Short Term Rental Registration

SHORT TERM RENTAL INFORMATION

The Town of Montgomery has adopted a Short-Term Rental Registry Ordinance, effective September 1^st, 2026, to govern the registration and operation of short-term rentals in our community. This moves the process for a detailed review of short-term rentals out of the previously required “Conditional Use Review” by the Development Review Board into a streamlined registration process to provide a fast, reliable, and clear path for applicants, while still providing the Town the information required by Zoning Bylaws. These changes are in response to an effort to balance the well-established practice of renting dwelling units to visitors in our community with the needs of ensuring an adequate supply of long-term housing, preserving the character of residential neighborhoods, and otherwise protecting the public health, safety, welfare, and convenience of visitors and residents.

The Town looks forward to working with you and your short-term rental. Before starting the application process with the Town, please carefully review the following information:

• Definition of Short-Term Rental (STR):
  An STR is defined as a furnished house, condominium, or other dwelling room or self-contained dwelling unit, or a portion thereof, rented to the transient, traveling, or vacationing public for a period of fewer than 30 consecutive days and for more than 14 days per calendar year, but excluding the following:
  • a lodging establishment, as the term is defined in 18 V.S.A. § 4301, which holds a current license to operate a food and lodging establishment with the Vermont Department of Health;
  • two or fewer individual bedrooms or other portions of dwelling units rented to the transient, traveling, or vacationing public in a resident-occupied dwelling unit.
• STR Registration Requirement:
  Operating an STR in the Town of Montgomery requires an STR registration issued by the STR Coordinator (“STR Registration”). A dwelling unit cannot be used as an STR without the issuance of an STR Registration. STR Registration is valid until April 30^th of the calendar year following the year it was applied for, after which it must be renewed on an annual basis.

How to Register:

• Already Operating an STR?

Owners of STRs in existence between September 1, 2025 and September 1, 2026 must submit a complete, signed application, and pay the initial registration fee, by November 2, 2026, in order to continue operating their STR while their application is pending. {IF you already operate an STR with an active Conditional Use Permit registration is still required however, the initial registration fee will be waived}.

• Planning to Operate a New or Former STR?

Owners of property wishing to operate an STR that was not in existence between September 1, 2025 and September 1, 2026 must submit a complete, signed application, pay the initial registration fee, and obtain an STR registration prior to operating an STR. This includes any dwelling unit that was operated as STRs prior to September 1, 2025 but not after.

• STR Registration Fee:

The initial registration fee is $300.00 per dwelling unit, with an annual renewal registration fee of $150, due upon submittal of the registration or renewal. The fee is per dwelling unit and does not change if the owner chooses to rent the dwelling unit as a whole house or rent individual bedrooms separately. A dwelling unit is a building or a part of a building that is used as living quarters for one household. For example, a single-household dwelling has one dwelling unit, a duplex has two, a single-household dwelling with an accessory dwelling unit has two, and a building divided into four apartments has four. 

• Penalties for Non-Compliance:
  Operating an STR without the required registration may result in a fine of up to $800 per day.

• Dwelling Unit Capacity and Other Requirements:
  STR capacity is limited to 2 individuals per bedroom plus no more than 2 additional individuals per dwelling unit. For instance, a three-bedroom single-household dwelling is limited to eight people, (inclusive of both guests and any individuals living in the dwelling unit, should the unit be also owner occupied). The Ordinance also establishes other specific requirements beyond registration including a requirement to hold insurance coverage and provide minimum parking spots.

Ordinance:

Review the full text of our Short-Term Rental Registry Ordinance HERE

Forms Required:

STR Initial Registration Application Form

Vermont Division of Fire Safety: STR Safety, Health, & Financial Obligations Form