Overview: Short-Term Rentals Are Allowed in Burlington with Significant Restrictions

Short-term rentals ARE permitted in Burlington, Vermont, but they operate under strict regulations that took effect on August 3, 2022. The city has implemented substantial restrictions that limit the majority of STR operations, with regulations upheld by Vermont courts as recently as December 2024. These rules significantly limit investment opportunities and require host occupancy in most cases.

How to Start a Short-Term Rental Business in Burlington

Step 1: Verify Eligibility

Before proceeding, confirm your property meets Burlington's restrictive criteria:

• You must live on the same lot or in the same building as the STR (with very limited exceptions)
• You can only register ONE short-term rental per host
• The property must be located where residential uses are allowed

Step 2: Complete Registration

• Deadline: Must register by September 1st for existing STRs, then by April 1st annually thereafter
• Method: Online registration through Burlington's ViewPoint system
• Portal: burlingtonvt.viewpointcloud.com/categories/1085

Step 3: Pay Registration Fees

• Partial Unit STRs: $80.00 per year
• Whole Unit STRs: $220.00 per year ($110 base fee + $110 additional STR fee)
• Property Transfer Fee: $50.00 upon purchase/transfer

Step 4: Obtain Required Inspections

• Whole Unit STRs: Inspection required
• Partial Unit STRs: Exempt from periodic inspection
• Inspections conducted by the Department of Permitting and Inspections

Step 5: Set Up Tax Collection

• Register for gross receipts tax collection (unless using Airbnb, which remits automatically)
• Obtain Vermont rooms and meals tax account number

Required Documents, Permits, Licenses, and Guidelines

Registration Application Must Include:

• Property address and unit details
• Maximum occupancy and room counts
• Property owner information (name, address, phone, email, date of birth, driver's license)
• Local managing agent information (required if owner not in Chittenden County)
• Emergency contact within Chittenden County
• Service of process designation
• Written proof of primary residence (homestead declaration for owners)
• For tenants: Written permission from property owner

Safety Documentation Requirements:

• Working smoke and carbon monoxide detectors
• Fire extinguisher locations and instructions
• Emergency shut-off instructions for heating systems
• Emergency egress route diagrams
• Copy of Burlington's Noise Control Ordinance for guests

Additional Permits:

• Building permits if construction/modifications needed
• Zoning permits may be required
• State fire safety compliance documentation

Specific Short-Term Rental Regulations

Definition and Scope

A short-term rental is defined as a dwelling unit that is:

• Rented to guests for fewer than 30 consecutive days
• Rented for more than 14 days during any rolling 12-month period
• Subject to Vermont rooms and meals tax

Occupancy Requirements (Critical Limitation)

Hosts must live on-site in most cases. STRs must be:

• Within the host's primary residence (partial unit), OR
• On the same lot or in the same building as the host's primary residence

Limited Exceptions for Off-Site STRs:

1. Seasonal homes as designated by Burlington Assessor
2. Buildings with affordable housing component: Host must rent another unit in same building/lot that meets affordability criteria or houses tenants receiving federal/state rental assistance

Operational Restrictions:

• Maximum of ONE STR per host (cannot use multiple entities to circumvent)
• Partial Unit: Up to 3 rooms within primary residence (minimum 70 sq ft per room)
• Whole Unit: Maximum of 1 entire dwelling unit
• Properties with 5+ dwelling units have additional restrictions

Guest Services and Safety:

• Must provide emergency contact information available 24/7 within Chittenden County
• Property must be cleaned between each guest stay
• Written documentation must be provided to all guests including emergency procedures

Tax Obligations

City of Burlington Taxes:

• 9% gross receipts tax on all STR revenue (dedicated to Housing Trust Fund)
• Collected automatically by Airbnb
• Other platforms require manual tax setup and monthly remittals

State of Vermont Taxes:

• 9% rooms and meals tax
• 3% short-term rental surcharge (effective August 1, 2024)
• Must display tax account number on all advertisements

Tax Setup Process:

1. Airbnb users: No action required (automatic collection)
2. Other platforms:
   • Complete gross receipts application
   • Submit monthly returns to City Clerk & Treasurer's Office
   • Application available at: www.burlingtonvt.gov/sites/default/files/Updated%20Gross%20Receipt%20Application.pdf

Enforcement and Penalties

Enforcement Measures:

• Housing orders for non-registered or non-inspected properties
• Municipal ticket fines ($100 for violations)
• Court actions to cease unauthorized operations
• Third-party service provider tracking all STRs citywide

Grandfathering Provisions (Expired):

Non-compliant STRs operating before August 3, 2022 were allowed to continue until May 31, 2023, provided they:

• Registered by September 1, 2022
• Demonstrated existing reservations made prior to August 3, 2022
• Limited to one noncompliant STR per host

Contact Information for Local Authority

Department of Permitting and Inspections - Housing Division

• Phone: 802-863-0442
• Physical Address: 645 Pine Street, Burlington, VT 05401
• Office Hours: Monday-Friday, 7:00 AM - 4:00 PM
• Email: Contact through main number for housing division
• Personnel Directory: www.burlingtonvt.gov/DPI/Personnel

Online Resources:

• Registration Portal: burlingtonvt.viewpointcloud.com/categories/1085
• Permit Applications: burlingtonvt.viewpointcloud.com/projectTemplate/13
• Tax Information: www.burlingtonvt.gov/CT/Gross-Receipts-Tax

Legal Authority:

Burlington's STR regulations are contained in Chapter 18: Housing, available at:

• Full Ordinance: www.codepublishing.com/VT/Burlington (scroll to Chapter 18)

Source Links

1. City of Burlington STR FAQ: www.burlingtonvt.gov/DocumentCenter/View/693/City-of-Burlington-Short-Term-Rental-FAQ-PDF
2. Burlington Free Press Court Ruling Coverage: www.burlingtonfreepress.com/story/news/local/vermont/2024/12/04/burlington-vt-short-term-rentals-restrictions-airbnb-vrbo-housing-shortage/76733581007/
3. Vermont STR Laws Overview: www.proper.insure/regulations/airbnb-laws-vermont/
4. Full STR Ordinance Document: go.boarddocs.com/vt/burlingtonvt/Board.nsf/files/CEZNRG5AB920/$file/Ordinance%20-%20Short%20Term%20Rentals%20Ch.%2018%20and%20Sec.%20%2021-31%20Revised%20(FINAL.pdf
5. Department of Permitting and Inspections: www.burlingtonvt.gov/276/Permitting-Inspections

Important Note: Burlington's STR regulations are among the most restrictive in Vermont, designed to address housing shortages by limiting investment property conversions. The December 2024 court ruling affirmed the city's authority to regulate STRs, making these restrictions legally enforceable. Investors should carefully evaluate whether they can meet the on-site residency requirements before pursuing STR opportunities in Burlington.