Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Investors must conduct their own due diligence and consult with the New Canaan Land Use Department before proceeding with any short-term rental venture.

Overview: Is it Allowed?

Yes, short-term rentals are explicitly allowed in New Canaan, CT, but they are highly regulated. The operation is classified as an accessory use and is only permitted under strict conditions. A key point is that the STR must be the owner's primary residence. Subletting of existing rental properties is strictly prohibited.

The maximum rental period is fewer than thirty (30) consecutive nights, with a cap of three (3) rental instances per property within a rolling six-month period.

1. How to Start a Short-Term Rental Business in New Canaan, CT

The process for starting a compliant STR in New Canaan involves several critical steps, all of which must be completed before any guests are welcomed.

1. Verify Ownership and Primary Residence Status: The property owner must confirm that the property is their primary residence. This is a non-negotiable requirement.
2. Initial Property Assessment: The owner must ensure the property meets all housing code standards (Chapter 186) and has no outstanding building code violations. The property will be subject to inspection.
3. Permit Acquisition: Before listing the property on any platform (e.g., Airbnb, VRBO), the owner must obtain two distinct permits from the Zoning Inspector:
   • A Zoning Permit.
   • A Short-Term Rental Permit.
4. Compliance Setup: Implement systems to comply with all operating conditions, including insurance, record-keeping, on-site parking, and signage rules.
5. Listing and Operation: Only after receiving permits can the property be listed, ensuring all advertisements include the required permit number and issue date.

2. Required Documents, Permits, Licenses, and Guidelines

The following are mandatory for legal operation:

Permits:

• Zoning Permit: Issued by the Zoning Inspector. It is the primary authorization for the STR use.
• Short-Term Rental Permit: Also issued by the Zoning Inspector. This is a distinct permit that verifies compliance with all STR-specific conditions. Both permits expire one (1) year from the date of approval and can be revoked if conditions are violated.

Required Documentation and Proof:

• Proof of Primary Residence: Documentation satisfactory to the Zoning Inspector.
• Insurance Coverage: A copy of appropriate insurance coverage that specifically covers the STR activity and associated risks.
• Compliance Certificate: Proof that the property complies with Chapter 186 of the New Canaan Housing Code and all other applicable building, health, and fire codes. This is typically verified through a pre-permit inspection.
• No Violations Affidavit: The property must have no current violations of town zoning, building, health, or fire codes at the time of application.

Operational Guidelines:

• Permit Number in Advertisements: All online and print advertisements must prominently display the Town of New Canaan's Short-Term Rental permit number and the date the Zoning Permit was issued.
• Record-Keeping: Owners must maintain detailed, up-to-date records of all rental transactions, including tenant contact information, number of guests, arrival and departure dates, and duration of stays. These records must be provided annually to the Zoning Inspector for permit renewal.
• On-Site Parking: Owners must provide on-site parking for guests, adhering to the requirements of Section 6.2 of the Zoning Regulations.
• Signage: No additional signage is permitted beyond what is outlined in Section 6.3 of the Zoning Regulations.

3. Specific Regulations for Short-Term Rentals in New Canaan, CT

The regulations are comprehensive and cover key operational aspects:

• Owner Occupancy: The property must be the owner's primary residence. Subletting is prohibited.
• Duration of Stay: Stays must be for fewer than thirty (30) consecutive nights.
• Frequency of Rentals: The property can be rented for no more than three (3) lease instances during a rolling six-month period.
• Use Restrictions: The STR shall only be used for lodging. Prohibited non-lodging uses include parties, receptions, weddings, filming, photo shoots, corporate retreats, and fundraisers.
• Permit Restrictions:
  • Only one permit is allowed per property.
  • The permit is tied to one specific type of rental unit: a room(s) in the primary dwelling, an accessory dwelling unit (ADU), or the entire property. Only one of these types can be operated at a time on a single property.
• Inspections: An inspection by the Building Official and/or Fire Marshal is required prior to permit issuance to ensure compliance with all building codes.
• Nuisance Provision: Permits can be revoked at any time if the Zoning Inspector determines the STR has violated regulations or created a nuisance for neighbors.
• Permit Renewal: The Short-Term Rental permit expires annually. Renewal requires submission of the aforementioned rental records and confirmation of continued compliance.

4. Contact Information for the Local Authority

For all permit applications, inspections, and questions, contact the New Canaan Land Use Department. This department oversees Planning & Zoning, Building, and Inland Wetlands.

• Website: https://www.newcanaan.info/departments/land_use/index.php
• Online Permitting: The town uses the OpenGov portal for permit applications. https://newcanaanct.portal.opengov.com/
• Key Departments:
  • Planning & Zoning: https://www.newcanaan.info/departments/land_use/planning___zoning/index.php
  • Building Department: https://www.newcanaan.info/departments/land_use/building/index.php

For specific contact details (phone, email) for the Zoning Inspector and Building Official, refer to the Staff Directory linked on the main website: https://www.newcanaan.info/departments/index.php

5. Links to Source Pages

• Full Text of New Canaan Zoning Regulations (including STR amendment): https://ecode360.com/NE0075/laws/LF1463415.pdf
• Proposed & Approved Amendments to Zoning Regulations (Contains the STR document): https://www.newcanaan.info/departments/land_use/planning___zoning/proposed_and_approved_amendments_to_zoning_regulations.php
  • Direct Link to the Short-Term Rental Regulation Amendment: [https://cms3.revize.com/revize/canaan/Departments/Land%20Use/APPROVED%20&%20PROPOSED%20AMENDMENTS/Section(s)%202.2%20and%203.3%20Short%20Term%20Residential%20Rental.pdf](cms3.revize.com/revize/canaan/Departments/Land%20Use/APPROVED%20&%20PROPOSED%20AMENDMENTS/Section(s%202.2%20and%203.3%20Short%20Term%20Residential%20Rental.pdf)