A Vermont judge says Burlington has the legal authority to regulate short-term rental properties.
In a written decision last week, Superior Court Judge Samuel Hoar dismissed a lawsuit filed last year by aggrieved Queen City property owners who argued that a 2022 ordinance seeking to regulate short-term rentals represented government overreach.
The ordinance defines short-term rentals as units rented for fewer than 30 consecutive days and for more than 14 days in a 12-month period. Hosts who list such properties on Airbnb, Vrbo or elsewhere must live on the same lot or in the same building as the unit, with few exceptions. Violators can be punished with $100 tickets.
The 14 plaintiffs — who appear to collectively own close to 30 short-term rentals, mostly in Burlington’s Old North End — contended that the rules ran afoul of state law, which says municipalities can only regulate rentals to promote “health, safety and welfare.”
Hoar wasn’t convinced.
“The relationship between a lack of available long-term housing and strains on the housing market, with impacts on homelessness, is intuitive, as is the consequent impact on a municipality’s general welfare,” the judge wrote.
The plaintiffs have 30 days to appeal. Liam Murphy, one of their attorneys, said he has yet to discuss the matter with his clients. Burlington city attorney Jessica Brown did not immediately respond to a request for comment.
Vermont Public first reported the decision.
The ruling comes as more municipalities are cracking down on the short-term rental industry amid Vermont’s prolonged housing shortage. Stock of the rentals has grown dramatically in recent years, and some local officials say the units are a drain on the long-term rental supply.
At least 16 municipalities have already moved to regulate the practice, including South Burlington and Winooski, which passed ordinances this year.
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