LUDLOW, Vt. – Ludlow has again opened the conversation on implementation of a short-term rental (STR) registry to address safety concerns and regulate the growing number of STRs in the area. The initiative has seen both support and opposition within the community.
In January 2024, a motion to establish an STR registry was presented during a special joint meeting of the Ludlow Selectboard and Village Trustees. The proposal aimed to enhance safety and ensure that STR owners were informed about regulations such as fire safety and occupancy limits. However, the motion resulted in a 2-2 tie, leading to its failure.
Following a significant fire incident at Okemo’s Trailside area, discussions about the STR registry were reignited in November 2024. Town manager Brendan McNamara emphasized that the primary focus of the registry would be safety, particularly fire safety. Fire Chief Ben Whalen supported the initiative, highlighting the importance of ensuring that STR owners are aware of and comply with fire safety regulations.
As of the Nov. 19 selectboard meeting, the discussion on the rental registry concluded with the planning board chair agreeing to revisit the initiative and present it again to the selectboard. No specific timeframe was provided.
The planning commission has also begun discussions on the rental registry, leading to an agreement to revisit the topic after its public hearing on Feb. 18. Community members are encouraged to participate in these meetings to voice their opinions and stay informed about the progress of the short-term rental (STR) registry initiative.
It is worth noting that, this fall, the State of Vermont introduced an additional 3% lodging tax on all short-term rentals, in addition to the existing 9% rooms and meals tax, bringing the total tax to 12%. Platforms such as Airbnb automatically collect and remit this tax on behalf of hosts. However, owners who rent through agencies or their own booking sites are responsible for collecting the 12% tax and submitting it to the state. Recent discussions about implementing a 1% local tax on short-term stays suggest it could generate local revenue without placing a financial burden on long-term rental owners.
Considerations for a STR registry
Discussions surrounding the establishment of a short-term rental registry have become increasingly complex. Without a clear end goal, these conversations tend to circle endlessly.
For some, the primary objective is revenue generation, with fees designed to discourage short-term rentals while funding a full-time position to oversee the registry. Others focus solely on safety, particularly regarding occupancy limits.
The Vermont Fire and Safety Division already has established rules for occupancy in both short-term and long-term rentals. According to state regulations, the maximum occupancy without a special alarm system is eight people. Property owners may “self-certify” their rental for up to eight occupants using a certification form available on the state’s website.
Furthermore, Vermont law states that any property rented for even a single night must comply with fire and safety regulations. Rentals – whether short- or long-term – exceeding eight occupants must undergo a state inspection, address any violations, and may be required to install a commercial fire alarm system or, in some cases, a sprinkler system. These rules apply to all rentals statewide.
Another key debate is whether Ludlow’s registry should include both short-term and long-term rentals, or focus solely on short-term rentals. The situation becomes complicated, as property owners often switch between short- and long-term rentals. Vermont defines long-term rentals as stays exceeding 30 days, at which point the 12% Vermont Meals and Rooms Tax applies. Long-term rentals can be year-round or seasonal, typically spanning five months in winter, or one to three months in summer.
Concerns have been raised about the financial burden a registry might place on year-round rental owners. Without a registry, long-term rental owners and tenants can continue renewing leases for multiple years without mandatory inspections. Issues such as outdated smoke detectors and carbon monoxide alarms are usually only identified during property sales, either by real estate agents or building inspectors.
In conclusion, establishing a clear goal for a rental registry is essential for moving the conversation forward. Defining its purpose – whether focused on safety, revenue, or both – will help Ludlow address public safety concerns while balancing the needs of property owners and tenants.
Written by Suzanne Garvey, owner/broker, Mary W. Davis Realtor & Associates.