At the same time, Manchester prioritizes public safety and neighborhood preservation through its strict permitting process.

The sources give no indication that hosts operate illegally in Manchester despite the stringent regulations. It appears most hosts comply given the city's track record of enforcement. Hosts that put in the work to register and meet requirements can successfully run their business.In summary, Manchester welcomes short term rental hosts who follow the rules.

The city aims to allow the model to thrive legally. At the same time, Manchester is serious about enforcing regulations and will fine non-compliant hosts. By creating a regulatory framework rather than banning short term rentals altogether, the city strikes the right balance of control and support.

How to Start a Short Term Rental Business in Manchester?

Starting a profitable and legal short term rental business in Manchester requires following some key steps. As an aspiring host, you need to educate yourself, prepare documentation, market effectively, and provide excellent customer service.

Follow this comprehensive 10 step guide to launch your STR:

Research the laws - Thoroughly read Manchester's short term rental ordinance to understand all licensing and tax requirements. Take detailed notes so you remain compliant.

Register as a landlord - Contact the city clerk's office to register as a landlord if you don't reside at the rental property. There is a small registration fee. Provide your contact details.

Prepare the rental space - Ensure your rental meets safety codes and qualify for the Certificate of Compliance. Install hard-wired smoke detectors, add railings if needed, and make any necessary repairs.

Complete rental registration form - Fill out Manchester's required Short Term Rental Registration Form in detail. Submit floor plans and a site plan showing parking availability.

Pass inspection - Schedule an inspection with the city to obtain your initial Certificate of Compliance. Renew the certificate every 6 years.

Pay fees - Cover any licensing, registration, and inspection costs by submitting payments to the planning department. Fees help cover administrative expenses.

Purchase insurance - Work with an insurance broker to buy a policy that covers short term rental activities. This protects you from liability issues.

Create listings - Write compelling listing descriptions across platforms like Airbnb, Vrbo, and Booking.com. Include lots of photos and details of amenities.

Market the space - Create a marketing plan to promote your rental on social media and travel blogs. Ask past guests to write reviews.

Manage well - Respond quickly to inquiries and provide excellent customer service to your guests. Manage the calendar and pricing using STR tools.

Who to contact in Manchester about Short Term Rental Regulations and Zoning?

Contact Manchester's Planning and Zoning Department with questions on regulations or zoning issues:

Planning and Community Development
Phone: 603-624-6450
Email: planning-zoning@manchesternh.gov

What do Airbnb hosts in Manchester on Reddit and Bigger Pockets think about local regulations?

To understand how short term rental hosts view local regulations, we can look to popular online communities frequented by hosts. Two platforms with active discussions are Reddit and BiggerPockets.

Hosts conversing on the Manchester, NH subreddit share a range of perspectives. Some see the regulations as fair and the licensing process as straightforward. However, others feel some restrictions are overly stringent for hosts operating responsibly.

For instance, limiting short term rentals to owner-occupied properties with fewer than 5 rooms can constrain supply.Commentary on BiggerPockets indicates hosts find tax compliance in Manchester to be complex. With city, state, and occupancy taxes to track, reporting obligations take effort to get right. Services that automate tax payments provide valuable assistance.

In discussions across both platforms, a common theme emerges - hosts who put in work upfront to understand requirements and operate professionally have positive experiences working with the city. As one contributor put it, "If you play by the rules, Manchester officials are reasonable and mostly hands-off."

The overall sentiment is that while not the most permissive short term rental market, Manchester enables compliant hosts to build successful businesses. Those able to navigate licensing and taxes can thrive by delivering quality accommodations to visitors.

⚡️
Reveal your property’s rental profitability

Buy this property and list it on Airbnb.