What You Need to Know About Short-Term Rentals in Connecticut

When it comes to property management in CT, short-term rentals (STRs) - also known as vacation rentals or Airbnb rentals - are gaining popularity due to their convenience, affordability, and unique experiences. However, it's important to consider both the advantages and disadvantages, as well as adhere to the rules associated with any rental property.

Platforms for Short Term Rentals in Connecticut

In Connecticut, STRs have access to a number of platforms, including Airbnb, Vrbo, Booking.com, Expedia, TripAdvisor, and HomeAway. Every platform offers a set of distinctive features and benefits. It's important to take into account aspects like cost, location, amenities, and customer feedback while selecting a platform.

Regulations on Short Term Rentals in Connecticut

The concern for investors trying to establish a portfolio of STRs is that many communities along the Connecticut coast are lobbying for limitations on STRs, particularly mandating a minimum of one month to rent. Calculating this risk is crucial when evaluating a STR property.

Westport, Stamford, New London, and East Lyme are just a few of the Connecticut cities and towns that have stories about STR decisions. As an illustration, Westport permits short-term rentals, but hosts are required to register with the town and pay a registration fee. 

Westport: Short-term rentals are permitted, but hosts must register with the town and pay a registration fee. The maximum occupancy for rentals is two people per bedroom, and the maximum number of days a guest may stay is 29. For more information, contact the Westport Planning and Zoning department at 203-341-1030.

Stamford: Short-term rentals are permitted, but hosts must register with the town and obtain a permit. The maximum occupancy for rentals is two people per bedroom, and the maximum number of days a guest may stay is 30. For more information, visit https://www.stamfordct.gov/planning-zoning/pages/short-term-rentals.

New London: The city council has enacted rules requiring hosts to register with the city and apply for permits for properties used for short-term rentals. The rules also place restrictions on the number of visitors and length of visits. For more information, visit https://ci.new-london.ct.us/departments/permit_center/short_term_rental.php.

East Lyme: The town has established rules requiring hosts to register with the town and obtain a permit for short-term rental properties. The rules also place restrictions on the number of visitors and length of visits. For more information, visit https://eltownhall.com/planning-zoning/short-term-rentals/.

Pros of Short Term Rentals in Connecticut. Should you invest in STR properties?

One of the main advantages of STRs in Connecticut is flexibility. Travelers may quickly book a rental house for the exact dates they need, and typically have a wide range of houses to choose from in the area of their choice. Another benefit of STRs is their ability to be more cost-effective than hotels, especially for longer stays or larger groups.

One more advantage of STRs in Connecticut is the availability of homelike amenities. Short-term rentals usually provide homey features like a kitchen, washer/dryer, and separate living areas for tourists who desire the comforts of home while on vacation. A few of the unique experiences that short-term rentals can offer that aren't available during a standard hotel stay include staying in a historic building or a private house.

Cons of STRs in Connecticut. What are the disadvantages of STRs?

One of the drawbacks of STRs in Connecticut is their lack of consistency. Contrary to hotels, short-term rentals can have sole proprietors or independent property managers in charge, which can result in variances in the properties' amenities, cleanliness, and guest service. A further potential drawback of STRs is that they could be subject to local laws and regulations, which can be confusing and changing for inhabitants.

The necessity to understand and follow local laws and regulations is one additional issue with STRs in Connecticut. Short-term rental laws might differ from town to town, which can be perplexing and present difficulties for both hosts and visitors. It can take a lot of time, and extra work and resources may be needed, to keep track of these regulations and ensure compliance.

STRs offer many benefits to travelers in Connecticut, but also have potential drawbacks and regulations to consider. By doing research and being aware of the regulations and risks, both hosts and guests can have a positive experience with your property. Happy Investing!