Proposed regulations for short-term rentals discussed

April 19, 2024 - A new proposal for how to decide where short-term rentals (like Airbnb and VRBO) can be located in Hampton was discussed at the Planning Commission on Thursday. The proposal would also streamline the process for approving locations.

The new plan would divide the city into 51 zones. Property owners in Hampton will get a postcard notifying them of the proposed zoning overlay. It would not change basic zoning and will only affect short-term rentals.

Within each zone, only 1% of the residences could be short-term rentals. Separation distances are also proposed to keep the rentals 500 feet apart, unless they are side-by-side. That requirement is designed to limit the impact on neighborhoods so that the rental businesses would not overwhelm a street or block.

Property owners who meet these requirements would no longer have to go through an expensive and timely process of having public hearings at both Planning Commission and City Council meetings.

Other criteria introduced previously would remain - including a specific set of conditions for operating, including things like limitations on capacity, requiring sufficient parking, and requiring a responsible contact be available for issues.

Prior to December 14, 2022, a person could not operate a short-term rental in Hampton unless it was an accessory use to a home. The few permitted either involved owners who were away for less than half of the year, or who had a spare room or second building they rented. That still required a business license, and only 45 of them were issued.

However, the city had data suggesting that hundreds of short-term rentals were already operating in the city. None could get business licenses, and most were not paying their fair share of taxes. Knowing about and regulating those rentals proved challenging.

The city wanted to create a path to some of those STRs becoming legal and adopted the first set of rules. Staff was asked to work on the next phase: Regulating the density and proximity of those short-term rentals. City Council approved 11 permits, but concerns from neighbors and neighborhood leaders put a hold on considering applications until all the details were set.

The proposal is scheduled to go to Planning Commission for a vote in May, and to City Council in June. For more information, see hampton.gov/shorttermrentals or email [email protected].

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