Political support growing for regulating short-term rentals in Maine

That bipartisan interest comes amid concern that short-term rentals are increasing the cost and decreasing the availability of long-term rentals in Maine, a phenomenon confirmed in multiple nationwide studies. While previous attempts at regulation have failed in the Legislature, this could be a sign of changes coming next year.

Rebecca Jauch, a Democrat running in a House district encompassing most of Topsham, said she would support legislation leveling a tax or fee on short-term rentals owned by out-of-state residents. Other decisions should be made at the local level, including caps, she said.

Asked about the potential loss of tourism dollars from regulations, Jauch noted that the proliferation of short-term rental units already seems to be affecting the economy: namely taking business away from the state’ traditional hotels and resorts.

“Some of these are part of great Maine traditions going back generations,” she said.

The popularity of short-term rentals varies widely across Maine depending on the community: a BDN analysis earlier this year found that more than a third of Airbnb listings were in just 10 of Maine’s nearly 500 municipalities. Portland is the most popular, with York, Wells, Bar Harbor and Rangeley among the other top destinations.

New regulations are typically fraught in Augusta. But this issue is different. Industry groups including HospitalityMaine, which represents hotels and restaurants, have pushed measures to rein in their competitors. Lawmakers shot down a bill this year that would have allowed cities and towns to assess fees on homes not occupied by permanent residents. 

Dan Sayre, a Democrat running for a House district covering most of Kennebunk, said he would examine policies that would license and regulate them in the same way inns and hotels are. While seasonal renting has always been part of Kennebunk, widespread use of properties primarily used for short-term rentals have had a far more adverse effect, he said.

“There’s a difference between people who have a stake in a community and people who have no stake,” Sayre said.

Maine’s biggest political names have not weighed in on the issue yet. Gov. Janet Mills is looking forward to the results of a newly formed legislative commission examining affordable housing and short-term rentals, her spokesperson said. Her chief opponent in the 2022 election, former Gov. Paul LePage, is listening to proposals around short-term rentals as well as the stakeholders involved, his campaign said.

Any solution will take some fine-tuning. Assistant Senate Minority Leader Matthew Pouliot, R-Augusta, a member of that housing commission, said he is far more interested in creating new housing than placing rules on existing units.

But it seems likely that the state would soon provide resources and guidance to municipalities who are looking to regulate short-term rentals, he said. That could include registration fees, with the Legislature potentially capping the fee.

A new legislative framework could bring new safety assurances, such as requiring regular septic tank inspections if the property is in a shoreland zone or any area that could adversely affect the environment. It also could give a certain segment of funds generated by the lodging taxes placed on short-term rentals directly to communities that house them.

Assistant House Minority Leader Joel Stetkis, R-Canaan, said he wouldn’t be surprised to see short-term rentals come up in the next session, but said he would need specifics of a bil before he took a stance on it. Any bill proposed should be more targeted than the last attempt, he said.

“They need to streamline that a whole lot more,” Stetkis said.