Beginning in January 2025, Kennebunk, Maine, will require short-term rental (STR) owners to comply with the new “Good Neighbor” designation, part of an ordinance backed by 75% of voters. This initiative reflects the town’s desire to maintain harmony between STR operators and the local community while avoiding overly restrictive regulations. Town Clerk Merton Brown describes the initiative as a “soft approach” to managing short-term rentals, focusing on communication, safety, and community involvement.

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Key Provisions of the Ordinance

The “Good Neighbor” ordinance introduces several important requirements:

• Neighborhood Notification: STR owners must notify adjacent and opposite properties about their rental activities.
• Registration: All short-term rental units must be registered annually with the Town Clerk's office.
• Fire Inspection: Units must pass a mandatory fire inspection by the Fire Chief to ensure safety compliance.
• Good Neighbor Policy: Operators must provide renters with a policy outlining community expectations.
• Registration Number: A numbered registration will be issued for compliant units, to be displayed within the rental and in all advertising.
• Fees: The annual registration fee is set at $250.
• Data Collection: This initiative will help the town gather data on STRs to assess their impact on the community.
• Maintenance of Current Ordinances: Existing regulations related to noise and parking complaints remain in effect.

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Defining Short-Term Rentals

The ordinance applies to any dwelling rented for less than 15 consecutive days, affecting all rentals, including those listed on platforms like Airbnb and VRBO.

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Estimating the Impact

A subcommittee investigating STRs estimates that Kennebunk has between 500 and 900 short-term rental properties, although precise numbers are challenging due to multiple listing platforms.

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How Kennebunk Compares

Kennebunk’s new approach is less restrictive than other Maine towns. For example, Kennebunkport and Bar Harbor have set rental license limits, while Portland enforces registration caps and limits the number of units per building. Old Orchard Beach briefly considered a moratorium on new licenses, which was later withdrawn.

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Community Response

During the December public hearing, there was strong support for the ordinance, with limited concerns about government overreach. Attendees mainly sought more information, and the ordinance passed overwhelmingly in the June 11 vote. The program’s non-restrictive nature and reliance on existing noise and parking regulations were key to its acceptance.

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Conclusion

Kennebunk’s “Good Neighbor” program is a proactive and balanced way to manage short-term rentals. By encouraging voluntary participation and focusing on data collection, the town is addressing community concerns without imposing harsh restrictions. This approach fosters positive relationships between property owners and the local community, ensuring that short-term rentals remain a valuable asset to Kennebunk’s economy.

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To stay informed about vacation rental compliance and tourism-related news in Kennebunk and beyond, be sure to watch the video on our Lodge Compliance YouTube page. Stay informed by exploring this website to navigate the evolving landscape of vacation rental compliance and hosting effectively.

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