Overview: Are Short-Term Rentals Allowed?

Yes, short-term rentals are allowed in Kennebunkport, Maine, but only with proper licensing and under strict regulatory conditions. The town operates a limited license system where the number of new STR licenses issued each year is controlled by the Select Board through a formula based on the total number of dwellings in Kennebunkport. This means that while STRs are permitted, license availability is restricted and operates on a waiting list system when demand exceeds available licenses.

The town defines a short-term rental as "the use, control, management or operation of a legally existing residential dwelling unit offered for rent for transient occupancy for dwelling, sleeping or lodging purposes by short-term rental guests for a tenancy of less than 30 consecutive days, for compensation, directly or indirectly, excluding motels, hotels, bed-and-breakfasts, inns, seasonal rental accommodation complexes, and residential rental accommodations."

How to Start a Short-Term Rental Business in Kennebunkport

Step 1: Check License Availability

The first critical step is understanding that STR licenses in Kennebunkport are extremely limited. The town uses a three-factor system to determine annual license availability:

1. Properties that sell and hold current licenses that don't meet "transferability" standards
2. The number of new licenses issued by the Select Board each year (using a formula based on total dwellings)
3. Licenses revoked by the Select Board throughout the prior year

Step 2: Apply for a License

If licenses are available, you must apply through the GovOS portal at: kennebunkportme.munirevs.com/business-center/

The application portal is open until December 31, 2025, at 4:00 PM. You'll need to create a GovOS account and complete the application process. The town provides tutorials for both account creation and the STR application process.

Step 3: Complete Required Inspections

All STR properties must undergo inspection before receiving a license. The town provides a "Short Term Rental Inspection Checklist" that outlines all requirements that must be met to pass inspection.

Step 4: Comply with Good Neighbor Guidelines

All STR operators must accept and comply with the Good Neighbor Guidelines, which outline the behavioral and operational standards expected of STR operators in the community.

Required Documents, Permits, Licenses, and Guidelines

Primary Requirements:

1. STR License - Required before advertising, renting, or operating any STR
2. Fire Safety Inspection - Mandatory inspection of all STR properties
3. Good Neighbor Guidelines Agreement - Must be accepted and followed
4. Compliance with Short-Term Rental Ordinance - Must adhere to all ordinance provisions

Supporting Documents:

• Short-Term Rental FAQ document
• STR Inspection Checklist
• STR Violation Penalty Schedule
• Good Neighbor Guidelines
• Goose Rocks Beach STR Neighborhood Map (for properties exempt from cap)

Fees:

The fee structure is determined by bedroom count:

• $325 for properties with 3 bedrooms or less
• $475 for properties with 4 bedrooms or more

Specific Regulations for Kennebunkport STRs

License Limitations:

• Annual License Cap: The Select Board determines the number of new licenses each year using a formula based on total dwellings
• Waiting List System: When applications exceed available licenses, applications are placed on a waiting list
• Transferability Restrictions: Not all existing licenses can be transferred when properties are sold
• No Guarantee: Being on the waiting list does NOT guarantee future approval

Operational Requirements:

• Minimum Stay: Less than 30 consecutive days
• License Display: License must be properly displayed as required
• Compliance Monitoring: Properties are subject to ongoing compliance monitoring
• Violation Penalties: Structured penalty system for violations (detailed in STR Violation Penalty Schedule)

Special Provisions:

• Goose Rocks Beach Properties: Some properties in the Goose Rocks Beach area are exempt from the overall cap (see neighborhood map for specific locations)
• Safety Standards: All properties must meet fire safety and building code requirements as outlined in the inspection checklist

Prohibited Activities:

• Operating without a valid license
• Failing to meet safety standards
• Violating Good Neighbor Guidelines
• Exceeding occupancy limits
• Ignoring noise, parking, and other community standards

Enforcement and Violations

Reporting Violations:

• Direct Violation Reports: Call (207) 967-1614
• General Complaints: Call non-emergency police at (207) 967-2454
• Online Complaint Portal: str.govos.com/complaint/?cityid=1232
• Note: Anonymous complaints are not accepted or reviewed

Penalty Structure:

The town maintains a detailed STR Violation Penalty Schedule that outlines specific fines and consequences for various violations. Penalties escalate for repeat violations and serious infractions.

Contact Information for Local STR Authorities

Primary Contacts:

Planning and Development Department

• Phone: (207) 967-4243
• Address: 6 Elm Street, Kennebunkport, ME 04046
• Email: str@kennebunkportme.gov
• Website: www.kennebunkportme.gov/departments/planning_and_development/short_term_rentals.php

Technical Support (GovOS Portal)

• Email: blt.str.support@govos.com
• Phone: (888) 751-1911

Town Office Hours: Monday-Thursday: 8:00 AM - 5:00 PM; Friday: 8:00 AM - 12:00 PM

Town General Contact:

• Phone: (207) 967-4243
• Fax: (207) 967-8470

Planning and Development Staff Contacts:

For specific planning, code enforcement, and assessing questions:

• Contact Page: www.kennebunkportme.gov/how_do_i/contact_us.php (Planning, Code Enforcement, Assessing)

Source Links and Additional Resources

Primary Government Sources:

1. Kennebunkport STR Main Page: www.kennebunkportme.gov/departments/planning_and_development/short_term_rentals.php
2. STR Ordinance (Online Platform): ecode360.com/37507767
3. Application Portal: kennebunkportme.munirevs.com/business-center/
4. Submit STR Complaint: str.govos.com/complaint/?cityid=1232
5. STR FAQ Document: www.kennebunkportme.gov/Documents/Departments/Planning%20and%20Development/STR/STR%20FAQ.pdf?t=202410310840360
6. STR Inspection Checklist: www.kennebunkportme.gov/STR%20Inspection%20Checklist.pdf?t=202504291602110
7. Violation Penalty Schedule: www.kennebunkportme.gov/Documents/Departments/Planning%20and%20Development/Penalty%20Schedule.pdf?t=202408141330410
8. Good Neighbor Guidelines: www.kennebunkportme.gov/Documents/Departments/Planning%20and%20Development/good_neighbor_policy_final_10-20-21_final_0.pdf?t=202406200924590
9. Goose Rocks Beach Neighborhood Map: www.kennebunkportme.gov/Documents/Departments/Planning%20and%20Development/grb_neighborhood_map.pdf?t=202406200925000

Supporting Resources:

1. Town Ordinances and Codes: www.kennebunkportme.gov/departments/planning_and_development/ordinances_and_codes.php
2. Town Code: ecode360.com/KE3910
3. Planning Department Forms and Permits: www.kennebunkportme.gov/departments/planning_and_development/forms_and_permits.php
4. Inspection Appointments: www.kennebunkportme.gov/departments/planning_and_development/inspections_appointments.php

Historical Context Sources:

1. Maine Legislature STR Report: legislature.maine.gov/doc/8864 (Contains summary of Kennebunkport's 2022 ordinance implementation)

Important Investment Considerations: Given Kennebunkport's restrictive licensing system and limited availability, potential STR investors should thoroughly research property availability and understand that acquiring an STR license may involve significant wait times or may not be possible in the near term. The town's approach prioritizes community character and residential stability over STR development, making this a challenging but potentially lucrative market for those who can secure licenses.